it's not like fang. fang could still do fantastically in the second half. it's going to push the s&p to 2600. we liekdz fang from the start of the year. base we have been sort of cautious on growth, so we'd rather buy where visibility would be, which is fang and craft. obviously the fang side worked better than the craft trade. >> but how can you be cautious and think fang is going to continue to run the show? >> well, it's just like 2011 and 2015. in 2015, we had a growth scare and in 2011, we had shot down, downgrade both years fang had big second-half rallies. i think when you start to worry about growth, it's not defensive stocks necessarily that work. it's secular growth. >> you said secular growth. let's talk about fang. these guys literally have the tail winds of amazon, commerce. digital advertising for facebook, apple has just nailed the whole mobile device thing. but they are cyclical. we have just been in this very long bull market. when you think about online advertising is as cyclical as it gets. we know that from history. retail has a potentia

it wasn't just the well known fang stocks. it was widespread in the tech space and video rolling over, square fake i taking salesforce down. this is a huge real this year the tech moves you too far, too fast. you buy the tef or have we seen the top? >> i don't think you have to buy the dip today, but i don't also think that this is a warning sign that everything is a worry. because you look at what happened in the other market, if i saw bond going higher, yields going lower, if i saw a rush to the u.s. dollar or if i, frankly, saw any other sector in the s&p 500 really get hurt. to me, this was a rotation. just like we saw, remember back in november, after the elections, you saw people taking money out of tech. going to banks, that's to me all this is. so you don't have to buy it today. there will be a chance to buy it. probably just not monday morning. >> it is the rotation. i believe it's rotation. we talked about it the last week with iwm. small caps. small cap was basically flattened year-to-date performance. amid a backdr

because i think you want to buy secular growth, which is fang. and we like fang this year but we think there's a lot of reasonably priced what we call core growth stocks and materials, tech, industrials, financials, and energy where they have pretty decent earnings growth profiles, but their relative valuation is still pretty cheap >> i just don't get it financials, if you like financials, presumably, you think the yield curve is going to get steeper that flies in the face of at least one nugget of your thesis. industrials, if you like them, theoretically, you think that the economy is going to continue to improve and fang, i mean, if fang continues to go occupy, how is the overall market not going to march along with it? >> so i think -- as you know, fang has been really one of the most important trades for active managers if you don't own fang, you're really having a tough year but it is less than 5% of the total market cap it's not a big weight. and so i think, you know, you can like fang and not expect the whole market to go up. but banks, i

i don't think it's over for a lot of the volatility that we're seeing in the fang names we could see more, if you want to selectively buy in your longer-term portfolio, i'm fine with that, and as far as getting out of amazon, longer term, i don't think that's the right thing to do. >> okay, difficult to get inside the head of somebody who's not sitting here to answer the questions himself or herself but weiss, what does it say when a guy who runs a tech fund at a big place like t. rowe price, who's beaten 99% of his peers over the last decade has said enough's enough on amazon and says the following when sentiment lifts, that is when we usually take money off the table. that is hard to do it feels bad to sell when storks do well, says josh spencer >> and i think that's what separates the really good ones from the ones not so good, having this sell discipline. it's easy to buy something that's beaten up it's always tougher to sell it when it's doing so well. what it says to me somebody like him likely has to be fully invested or at least can't hold more than 10% cash at any point in t

has fang lost its fight? i will explain just ahead. >>> then, a company that nearly doubled the past year and no one is paying attention to it. >>> and ceo from under the radar biotech from my hometown worth nearly 30% more in the past month. did you miss the movie inovio? i suggest you stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. 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 wow! record time. ♪ at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living.

the only way to get is, not to buy fang now it's to buy energy and to rotate. >> and iwm you are right. >> isn't that a much better bet that you need to make. to go after the intex, to go out to energy stocks at a time when university seemed almost resigned to the fact that oil from u.s. production is going to stay below $10 bucks >> i have been a bear in crude you can start to see the xle ramally off here when you look at the iwm, it's up the s&p is up 3% if you are going to make you're year, survive this year as a fund, you won't chase fang to survive. >> the way i look at this, yes, we can over simplify, people are going back into true over growth a lot of the stills have a decent growth profile. when you think of what is not happening right now. interest rates have not gone to the moon. >> we haven't gotten off the grounds. >> i know, where did they go on a relative basis i would make arguments they went to the moon. by the end of november, early december, we were at 265 on the tenure, 135 on the yield curve what people are forgetting about the course of people saying the fed could

the growth, that's a proxy for fang you can see the interest here. think growth and rotation is a very good theme for right now. back to you. >> bob, as you were reporting on technology, we flashed a big red sticky the nasdaq is now negative for the month. still had a good year but negative for the month thank you. >>> let's welcome in gene todd, executive vp of first bank he's based in st. louis. gene, you say don't give up on bonds. don't forget to look overseas. welcome, by the way. thanks for being on set. >> welcome. >> little easier here than remotely before getting into what you like overall, market is a little weak, technology is a little weak do you own any of the technology stocks and have you been one of the sellers? >> no, we don't own any sectors. we believe in being broadly diversified. we're going to talk about that in a little bit, but personally i think technology has got a lot more room to run clearly it's been a leader. >> so a selloff like this would just be a little bit of a buying opportunity. >> i think it is a buying opportuni

i think you're seeing a redo ofry >> stab or fang. >> fang because -- >> don't do it just because because you know you want to go with stab. >> i don't know with s is. kidding. it's a joke. you look at me with that face. >> i just said it also >> tim and steve have been on alibaba for some time. if you believe their fiscal 2018 guidance, then the stock hit $128 tlrs $138 is ridiculously cheap. i don't know if i believe it just say federal government you do, then the stock is dheep. >> speaking of chinese stocks, the fourth time was the charm for the chinese mainland stock market, finally getting adding to a key index we'll tell you what it could mean to china in particular. you're watching "fast money" on cnbc in the meantime, here's what else is coming up on fast. >> crude just entered a bear market so, why is ubs saying to buy energy shares? yep, you heard us right and the man behind the call will be here to explain what has him bullish on energy. plus, a number of classic dow stocks have gone wild. doing things they've never done before and creating obscene returns for traders. we'll g

most of, there you go, almost all of the names out of the fakih fang group recovering. rest of the market getting a lift, too. new high for the dow, pete was the worst over >> feels like they took over on friday we talked about that and yesterday how suddenly around halftime, we started to see this flip around in the vxm en jon was point thag out. when you look back at yesterday, wow, it sure looked like that was what was driving the market on friday and what we saw yesterday in the morning, then we flip back over. not saying it's all clear, but what i'm saying is go off of fundamentals and facts, whether it's the fang or other names, they were being sold off unjustly because what was the exact news out there of why everybody was getting out? i don't know that we got an exact story behind that. >> unjustly. look how much the stocks have run. >> that doesn't mean they're overvalued though. when you've got growth and strength and the fundamentals, doesn't mean necessarily, just because they've gone up 30%, that they have to krek at this point. >> he's got a point here in

the companies that are the fangs or other growth companies thash, they are the numbers. interest rates are low that helps growth stocks it's boosting the market you can't use bonds as a substitute right now you get nothing for it so i think it's steady and here we go and don't pay too much. >> so, josh, do you buy stocks under the scenario that i just laid out to carrie you get nothing from the agenda because of all of the noise but the economy is okay. and they continue to produce do you buy stocks under that environment? >> yeah, because it's important to remember in a the rally that we're in the midst of arguably started in july. that's before we knew that who would be the president it's before we knew about a lot of policies that seem to have just kind of been made up along the way. between then, the election and now. so like i don't really think that a lot of what we've seen so far is based on economic policy. that's been much more of a media story than an investor story i'm just being very frank here >> i don't know about. that lee cooperman sat -- >> listen -- >>

they're vampires introduced by friends and now they are a couple and they both have fangs. >> they are sharpened to a complete point and they are real dental acrylic fangs. >> you must really think if you bite your lip -- >> i've had those for halloween costumes and they're so uncomfortable. >> some dentist will make these fangs that look real and fitted to your teeth. these two have adopted this as a lifestyle. >> i always have this odd connection to the nighttime. i felt more empowered, more awake. >> i am [ inaudible ] to sun light. i get intense migraines. even if it's cloudy i will wear sunglasses outside. i have a pair row sol i carry. >> they're unique individuals and i think it's beautiful they found each other. that can be tough. if you're into one thing so much to find somebody that could be into it with you is neat. >> there's something for everybody. >> they say they're not traditional vampires. >> the typical stereotypes of vampires we can't be out in the sun or that, you know, we pounce and take someone by force and stuff like that, that's not who we are, not what we do.

we talked about the fang stocks. goldman has a note today questioning whether fang is mispriced and if many of you are correct, you get a drop in those names and a shift elsewhere. >> you might be surprised. some of the names are more expensive than others. for example, microsoft selling 31 times earnings, but with % growth. that's not cheap. facebook, 38 times. with 25 to 30 times revenue growth. that's pret it reasonable. >> i don't understand why people consider facebook b a tech company. it has nothing to do with text message. >> you could say is apple a consumer products hardware company? >> stay on facebook for a second. they have changed the way people spend money advertising. i have never seen efficiency like i see today in the 40 plus private businesses i have that deploy the facebook platform. unbelievable. >> it's not a billboard on the highway. >> the companies in tech that have patents, they have the least. >> no, kevin, the network is the proprietary part. they have 2 billion users. >> you have to look

for more on the fang fallout, tom lee, who said to buy the fang stocks last week, he'll be back on fast00 p.m. eastern time. see what he says now. >> meanwhile, auto sales have been on a record run, but one analyst sees potholes in the road. get it? >> you went there. >> they went there. he'll join us next to explain why. i'm not opening that one. >> plus we're go to puerto rico where the commonwealth is voting on possible statehood. but problems certainly face that island no matter the results. details coming up. hey, i've got the trend analysis. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn. watson, you gotta learn how to take a hint. this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil market

toll com and fang. you like those >> fang represents one of the most important areas for investors over the next five years. the spread overage is over 20% they yield 5%. you're better off buying the stock and bond and i think that's a potential catalyst. if there is any consolidation in wireless, you guys have seen the numbers. $40 billion plus so, there's reasons to like the group. >> in terms of energy, is it as important as it was five or ten years ago? entering a zone where crude becomes less and less important where other sources start to come to the forefront? >> it sounds like there are, whether it's power generation or transport, other alternatives developing, but at the end of the day, we're still going to be using lots of ail. every electric car sold only displace 13 barrels of oil so, in order to -- >> 13 a year >> yeah. 50% of cars sold globally become electric that's 44 million a year over the next five years, that displacement would only keep oil con sunlgs flat. so you have to see a mass

they're in the fang. you look at google, amazon we're talking about today.w, those are the big names. those are the stocks getting ready to hit $1,000 a share. i wouldn't be surprised if you continue to see momentum in that group going forward. i mean, there's really not much to stop them at this point that i can see. i wouldn't be surprised if they did continue to do very well. >> what about valuation? might that stop them? >> i think valuation is high for a lot of these companies. those are priding an underlying force to the market. >> there was some discussion yesterday, walter, that all 11 s&p sectors were up but tech was the laggard. if that were to continue, other areas of the market lye like industrials, utilities or whatever caught some leadership tailwinds what that would mean for the overall market. how likely is that? you have fang stock lead for a while and then value stocks in tech take over and lead for a while. there's this constant rotation within the tech sector that i think is very healthy. >> i think one of you touched on semis recently. a

that growth -- look, right now those fang stocks do have momentum to them, minus the week and a half ago, when the golden note came out and they withered a little bit there is momentum. that will carry on we've all seen this before it will carry on until it breaks and when it breaks, people will say, wait a second amazon just went from a multiple of 100 to a multiple of 90 and nothing changed. >> the fang stocks aren't even in the top 30 performers in the s&p this year. visa, mastercard -- >> that's not taking away from my point if we're sitting here saying that for the rest of time or even for the rest of this year, that the growth names, whether they're fang or other growth names are the only place to be -- >> that's not the case all i'm saying is, i'm hearing a lot of people say, right now, that the high, the large-cap growth names are where you're supposed to be it's working right now what i'm saying to you is there's a margin of safety and that's the key word that value investors always talk about. there's a margin of safety thinking about earnings multiples, dividends, and cash

see why joe says forget fang, invest in this tech giant instead. before the break, apple shares after a worldwide developer's conference like yesterday. our data partner show stock talk falling in the two weeks after the event, baugh month later, apple is is positive one month after a developer's conference. 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. hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn. a used car, the mwhat the...turned. [ eerie music ] [

and some others. >> are you a buyer of any of the fang stocks?gle, a holdy on amazon, and a hold on facebook. buyers?o not huge >> on any weakness, we would get themexcited, but some of are crowded and ahead of themselves, but great companies. yields,talking about you mentioned before, the forecast for higher yields continues to come down, especially the 10 year treasury. how much lower do yields have to go before it starts to impact stocks? downthink yields coming all over the world have helped stocks for the last couple of years. i continue to believe that the 10 year will traded 2%, even though we get a fed fund increase on wednesday. , it is because i don't think think the deflationary spiral that is going on in certain areas is amazing. i think rates will continue to come down, and i think that will continue to put a floor on the equity market in the u.s., and in some cases outside the u.s.. about theou mentioned fed this week, we are still seeing some uncertainty about what will happen after that. do you think janet yellen will soften where

we've been very spoiled as investors, especially tech investors, today the fang, the five fang stocksaang, closed below the moving average since february 2016. that's more than a year. these stocks have gone nothing but up recently. it's natural to see a pullback in them. from the tech perspective, what you've seen is we just ended the nasdaq 100's third longest streak 50-day moving average when the streaks are broken, it's been negative for those tech stocks overall. but while we've been focusing so much on the large cap tech stocks, there is other participation there. since the tech sector peaked in june, the s&p 500 was actually up coming into today. >> by the way, worst in 14 months for the nasdaq. down about 1%. hasn't had a negative one since october. on that note, we have an earnings look from micron here let's get to adi di roy. >> that's right, micron, the semiconductor manufacturer beat on both the top and the bottom lines. the stock, though, is down a touch, about .54%. let's start with the top here. record revenues, 5.57 billion compared to 5.41 that's 20% higher than the

we will speak with investigative reporter lee fang. all that and more, coming up. welcome to democracy now!, democracynow.org, the war and peace report. i'm amy goodman. republican leaders scrambled wednesday to rescue a senate plan to repeal and replace the affordable care act after at least republican senators nine said they could not support their party's bill. senate majority leader mitch mcconnell said he hoped to finish a revised bill by friday and would submit it to the congressional budget office for review ahead of plans to take up the measure after a week-long recess for the fourth of july. mcconnell abandoned a push for a vote this week after some republicans balked over the cbo's finding that the senate bill would cause 22 million americans to lose their health insurance over the next decade. at the white house, president trump predicted the senate would still pass a repeal of obamacare. pres. trump: health care is working along very well. we could have a big surprise with a great health care package. >> any big surprises? pres. trump: it is going to be

fang name google/alphabet. saying it's going to turn around this afternoon but it's gotten low enough where it generally beats most of the time this is a good opportunity at this price to buy it >> i thought you were going to say tractor supply >> fang-tastcic. >> it was fang week here but the most important development was the hawkishness from global central banks outside of the u.s. and that is going to drive central bank convergeness on the interest rate differentials which will lead to the dollar weakening. my final trade - >> so rates will go higher in the u.s. and around the world and the dollar will go lower >> exactly i think underpinning that, you have sectors like energy which will do better from a weak dollar >> global health care play nvo buying 46 calls in september i bought those stocks about 42 1/2 >> thank you for joiningous the "halftime report." "power lunch" starts right now >>> i'm michelle caruso-cabrera. here's what's on the menu. closing out the books for the month, the quarter, the first

>> yeah. >> white tooth, i got red fang. >> it go. learned about soupy sales and fang. >> soupy sales is important in stocks. >> i understand the inner workings of your brain. >> soupy sales was from philadelphia. >> pivoting to some names that can get hit, i have more struggles in retail. macy's issues a profit margin warning and sends the stock down 8% yesterday. much of the retail sector wit. sears to close 66 stores in addition to the 1 50 closures that it's already announced. most of those closings involve kmart stores. >> if every store sells, the stock goes flying. >> and you have macy's on the call -- >> paid $30 a day for that. macy's that -- look, if you go through the actual deck it's great. it's great. it's great. and then on the second to last page they say margins could be under pressure it stings it's horrible. a lot is about how they play the yield t cash flow. >> all the stores are profitable i believe. >> yes. now i'm -- >> not to mention that flagship, they won't. but man, a lot of value in that if they wanted to go

the fang stocks, facebooks and amazons and fwogoogles. now, a new group of name taki charge. kim forest joins us tonight to talk about that. kim, we have almost two weeks ago, the tech wreck and maybe look elsewhere for new leadership. what are they looking for? >> well, i think anytime you'r growth. and if you're investing in tech, you're really looking for gro h growth. have what in common? growth. so i think a couple of the leerds have to do with online paycheck or pay stub calculations that sort of thing. so that would be adp and paycheck. and i think people are looking for more hire iing to go on thi year. an logical conclusion if you're buying those stocks. >> other stock that you consider new leadership here. gardener group. why that one? >> the gardener group, they're kind of interestinra and what they do is they give advice to businesses who are going to put in new technologies and just like the rest of us, even though they might have a staff of i.t. people, you need some help. so they're kind of like the consumer reports for technology and for business and again, if

of hearing even though i invented it or other acronyms others have tried to create not as good as fang he said in a moment of pure conceit. i have to say the one thing tech is delivering on, the thing that matters the most, the numbers. today, there was a pee-wee downgrade of alphabet. i call it a pee-wee downgrade because i thought it was a little bush league sure, it has questions whether the margin could come up i would say it comes to stretched valuations however, a company growing at 18%, is it expensive for a small premium if you say clorox or coca-cola. if you run a hedge fund you must be able to make some money short the stock at the opening mid-atlantic day maybe bring some in and play it again the next day maybe someone else does a pee-wee downgrade tomorrow and gives you a chance for quick trade. if stock market sentiment continues, nike and kroger used to give us at a very inexpensive price. is alphabet a bargain? yes. if it can deliver on the numbers in 2018 and 2019 i feel the same way about facebook and apple i spent time with d.j. on the floor of the exchange, one of th

stockscalled fang weighing on the index.oining us from new york to help us dissect the decline, abigail doolittle. across thedown board. tell us about the biggest winners and losers. abigail: today was interesting in terms of the standpoint of the selling going on. at the sellers were in control. it is important to break it down because it confirms the tech selloff that started june 9 is on. we had a bit of a rebound, but now we are down and he did way for a second time this week, telling us again that investors are selling the top sector on the year. what makes it interesting is that i have talked between half a dozen and a dozen -- nobody knows what is behind this. they do not have a theory or hypothesis, that is rare. one said it was mysterious. or -- sell sider said managers could be taking a profit. a big change in sentiment here, jitters and uncertainty on part of the diff -- the investors. top trade allhe year, a hot factor with all the names, facebook, apple, netflix, alphabet, up more than 30%. you can see this in t

. >> i've said it before, i think fang is the wrong acronym. i think it is wrong to put apple or google in the same category as netflix and amazon in a valuation point of view. here, everybody have -- >> who cares about the evaluation point of view. i'm talking about the leadership stocks. >> if you're a long run investor, you care about that. >> we are talking about the large cap tech stocks that have led the rally. you're missing the point. >> i'm not. we've got to look forward. i don't think that the returns from apple are going to be less. i don't think excuse me, the returns from amazon and netflix are going to hold up. i think the runs from apple are and the reason is because of valuati valuation. sf >> i'm a long-term investor, too. there's a point in time when you have to recognize category killer, disrupters and all of the fang are. i think that's important. the other thing that's important is that all of these stocks are in a benchmark. the s&p 500. if you don't own these and they keep going up, that means you're short. right? if you'

thanks dom fang drain has you panicking about your foportfolio, fear no.rofessor. >> we're going to talk about stock recovery strategies. this is what you want to do when trying to create near money leverage trying to get more back than you lost secondly, because there's been some weakness, you don't want to commit additional capital and finally, you do this when there's not the best set up. i'm looking now at alphabet, google, this chart does show potential trouble as far as i'm concerned. we're going to refer back to the experts here, but to me, that looks like a potential head and shoulders top. we're going look at july by the 950, 975. you buy one for $12. that whole thing costs you just over two bucks, which in the contest of a 900 stock is essentially no additional capital. and the nice thing here is that the only way that this is basically giving a trade off is above 1,000 bucks, this expires on the 21st. i think the chances this breaks out to new highs fween now and earnings is virtually nil. >> all right, so dan, what do you think? >> if you're lo

dale: at lunch, i'll let you wear my fangs. lance: yeah? yeah, yeah, yeah! whoo!k at those tools. every year. what a couple of douches. ohh. oh, no. hello? there are exactly three people in costume here-- a tool, a douche, and me. and i don't have time to go home and change and-- calm down. did you bring in the dry-cleaning from last night? are you really getting on me about the dry-cleaning wh-- oh. i have suits in the trunk. look at that. yesterday's lazy cures today's crazy. yes. thank you! thank you. charlie: oh, there you are. hey, charlie. hey, i need you in the lampkin meeting. if i could just maybe have-- five minutes. okay. okay, hey. first legal question. yeah? can i fire those idiots for no reason? [chuckles] oh, my gosh. those are some major guns you got there. eh, yeah. [rubber squeaking] why won't this... [footsteps] hey, jerry. hey, phil. looking good. thanks. wait till you see what we got planned for tonight. claire and i are going as corpse bride and groom. as if there's any other kind, am i right? [chuckles] ying a marriage kills you. judy left m

i don't know how i you take any of the fang stocks and keck dots to trump onommics.perating on their own dynamics. i would tend to agree with you on what you said regarding the frustratic length of time it's taking to get stuff through congress. no doubt about that. comey didn't really change my mind on that. we knew right from the get-go when we couldn't get health care reform through that much thought we had a unified government, but the house is fractious and divided now over a range of issues as it was during the obama administration. the reality is nothing big gets down without of 0 votes in the senate. i was always thinking it was going to be a long row to hoe to get stuff through. it took reagan six years to get tax reform through, and he ultimately needed more house democrats to get it done than house republicans s govern is complicated, but the comey thing didn't change my view on anything, frankly. >>> we'll leave it there for now. david, have a great weekend. >> you too. >>> we are watching the treasury secretary meeting with the canadian finance minister.

call it the worst chart ever, but now, there's a beaten down name he says is a screaming by and the fang stocks getting crushed. if you flost must be, don't forry. we've got a a way to recover for less than 5 bucks. first, we start off with the end of the first half of the year. if you're in, you're probably feeling good the dow is up 8% this year s&p up 8.5%. nasdaq up a whopping 14% financials just posted their best week in a year. energy looks like it could be turn iing a corner here, so the question is simple if you muss missed out, what should you buy now to help you play catch up in the second half of the year? >> well, i think it's the financials you can still do that, right we've had that big rally we know interest rates are probably going higher. central banks have told you that they're probably the best place to be for the second half of the year it might not be a six month type of trade it might be a two or three month type of trade pause at some point, interest rates become a head wind for the economy. >> they've seen momentum in the past month or so >> there's a lot of great

look at the fang stock apple is a part of. even whether the stock has gotten more expensive as it's gotten higher in price. >> yeah. no, even in light of that, i think the one prescriptive recommendation that we have for investors is to take a little off the table in terms of expensive growth stocks and migrate that a bit more towards inexpensive value stocks what our analysis shows is it's outperformed the least expensive by 16% year to date, which is very significant we have advocated at the beginning of the year that investors should play the growth trade. we now think a more balanced barbell between expensive and inexpensive stocks is warranted. but apple remains an inexpensive stock. it's in the bottom 20% in terms of earnings multiple if you adjust for its cash balance and so we think apple continues to be very attractively valued at current levels. >> tony, it's joe. what do you tell the investor that plays the seasonality of apple. up 25% year to date, 24% of that coming in the first quarter. so it'sically flat for the

we did red fang on "mad money." we feel that -- most important ten cent, but doesn't trade here and weebo. you will see those go up. jd is probably the best -- obviously it would be ten cent if they traded there. red fang just in case you were thinking -- >> not the band in portland. right? >> you know there's also apparently a volkswagen that's red fang. but i have -- what can i do? i can't patent it. i did not get credit for faang. i thought that was just fine. just fine. because you know what? you know how "the times" is doing. >> it's got the largest single increase in subscriptions. >> haven't you heard of twitter? >> when we come back, a lot more to get to, including the election in the uk. we'll go to london for a live report. of course we're counting down to james comey's capitol hill testimony. q&a with the senate intelligence committee. it was russia and comey and the president, all these leaks that led to the worst day of the year, may 17th. so we do expect it to perhaps move markets. back in a minute. in

the first crack at that question, >> i think the question becomes, what goes long you're long the fang names and go-go names. but if a certain point oil keeps going lower, i think that becomes a problem for the nvidia, the high-growth momentum type names >> pete, there was a time when if oil was falling out of bed the way it is now, you know, it's 42 bucks, the market would have had a conniption over the whole thing and not so much, why? >> it seems to me the focus has not been on oil. we did have all of those reactions and we've stop reacted to that. everybody's focus continues to be on -- recently the focus is the financials and this breakout up to this 24.5 level. even on days where we're going down, the financials have hung in pretty well sure, they've given back here and there. but overall, look at how the financials are trading, that is -- we talked about financials and energy not participating, we're starting to get some participation from the financials that's making up for the energy news. >> steph, in overdrive or in denial we'll have a guest come on in a minute who says the

haidi: those fangs stocks were the main story on friday.h to the asian session. tech shares the thorn in the side of asian markets. we also have caution ahead of the policy decision feeding in today's trading action. a rise in oil prices are extending gains as saudi sees the global supply drop accelerating. copper futures adding 1% jeffries says the copper price might be a better predictor of equity returns than other economic variables. imports have risen 29% this year. you contract the build up using the index function on your terminal here. we see that rise in iron ore holdings looking unstoppable for now. that,d: thank you for right, now, indeed, as the ecb to fed asset files are set shrink, seemingly a different story in china. around $5t remaining trillion to the end of the year. our managing editor for greater china is here with more. this balance sheet managed to blow up and become so big? i don't know if that is the wrong word to use, expansive. qqe and theyd boj, who up these assets. up these-- hoovered assets. surplusesbig trade

so i think long-term this is just a bump in the road, but -- lea: talk about big names, the fang stock, apple facebooks and others, do you think these offer an opportunity right now for buyers? >> you know, i think apple in particularly does -- does offer an opportunity just from the standpoint that it has -- apple has been so cheap for so long and, of course, there's concern that innovation streak is over, but even if that tapers off a little bit, the stock is still attractively priced. lauren: inflation has been soft, they seemed unfazed by it. the bond market might tell you otherwise. are they out of step here, are they missing something? they have taken missteps in the past in financial and housing crisis? >> it's hard to say, lauren. they say the economic weakness is transitory and they believe the pick-up in job growth and they are positioned for that. the trouble is we can't tell if they're right or wrong until after the fact. lauren: so do you think they are behind? >> ii am going to give them the benefit of the doubt here. i'm in a wait and see mode. lea: where are you on econ

the tech names are bearing their ugly fangs.h which alphabet, the parent company of google also got downgraded. as we are looking at day two, google clearly tripwire to but what else is going on. >> you talk about google and we had alphabet. we also had yet another analyst come out and talk about apple. don't forget, on friday we had specific threats. now today they're talking about apple overall and saying it's near peak valuation levels and could mean a bumpy ride going forward. we are seeing that one under pressure. amazon, facebook, alphabet, google, microsoft, all lower. in some cases we are seeing them lower than the monday close which was the real today selloff we will keep an eye on this group overall. we also want to take a look at the stocks. let's take a look at how those golf stocks are fearing. callaway golf down 2.2%. you can see it is down 1.2% at this time. we will keep an eye on those as well. i did speak to john and asked him why they're selling and they said it's all the headlines put together. maybe a little

>> we've heard a lot about owning fang.hink it's a highly consensus choice today, fantastic companies, facebook, netflix, google, amazon. but we think one of the largest categories in global commerce is travel, ape, air bnb, priceline and expedia, we think you have a multi-year play here whery can go from $150 billion of enterprise value to $300 or $400 billion of enterprise value. this is a place where alibaba and amazon don't play today. >> yet. what happens if they do? >> people have worried about the verticalization of these horizontal players for years. the reality is by our accounts, google makes billions and billions, maybe upwards of $10 billion off global travel by if a si-- facilitating transaction. they're happy to let the verticles players do what they do and they'll provide top of the tunnel search for these groups. >> does it change the investment environment at all if president trump does back out of the climate accord? >> what will ultimately change the tune is if people think he's lost the political capital

unlike the so-called fang stocks that are getting defanged has it has fallen for two days in a row. some of them are off the lows. they briefly dipped into what is correction territory. a drawback of more than 10% five to 10% from its near time high. lauren simonetti has been watching this. it's important to remind people about that. you could throw microsoft in there also. we've seen intense the intense selling for two days. and the question for investors as it's an opportunity to fly on that. it's just a little bit cheaper. that is good for the stock. they power every business out there. or, do you think that the route has just begun. they are in correction territory tori. it's only down 42 points. so off the lows of the session. facebook for perspective. they are very optimistic. that is the positive for that stock. it's a dig into netflix more. it is not there now. just so you know. they have big winners and losers in this. it's up 15% in the past five years. that is a story from the nasdaq today. i'm curious to see where we close. we like to do that. they're done about for 42 p

micron better, that could be a part of it nike helping the dow look at fang stoc.a.n.g.orning, they are all a bit weaker in the premarket. can that be offset by strength in financials? which we are seeing. let's look at the ten-year treasury note yield which helped the banks. they had good stress tests, benefitting from deregulation, but this has been helpful, having yields tick up to about 2.2. the move has come fast it's gone global we're read nothing what it means and how much of a red flag it is >> financials and energy both u yesterday, so the money is shuttling out of tech and into the growth star kets the overall market was weighed down the rapid rotation out. >>> today is the last trading day of the first half of the year here's a quick check on how things have gone so far. the dow is up 7.7% s&p is better than that, % in terms of price, not including dividends. nasdaq up by more than 14% leading the way this year in terms of sectors, tech up 16%. followed by healthcare, up 15 mrs. and consumer discretionary, which is up nearly 10% helped by amazon, which is a co

them p/e fang because i like to put priceline and expedia -- >> microsoft and apple and tesla maybe?e but you've got this sector that's up about 30% year to date and it trades off 3% in one day it doesn't strike me as a big buying opportunity i think the fundamentals are largely intact at least for the consumer internet names. there's no new development, no new regulatory pressure that would have caused the stocks to trade off. you've got a very crowded long trade. supported i think by fundamentals in the group. but every once in awhile you're going to get these kind of tradeoffs, and they may create great buying opportunities one day's trade doesn't do it. >> how did it happen, do you think, on friday why does it spread to all the -- i mean they all go up together and they all come down to the. it's guys that have money in, and they get, you know, funds, and et cetera and they all get nervous at the same time >> joe, there's one quick backdrop here. the reason the stocks are so outperformed this year, last november, this stock, this group of stocks traded off pretty aggressively, 5%

alphabet is doing well, fang is extraordinary. i was surprised there was no netflix note yesterday.f course there's one today talking about foreign international sign-ups but i think apple is stalled until the next thing and i think there are also people who say if it isn't a super cycle, what's going to happen, and was there something supposed to come out of this that was legendary. nothing was supposed to come out of this, nothing, other than just developers. everything that apple does is second guessed, and you second guess it after you buy it. i bought it, you know, i guess this is a bomb, i love it, but i guess it's no one's getting it. then you get 20 million people buying. their best days were so behind them. i'm sorry. >> what are you wearing on your wrist these days? >> an apple watch but the old one. >> feels like i know -- i know, they bought a lot of them. >> we got a new os. >> not as many as they ever thought. this did not become a blockbuster product. >> carl icahn has some 60 million projection? >> the best selling smartwatch, it's out of nothing. >> right, only 56 d

in fang-related analyst comes out bulls their stocks with price targets and goodies that make us feel like dopes for not buying the down stocks remember, they're down from thursday virtual release from facebook, thought a number bump for alphabet or broadcom nope not even love from nvidia or representation of the ap many downgrade. travesty maybe it happens today i did see suspicious positive trading in nvidia in the last hour of date that might indicate a positive comment coming from wall street tomorrow not much else, though. instead what we did was got a lot of broken field running today. reminiscent of that rotation, that raggedy rotation we saw end of last week, as a smattering of financials rose up, anticipation of the fed raising rates tomorrow boroughs gravitated towards mastercard and visa. not jpmorgan an upward bias, however, because the extra boost i think from the treasury's attempt to losing regulations making bank a little more profitable. we saw money float into the industrials third day in a row perhaps to get ahead of more quarterly reports. more on that later usual

you feel it's time to start peeling back from some of the big fang stocks. so i guess apple would be a part of that. are you kind of taking some money off the table there? >> actually, we would look at apple a little differently than the fang stocks. in apple's case we want to be defensive, careful. we're not adding to the position, but in apple's case it at least meets our criteria because it is a dividend payer that has the capacity to be an extraordinary dividend payer at some point when they get serious about that $200 billion-plus of cash sitting around. in the case of the other names, you're right, we're much more bearish on the fang names, and that's totally valuation driven. it's no way a commentary of what we think about those companies aspira operating entities. we think it's a great environment for risk takers and maybe time to peel back compose shurs. >> we're just showing the charts of those four companies in the fang category there. as you see, amazon and now alphabet are both above $1,000 a share. >> moves year-to-date. rick, meantime, what ab

most of, there you go, almost all of the names out of the fakih fang group recovering.est of the market getting a lift, too. new high for the dow, pete was the worst over >> feels like they took over on friday we talked about that and yesterday how suddenly around halftime, we started to see this

i'll say fang to take the other side. why not?it will probably get it right. >> lucks on my side. >> you are right t. other positioning, i apre, the u.s. investors are on the way, they're not getting guidance if facebook or these other things. i got it at baba. >> how about rents and stocks? snap. >> oh. >> that's the texter. it's down 12 ', this week as investors question the options market, implying big moves ahead of a key event next week. a big, big event. >> listen, you know one thing investors, i will go to the board. >> they're looking out to their 150 day lockup expiration here. so when the company went public march 1st. they were financial to have a pretty accelerated lockup here, 150 day, a 180 day. one of the issues here is that lack of liquidity at the expense of the borrow. if you want to shorten the stock, a lot of people have been pessimistic about this story right out of the dpaet having a 30 billion or so mark cap. because of that small flow and because of the expense to borrow the stock, it's been really hard to

analysts issued a rare downgrade for apple saying the stock has limited upside potential fang is underressure we thought friday was a one day dynamic, some of these names are proving otherwise. >> a bit of a rebound, though, in tech. i watch a grouch tech stocks and i was looking at one points in the 10:00 hour there were about 39 of them that were down 3% or more i'm looking now and it's six are only down that much. so quite a rebound i think apple is a prime example at the heart of this i take the point, bob pisani was saying earlier he doesn't understand why people say apple is overvalued. there's this valley of doubt on apple that usually happens right around late august to late january people start saying oh, this iphone, this next one isn't going good enough. there's never been an iphone as good enough as far as investors are concerned. this time they are expecting a big cycle. >> the point is more the consensus doesn't have a lot of upside, right? people are excited about this phone. >> that hardly ever happens. when people are excited now they are almost sure to feel let down w