tv Fast Money Halftime Report CNBC March 28, 2018 12:00pm-1:00pm EDT
>> s&p 2600. and the curve on the bond market, 30 year almost got below 3% but currently holding on to 3.007. going to be an interesting afternoon. you got to watch every minute it seems. let's get over to the judge and the half women coelcome to the halfte report fang under fire, the sector coming off its worse day ever and a new report saying the president could soon take aim at amazon with the nasdaq on track for its worst month in two years, are any fang stocks safe to buy? let's begin with that roll onover in fang all are down lately leading some to wonder what happens if that sector remains out of favor
about that biggest question in the market, everybody is talking about it because these stocks can't get any traction >> and a lot of things are sitting all at once that are only semi related. amazon today is actually the last of the fangs to get hit netflix a little bit along with it, although amazon off the worst levels of the day. i've not been a seller of the stocks on things like the president quote/unquote coming after them i think a lot of the potential ma malevolence is balanced out by a little bit of let's call it being all over the place and maybe even a little bit of incompetence so a lot of these industries that he was quote/unquote going to chase down, you really haven't seen that show on up in the fundamentals so they represent good buying opportunities. and long term trend for technology in general be, december spite the carnage, lonm up trends are still largely
intact not a lot of these stocks have violated the longer term up trends >> pete, what do you think netflix good short, going to go below 300 bucks. here we are 286. >> certainly caught that i think what they are doing, coming after high multiple stocks if you go out even outside of fang, but if we're concentrating on fang, obviously with all of the facebook fallouts, you have seen this cascading thing and in the past as well where in f. one of the names is getting ma'amered, the same folks who own facebook also seem to own it seems like the rest of fang. and because of that, it pulls all of them down and suddenly turnsinto this cascading move to the down side and we get yourself in a bundle and then things get a little interesting. >> you bought alphabet within the last day or so >> i bought it yesterday i bought a little bit more this morning. >> so you are not convinced that
what is happening with fang is in any way some longer lasting trend, that these are the stocks that are now from the headlines to the bread lines and you have to find something else >> i put this in the category of geopolitical issues. i think facebook has more issues that are peculiar to its business model but google is not an expensive stock. apple is caught in -- >> facebook is not expensive either >> no, but when you talk about the potential damage to their business model, very very least it will be under a cloud i'm not happy with how they handled this also i added to apple this morning. but netflix, the only reason why netflix declined, let's call it for what it is, this declined
with the rest of the fang stocks i think if you are not afraid of valuations, you biyou buy netfl amazon we know trump has had it out for amazon because bezos owns the "washington post." >> but goldman sachs comes out today, price target goes down in apple, once again questioning whether their iphone numbers will be what people think or as good as they think that they will be. they got the facebook issue. now you've got the amazon thing with this axios article which we'll get to in a second >> so putting it in perspective, i would say the following. so many stock have been phenomenal performers so far this year even with this move today. so let's not talk about a stock that is out of favor, out of interest in investor's mind. it is just way up. and is this a market right now where any bit of news that can hit a stock is doing so. so it is down. is that how markets act?
of course that is how they act >> netflix can fall 40% from here and still be up on the year >> correct so these are markets and we can talk about headlines which is what we're doing but i don't think it is really surprising to anyone >> there is your amazon chart today. there is that new report by axios saying the president, quote, hates amazon, is wondering if there is a way to go after the company, something as all of you know he has done often at least verbally. >> he owns amazon. he wants political influence so that amazon will benefit from it that is not right. and believe me, if i become president, oh, do they have problems >> amazon is getting away with murder tax-wise. he is using the "washington post" for power so that the politicians in washington don't tax amazon like they should be taxed. make sure the internet, they will have to start paying sales tax because it is very unfair what is happening to our retailers all over the country
>> so jim, the axios story talks when the president's real estate friends saying they are killing the malls, our businesses. and a source who has spoken to potus, he is wondering aloud if there is anyway to go after amazon with antitrust or competition law. >> which has always been the big fear with the company. what is interesting as we were listening to those commentses, i was looking at the dates february of 2016, may of 2016, here we are in march of 2018 the point i'm driving at, why now? why all of a sudden now is the stock responding why all of a sudden now is the market in general responding facebook, netflix, tesla, amazon i've argued for a long time they have been overpriced but why now amazon has been a straight tear up the answer is it is almost like a jinga tower that just got too unstable one little piece taken out of the bottom and the whole thing falls down
that does not mean that we are having a market crash. this is a correction >> a correction in -- >> hold on also everything in that clip is a lie. users of amazon pay sales tax in every state that it is application bl and amazon is now the second largest employer, creating thos jobs that the president likes to celebrate. number three, not a monopoly because if you actually look at their share of overall retail and not just e-commerce, it the not close to controlling wholt indust whole industry >> do you want amazon to be in a position where they are forced if the administration does take action where you have to prove everything that you just said? >> the administration didn't prove things, they just throw things out and rely on people getting angry. >> antitrust is meant to protect the consumer from monopolies amazon has lowered prices
anxious b and benefitted the consumer. >> and is hiring the consumer. and the last piece of this, we act like everything is happening for the first time don't forget katherine graham was being threatened when she owned the "washington post" by nixon do not publish the pentagon papers and they did it anyway and the end result was not a fall from grace. it went the other way. so without a doubt i understand that trump is not looking at facebook he doesn't want to look at facebook or twitter because any of that stuff could cast a negative light on his election's legitimacy so he is focused on amazon, it is a much easier target. and no question that their journalists are following facts. you don't to like it, but i don't know if that is a reason to say this is antitrust >> what turns the space? you look at vxn -- >> up, up, up. >> been spiking. >> for all the right reasons because of the movement we've
been seeing. and it is also other names out side of the fang as well but i think what starts to move the needle potentially to the up side is when we start to get to the real news again which is earnings are they sxuexecuting? people will continue to buy. the bon that stione that still s facebook other than that, it is about earnings >> they can't possibly deliver really good earnings this quarter because there is just too much scrutiny. >> you mean facebook >> yeah. >> you also have to -- >> isn't the bar so high for the whole space given where the stocks have gone >> down 22%. >> it is just a space. the fundamental issues are specific to digital media. why is this becoming a contagion? my opinion is it is because of how much passive investing has gone on. you're starting to see the etf outflows now and some of the biggest holdings are the leaders over the last three years. what are those leaders
the fang names so, you know, it will build on itself it is probably closer to the end than to the beginning. simply because of what you said. earnings are what matter >> this is the natural evolution of markets pendulum generally swings one way way too far and then the other way way too far and then it resets in the middle. so if you get greedy on the way up, you will pay for it as it comes down if you are not smart and calm and unemotional as it swings the other way, you won't make any money. >> granted the premium on tech has come in as the stocks have gone down, but 3r50e7premium of stocks to the zch was at the highest level in like ten years. >> steve's point with the pendulum it was way out of control. the good news is you see these weeks where technology stocks get hit. the money is going into areas that maybe have been hit prior take a look for example at xlp consumer staple, one of the
worst groups in the market this year, getting a nice bounce up a percent and a half reits up maybe they got too cheap and relative and on an absolute basis. >> and some of you may have heard tim cook is giving an interview at this moment to kara swisher. and he is commenting on facebook we want to go to josh lipton who has those details. >> reporter: cook saying that we've never believed that the dpl profiles of people should exist. regulation can have unexpected consequences cook saying that i think we are now beyond that. privacy to us is a human right he goes on to say that i don't think all companies are in the same position. he says everyone needs to understand that silicon valley is in fact not a mondmonoliff
everybody should know that they are just not giving up specific data point, it is the whole line you can draw on. and this guy would seem to echo comments that cook made in china recently where he also weighed in on this issue saying he thought well krachted regulcrafn was necessary. >> josh, thank you pete, we had a debate yesterday, facebook got down to $149 and change and bounced eight or nine bucks. what do you do with the stock today? $153, a little bit of a bounce is it a buy? >> i got in too early but that is why i used options instead of stocks stock was 165 when i decided to buy the 175 calls. now, you're asking me a question that is pretty interesting with the stock at 153 i still don't know i'd be buying the stock. i still like the idea of the potential of the calls moving to the up side, but you have to understand that is how you reduce risk in the marketplace
i don't know that you've missed your best chance because obviously like i say, this is the one name of the fang names where i still think you have headline risk almost every day that will persist whether or not zuckerberg is in front of congress or the uk >> and you don't know the damage of who is left we know cooperatinoknow corpora there saying we're coming off it >> how about the engagement of the 2 billion people that might suddenly shrink somewhat that will change metrics. >> let's talk about the other big market story today and that is the continued drop in interest rates with the ten year note yield falling to its lowest level in nearly two months for more on that, we're joined by the ceo of bnp here with us onset. good to see you again. >> great to be here. >> i'd get your take on fang, but let's stick to rates you were taking in the whole
conversation >> very dynamic conversation >> on rates, if you look at today, $2.75 what in the world is going on? >> i would say first and foremost in spite of the fed hiking or still his tour issuingly in the low rate environment. to your point, what is quite interesting to watch, this is a gap between the two year and the ten year which is only 50 bips. from where i sit, that means short term investor believes the fed will be hiking, and they have been investing massively in the abundant treasuries offering that you've seen particularly yesterday. and that is one side of the equation but on the longer term which explains the low ten year, there is still a skepticism about the ability of this economy to
continue to deliver at the same pace >> you look at the european pmis, they were disappointing. do you think the global economy is as strong from the seat that you sit in every day as other people seem to think it is >> where i sit you're right, owning a retail bank on the west coast, investment banking practice in new york and i'm right in the middle of main street, wall street and international markets. i believe europe is really doing strong as we go if you look being at gdp growth there, if you look at the ecb, continuing qe it is not 80 billion a month anymore, it is 30, but still supporting the economy there 37. >> your own version of tapering. >>37. >> your own version of tapering. 7. >> your own version of tapering. . >> your own version of tapering. >> very much so. which is what the fed has done for several years. if you look at european equities over the last few months, they have outperformed u.s. equities.
in my position i've seen a significant shift in terms of investments from outflows from u.s. markets in to the eurozone valley dating the fact that europe seems to be a good place to be for the next 18 months >> because people think there are still better valuations in europe rather than the u.s >> which doesn't mean that the economy is not doing well. it is doing great. but it has gone a full cycle already and you have some significant inflation trends that are showing up here europe is benefiting i would say from a reinforced leadership between france and germany and if this dynamic takes place and i think it is taking place, it will probably lead to reinforced dynamic and momentum you have seen so far another point i would like to highlight here if you look at the currency, the euros remain pretty strong. and my view on this, the
reinforce and the strength of the european economy and honestly i would say the euro scepticism which was not the case when we last met here is kind of fading out >> steve has a question on a topic that i think a lot of people over the last few days are beginning to pay attention to >> as you know, there are always issues that you focus on you find frightening in an environment where it is tur would you lepts. the one that a lot of people are focused on was libor libor has had this tremendous spike in the u.s. whereas european libor is basically flat what do you attribute that to and is that an issue and temporary or is it something that increases corporate borrowing that we should be worried about? >> i think it is a link to what was discussed. it is the ecb continuing to
contribute to and support the european expansion keeps rates low. and what is happening here, investors are actually more driven to shorter term investments. and i would say safer investm t investments. volatility is coming back and we've been saying that for the last few months. >> is this sustainable given all that is going on >> if you look at the vix, which is a good matter historically, it's probably been over the last, you know, five years in the 20s. last year was more like the abnormal situation below ten i think we're back into the historical normal of 20 plus another factor i think which some of you highlighted earlier is by the end of last year, the markets were really fully invested in u.s. equities driven by the tax reform, driven by
reactions. that is what is kind of the background for fueling a setoff which coincided with basically more recently a pickup in inflation as well as the challenge or the concern about trade policies >> i'm glad you ended there because that is where i want to go how do you think corporate europe per se views the administration, views this new trade policy, potential of trade wars, what some would have said is more protectionist? how does corporate europe view that in terms of investing here in the united states >> i know it's a topic of today, but it's been a long lasting situation. if you go back to my school in the u.s. or in france, you know, we had the wto
these trade agreements have been in place and maybe not revisited that often for many, many years. and in the meantime the world has drastically changed including china by the way so no real surprise that it being discussed. on the trade war, i'm an optimist what i'm seeing today and i think this is what corporate europe sees as well, it seems to be evolving into a dialogue. people are sitting around the table commercially, i mean i'm very hopeful there is going to be an agreement concept more than anything else >> i have a question on interest rates for that a while there has been this debate and fear that interest rates were going to be spiking and the last time the market had a major correction i think it was primarily about interest rate fears. so we've been quite skeptical of that thesis because there a lot
of cash on balance sheets. there is not the demand for borrowing that people expect in order to see the big rise in interest rates so i'm curious how you feel when 24 lack of demand which you need in order to really push rates up you have to have people saying we don't have the money, we need to find it, we'll pay more from a bank or something to get that money. how do you feel about that >> i think you did wonderfully well in providing the answer to the question you're asking i wish i had a crystal ball here but it is pretty much what we've just discussed when you have the flat yield curve here like we just saw, i think it reinforces your point and when you look what the is happening with europe with the ecb really tapering and stopping their liquidity support by year end,e entering into an interesting phase where
i think rates will be a discussion every month but just to be sure, corporate america here is doing amazingly well europe is beyond recovery and providing a different dynamic. the transatlantic trends are quite active which i believe eventually will benefit the u.s. environment and the european environment. >> and you're so calm, so optimistic, it is very welcome but what worries you what do you wake up in the morning saying i hope this does not happen >> i sleep pretty well at night. >> good. >> i'm not that worried because u.s. platform is doing really great. we have a diversified platform here, we have retail, wholesale. something i'm not communicating well enough, it's a $6 billion revenue platform
this is the largest balance sheet of the group after france. it is strategic. we have 16,000 people in the united states. what i wake up with every day is as to make sure that i can serve my clients well, i can serve my people well. and i can continue to explain the business we have here because it is been really great. >> that says a whole heck of a lot if that is the greatest thing that you are worried about is simply the 16,000 employees you have here serving your clients and not worried about some large looming threat. >> that was the best answer i've heard. he just took a question of what is your greatest fear and turned it into we're crushing it. a great answer >> there is no question that you have -- we listed some of them geopolitical, political, social dimensions that are there. this is by the way why volatility is back in as well. >> and the market is going up because you have been so positive >> they are listening to your wonderful show but nothing i believe over time the banking system, the market
system cannot handle and that is what has driven me in my 34 year of banking and hopefully i ccan still do it fo another good years >> good having you >> thank you all >> the pleasure is ours. before the break, take a look at the markets. dow just up about 200 points, it's backed off slightly, but back above the 24,000 level. s&p up half a percent, even the nasdaq now into the green as well here is what else is coming up -- >> next up, one of the biggest nam names in the biotech space see where he is focusing plus, lulu and tesla, two big movers today moving in very opposite directions we'll hit them both. before the break, our data partners on what happens after a big one day drop for amazon. the stock starts to recover. up more than half a percent when bought after the fall and sold a
cook here is a question from swisher. if you were mark zuckerberg, what would you do some tim cook's answer? i wouldn't be in this situation. >> snap. >> a nice little zinger. >> i'm going to have to use that >> interesting exchange. if there is anything else that comes out of that interview, we'll be certain to bring to you. cnbc's inaugural health care conversation kicking off today in new york city meg tirrell is live from health returns. >> reporter: and alex, thanks for being here so you invest solely in the phrma and biotech space. and even when the space has been kind of off its highs, you still thought that it was a bit
overvalued where is biotech right now in terms of valuations? >> my view is the biotech space overall is probably fairly valued not particularly overvalued or undervalued. we find lots of opportunities right now in the sector to invest we find that it is one of the most exciting times that we've seen for the type of investing we do where we look for companies underperforming or have capital allocation issues, that type of thing >> one of the other things that you personally are associated with especially in the last year or so is biotech m and a you've been on the board, and both multibillion-dollar biotech stakeouts. what do you think ever of the ponlg deal that has come out this morning >> that is an interesting situation. i don't know what level of interest they have we have a position in shire. we think that when we took the
position, we think that it is a good business. there will be competitive pressures from new comes coming on i don't know what takeda will be doing. they are a very smart company and i'm sure they have a very thoughtful approach. >> did you buy into shire as an m&a play >> we took a position in shire for a number of reasons. valuation and there is a perception that maybe some things could be put in a more clear direction there. i think that m&a is one of the obvious sort of outcomes with shire. >> so you are of course an activist investor. you worked for a long time with carl icahn what you said about shire sounded like you were taking a potentially activist roll there. >> potentially we really haven't made a decision on that it is not -- just that at the
point we made the investment, it is an interactive valuation. >> another stock you've been in for a long time is bio again you're a director there. a stock has been under pressuren you're a director there. a stock has been under pressure. you're a director there. a stock has been under pressure. you're a director there. a stock has been under pressuren you're a director there. a stock has been under pressure. you're a director there. a stock has been under pressuren you're a director there. a stock has been under pressure. you're a director there. a stock has been under pressure. you're a director there. a stock has been under pressure. are we just waiting for the alzheimer's data >> and that data is something that a lot of people talk about. i think it is a very good business we have a bias because we own the stock. but really things are very attractive and the valuation is very attractive. but the board will be doing things to create value over time and management the same in terms of focusing on capital allocation decision ended up creating a lot of value for shareholders.
6 billion, $7 milli7 billion, w the number is. i do by oio gen which has a business that is not so exciting, a wonderful with therapy, and then we have a number of pipeline products that are very exciting alzheimer's being probably the highest platform >> and i have to ask you about the medicines company. you have been taking a more activist stance there, kind of getting control of the board what can we expect >> medicines company is an exciting company we believe as well it is a clinical based company so that they don't have product approved right now, but they are running a trial and cholesterol lowering drug that is very exciting if it was to work and be approved bring the fda, it could potentially be a very big drug in clinical trials, given twice
a year it loers compaear lowersy about half so i think that we will be focusing on leading the execution of the clinical trials over time i would say it is best that the company either partner or be part of a larger pharmaceutical company >> stay tuned for that alex, thank you so much for being here and he will be on a panel later today. so stay tuned for all the news out of that. >> meg, thank you so much. used to manage fidelity biotech fund what do you think of that stake? >> i think that the sector is running this gamut between fear about interest rates, inflation, the economy weakening and when the market has a tough day biote biotech, they all fall but in terms of what is good, you have continuing effort for all the large pharmaceutical companies to find partners, find acquisitions, they really need
help on the r&d side you also have some sense from the white house and congress that there is nothing that will happen that will really hurt the pricing on drugs there is lots of talk about it, but you really don't hear there is anything -- they have other things to -- look, you hear the president today, he is not focusing on drug pricing so in-that is positive for the sector >> he is preoccupied with amazon >> absolutely. health care can start to take some of that money that has been in technology and i think that is good for the sector >> our live coverage from the health care conference continues throughout the day coming up next on "power lunch," sage therapeutic ceo jeff jonas and reminder to head to cnbc.com for all the latest interviews. >> that looked like jeff bezos let's get the headlines now from sue herera. >> hi, everyone. here is what is happening. we begin with the closing arguments today in the trial of noor salman who was accused of
helping her husband plan the pulse night club massacre in 2016 her defense attorneys resting their case on tuesday trying to convince the jury that she was a kick victim aehicl victim and not accomplice. vladimir putin calling for a moment of silence for the victims of the deadly mall fire in siberia today was declared a day of mourning in russia at least 64 people, many of them children, died in that blaze pope francis criticizing people he called fake christians at the beginning of the speech in st. peters square, his security guards lifted a young boy with down syndrome from the crowd and gave him a seat in the back of the popemobile and the pope gave him a blessing as well. the irs kicking off its check your paycheck campaign they want taxpayers to check their pay stubs to ensure that they are withholding the correct amgt of taxe amount of taxes. that is the news update this
hour back to you. >> sue, thank you very much. pete sees bullish option moves in a big cap tech stock. the reveal is next but first, michelle caruso-cabrera has a look of what is coming up in -- >> 24 minutes. >> coming up, apple, amazon and goog google, they account for 10% of the s&p 500. yeah, just three companies on out ofof 500 so logical question, what happens to the market if these three tech giants roll over? plus trump versus amazon, the inside scoop on the president's glowing growing obsession with the company and what he wants to do about it and fast cars galore, not fast women, fast cars ceo of porsche north america will join us with their outlook and their new super car. that and more ahead.
i ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. that i served. of the fact i was a c130 mechanic in the corps, so i'm not happy unless my hands are dirty. between running a business and four kids, we're busy. auto insurance, homeowner's insurance, life insurance policies.
knowing that usaa will always have my back... that's just one less thing you have to worry about. i couldn't imagine going anywhere else. they're like a friend of the family. we are the cochran family, and we'll be usaa members for life. save by bundling usaa home and auto insurance. get a quote today. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
. welcome back pete has a look at the big name in the tech space he is watching options on today >> yeah, one of my names that we just talked about the other day, somebody raised it up and if that gets to their price point this will be a trillion dollar company. when the stock was a dollar lower earlier in the trading session, we had a huge buyer come in, these are may calls, they are the fourth expiring on so may 4 these expire, but 15,000 of these were bought paying about $2.10 this is part of a spread they were buying the 94s, selling the 99s. we're just talking about the ones that they bought. very aggressively bought i like what we're seeing we like this name. we were talking about faang stocks this is not a faang stock, but a stock with great valuations, great growth and movement to the
up side. i think these will pay off very nicely i'm in them. >> does he get paid every time you mention his name he has to have like an endorsement. >> i'm working on it >> who is the analyst he always mentions >> katie >> yeah, i have to make a list this is long >> i know for a fact he has a poster in his bedroom. >> love the guy, yeah. he is my guy he and i and robyn from cisco, we're all doing it together. >> he calls you out. all right. come on back over. coming up, burnstien has our call of the day. from the markete when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
welcome back we are watching like most of you shares of tesla. the worst day in nearly two years. moody's cuts the debt deeper into junk. they will need a large capital raise is the word on the street. >> that is the problem it's a great company great technology they have missed a lot of delivery times they will need to raise funds. and i'm looking at 2025 bonds
here that have gone from 94 cents on the dollar to i think it is 86 cents on the dollar in the past week. that is the market's way of saying we know you will have to raise money and it will cost you more in interest not like the company is headed for the dust bin but it is a tough stock to own when they have cash needs coming up >> let's distinguish fabulous company from fabulous technology and fabulous car the company has been overvalued for an extended period of time, number one number two, they have had major issues and continuing issues with production. at the same time you have competition that is coming on unabated from everybody that is going to give buyers the opportunity for another choice so i wouldn't buy the stock here may it bounce some su sure. >> and this capital raise, this is a big deal for them they have gone to the market how many different times now and
they just continue to go and continue to burn through it. that at some time getstiresome >> and how is the cross selling going with the solar panels? how is that working out? >> let him answer. because your answer piqued my interest too >> don't think that i'm cheer leading the company. >> fabulous is a cheerleader >> we've had this discussion a million times. but i was clear that this is not a stock to own right now not when the bonds are going from -- >> but fabulous company. >> because of the technology that is the only answer. >> fabulous technology >> yes >> so not a fabulous company >> semantics >> it is not semantics >> let me be very specific because this is what the viewer want to know you want my opinion some donsn don't own the stock. i mean, i can't be anymore clear.
in my disagreement and why. okay bad operations they are not delivering and they have cash flow needs at a time where their bonds are going down that is a bad combination. don't buy the stock. >> if they came out with a driverless tractor, would you like it? >> we did this they call it a model t remember it was funny >> can we talk about price action in the stock for people who are actually trading it? >> please. >> if you are a technician, you were out in october and it's been a chop fest since then. but now something interesting is setting up and i'm not advocating investors buy the stock. but if you are a very short term nimble trader, it is 23 rsi right now. it is probably as oversold as we've seen it in the last three years on that very short term basis. you might want to play it for a bounce at some point but i think the bigger issue is there will be a capital raise. the good news for invest ors in
the past when they have done capital raises even when they were very diluted, investors loved it because it was proof they can still raise money i don't know if that is the catalyst this time around because all the debt that didn't exist back then. so for me the too hard pile. >> let's talk about the call of the day. better than about steen h burnstein has initiated coverage on visa and mastercard, outperform >> i'm in mastercard >> visa. a lot before heavy visa. >> only up 2.5% year to date trailing mastercard. >> would you say you own a pletho plethora >> yes, one of ouren largest positions. when we bought visa, which was about 2 1/2 years ago on a relative basis visa was less expensive. what do i think about it now it is interesting. at the same time as you are seeing talk about amazon and
overvaluation or the faangs, visa might not be a cheap stock, but you can see the earnings, the growth drivers the low unemployment, consumer spending, consumer confidence. doesn't matter whether people are buying off line or online. they will be buying with a credit card in some way and visa is a recipient of that so we like it. >> are you at all worried about the emergence of cryptocurrency, block chain, new payments technology affecting stocks like visa and mastercard? because i know some smart investors are and have laid out that case at various times >> i think it is a long way from today. and if there really is a threat, visa will figure out a way to work with it. >> i'm worried about my friends who own bitcoin. i'm not worried about -- block chain is ubiquitous. so i think that they can take advantage of it. looking at the chart, i don't know how i've not bought this over the years it has been a compelling story
>> and speaking of bitcoin, we'll hit the futures pits, t ge the trades there we'll do that next at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. or you could you cexperience it for realnship at the lexus command performance sales event. lease the 2018 es 350 for $339 a month for 36 months. experience amazing at your lexus dealer.
ambitions live everywhere. synchrony gives people the buying power and financial tools that help make them happen. ♪ ♪ synchrony. what are you working forward to? welcome back to "halftime report" i'm jackie deangelis bitcoin shorter term moving arth close to dipping below the longer term one. this comes as bitcoin and futures fall below 8,000
and what does this mean for the cryptocurrency going forward >> this isn't good there is regulation and a threat of more regulation and let's face it. unless there is a widespread application for bitcoin or any of the other cryptocurrencies, these markets are ruled by speculation right now. >> scott nations, there was a point when bitcoin would go higher and now i will ask you, what is the floor? >> i think the floor right now is 58.50 the -- that is the recent low that we've seen and we might see that again if you look at the chart, you do see a series of higher -- of lower highs and lower lows that is not good for any market. and now with a bunch of competition from other coins that would be easier to use, to grizz's point, 58.50 is probably in the cards. >> thank you meantime we're back with the live show tomorrow on time "halftime report" is back with final trades after this.
see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up!
- anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
time for final trades and there is mine. up 10%, lululemon. >> i would buy this all day. this should have been a double top. and for a fundamental reason it broke above -- your stop. this is so easy. you know you're wrong immediately. you stop go is just below 80 which should be have -- >> but they delivered on fundamentals and people expected -- >> i hate retail -- >> you can't -- lulu is a unique product. >> we know you are buying pants or or stocks. >> my wife is buying the pands and i could buy this chart -- >> and are you into yoga in yogi >> final trades.
we have 20 second. >> alexion, a bio tech catching a bid and there is fundamental reasons, good data >> shorts. spring has sprung. >> bristol myers >> the bank. c of a. >> and gold. i'm seeing some stuff. >> "power lunch" starts right now. i'm michelle caruso-cabrera and here is what is on the menu. tech is dominating your portfolio like never before whether you like it or not apple, amazon, alphabet, they make up 10% of the s&p 500 just on their own so if you own the s&p, you own them and tech is whipsawing the markets today we're going to go inside of those eye-popping numbers. facebook is rolling out the first privacy as calls for calls for regulation get louder and louder what is the right type of regulation for big tech. and then