if i'm long jpmorgan, i want to take my trade in that. >> you want to sell the stock? >> sell the stock. buy this call. i know what to expect. for me, i like this a lot. >> let's see, well, i mean, it's a pretty steep move moving into the numbers, right we're talking about being up 16% in the past month. in fact, it's the biggest rolling forward move back to the election in november so i think a lot might be priced in to put it in the context of what i don't do, street wide consensus for this stock for a price target is a dollar higher. 15 buys and 15 holds there's not a lot of euphoria on the street for this. maybe that's the opportunity language in here, there's hot potential. it's moved 15, 16% going into this number. >> that remains supportive of this trade strategy though rather than being long stock that's exactly the point it's a risky place to be for all the reasons cited. are y this provides us an inexpensive way to provide that. >> which is why i like it as a stock replacement. you have this so why not take some of those profits home with you and take a perce

i'd rather not trade to earnings i'm long bank of america, jpmorg jpmorgan, citibank >> little steel to add there the semis, we can all argue about whether they can if they're run too fast and they have, but i took off some in the space itself, amd and of these names, but i added taiwan semi, but late in the day, big buyers in there, they're all short-term though in the tech space, specifically the semi space, everything is joint. >> staff trade >> it was supposed to be tim >> you could say it's -- today's retail bounce comes as the wall street jackson says retail's rough year has mom and pop investors beaten down in shares of retailers our next guest says he's got two names you should buy and one that is a no touch let's go off the charts with robert slimer. what are you looking at? >> hey, melissa. so, leet l let's look at the xrt. roughly around a percent or so each roughly around the $38 level if you're a trader, you want to bounce, play with tight stock, it's not a bad place to be looking at here's the key point i think what's critical here is relative performance in the bottom

at the end of the day, liquidity is going to determine how long this company survives. julia: jpmorgan $1.5 billion of debt coming to you over the next year. systemice this as a issue, potentially? you have looked at all lamb, noble group. , noble group. somebody owns those funds. do you see the potential for a follow here?mic >> i would be very surprised if it presented a systemic rest, even just to singapore. olam happened and was bailed out, i think that was a situation where markets were not repaired for a large asian wall and run the out of liquidity. i think that situation is quite different from noble, which has had a heat glide slope, nonetheless a glide slope down glidere it is -- steep slope, nonetheless a glide slope down to where it is right now. bankruptcyou think is going to be the end game here? >> you now, if i had to pick an outcome, yes, i think that noble .iles i don't know if it files in the next two weeks or if it could take significantly longer than that. -- it is difficult really difficult from the outside to figure out how much value is in the company. it does n

this is what i mean, if you look at what they filed -- jpmorgan just wild a managed future etf, longrt etf, that adds to their long driven etf, and you look at goldman, already all filed, they are covering the whole gamut. i call it a clone army because it is not a real hedge fund but it kind of is. they will be managed like real hedge funds. but their trying to do is tw thinko -- two things, they want to get access to a goldman hedge fund manager bit anyone can invest because it is an etf. it will be have the cost of an actual hedge fund and it will not be capital gains, so more tax efficient. the second is, can be peeled off any investors unhappy with actual hedge funds? that remains to be seen. i do think it is a good retail product. the other thing is this category recall alternatives has not been that popular, only 2 billion in assets so far in this area. two reasons, one, the equity market has done well. the second reason is because you have not had big issuers. nobody with the name and size and stature of goldman sachs and jpmorgan has gone in happy. as far as etf categories,

have fastenal and industrial heavyweight, and heavyweights, jpmorgan chase, citigroup, and wells fargo. chris bertelsmann, i know you have so long. you have gained, and feigned. you have now $2.3 billion in assets under management. isn't it a tricky thing to buy stocks ahead of earnings? >> yes, it is always a little bit of a troublesome situation because you don't know whether they will surprise this earnings period, next earnings period. that is the case with three individual stocks i have for this period. melissa: go for he -- liz: go for it. people might want to know what will be a good buy now and they come in with good earnings and the stock floats higher. >> three ideas for earnings surprises. seagate i think they have a kitchen sink quarter last time and they cleared the decks. certainly is. dd and if you look at all of the data storage area it is really high growth area. they're cheap. they have a 6% yield i like them. second one, las vegas sands. certainly macao has been way up finally. they may get japan, who knows. las vegas is recovering. again, a cheap stock with almost 5% yield. third one even more controversial b

down i think we're going to see sustained prices for a long time there's pent up demand, buyers out there. the market's good. i think even jpmorganr construction loan. shows me long-term they're see ing a positive market. that's great news. >> robert mentioned that new construction is a very hot area. so these new apartments skewed towards the higher end, these condos, they seem to be pulling up the average price what about existing housing stock sns will we see mark ups or is it more steady >> it's steady, by bu i think it's leveling off because it got a little heat ed in '15 and this then we had some quiet this has through '16. had to do with the election. but then, the sellers got real the serious, strong sellers wanted to sell and the prices got real >> and it's amazing to me with all the new construction we've had, we're able to absorb that with the dif we're see ng the foreign buyer. who is buying this property? >> it's the foreign buyers, but it's really fueled by new yorker, americans, locals. and it's not that we have tens of thousands of new construction when we see these towers, most of them are floor throughs you see

. >> nobody is going to question their staying as long as they want >> meanwhile, look at jpmorgan theas been pretty good disney has been stalled but, obviously, short of verizon buying them, was that a stupid story, and then i just feel like there isn't -- you know, this -- these are companies that are run by people, that are run synonymously of which the most may be les moonves. >> one without a doubt, yeah. >> these are less jamie and bob. they're kind of like cher. >> frank. >> how many ceos are by their first name. >> he was the chairman of the board too. >> i know. never a proxy fight there. >> no. >> i think -- >> nobody took him out. >> he would have been killed if he had a proxy. >> that is a fair point as well. >> a nibbling on tech today. >> yes. >> intel -- >> little early. >> helping to lead the dow. >> please, let, you know, let those guys who were selling it furiously on monday, you know, come back. i mean you don't just turn it around on nothing. let them come back let them knock some things down. and then come in but there's been a sense that the turn the algos on and

long time. he was and airlines where before warren buffett, and they had a great year. he liked big banks like jpmorganthey've come back. he needed a few well-timed text often beaten-down retailers like rh, the old restoration hardware and wayfarer, the online furniture retailer. you put it all together and is up almost 50% year-over-year. scarlet: it's a bit like he chose value over growth. is definitely value guy, though he is in value guy. yearsed amazon for many and was an early supporter of amazon. that did not fit into most value investors portfolios. julia: it's interesting you brought in the amazon affect. there are a number of these names, including restoration hardware, the people are talking about is potential acquisition targets. i just wonder how replicable the returns are, given they have been so popular in just a small number of stocks. charles: he's had quite a few that have worked. who hasler is a guy been up and has been down, but he is somebody with great conviction and sticks by the stocks he likes. it's really worked for him. it's worth pointing out over the past five years, he's a

take a look at xlf, jpmorgan specifically >> if you have h to be on one side of the dollar which side? >> longollar >> long dollar for the first time everybody -- nobody is long dollar. everybody gave up. another recommendation university of maryland >> thanks so much for being here good to see you again. that does it for us. thanks for watching us power starts right now >> i'm melissa lee stocks in the red, tech in the nasdaq getting crushed is the herd mentality taking a toll would you trust random strangers with your money. one amazon engineer is doing just that taking his $50,000 portfolio social >>> soda, candy even cupcakes buy all kinds of stuff in vending machines now add cars to the list we'll explain and introduce to you the ceo trying to shake up the auto business. buckle up, "power lunch" start

jpmorgan up 9%. >> i think it continues. you know, this is a name that it took a long time to finally break out.esistance overhead no one has a loss in the stock, and i think it's going to go higher >> erin, june first, you said small caps russell is up 2.5% since what do you do now is >> stick with the trade. we talked before about the small caps being the growth engine of the economy. we spent a lot of time talking about how growth is picking up payrolls look good you still want to stay long in the small caps >> pete, what happened to home depot? >> it slipped just a little bit. they have a strong housing market and incredible -- the financial side going on at home depot is incredible. so the fact that it was up in the stratosphere, that's okay. it has plenty of room to the upside and i look at getting back in. >> we'll take a quick break. i was wondering if an electric toothbrush really cleans... ...better than a manual, and my hygienist says it does. but... ...they're not all the same. turns out, they're really... ...different. who knew? i had no idea. so, she said look for... ...one that's

long time. financially pretty strong. 4% dividend yield and that's basically, i think the quote from art peck, the ceo in the jpmorganwas nothing that's happened this year has been surprising to us baseod what we expect meaning in the environment so they weren't looking for great things >> eyes wide open. ulta is part of this retail sense and gets an upgrid to buy from neutral at goldman. they cut their target from 321 to 310 again. an example goldman believes where they can weather the phenomenon of amazon a name which hasn't been shrinking as much as gap has >> the stock faltered recently after this incredible run. >> this story about department stores starting to discount cosmetics. the stock had been rolling over. before that. but mostly that's been about, everyone looking at retail and how depressed the traditional mainstream retailers were and saying, well, how much of a premium can we sustain with ulta, ross stores, all the ones people were hiding in. it's interesting you get this call the market gave you an opportunity to pick this one up. the up trend or macro remains intact for the stock >> we have caplan m

long™. ♪ . cheryl: well, the turmoil over health care expected to only create more gridlock in washington. and that is something that jpmorganaming the media telling reporters why you guys don't write about it every day is completely beyond me. is he right? bring in howard kurtz, host of "mediabuzz". you have written about his comment, great article. >> thank you. cheryl: is he right? >> most americans would say he's right. why can't we do something about the partisan paralysis in washington? the reason it's not going on more is 20 years, bush administration, obama administration, trump administration, like saying washington is a human place in july, and when you have all this polarization, polarized parties, polarized members, districts, constituents, polarized media and social media now and tad to a subject that is difficult as health care, you have today, nothing gets done. cheryl: here's the thing, story lines going on right now, chaos, donald trump, jr. about a meeting that happened a year ago that's now we're talking hearings and appearances, does jamie dimon have a point that the media needs to refocus on the actual p

long-term interest rates are negative. the other thing we saw also a jpmorganket business. they have the business of taking deposits. that is not the capital markets where we have a lot of the impact this quarter. the prime business in equity services, that has been hit by higher funding cost. joanathan: when we look at the are many reasons why things happen and they are external. you don't talk about with happening inside the bank management. there used to be a dream team. have we get any idea what inping inside goldman sachs terms of management and changes that may have happened in the last couple of quarters? are they starting to do something different? has nothing really changed in the management? allison: in terms of goldman when i was evaluating, i think it's a strong and consistent culture. has had a very consistent culture over the years. it's a combination of a lot of different banks. culturethe consistent would be supportive. even if you do get some departures. banks, howvidual much of this is a larger picture of the economy and how fast it is growing

long square, different side of the business. but i think it's going to be good for any of these companies. they need exposure to square up 93% year to date. >> unless you're jpmorgan and you want to have a paypal relationship >> why buy the cow >> when you get the milk for free or almost free. >> the payment space is a really exciting place to be capital one looks like that was good, although this is a different bet. capital one, you have credit risk, which is a very different bet than mastercard, which i own. visa, those are very, very similar. we see it everywhere there are stores now that don't take cash in new york city it's so that trend is happening for sure i don't know how it gets in the short-term it's been a phenomenal business. if you want more overseas exposure, visa is the way to go. >> operating margins, 68% that's extraordinary this is story we've talked about i think for as long as we've had this show's been in existence. as long as visa and mast ercard have been publicly traded companies. the stories in tech, negative side, people shoot on them in valuation. they continue to grow into valuation. they process transactions without the risk, good bus

jpmorgan is saying translate to some of the other banks? >> i think another bank this morning report, pnc financial had very strong numbers. the regional banks as longre going to hold back on yourexpenses on the funding cause you're okay. with jpmorgan it's obviously universal bank they had growth year over year of, in the net interest income area, that was strong, but wasn't strong enough >> looking at the credit loss, if the provision was down $1.2 billion that drawdown was in energy but there was a net build, because of consumer, mostly driven by cars. can he extrapolate that? especially after the comments jamie dimon had in the release that the consumer remains healthy? >> yes, i think what we're seeing in cars is that credit losses have been unusually low for a number of quarters for the industry and as you might recall, the improvement in credit was quite strong in credit cards, and now it's starting to normalize and therefore we should expect the consumer credit losses will start to normalize, and they need to build them up. but as you pointed out, there was stronger credit in commercial which offset that buildup in the consumer side of the h

jpmorgan, citi and bank of america are big as well. they have different risk rewards also i think more upside and more down side. if we get a technology route which we saw not long ago, we saw a few of them. that's going be more painful >>> mohamed el-erian is joining us technology or banks? >> technology. it's a fascinating discussion. could you have had this same discussion if you were talking about the dollar, u.s. treasuries versus german bunds in the last three months there's been three distinctive rallies one is policy. the trump trade. that favors banks. two, is global reflation third one is liquidity and that favors tech. so right now we're in a situation where liquidity is in play but the policy trade and inflation trade is not that's why it's a better environment for tech than for banks, better for euro than the dollar and better environment for the bund than u.s. treasuries >> we don't necessarily know what will happen to the policy side of it or even perhaps the inflation side of it we have a pretty good idea what will happen to the liquidity side of that and that it will tighten, it will be pulled back. a few weeks ago we had four or five central ba

jpmorgan chase about a possible buyout. shares are down 9% adidas up sharply after being upgraded to buy from whole on hsbc the new management team's ability to show the longerm strategy is showing up them 18% year to date >>> in berlin, german chancellor a angela merkel met with xi gin jinping. she called it a good opportunity to expand communication between the two countries. she would like to see quick signing of an investment treat did to lead to a full trade agreement with china merkel says she stands by her earlier suggestion that europe can no longer entirely rely on the united states. this, of course, as president trump gets ready to attend the g20 meeting. guys, back to you. >>> all right, thank you, seema. meanwhile, move over alexa, perhaps alibaba has its own home speaker. and it's going to take on amazon, google and eventually apple and samsung when they come to market. deirdre bosa has the details. >> in english it's called the geniex1. but the device only understands mandarin so alibaba announcing this overnight in beijing this is the latest entrance to the smart speaker market and its answer to amazon google echo home. and the speakers have

jpmorgan back on the deal hunt now after all of these years, do you think? >> they're not buying a bank, regulated bank we haven't seen those deals in a long time. it wantedto. consolidation in the payment space, probably will happen. a lot of talk about vin mill it doesn't make a cent, yet, but it is changing consumer -- it is changing consumer behavior and jpmorgan's trying to change that too. i'd chalk it up to, it's kind of boring, but kind of important. let's wait and see how the space consolidates >> okay. finally, we had to squeeze this one in, we've talking about facebook looking for tv shows. and now as a report today from deadline that facebook ordered a documentary series about the ball family. tell me you're familiar. lonzo is starting at the lakers. is the whole family participating in this or this -- i have to say, i think it's a brilliant move by facebook >> i'm with you. you know, it's so amazing. facebook can bring you an audience that is rival too or greater than that. and a global audience of that television at large. oh, and you can measure and identify their characteristics as advertising receivers so, i think this is just t

jpmorgan chart is the most impressive. it's the only one that has shown it can make new highs. last fall it broke a big 15 year base. has been-- this stock in here a longector. tom: the fundamental guesstimate out of friday afternoon, chris verrone, is do i want to buy how do youeader or find that a value in a bank of america? think about the group as a whole. a lot of these stocks are still up meaningfully from where they are 12 months ago -- where they were 12 months ago. all the have done is pause in the context of up trend think this is just a pause. near 24, jpmca near 90. citigroup acting well all despite rates having come from 260 down to 225. in that environment, i have been impressed with how the banks in the u.s. and europe have held up here. francine: thank you so much arjun bowry in london and we will be back with chris verrone. coming up next week, we focus on the european banking earnings season. i will be speaking to the credit suisse ceo to see what he has to say about various units next friday. this is bloomberg. ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest price