doesn't have to be one or the other. >> i think that stock picker's market, it's always a stock picker's market. you pick the right stocks, you're going to have form. yes, the s&p has done well if you went long, you've done well >> it's compounded almost 20% in the last eight or nine years if you've asked someone, you just got the market returned, you'd be fine. >> billion dollar family officer, they're happy with 6 to 8% >> recently, the narrative has changed. it's going to get more difficult. so it becomes more of a stock picker's market. z >> to your point, while the s&p has done well, you take a look what the the amazons have done, which i never owned. i just can't get my arms around it it's been a mistake obviously. but discipline serves me well. >> netflix sticks with the strategy >> netflix when you take a look at what they have, it wasn't that expensive relative to its growth so like amazon, they could turn it on or off when i first bought netflix, it was selling about 25 times earnings and for that kind of growth, that's value so i think and to me, google, alphabet absolutely is

sam lessen says yes, while our stock picker says some names are in "serious trouble.g

leslie picker is following the money. hey, picker. >> hey, frank. it's a short seller's time to shine. too bad there are so few of them left in the market, short interest for a typical s&p start and it is at a new record low hovering around levels not seen since the dotcom bubble era. that means hedge fund's ability to capitalize on the nasdaq sell-off has been minimized at least recently the industry's returns, hedge funds lifted exposure to high multiple growth stocks to a new record high. of course, many of those are still on profitable names and facing the sell-off this week. it's a missed opportunity for hedge funds which they're experiencing unprecedented underperformance relative to the s&p this year and the shorts shakeout does have a main culprit according to goldman sachs. it's retail investors. their firm says their basket trades in correlation to the rise in retail trading activity. in other words, when retail is more active as they've been in recent week, that jumps causing rosses, but not all trays have failed the last two names have t

visit letsmakeaplan.org to find your cfp® professional. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ season this week leslie picker particular part of the business that may not be so fabulous, leslie >> it's declining. one business within the sector getting a lot of attention in the lead up to earnings is investment banking the lack of deal making is expected to be a drag on q1 numbers thanks to market volatility and a macro backdrop that caused a slump in m&a and ipos most are expecting bangking to decline 30%. that's the group where ipos is handled. they're benched marked against some tough comparables from last year as a result, piper sandler last week downgraded eps estimates for those banks with the largest relative capital markets exposure goldman sachs received the biggest cut by 28% due to its investment banking exposure. morgan stanley followed with 11% reduction there. all the large u.s. universal banks lagging the s&p this year with the exception of wells fargo, which is much less exposed to the capital markets citi upgrading wells fargo today on quote, capital flexibility and asset sensitivity, but the

market, if we can get there. >> stock picker's market, which stocks are you picking?>> pricing power, pricing power, pricing power. that's the new world. companies that have great technology, that have mma opportunity, companies that can help themselves and of course, good old-fashioned growth companies. i think all those things are available. each one, stephanie you said, there's lots of opportunities in a market like we have today. i think those are the things. it's really about not broad sectors or anything but specific stocks within specters. >> you like illinois tool? >> i do. they've announced they will go from 800 businesses to 500 businesses. what's not to like about that? getting smarter as a self-help company. as an industrial company, margins will improve and they will have a good environment. >> you like stanley black & decker. what do you think the probabilities of them fixing the european security business, the reason the stock fell out of favor with so many. we own it and like it and think they can do it. when do you think they will be able to improveme

i know you're a stock picker, not such a bigmacro looker, bu you must have an opinion on the kind of question we threw around this table just now about where we are and where you think we're going between now and the end of the year >> definitely we're stock pickers, bottom up, think our best work is done at the company level. when you hear the arguments from people who believe they know which direction the market is going, i think they're worth countering tremendous respect for howard marks, when he talks about how long the recovery has gone, it's important to think about the magnitude of the recovery. if you measure it by magnitude instead of time, you could argue we are not above trend at all. you hear people talking about excessive evaluations on the f.a.n.g. stocks, we're value managers we own facebook. facebook on next year's earnings estimates is barely at a market multiple let's frame the discussion right. if you're negative on facebook, you have to be negative on the earnings outlook we own netflix netflix is adding 20 million subscribers this year that we believe are worth

that's leslie picker stay with us jon has unusual activity coming up next. >>> are you a veteran? a question for the halftime investment committee? e-mail us a video with your name and rank askhalftime@cnbc.com you can be featured on our special show on veterans day thank you for your service esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. introducing the biggest advancement in the history of small business bookkeeping. having someone else do your books for you. i'm linda, your quickbooks live bookkeeper. let's do this linda! sounds good! a live expert bookkeeper who understands your business. felipe, i've categorized last month's hair gel expenses. steve, i just closed your books. great, h

. >>> welcome back i'm leslie picker. our cnbc news update at this hour. >>> a key republican negotiator says she doesn't see an infrastructure deal happening today. the senator says she does believe an agreement can be reached at some point. she says she has not heard from president biden about a talk they are expected to have on the negotiations today >>> on the news tonight, the senate's busy day including the release of what may be the only bipartisan report on capitol hill insurrection on january 6th. tune in at 7:00 p.m. eastern >>> the mastercard foundation says it will spend $1.3 billion to get africans vaccinated the charity says it will buy johnson & johnson vaccine and administer shots to more than 50 million people the first doses will be available as soon as august. >>> in pakistan the death toll from yesterday's horrific train crash has risen to 65. rescuers have pulled another 15 bodies from crumpled train cars. officials say more than 100 passengers were injured. the cause of the accident is still not clea

there's any such thing as a stock picker's market.s over a long period of time, active managers have a difficult task ahead of them they've got to get it right more often than not and they've got to survive to be able to prove they're right. the ones that survive, only a tiny minority manage to outlive and outperform their passive peer >> only 10% of active fund managers outperform and you oversee several for american century and they have outperformed this year congratulations. given the odds you heard from ben here, you does an active manager outperform these days? >> i think it's staying true to what they do specifically if they're large cap growth, they stick to it as well as large cap value. but it's also making sure the fees are appropriate for the fund by having the fees set appropriately and the manager doing their job, it gives you the opportunity to outperform over the long-term >> yeah. excess fees are definitely the alpha killer equity managers aren't beating indexes, but bond fund managers are doing better much more on th

is the stock picker back in style? >>> plus, jon najarian on the hunt for unusual activity in the options market that could move stocks he has a great track record this week, a really hot hand. jon najarian's take is cinomg up the halftime report with scott wapner and the traders is back in two minutes your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. a used car, >>> the labor department says 209,000 jobs were created in july according to our partners at kensho, when bought the day of a big jobs report and sold a month later, health care leads the way, up 1% consumer staples, utilities, and tech stocks also outperform. the s&p is down on average a month after a big jobs n

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it's a stock picker's market you have to be more choosey than you have been in the past.ng what he's specifically looking at in term of over appreciation what do you think? >> i love bill and i'm going to ask him as soon as the show is over what he's looking at. what i suspect is the speculative names. some of the high fliers like maybe the crowd source, the snow flake, we can't possibly justify those valuations and by the way, rates will go up, whether it's three months or six months, they will go up. i think bill and i are thinking alike on this, and bill is a great stock bearer that's how he made his name. so, yeah, so i'm not surprised to hear. i'm surprised not to hear from more actually. i think the macro plays we have coming on -- and bill is an equity player, not so much a macro player but people like dave are looking at bonds and equities. they've got this other view that says rates are so, so cheap you have to go into equities i don't disagree with it but i think you need caution as to where you go with equities >> he specifically -- he's the first to admit in t

ultimate stock picker.hat's what morningstar calls one of our guests and with more than $5 billion under management he has a list of names for you to buy right now. all that glitters, tiffany beats, but should you put the stock in a little blue box? two traders debate whether the stock's run this year can continue. but first our top story is the markets. of course it is. no resolution in cyprus. no problem for stocks which are on the rise once again hoping for a fifth straight week of gains. lots of cross currents to wade through and that's exactly what we're doing over the next hour with our panelists today. pete and jon najarian, joe terranova and stephen weiss. joe, a lot of cross currents. some of the earnings news hasn't been that good. fed ex, no good. oracle, no good. nikcle cle is good. cyprus is looming. >> i think you understand that the macro is getting very confusing. i think in this environment you don't do it. you break it down by sectors. a lot of the sector calls we've heard over the last co

that active/passive, you're a bottoms up picker, mutual funds.ve some deep thoughts about this topic. >> barry laid it out this makes no sense to say active will continuously under perform passive. by the time "the wall street journal" is writing the story, the trend is over. here we had one of the best for management and interestingly there's a very strong correlation between the value cycle and active management when value doesn't work active management doesn't work. it's been a very tough period for value for the last eight years and it's because people have been flowing money into these companies that we were talking about earlier that without regard for valuation. whether somebody is a hedge fund manager, a growth stock pick or a value manager, we're all value investors, we all pay attention to the price that we pay compared to passive which pays no attention to the price that we pay. and so as this interest rate bubble ends, i think we're going to see a re-emergence of active management. that's kept this thing going is likely to unwind. bar

. >> leslie picker will be there all day.ou've got 22, there's going to be a lot of stocks on the move joe, i don't know what you think about the art, the pain, the challenge, the opportunity of short-selling and the cost >> and the cost. if you could speak to that >> yeah, i think pain sort of covered sort of the financial cost but also, it can be mentally very tough so, generally speaking, i tell most young guys, you should steady short-selling it's really important to understand it when you're thinking of going long the stock anything that has more than a few percent short interest, short-sellers pretty darn smart because they have to be to survive. that said, i advise most young people don't do it it really requires a lot of expertise and a certain type of resilience mental toughness, financial deep pockets, et cetera. >> you say resilience, it really is the staying power just coming off the conversation about channos and tesla. that is a trial example of not having the stock go your way and having the resiliency and a wh

leslie picker. >>> pete, unusual. what do you see today?he stock was trading around 41.35. today they're buying 5,000 of the next week expiring 41 calls, scott. so those are going for about $1.10. as i say, about 5,000 of those good to see that twice, you know, in a row so that one stood out for me iq is another one. the stock was trading around $14 a share, and we had a pretty large buyer, 15,000 of the june 14 calls 10,000 in a single print so those are big traders coming in there, expecting to see a nice move to the upside there as well then i will give you a quick update on drop box jon had some unusual the other day, but he actually used it as a final trade in drop box. they were buying the june 29 calls pretty aggressively, scott. they bought about 10,000 of those. that stock is starting to move rapidly towards 29 so as a quick update, keep an eye on that one as well. >> appreciate that, pete thank you very much. >>> coming up, fighting the hackers. the justice department taking a g epo combat cyber crime we have those details next he

our leslie picker joins us here at post 9 next with that story we're still on apple watch as well the company trying to close in on $3 trillion imaet cn rkap again. about a dollar or so away. we're back after this. we're here today to set the record straight about dupuytren's contracture. surgery is not your only treatment option. people may think their contracture has to be severe to be treated, but it doesn't. visit findahandspecialist.com today to get started. >>> the old stress test day. the fed set to release that for the banks after the bell, leslie picker following the money, and is joining us here at post 9 here we go again >> i have to admit it's one of my favorite. i do enjoy covering it, it's an interesting deep dive on the balance sheets of these banks. so much has happened in the industry since the last stress test the industry share prices. this is an off year for the regionals which are only required to participate every other year most analysts expect the banks participating in this year's test to pass their balance sheets measured against the scenario alongside a peri

of this will be driven by some of these companies specific stories and stephanie, you're a stock picker >> i hope they are right in terms of picking stocks. the market is down 11% year to date it was hard because the maco environment was so uncertain you really had quality on sale you could buy the best and the blue chip, bluest of all chip companies at 10, 15, 20% discount which changed is those stocks have rallied quite substantially and now it's actually the laggards over the last couple of days that are starting to pick up some steam you look at the banks and the energy stocks they are still down 20% on the years. they have out performed in the last couple of days. if you believe we're getting more tests, you think you're getting more therapies and you think reopening will be a success, i think you can make a case that some of these cyclical and rekcovery stock ks can out perform. these particular stocks in these sectors are where i'm focused on at the very moment >> jim, let's bring you into this conversation now. >> let's talk about the predominant theme. is this rally we have see

so to me and, you know, i think you got to be a stock picker in this market. but one more quick comment. this was not a euphoric year. i don't talk to anybody. and. >> i wasn't suggesting it was. >> i know you weren't. but the optimism is not there. there are enough negative data points. >> i'm not hearing from any negative people at you will. are you bullish into to 2015? yes. it may be -- but it's not bearish. >> paul, happy new year. seal you no 2015. >> what a rough day for energy. what does that mean for the sector as it limps into to 2015? our next guest says consolidation and he's here to tell you what. and how to play the names that went from worst to first in 2014. and after a record year for ipos could 2015 be even bigger. and it's already getting crazy in time square. a lot of people there already. hope they are happy with their spot because they can't really move. right? female announcer: it's time to make room for the new mattress models! during sleep train's huge year end clearance sale, get beautyrest, posturepedic, even tempur-pedic mattress se

leslie picker following the money.ere's been like one a day. >> the latest is turbion they're reportedly shutting down amid underperformance. it's redemption season for investors who are able to hold their capital this is often the month to do it or the month we see a lot of investors request to do it that's why we've seen a flurry throw in the towel tourbillon and years of underperformance has caused investors to lose their patience they have had to lower their fees and the industry has the lowest fees on average since hfr began collecting the data a decade ago and yet competition has never been more fierce assets in the industry are at a record 3.2 trillion and 148 new funds launched in the second quarter averages nearly two new funds each day as one manager texted me this week the psychology has changed so more assets for me to someone is closing and i wish i was done, too. but the time to shut down may be ill-timed with rates rising, hedge funds may be poised to benefit with rebates >> the old volatility is good fo

let me bring in leslie picker, who is ready to join us now. les, i didn't mean to put you on the spot you know this stuff better than most i'm not sure if you had a chance to go through the letter itself. but you certainly know what third point has been up to in the past and the kind of things that dan loeb does >> we have three pages here. we have seen pretty muted activity in terms of activism this year. this is a very strongly worded letter by third point and for the year 2020, especially the fact that they're urging the board to retain a rheeputable strategic adviser and asks them to consider divesting certain failed acquisitions here that's a pretty bread and butter activism approach here they say they have a significant stake in intel, this letter in particular does not note what that stake is exactly but obviously they are very concerned about underperformance relative to peers. i've heard you mention that from a governance point of view that compensation is something they should be rethinking how it's structured in order to better alig

leslie picker doing great work covering the ipo of robinhood. jim cramer give me a last word before i said goodbye >> the syndicate should step up say the flippers are gone. leslie has done this amazing reporting when you hear what she said about the stick is versus the carrot i don't think these people care if they don't get more shares. robinhood doesn't get big allocation it's a free for all. got the get the flippers out and the syndicate has to come in and jam it up. but the clock is ticking on the jam up, judge >> we'll watch it >> and the green shoe, jim >> i hope these options people are taking the stuff, jon you do with your brother they need the education or what's going to happen is what josh said when the market goes down they'll be blown out. we have to root for the people trying to be in our markets >> for sure. can't thank you enough for coming out >> thank you guys. >> adding voice to the conversation today we look forward to the interview with vlad >> thank you >> that's jim cramer guys we'll take a quick break. anastasia, stay w

sugar high bombs we've seen when i'm looking at this market, and as brenda alluded to, it's a stock picker's market and paying attention to the strong moats around some businesses, a name like palo alto if you think about cyber security and enterprise spend there, the fundamentals support the growth. those are opportunities when you potentially unload maybe small pieces of it i think the longer trend with some of these tech names, and for me semis, and i've mentioned this on the show before, semis, i think, is where the real opportunity is and the tech land mega cap tech not necessarily as excited about with the fed that's as engaged as they are and higher for longer as we talked about earlier, that's my outlook as it relates to the software cloud names >> jim, you're already under weight tech, right >> yes >> what do you do with industrial stocks that have to many people's surprise done well even in what appears to be a fragile economic environment i have a boeing today down 4.5%. caterpillar down 1%. i have deere down 1.66 honeywell. is this really a group of stocks you want to bet on now

buy in it, so we need to be careful in saying buy tech this is a year when you need to be a stock picker and you need to go company by company by company. we've trimmed it a little bit here and a little bit there and we talked about it yesterday look, this is an amazing company, growth prospects for the semispace is fantastic and it's not what we are paying for two years ago and the growth prospects going forward are not what they were we have other companies like palo alto and cisco. those, i think, you can buy here i know people will pick on me for intel, and there are decent growth prospects on that and trading at a fraction of a multiple so i don't think you say buy growth on this comeback. i don't even know if it is a comeback sort through and find the companies that are fairly valued with reasonable growth prospects ahead and pick carefully >> dr. j, what do you make of all of that? >> i always agree with picking stocks carefully, judge. >> as you know, they follow them and the meme stock folks, no offense, guys and we follow them from institutional size trades did we start to see

you have to be a stock picker.hen we talk about stock picker's market for a number of years now, this is really hammering it home. if you own the wrong company, can you get crushed. sketch urz down 30%. if you own the right company, you'll double. amazon. you have to be careful. it's not buy them all and they'll go up. >> yeah. >> it's much harder. >> broadly speak, i think . >> you had pvh, and vf corp. getting hammered. taking the whole sector down. i added dollar tree today, which has had some problems with the merger. it's compellingly cheap selling it just at a ridiculously low ebida multiple. >> some of the retailers in particular, take a look at footlocker today. it's one we talk about here a lot on the desk. what's going on with nike, with foot looker, with under armor, in many cases people just wanted to take some off the table because of the runs these stocks are have had. that's certainly i thought was the case with under armor. there's real pain in this space right now. >> we've been speaking about the

i'm a stock picker and i still have a healthy amount of cash. i have not been knocked off my pedestal in terms of my view and you're bowing down to me, scott, we'll get to that later and my view is that we're in a trading range in the market and that you've got to be a stock picker and i prefer to be opportunistic as i have been and that's paying off in buying stocks where i'm convinced of the fundamentals and that's where i will generate performance and this is a stock picker's market and everyone admits to that so why would i listen to strategists who say just buy the market and i can have a lot easier life and focus on the other things i have to do like investing in private companies. >> i think some of the strategists -- >> i will buy on dips. >> i think some of the strategists tom lee included have put forward their preferred areas where they thought you could generate the most alpha within the market rather than just suggesting blindly throw the dart and buy the market wherever it lands. i think it was a lot more nuanced than that. i think

north korea, the mueller investigation get resolved i'm not expecting that this is still a stock picker's market for the next few weeks. i hate this saying, but i'm going to say it. assuming a quiet preannouncement season, place your bets. >> the market is going to go up, and not necessarily such a stock picker's market. >> not in the next three weeks i want to finish the sentence, though when you get into earning season, place your bets. that's where you're going to show your medal. where you say these are the companies that are going to outperform on their earnings reports relative to where the analyst estimates are. >> josh, julian robinson was on the network yesterday and said, quote, i don't think the fangs or tech stocks are frothy at all. i listen up when he says things like that. he has been a big investor in fang stocks for a while. >> so, the businesses are all separate stories in terms of valuation. to take netflix's multiple and say, oh, well, this is very high, the rest must be high is a mistake because google, based on its earnings growth alone, not only deserves current mul

leslie picker following the money. his money and a lot of it made this year.eslie picker. >> that is right bill ackman has had one of the best performing hedge funds of 2020 and his best year ever. those gains were driven by late february and early march hedge in the index markets over concerns about the pandemic. subsequently ackman unwound those for a $2.6 billion profit which he plowed back into equities his portfolio includes some companies impacted by the shutdowns but chipotle, starbucks, and lowe's have outperformed during this year. he also raised a record $4 billion spac to find a future acquisition. it's worth noting that this year's returns follow last year's gains of 60% putting the firm well above its high-water mark to collect incentive fees, although some losses in the years preceding that, scott. >> but on the comeback trail and then some. leslie, thank you. that's leslie picker. >>> joe, you want to weigh in on this comeback that we've witnessed from bill ackman >> sure, i would appreciate that and congratulations to bill on what has been a ve

leslie picker is following that money. and the alimrertis ba after this. >>> fedex shares slipping to their lowest level in more than three years today. options traders are stick with it jon and pete najarian tell us that in unusual activity >> when the stock was trading $2 lower than it is right now, trading around 150.80 at the time that's when we saw some of the buyers walk in and start to make a position that they wanted to do to see some sort of a bounce. going for the 162.50 calls about 3,000 of these were bought about $1.50 is what they paid for it, but also selling the 170s against this. it's a call spread i'm in this. i'll be in these for about a month. one more for you that's much, much bigger. the xrt. we don't talk about this a lot here we are with the retail etf. very, very well balanced we've got some buyers down in here stock a little lower on this one as well. traded about 38.80 at the time they bought these. 22,000 of these calls. cost about 25 cents. these go to september 6th. that's when they expire. the

if you go to somebody who's a long only stock picker, they're going to say i want you to invest here, the bottom is near. i can't pick the bottom. i don't know it feels like it's getting closer, i don't know i'd say stop picking data points to justify your positioning, and step back, take a look at the big picture. if it were easy to pick data points and say now it's all clear, everybody would be up 100% every year. it's just not that easy. the big picture is a recession the big picture is rates pressuring earnings. the big picture is inflation continuing to crush margins. so that's why i'm on the sidelines. i'd much rather be invested, frankly. >> i don't care whether you're investedor not, but it sounds to me like you're throwing shade all over the reasons pete bought nvidia. >> i tell you the trade i would have done, is i would have had -- i would have looked for less upside and bought some of the over semis that aren't trading at 45 times earnings if they miss, that stuff gets crushed. if you buy something else, whether it's sky works or corvo that's trading at 10 times earnings,

leslie picker, kate kelly, appreciate it. talk again soon. >>> the s&p sectors with the wall good for 16 led by top we talked about just a few moments ago, energy back after this. trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. good morning! the four way is a destination place. right here, between these walls, is a lot of history. i am black. beautiful. i must be respected. black lawyers, doctors, educators, martin luther king, b.b. king, queen of soul aretha franklin. you're sitting in the place where giants ate. the four way, as a restaurant, meant so much to this neighborhood and we wanted to continue that. to have a place where you have dignity and belong, that's the legacy of the four way. ♪ the holidays weren't exactly smooth sledding this year, eh santa? no, but we came through smelling of mistletoe. the now platform lets us identify problems before they became problems. if only it could identify where my ball went. this yo

, stock pickers trade on theme thematic etfs will get assets.e stock risk, and airlines have room to grow the original stocks in this move were the teches and stay at home, you're looking to gain some alpha, airlines have a considerable amount to go. we heard the news cruise lines are going to delay i don't think airlines will delay once this vaccine comes out, people will travel. delta, united, those major carriers can make up that gap they experienced and get back to where the other stocks have gone that's 10%, 20%, maybe more. >> don't forget all our videos on our website, etfedgecnbc.com. an exclusive look at predictions coming up. etfedge.cnbc.com >>> welcome back energy, the best performing sector today, up more than 4%. joe, i'll go to you. i know you think that without energy, the market wouldn't look nearly as decent as it does today, albeit flat apache, holly frontier among the names rocking today. what do you make of this space >> the only two names i would own would be chevron or exxonmobil the top 20 names in the s&p 500 today, 17 a

let's get right out to leslie picker how big of a pop was it?y happened here at the nasdaq ipo execution center. you can see there, there are 2.6 million shares that were paired to indicate that 42% pop at the open now about 38% higher than pricing at the ipo price of $30 per share. at $42, though, that implies a $14 billion valuation, looking at the total number of outstanding shares of course, this is your quintessential down round, but it was one that was executed as such that they were able to raise the range they were marketing, priced at the high end, and orchestrated a 40% pop from here. so this is now a public company, 16 months in the making from the time they filed their s-1 confidentially the markets took a hturn with higher interest rates. this isn't something they were looking for the perfect market timing, but they did want an event that could give employees and co-founders liquidity. the company was also able to raise only primary as well, which means that's cash to reinvest in the business also, in conjunction with this ipo, you

pete, this is a stock pickers market. and we want you to pick stocks you think are going to work for the next half-decade, the next five years going forward. >> well, if you're looking for the positive side, i would say energy and technology financial sectors. look from the technology side the security space, the big data space, names like wdc, virtual as well, vmw, i think that's the best places to be right now from a technology perspective. i think energy is about to break out to the upside. look at financials, they're finally moving and yet most still trade under book value. i think there's plenty of value there. i think you can create some of that alpha just being discussed with selling some calls, but you have to have the right premiums to do that against positions. >> anthony. >> i got my chart you're not going to be able to see live but the first leg is a fed-induced leg, the second is an economically induced leg. what's going to happen is the consumer brands are going to do well, commercial banks are going to do w

they are active stock pickers. i think all of the asset manager are building positive momentum. >> doc, give me the scoop of delta airlines >> revenue was strong but they missed about 3 or 4 cents on the bottom line, the profit number, judge. that's why the ceo said on the conference call, though, they expect earnings growth of about 15% for the remainder of the year. it's not down very much, given the run that the airlines have had. chew on that. >>> let's go to our breaking news desk. less leslie picker has more. >> that's right. shares of 21st century fox have gone down. bradley imposed tomorrow as a deadline where she would refer the deal to the authorities for additional scrutiny. the deal has been under critical observation over concerns about scandals at fox as well as the murdoch's potentially having too much control over the news and headlines given their ownership of so many assets as well. scott, back to you. >> leslie picker, thank you. >>> we are awaiting president trump's news conference in paris live

revamp announced yesterday, they plan to fuse technology and data science with traditional stock pickers of active passive hybrid. for client, it will be cheaper. they'll see savings of $30 million annually as they slash fees for portfolio managers though, it's a bit of a question mark. blackrock is letting several go as part of the revamp. others will have to learn how to incorporate other technology and data science into their investing styles. most predict this will be a positive sign for blackrock and its come ppetitors will have to follow suit. >> what do you guys think about this? i know this is going to be a provocative topic. >> i would say this is the most thoughtful management team in the industry. they showed that with their puchls of i shares years ago, however, this is not a move from active to passive. this is a incorporate rating technology like we've talked about in the past. to focus on artificial intelligence, factors and identifying things that value managers and active managers have traditionally used to pick stocks. >> don't you think as leslie said, if this isn't a

i think that's why you need to be a stock picker. >> okay. those are all fair points of view of yours. i mean, that's what makes the market, you've got some bears on the show you've got some bulls on the show, and that's where we find ourselves, though. when i look at your call on financials, remember that time you were on, you said financials, financials, financials, which you said were going to be the greatest sector in the market times three. they haven't been. and now we have earnings now what >> so speak about earnings, right? the absolute level of earnings of the s&p 500 financial sector is greater now than before the pandemic, at multiples that are excessively lower. not only priced to earnings but price to books i think a lot of people have this ptsd with respect to financials when they begin to under perform. they automatically go back to what happened in '08, '09. we're not talking about price to tangible book. we're talking ability real book levels on very consistent earnings with results that were better than people expected and t

spac 50, down in aon sl picker follows the money on the spac slide. she's with us next this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. ♪ ♪ >>> welcome back to "the halftime report. i'm rahel solomon and here is your cnbc news update at this hour let's begin in texas where power regulators have vetoed a request to reduce sky-high power prices on the last day of the state's february freeze. they deferred voting on a separate proposal that could have saved ret

this is an opportunity for active stock pickers >> and the growth at google is certainly enough to take a second look and say wow, a company that big able to grow the way they are, so 2 pp$2.7 billion fine, a hit on earnings, stock at $968 as we're having this conversation. >> and it's $966 was where it was just a couple weeks ago on july 14th. so this is hardly a shellacking that it's taking i'm long google. i know kerry will come on and talk about it. obviously it's giving a little bit back on the traffic acquisition costs. i think that is just total noise and this is a stock that you can continue to own. >> we talked about this yesterday with the fact that you would need to see a significant miss and sharp sell-ooff that would precipitate a lot of index selling because all these names are so highly weighted right now to the index itself. you haven't seen that. but while you wait for that, you're getting other areas of the market that have underperformed, we haven't enreally talken real even really talked about material freeport and all these other names are ripping because copper is

i know you'll be following that money and you'll let us know whatever you'll find that's leslie picker >> it's not just pimco and we're not talking about a massive amount either of exposure or losses for a lot of other funds, however, as of a few weeks ago, i'll tell you about a few, the emerging market bond fund has assets in russia and it's down 10% since the invasion started t. rowe prices and fidelity's emerging fund both are down 8% since this all started all three yield in the 5% range. so you can see on the chart there and we'll try to give you some other examples to see where the opportunity lies and certainly where the risk is. when we come back, up next,s osprey founder and wrehe to put your money next in that space and that's next. every "how'd th" starts here, the blank page. artists and writers know the tyranny of it well but so do developers, data scientists, ctos. the new creators to them, we say let's create something that changes everything. ♪♪ ibm. let's create. if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imb

steve liesman, our senior economics reporter lesley picker is following the action ahead of the first trade of coinbase. it will be a huge valuation because we have -- the last indication we had was around 365 or so. >> reporter: yeah, and i'm told by sources close to the process they're expecting it to open in about 20 minutes or so, give or take, maybe 15 or 20 minutes from now you can see there the indicative price, $374.50 that is just shy of the high where that stock traded in first quarter, which was $375 according to the prospectous that implies a valuation of about $100 billion for this company. if you take the market valuation for i.c.e., the owner of the new york stock exchange, and combine it with the nasdaq, you still don't really get a $100 billion valuation. so, you know, i have been chatting with some investors about this, you know, how do you feel about where this thing is looking like it is going to open up, are you comfortable at these levels, are you buying into these levels, so far the folks i have spoken with are concerned about one main thing and that is how exac

so - >> so it is a stock picker's market once again. >> i'm going to give tom a chance to respond to you he says it is late, tom, that a lot of the move has happened now, i'll give him the fact that the stocks have gotten off the canvas, but let's not act like they look like they're ready to go 15 rounds again i mean apple is only up 1% in a month. amazon's 4%. yes, it has gotten going lately. microsoft, 5%. google and facebook are 7% and 7 1/2% respectively. what do you say to his call though that it is late >> i mean i don't even know weigh means by late. we were telling people to buy energy stocks as our number one sector in december they had already risen 70% from the lows, but they've advanced another 60%. so i think you have to look at the bigger fractile, and for faang they barely kept up with the market since may on an absolute basis they're up, but they're relative, horrible, especially in the last six months financials in some ways have over shot. if you look at the nine -- four in financials, only four of them actually look healthy. i think there's been a deterioration in

the good, the bad and ugly, the state of hedge funds in this market following the money our leslie pickerere's a tip for your money, your future. to analyze personal cash flow take your monthly income after taxes, that's your inflow, add up monthly expenses, rent or mortgage, credit card, auto loan payments, that's your monthly outflow. your monthly inflow minus your outflow is your personal cash flow and tells you if you're living within your means for cnbc aim sharon epperson another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™ >>> welcome back to "the halftime report. hedge funds in this very volatile market, our leslie picker following the money for us and has our report. h

our leslie picker is, straight ahead. >>> plus betting on a biopharma stock up 20% in a month. doc has the trade in unusual activities >>> a sector check today, led by real estate utilities. those are the defensive plays leading the way. s&p down we're back after this. mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. you might or joints.hing, for your heart... but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. i have one kid in each branch of the military, but i'm command central. it's so important to us that verizon is supporting military families. when i have a child deployed, having a reliable network means everything. so, when i get a video chat, and i get to see their face, it's the best thing in the world. and i've earned every one of these gray hairs. military moms, we serve too. (vo) the network more people rely on, gives

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we're going to get into all of that and much more i do want to go first to our leslie picker. she's been following that hearing on capitol hill with the bank ceos and has an update for us on what's been taking place as we've been following this lawsuit by the new york attorney general. >> that hearing by the house financial services committee about two hours under way with seven of the largest consumer facing bank ceos answering questions about the broader macroenvironment jamie diamond expressing his views on the any he said there's a chance of a mild recession and a chance of a har harder recession >> i don't want to second guess all the people doing that. that might have been predictable at the time. but i don't think you can spend $6 trillion and not expect inflation. i don't like to cry over spilled milk, we have to move forward, grow the economy, which is the best way to reduce inflation and help all our citizens. >> the ranking member patrick mchenry began his questioning by asking citi group's about the consequences of a higher inflation environment. >> we are concerne

market and it's a sector picker's market more than it's been in a long time it ain't going to cut itme in the time that we have left, and our time always goes too fast, jeffrey, when we speak, you are leading the charge i'm sorry i'm not there in person to see it with you. you have given $65 million of your own money, you've raised more than $100 million as well could you tell us about this project that's scheduled to open next year? >> yes, we're scheduled to open a little more than a year from now and we have the north building, which i'm honored to have my name on it, not that i really care that much. it's great to have the name buffalo. we're changing the name, the buffalo akg. a is for albright, who started the -- who gave the museum a permanent home in 1905 we're restoring that building. which is very expensive to do to restore a building from 1905 and then mr. knox, seymour knox jr., built the 1962 building and created one of most important post-war art collections in the world. most people aren't aware that buffalo has one of the best museums particularly for modern art and p

, and the thing i would drive issa go back to the central point that we're all making, be a stock picker. you would buy the index and i would much rather be a stock picker and look at cleveland-clips where they refinanced their debt and they'll save $35 million in interest expense and they issued some shares to further shore up the balance sheet. i see nothing, but blue sky ahead and i don't care that it's up 100% in the last six months this stock has 50% more in it this year. >> so let's continue on the stock picking theme and do it through the s&p 500 which shows a pretty broad move. the s&p is going for the seventh positive session in eight. within that, you have some really good performance from sectors like autos and components from automobiles and it is up 17% year to date. >> kari, you make a play when you bo'reilly automotive. >> it's a stock we've been being looking at for months and 2020 was was a year in where there wasn't a lot of miles driven it came back it to 18 multiple if you look at the chart you can see it underperformed and we bought it recently because it was at a pr

. >> of course it's always hard to find bargains in a market like this it is a stock picker's market. i've talked about it whether it's in the u.s. or what i'm thinking about is some things more globally. if you're not actively a stock picker outside of the united states, take a look at eem look at the emerging markets down 10% if you think about the u.s. and the trend it's facing right now, guess what there are a lot of multinational companies, lot of global companies, that are selling into these emerging markets and that's going to bring them up right along with them. >> let's kick that around then let's kick around the emerging markets, right. >> yep. >> the u.s. has done so well, amy, the rest of the world has lagged, emerging markets have gotten really upset. is it time -- is it time to start looking elsewhere just given the run that we've snads i would like to have a debate about all of your selections today? >> sure. we're not leaning into the emerging markets right now they had a great year last year, given that back this year. we still think it's not the place to be. the doll

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