Halftime Report: Can the Market Bounce Continue? (March 24, 2025)
Host: Scott Wapner
Guests: Joe Terranova, Jim Laventhal, Steve Weiss, Brent Tolkington, Ben Rizzuto
Release Date: March 24, 2025
Duration: Approximately 46 minutes
1. Market Overview: A Broad-Based Bounce
Scott Wapner kicks off the episode by highlighting a widespread market rebound. He notes that stocks across various sectors are experiencing gains, pointing to positive developments such as the Wall Street Journal's report indicating that tariffs on industrial sectors like cars and chips are unlikely to be announced on April 2. This news has buoyed stocks like Nvidia, Micron, AMD, Broadcom, Ford, and GM.
Key Quote:
Scott Wapner [03:00]: “There is green across the board today.”
The panel discusses whether this bounce marks the beginning of a sustained rally or if it's merely a temporary uptick. Tom Lee's prediction of a "face ripping rally" sets the stage for a deeper analysis.
2. Tariffs and Policy Impact: Navigating Uncertainty
A significant portion of the discussion centers around the potential impact of tariffs on the market. Scott references Eamon Jabber’s breaking news about the White House’s considerations to impose an additional 25% tariff on any country doing business with Venezuela, effectively raising tariffs on China from 20% to 45%.
Key Quote:
Eamon Jabber [17:07]: “The president envisions 45% tariffs on China as a result of the 25% from Venezuela.”
The panelists debate the likelihood of these tariffs being enforced and their potential repercussions on global trade. Joe Terranova expresses skepticism about the tariffs passing, suggesting that the market might shrug off such threats.
Key Quote:
Joe Terranova [22:15]: “I don't think you see that tariff come through because of what's at the root of it.”
3. Tech Sector and Momentum Stocks: The Role of the Magnificent Seven
Ben Rizzuto provides insights into the tech sector's resilience, emphasizing the dominance of the "Magnificent Seven" stocks, including Nvidia and Metta. He observes a shift back to momentum-driven stocks taking leadership as defensive sectors stabilize.
Key Quote:
Ben Rizzuto [02:05]: “Some of the overseas names that were carrying the market... you're now seeing that other areas, like the momentum names which have stabilized... are taking leadership again.”
Jim Laventhal adds that tech stocks like Palantir and Robinhood are outperforming larger, more mature companies, suggesting that investors should look beyond the usual suspects for growth opportunities.
Key Quote:
Jim Laventhal [07:30]: “These growth year names, the Robinhoods, the Palantirs are going to outperform these trillion dollar companies...”
4. Investment Strategies: Balancing Risk and Opportunity
Steve Weiss and Ben Rizzuto discuss their investment strategies amidst the current market volatility. Weiss opts for stability by investing in attractively priced mega-cap tech stocks like Microsoft, avoiding high-momentum names due to the unpredictability of headlines affecting stock performance.
Key Quote:
Steve Weiss [08:01]: “I want to be invested and not worry about what the next headline is, I want to be in the juggernauts...”
Conversely, Rizzuto focuses on portfolio allocation and is increasing his holdings in Amazon, viewing it as a strong contender for continued growth despite its current volatility.
Key Quote:
Ben Rizzuto [10:03]: “I added to Amazon again this morning... it appears to me to be the company that has the greatest potential to continue delivering double-digit revenue growth.”
5. White House News and Market Implications: Tariffs in Focus
Eamon Jabber elaborates on the White House’s stance regarding additional tariffs, indicating that these could be supplementary to existing tariffs on China. This revelation has stirred concerns about the broader implications for global trade and market stability.
Key Quote:
Eamon Jabber [17:07]: “Sarah Island Eisen smartly brought up the fact earlier today that a big customer of Venezuelan oil is China... the president envisions 45% tariffs on China...”
The panel grapples with the uncertainty these potential tariffs introduce, debating whether the market will remain resilient or if these policy shifts could reignite volatility.
6. ETF Edge: Navigating Private Credit ETFs
The discussion shifts to the ETF landscape, with Bob Pisani conducting an interview at the Exchange ETF Conference in Las Vegas. Ana Polya from State Street Global Advisors addresses concerns about their newly launched Apollo Public and Private Credit ETF (PR IV). Initially, analysts underestimated the private credit exposure, but Polya clarifies that the fund currently holds between 19-20% private credit, contrary to earlier reports of only 5%.
Key Quote:
Ana Polya [36:27]: “The exposure to private credit is in the range of 19% between 19 and 20%. And we expect to change that exposure based on our view about the overall portfolio.”
Polya also confirms that the ETF will remove Apollo from its title following SEC queries, maintaining confidence in the fund's liquidity and strategic direction.
7. Final Trades and Recommendations: Navigating the Bounce
As the episode draws to a close, panelists share their final trading moves and recommendations. Joe Terranova discusses his positions in Interactive Brokers and Vertex Pharmaceuticals, highlighting their growth potential despite recent volatility.
Key Quote:
Joe Terranova [31:03]: “I think they... just have pretty good upside here.”
Steve Weiss recommends Alphabet as a reliable investment given its attractive valuation, while Jim Laventhal suggests Dell for its cheap stock price and significant buyback program.
Key Quote:
Steve Weiss [46:04]: “I think it's easy at this valuation.”
Jim Laventhal [45:33]: “Dell... stock is cheap. $10 billion buyback, raise their dividend.”
Ben Rizzuto emphasizes the strategic allocation in his portfolio, focusing on momentum and healthcare sectors as the market stabilizes.
Key Quote:
Ben Rizzuto [30:14]: “I sold CVS... moved into another healthcare name that's more aligned to what I do.”
8. Midday Word: Peak Uncertainty
Mike Santoli introduces the concept of "Peak Uncertainty," suggesting that the market may be reaching a point where uncertainty is at its highest, potentially stabilizing as investors adjust to the prevailing conditions.
Key Quote:
Mike Santoli [44:08]: “Those are the two words you're thinking about?”
Panelists agree, noting that current market actions indicate progress despite lingering questions about economic knock-on effects and policy impacts.
Conclusion: A Market in Flux
The Halftime Report episode underscores a market in transition, balancing positive momentum with significant policy-induced uncertainties. Panelists advocate for strategic investments in resilient sectors like tech and healthcare while remaining cautious of geopolitical and economic headwinds. As the market grapples with fluctuating headlines and policy shifts, the consensus leans towards a cautiously optimistic outlook, emphasizing adaptability and informed decision-making.
For those interested in detailed investment strategies and market analysis, tuning into CNBC’s Halftime Report during the most profitable hour of the trading day is highly recommended.