tv Fast Money Halftime Report CNBC October 23, 2019 12:00pm-1:00pm EDT
association? >> congressman, the short answer would be yes if we. >> so a posh of this you would pull out >> we've been watching mark zuckerberg testifying on capitol hill for the better part of a couple of hours now. weaver going to continue to monitor that let me welcome you to the halftime repo halftime report. i'm scott wapner front and center, more major companies reporting today several stocks are moving. we'll discuss which you should own and which you should avoid it's 12:00 noon. this is the halftime report. >> a big miss for boeing and t cat's earnings getting crushed but both stocks holding up what is signalling and the next move for your money? mark zuckerberg grilled on
capitol hill facebook hashares down 10% in te past three months. the risks facing the stock all in on apple. two big price hikes. one, a new street high it's our call of the day microsoft earnings after the bell the stock outperforming all the fangs over the past one year the traders take their positions. halftime report starts right now. >> good to have you with us on this wednesday our investment committee, joe, stephanie, the brothers najarian we're going to monofacebook. a hearing going on on the hill there mr. zuckerberg another big dayfor earnings steph, you own caterpillar missed they cut guidance. china story. this is b about weak demand in china? >> well, it is, but nothing they've said today was surprising and if you look at the sell and buy side, earnings
estimates, they're around $11 so the midpoint rath eer is about 10:48 so it's not that much off. they destock $1.2 billion of invenntory in a year's time. i like the risk reward and the stock reaction is telling you everything you need to know. >> you hear cramer this morning? hear jim say it's a tough stock to own >> it is it's not easy. when numbers are coming down and you have, it's a you know, it's all about china and the global dprout and that has been slowing down but that's not surprising. the stock is trading on the new numbers at 11 u times forward estimates. giving you a 2.8% dividend yield. a quality company with a good balance sheet so again, the stock reaction is telling you bad news is already priced in. >> no one else owns it, that says a lot >> i don't own it, but i thought they had a lot of good things to
say on the call so to steph's point, i think it looks brighter on the horizon than it has look ing back over the last six months what i heard them say was that stimulus that china is now applying is going to manifest itself next year in 2020 that was a very positive projection and something i think that with sales in china down 8%, year over year because that's what the numbers showed, they made up for that with a lot of big sales in north america. in latin america and brazil and so forth but if china does come back because of the stimulus being offered, judge, that's very bullish for these guys >> retail sale s numbers for september accelerated 200 basis points and that's very positive. at least the moment it was going in the right direction >> when you're looking at this one, caterpillar, obviously the stimulus you're talking about makes total sense. why don't i own it right nowrfo.
>> why i'm not in a hurry is i think it'sweook at the asian nus a pretty easy read through, but the reality is if you believe that the trade war will get at some point or another, we'll see some sort of an a i agreement here, then this is one of those stocks that i think absolutely has unblooelievable upside i think it's further out >> this stock is going to be 20 points higher. >> but i don't think in the next couple of week, maybe not the next couple of months. >> why hasn't the move in this stock reflected the overall optimism about even if it's incremental in trade has pushed the market within its highs. caterpillar hasn't done anything it's a class colossusal disappointment >> there are points and pockets
in time when you want to own this thing and i think august, it got way oversold and a ik basted on where the numbers are headaching out right now, you're talk iing about a r very, very cheap stock. you have to own some hard stocks to make money. you don't want to be all in where everybody's at >> i know. there are others you own you don't want to pull all your hair out, right >> doc, look like us >> ge is like -- >> i'm fine with ge. >> now cat some point >> i actually have my cost basis is right here. >> i know. what about boeing? how coyou read boeing, which you own as well? obviously the max is the story the stock chart suggests keeping the timeline in tact -- >> they get this in the air, the stock is going to be a lot higher it's not as cheap at caterpillar, but cash flow is the key and 2020 it sets up for
a better cash flow year. like $32 a year in free cash flow next year is what i'm expegting and that's attractive. >> how about honeywell ceo, double digit bookings gains in china, middle east, latin america. europe was up nearly double digits i'm reading what the ceo said. up in germany and the u.k. one of your favorite >> very strong message, but yes, i did sell the stock last week and i'm fine that i did sell it. 178 was the high in july a stock right now pricing around 169.5. i think this industrial conversation is a very interest ing conversation as it relates to the overall marketplace i've used the term i believe the eck quities market is a coiled spring ch i think the industrials market and names like caterpillar and boeing is giving evidence to that. nothing changed in caterpillar's report inventory glut asia's bad mining, oil and gas is lousy
we knew that in july with caterpillar, but yet the response to the stock, it's telling you that bad news is now priced in in the industrial space. >> you think about buying it back then? >> even with boing >> i'm not going to buy caterpillar or honeywell because there are opportunities i'm finding in the industrial sector that was that i was not able to find six to 12 months ago so i love the housing theme how about an industrial contributor to the housing theme which is masco thaifr going to report i've been in cintas. you want to buy a stock that's strong take a look at waste management. get it at 116. that's been a stock over the last year that's been incredibly e resilient in the industrial space so there's other areas of the industrials finally where i think you could find opportunity. i think that lends a very positive message overall for the market and i think it offers you a little bit of distinction to wait for the caterpillars and
boeings to rightfully come back. they will. >> let me lock at another stock that missed and guided well below estimates, too, that's texas instruments. pete, i want to come to you first on this. on pace for its worst day in a year >> yep >> it's a little bit off the worst of the session, too. but it's getting ripped. >> really what is down to is the guidance they gave was awful. that was it. but look at where their exposure there ar to be in texas instruments because of their exposure and times you don't want to be got autos, industrial, all of that that is something they've got to deal with and they've got to be b able to navigate that themselves and i think people are looking at that thinking again this is another one of f those with the industrials, we were just talking about that any kind of deal any kind of movement to the positive this is going to be very bullish for tex. i'll give you a teaser if you want i got a name in the semi space i'm going to be doing for unusual activity that's not
texas instrument, but has a lot more different ways that it's exposed and it's much more towards what people are doing with themselves, with phones and everything else. >> so pete makes a good point and one cramer was making, too, was that don't look at texan as a read through for what's happening in the chip space. they're in difficult businesses. >> yes and too often, we do that last week, fedex last week everybody said hey, oh, boy, that's a prbarometer of everythn going on ups came out, didn't seem like they had the same deal completely different it's how you're navigating and sometimes we overread these and say you know what, this is a barometer for everything out there. that was a great example this is a company that's much more focused they've done a better job of the transition, where they are ups, versus their competitor just take a look at those charts >> jim said look at terror dine. a name like that they're the ones that are up sharply today and you can go ahead and sell some of the
names, you can sell on semi. you can sell nxpi if don't like what texan delivered >> i bought more nxpi. >> but the idea of terra dine. >> i've owned it gave it away way too soon, but that's the equipment story and what the semis right now are about. i think we've talked about in the last couple of months that we wanted the exposure to sesem semi equipments. it's about the logistics it's been a masterful winner you're going to get another semi equipment name, which i am long you're going to get the report for lam research that's front end semi equipment, but i'd expect you'll see continued d strength >> jim said don't sell amd, if you do, shame on you there's maybe a thought you look at a texas instruments and say okay, i'm going to take that
name out take that name out he's like whoa >> just to do that >> pete said about you know, don't throw the baby out with the bath water more or less. this one, terror dine did exactly the opposite of texas instruments. they both beat on the profit side then they cut it by 20% those are two companies going in opposite directions. doesn't mean it's a no touch means you're going to see a few days of pressure on this this one. >> so cramer's point about the nx prk i, steph, tell me why you bought it today. >> they made an an wii sigs.
you have synergies from that there's upside to margins given their cost structure it trades at 12 times forr ward estimates and i think those have been for the most part derisked. i think part of texas instrument's issue is that it was kind of a safe haven and a lot of people were hiding in the name yeah, they have auto and industrial exposure, but a lot of other end markets that are doing fine they never took down the write down from huawei they actually built inventory over the last four quarters instead of reducing it like some of their competitors, so ipg there are some specifics that you don't want to extrapolate as saying auto and industrial are hosh i think there are pockets where you can make some money. >> smh up 30% year to date even with this follow through on the bad news from texan and the other movers still like chips >> i do. there are certain names that obviously today we're talking ab it very specific names. >> aside from individual names,
would you buy the smh? >> no. i want the equipment names there was a time i owned the smh and that was the time to buy it. you want to be selective and specmi is a big component but i'd rather just own tsm the actual smh we told you we were monitoring the hearing on capitol hill. mark zuckerberg continues to testify there. elon is in washington and with us right now hi, elon >> the hearing is in a brief recess after zuckerberg testified for about two hours. election security, privacy, competition, political speech, housing, diversity.
all of these issues are front and center now on the main topic of the day, libre area. lawmakers on both sides of the aisle sounded skeptical and didn't trust facebook could get this right here is republican congresswoman ann wagner >> why are they deported scores of stable partners have dropped out. why? >> congresswoman, i think you'd have to ask them specifically. >> what do you think they dropped out? >> because it's a risky project and there's been a lot of scrutiny >> yes, it's a risky project >> zuckerberg said later that he would be willing to leave the libra association if it did not get clearance from u.s. regulators, but he said he hoped the crypt o currency would be able to move forward and framed this as a race with china. he said if facebook and libra delays, china will move ahead and america could potentially lose its place at the global
financial innovator. i'm told mark zuckerberg has noy is now continuing. >> thank you outside the hearing room in d.c. let's stay with fang trade because -- >> might have bumped up apple. 289. katy huberty did that today. another all time high today. >> she talks about apple tv plus and going into that whole word going forward, not anytime immediately, yes, 2020, into '21, up to '25 she's got a great vision and it's the same she had when we talked ab services and growing and they're taking a bigger and bigger piece of the pie with a lot better margins for apple so that's going to be good but then you bring up the wearables, which is another 10% of what their revenues are
when you look at what apple doing, it's the verticals and this plays in. the tv will add that much more and you know what, they can spend the money. we know about the cash flows one of the things i thought was interesting. i've never looked at the stock in this way, but when you add the dividend with the buybacks, you're looking at an 8% yielder on apple a pret thety big number when you look at what we're looking at now, we talk b about the ten year all these different bonds, all this stuff, that's something that's significant and they're going to continue to do that they're going to continue to buyback and eventually i would guess they'd raise up the dividend >> how about the deal with roku? it was on its backside and slipped here and there since then but that deal with roku basically distribution of apple and its products through the roku platform. this is going to be huge i think. and i think it will be very positive for both xacompanies. that's what both stocks are
telling me so i really like what they did there much like i don't know exactly how much because it's not been expressed how much the verizon deal with disney will end up costing to give 12 months away to all these verizon users, but i like the roku move a lot >> have you been to the 5th avenue store yet it's all about customer attention and the service. i was in there yesterday afternoon. sat there loork ed at all the products i'll be this, that, every product is offered i looked at the watch. to me, what apple is is about. it's ability to retain its customer i believe the retention rate is around 92% okay maybe you're not going to innovate if that's what steven weiss thinks about the company we all disagree. >> he going to call in >> we may disagree, but i'll tell you what. while they're waiting to innovate, the rest of us will sit there and wait wee not going to leave and xwo somewhere else that's the
remarkable story about this company. >> 289 is not to -- >> jean muster -- >> she hasn't you know naileded it the whole time. >> no, but she's been pretty good and not jumped off the ship, either, scott. when she's shifted off, she's run it down mildly this is a big jump from where she was to this 289 level. >> too optimistic? >> especially if you want to, people will eventually start pricing this company differently and i know you brought this up many times a lot of people talked about this one is it a hardware company r or what is apple? where do you categorize apple going forward and i think that changes the dynamic a lot. that's why 289 isn't that high >> bernstein goes to 225 reiterates the market. other fangs. alphabet price target goes to 1700 from 1500 at credit swees >> recently have been trimming twitter and also facebook.
i just like the risk reward into the quarter. they've got a great product that we know so i think i don't have to get much right for the stock to continue to work. >> you mentioned twitter let me jump to, we ready if r julia? let's go to julia on twitter she has something then we'll talk on the other side >> hey, julia. >> yes, twitter fall uing to session lows ahead of earnings tomorrow before the bell now twitter's move lower continuing its downward trend this month comes after social media stocks are very much in focus. mark zuckerberg testifying on capitol hill about facebook's efforts to launch its crypto currency, but he's been pressed on a number of issues that would also affect twitter. said the responsibility for content on the platform and election security as well as political advertising.
snap shares it's worth noting, they're also down about 5.5% this morning after yesterday they reported better results, but the move low er reflects th fact that snap's guidance for the fourth quarter was lower than analysts anticipated. come up tomorrow when twitter reporting before the bell, not only will their user growth be this focus, but there will be questions about what they have to say about all of the you know, political scrutiny of twitter and whether or not any of these talks about regular lace will be impacting the company. so that's an area to watch guys, back to you. >> proeshuate that we're talking about alphabet steph had mentioned twitter. what about alphabet? 1700 >> doesn't seem out of reach not one i've owned >> 500 bucks
>> not one that i've owned for a long time. >> there's a paradigm shift. they're finally doing what many have called for them to do which is the apple model of going back and aggressively buying back their stock. it's something that over the last couple of years, alphabet has been deficient in that strategy relative to an apple, but now they're getting aggressive with it and if that works, they'll gain momentum both technically and fundamentally. >> it has. >> really has. 20% year to date actually on the screen now to my point. >> what about amazon price target you know bufferin add litt bumped a little bit. 30 bucks at bmo. just to finish the fang trade. >> i still like it i trimmed it but i still thind on fire and so i'm holding it as a long-term secular story. but it's a small position for me relative to where it has been. >> doc, amazon >> i've not been there enough so
i kick myself for that all the time scott, but i've never been a guy the whole deal because i look at it as aws, but the e commerce side sh, the margins aren't there. so often time, i've taken advantage of the fact that when they go into someone else's category, they'll push it down and i think that's always ended up being buy >> reporting tomorrow. it's remarkable to me how out of the headline the business headline now is is in terms of stock performance. i don't think the expectations are there. it's market cap is below a trillion kodollars and the prio four quarters, the stock has not responded positively it's as if we dismissed amazon from a conversation when it was preimminent in all conversations. that's not going to, that's -- >> the interesting thing will be if microsoft and see what microsoft says they're doing versus them in terms of wars they've got going on there because if they start eating away more and more, scott, that's the margin business that's the only margin business
amazon has so because of that, that's something to keep very close eye on >> we are going to take a quick break. here's what else is coming up on the halftime report. >> just hours after under armour, nike also announcing a major shake up at the top, naming a new ceo what it means for the stock from here plus, we want to hear from you. send us your questions at cnbc.com/halftime. or tweet us using ask halftime the desk is answering them straight ahead the halftime report with scott wapner and the traders is back in two minutes ♪
welcome back president trump making a statement from the white house on what he's calling the big success along the turkey syria border he says he is lifting economic sanctions against turkey after an cara informed the u.s. it will make the five day cease fire in syriapermanent zpl by the moves that we've made, we're achieving a much more peaceful and stable area between turkey and syria including a 20 mile wide safe zone laura cooper, the acting deputy secretary of defense,
arriving on capitol hill this morning for her closed door testimony. "the new york times" reporting ukraine officials knew about the u.s. aid freed before it became public, undermining a key argument in president trump's impeach. defense. and walmart says christmas sales are starting earlier than ever this year they'll begin october 25th it will sell 500 exclusive toys, 20% more than a year ago and they have free, next day delivery and it's not even thanksgivi thanksgiving back the you >> october 25th? >> october 25th. i know no pressure. no pressure. >> guess not thanks sue herera our next next isn't quite ready to get bullish on stocks despite an earnings season which hasn't been as bad as feared. mike wilson is morgan stanley's chief equity strategist. is that accurate you're not ready to feel so good
yet? >> not yet >> what's the problem? you admit we're not as bad as feared, right? >> that's where we'll probably have a debate. the earnings story is clear. let's go through some numbers, which is s&p 500 earnings will be down 4 or 5% third quarter. maybe better, down three >> down less than three now. say three. >> whatever, three, fine but the bigger story is in the s&p and 1000 mid small caps are down almost double digits throw quarters in a row. we can agree that a the engine of jobs growth is small businesses is that fair can we agree our call has been that the risk of a recession is a labor cycle and my concern continues to be if thi improve they're going to have to start laying people off. i think to say that risk is behind us is premature first of all, the market has rallied a lot in the last couple of months. we've had the fed cutting rates,
a lot of monetary stimulus, which is good. a brexit progress. trade deal progress. so i don't see any reason why we're going to break out here. same set up we've had this summer there's mixed ed earpings out there. >> sure. zpl an until that mid small cap area starts to show improvement, i think the risk of a employment cycle is el rated. >> i want dwrou listen to what josh brown said the other day about the market as a whole. and i want to react to it on the other side i think it's relevant to this conversation >> small cap stocks, they were the fly in the ointment just a month ago. up 4.5% in seven trading sessions transports on a massive tear since the lower end of the banks. and now the banks. absolute wildebeest. take a look at bank of america at the upper end of its range ch when you have banks working, more new highs for the home build eers. you have all these things happening. i know the rhetoric is negative,
but price is not paying attention to those things. price wants higher small caps working, transports working, banks working these were the things we said we needed now you have them. what are you going to tell me now, tough guy >> he's not speaking to you directly as tough guy, but to people like you who are thoughing shade on this market >> what we're seeing is the risk reward isn't great hey, josh, 20 year treasury bonds have destroyed stocks ore the last year and a half small caps have understood performed. long utilities, staples an financials and our equity portfolio has outperformed the s&p 500 by 13 basis points in the last year. don't tell me being set up that way has been the wrong way >> until i see evidence beyond just a few weeks, i think it's premature. >> you've largely been right we've given you props on tkaus
you've made, but i want to borrow a loin frine from you any maybe the time to still be negative, this is not the time to be negative that was many months ago that was the time now is the time to say okay, maybe this is evidence things that trough and we are back working our way back up maybe a brexit resolution. more optimism on china trade we know about all the negatives that are out there maybe now is the time to get more bullish >> i think the time to get bullish was in august because you were at the low end of the range so we're not that bearish ch it's not like last year where the fed was toiighten rates that's the low end of the range now so we are more constructive on potential recovery next year. once again, i still think it's premature to think we can break out of this range in a meaningful way and it's going to be led by cyclical stocks in a sustainable fashion. so i respect the market more
than anybody i agree with josh in a sense that you have to listen to the market he picked out u a few things that were positive and i could pick out some negative if things r were b to be the to gear up, you'll see things accelerating. not a great outlook r for growth >> but relatiative to where the were >> of course >> that's why we're at 3,000 that's why we have traded to the top end of the range so i don't want to get boxed into a corner. >> i didn't say you were always negative that's the genera that we have to break out now we have to digest these gains. let's see the evidence come in through the earnings season. let's see if there's a deal, not just a phase one agreement let's see if we have more evidence that we have enough to punch through into 2020. >> that's fair with good reason to be
skeptical. we've asked the question week after week after week, what's going to get stocks to break out of their hang range. no able ility to do that what that i thinks it to get somebody like mike wilson to change his viewview >> i would focus on profit margins. what would be your outlook there and do you think that continued resilience and even an acceleration which would prizing the all of us maybe takes your scenario higher. >> yeah i think that's what we're looking for so on the earnings side, the reason they've been disappointing is because they have negative operating leverage they have positive sales growth still in the economy we have small companies delivering 3, 4, 5% top line but seeing 10% negative earnings growth so until we start to see companies get ahead of the cost issue and to be honest, if i saw companies start firing people, i would get more positive because that's what's going to protect profit margins into next year.
that's the thing i'm looking for, right in other words, i'm rooting for r a recession in some ways because that's what will get the flush in terms of expectation, it still has to happen, then we can have a cyclical recovery >> what do you think about the isms >> of course we're closer because we've had such a decline. all leading indicators suggest we could still go lower. once again, i'm still r very focused on the labor market. that's the only thing that's separating us from the isms going lower or not. i don't have enough evidence to shay things are going to accelerate >> so suggest things are going to get as bad as you say they might. zpl i. >> i'm saying that's not what's priced anymore at 2700 when cyclicals are falling out of bed, that was some of the stuff i was looking to buy i said we should be selling software then. happened that's good. the market is taking out some high flyers, but i think the stocks are starting the price in
a better recovery. i do think at 3,000, the s&p where we are today, is no longer pricing in a continued deacceleration of the pmis it's anticipating some recovery. that's all i'm saying. you got to look at price and fundamentals >> i got you but if they're looking for a recovery rates are moving up why stay with the staples trade and utilities an these bond proxies which have been so in favor that would like ly fall ou under that scenario? >> that's why we have financials on the other side. we are putting a leg into one group which is financials. a, because i think the earnings situation is better there and in other cases, they have a handle on cost and the second thing is i think rates will make a move higher so i think it's premature for things like materials and nrnl and some of the industrial areas just from what we heard from the companies overnight. so and by the way, i'm still not sold on the whole trade deal
argument as a firm, we're still not sold that there's meaningful progress i want to see more progress we're going to roll back >> nobody's going to fault you r for having that view, where we've been over the last year. pete >> it's about the time frame that was something i brought up earlier. i don't expect it to happen anytime soon i think this is something that probably gets pushed off how do we navigate through that time frame that's the difficult part. say it's six months out. navigating, you brought up the fro categories where you're looking. is that where you'd stay or is this anything out there x we're pret theri close on this world tech or semis. >> we've been buying japan and europe so we allocate globally. japan and europe has been outperforming the u.s. because we think and this is people have been making the call growth to
value. we made that call year ago but with a twist our goal was not going to be o b the cyclical parts of value, but the defensive parts and that now what we're getting is is growth is underperforming value t not that value is outperforming growth it's that the growth stocks are getting clicked. that's why value is starting to outperform on a relative basis i think this is really important. we are secular bulls we think global inflation is going to make a return next year once we have a further slowdown. we get past the election rates recover because the fed cuts a few more times. we think the leverage, the real value opportunity in the world is in japan, europe and part of the emerging markets that's stuff that's been thrown away that would include the cyclical parts of the united states not the darlings that have kind of led so the thing we've got to be careful about getting too bearish is not so much that we're underweight growth, cyclicals and too much exposure
in defenses because rates will make a move higher >> that's what i mean. we have both >> we're fully invested across the equity market. we have to skew in certain areas. >> i'm say iing what you said. the risk is you got to be careful playing that trade the way that it's going to continue to work the way it has >> agree last question to you the fed. what if the fed does pause what if they pause don't cut rates. >> well i think if they, that means something's changed. >> for the better, right >> i think if they pause, that means they've got better data on the isms in early november or have evidence there's going to be better data there or employment data of some kind i think the meetings before this came out but something would have had to have changed that would make them feel better and will change at that point. we haven't seen it yet so we're all years on that. we're not, no heads in the sand on the data points >> didn't think you were
good having you here >> thanks. >> mike wilson all right. first under armour, now nike mark parker stepping down as ceo. on the same day. we'll talk about what that means for the stocks s&p sectors. s&p is up 4. we're back right after this. servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead.
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nike shares lower on news the ceo is stepping down he's going to be replaced by the man who ran ebay he has been a nike board member. stephanie, you own nike and what i find so interesting is that you say you trimmed the stock because of this news not because necessarily just mark parker, but because donahoe is the guy >> i think great on data and technology and e commerce. that's where your story works if he can get it right. but what does he know about nike, fashion? i don't know how great of a fit it is on the merchandise side. maybe they have a great bench. i think they do. and parker's going to be there r for a while so i don't think there's going to be drastic change but i just kind of feel
like at 30 times estimate, i just feel like this is really rich and the risk reward just isn't there. so it's up 28% year to date. had a nice run i prefer under armour as you know that's the one i've been add in to on down days. looking at it now because it's down sxwl i think this could be more upside i know we b probably disagree. i think the stock could get above 100. the fact parker is going to be there, he could focus on market and product. i think donahue coming in is about digital. the same playbook that starbucks utilized it's about getting your online sales which are around 15% for nike the it's getting it up to 50% target he's the right person to do that, to reach that goal and going to be one of the reasons why this stock is going to continue to trade with such a rich premium >> jon >> i own calls and i like the stock over all, scott, but i just haven't been able to get my head around the valuation.
so instead of going into the stock and writing calls, which would have been one of the normal things i do, i'm in call spreads. i own one call, sell calls above it not saying the it's a home run hit, but it's just a steady performerer and i don't know why it stocks. >> it's blake and parker on the same day >> it is surprising. back to the trade though under armour for me, it's just the valuation is so high that it's a trade absolutely a a trade not something i'm looking at holding for any period of time nike's gotten to that same point. when you look at the multiple of it haves the growth then lulu with their growth, it's not even compare bable. so i think the lulu. the reason i own that and not nike because of the growth and all the different ways they can grow a lot faster than nike ever will >> when we come back, options bulls, so say the brothers are finding opportunity in financials and tech. jon anpe hd teave the trades coming up next in unusual activity
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exchange today we're going to take a choloser look at these earnings plus chipoltle is the best performing stock of the yearment the company just delivered another big speech, there are some challenges ahead. we'll speak about it with the ceo ahead and weworks rescue deal is comeing not a minute too soon a look at how close this company was to running out of money. scott, we'll see you then. >> thank you very much all right, morgue b ben stanley shares are up more than 6% o traders think the run is going to continue. jon? >> mike wilson was blocked from buying these, but we did see unusual activity in microsoft. >> are you guys doing the exchange with kelly? >> we arement she's got two bags of them.
>> focus, focus. >> they're buying upside calls, scott. december 46 calls, so not a lot of out of the money, but a great trade can get you into this one for a buck 25. 5,000 of those have traded today. second one, tal. this on the put side education and is something about to fall out of bed that's what they're betting on in in case, scott. stocks 37 or it was 37 right there. they're buy iing the 36 puts. those puts basically november 36 puts, i bought those puts, this is a downside play not upside not calls. this is downside lastly, zoom media the stock came here, ran to the upside, sold back off to 62. now they're coming in on the upside take a look at the november 65 calls with the stock basically 63 they're buying those calls in really big numbers i'm in that as well.
probably be in that one about a month. >> got a quickie for you >> hold on a second. what in the world are you wearing? >> so glad you said something. i wanted to say something so bad. >> no, it's not. >> what the heck is that >> you know, i said kelly has all these m and ms i keep the spare ones right here in this pack along with my phone. >> i don't know what to tell you. real quick, scott. >> i know. >> back to you, scott. so in the financial world, take a look at fidelity november, 125 calls. those are already in the money calls. that's when they started buying them, scott. they actually sold the 130s against them but some very, very large buying in there that's an expensive trade. so that's a lot of money that somebody's putting down expecting this thing to move to the upside in a very short time frame. about a month call it i guess right now. real quick, i already teased it once micron, the november 8 calls, they are buying those calls today. not huge numbers
november 8 to the 45 calls just out of the money so in other words, it's just above where the stocks trading right now. those are trading for about a dollar we bought some of those. i love that trade, as well as the other one. i will b i'll be in both these trades in a very, very short timeframe. >> i know. >> that makes a fanny pack look fashionable. >> come on, scott. this is so much better you need it when you're on your motorcycle and can't reach into your pocket. >> hey, i'm out of here. i'm going over with kelly. >> you and buzz light year, come back over here. >> buzz light year. >> all right coming up. we're answering your questions next cnbc.com/half-time tweet us we're back right after this. when you look at the world,
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around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. all right. let's answer your questions now. joe, you first ricky in new york. oxy. down 30% year to date. report earnings on november 4th. there is a chance oil could rally because positioning is very light i like hess and one oak better. >> gerald in massachusetts wants to know about crm. got into salesforce at 161. >> average down. definitely it's a great long-term secular growth story and dream force is a big conference they do in a month and the stock usually acts quite well so i would actually add here the valuation is the only thing that kind of bothers me. >> okay. john, for the record, i meant woody. okay >> yes. >> woody not buzz. >> either way. anything but late for dinner you can call me. >> casino stocks from daniel in new jersey. >> yep i own several.
we've had unusual activity in mgm. also, had unusual activity i believe in lvs las vegas sands so i like them both. i think over the last couple weeks, they've done okay they're going to do better going into the fourth quarter here. >> pete, david north carolina. what do you think about pfizer >> love pfizer, david. i've owned this for a very long time now multiple years and i just continue to create my own dividend stream. i think they have a great pipeline, i'm holding on to it. >> we're going to take a quick break. come back. do final trades straight ahead obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets
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trades in a minute but we do want to get an outlook ahead of microsoft's earnings everybody owns it. yeah all hands are in the air >> h-huh. >> wave them like you just don't care thank god the camera was still on the wall. be quick. >> i think the execution when he first became the ceo is just continuing to play out and the real story's going to be are they digging into amazon in terms of are they going after number one and making some progress and i think they are. >> doc >> yep i agree and i think microsoft's going to win we had unusual upside call activity yesterday i'm buying at a lower strike because i think it was way too optimistic but i think they beat tonight. >> if a bar could be high, could it be any higher than it would be for microsoft given the run >> i mean, i kind of think so at this valuation but i think if they do 60% or
60% plus minus one or two, that actually is going to be very good for the stock so i like it small position, though, for me. >> high expectations hope it misses i'll buy i'll buy more. >> let's do finals steph, you're up first. >> so johnson and johnson. i know i've been preaching this for a while. i bought more. i still like the stock the fundamentals are very strong. >> pete, what do you got for me? >> mastercard. some call buying very, very short-term but i believe in this stock and i'm going to probably buy some. >> you believe in it more than visa >> not more than like them both. >> you own them both >> i do not. i do not. >> crm salesforce.com, judge i like it. i know it's not an earnings play because this is short-term option buying. earnings aren't until late november really. but i like this one and i think benioff's going to light it up. >> last couple years, i've talked about avoiding the political rhetoric by being in medical devices. ihi. it's a medical device etf.
i'm already long pki but i want more exposure to medical devices. this is going to give it to you. this is intuitive surgical edward life sciences good etf. >> all right you see there's the medical devices having a very big day. to your point, cramer was talking about this earlier today. dow right now. got our eye on facebook in d.c. as well. zuckerberg still there "the exchange" starts now. thank you, scott hi, everybody. here's what's ahead of us. from libra to china to the elections and privacy. facebook ceo mark zuckerberg is facing tough questions from regulators right now is he fighting a battle he can't win? and is the stock now stuck in purgatory? we'll debate that. plus, boeing's bounce back why are they so bullish today and should they be we'll di plus, an exclusive interview with chipotle ceo brian nickel we're going to talk about the stock'