Halftime Report: Can the Rally Regain Momentum? (August 6, 2025)
Host: Scott Wapner, CNBC
Guests: Joe Terranova, Liz Thomas, Malcolm Etheridge, Steve Weiss
Introduction
In the August 6, 2025 episode of CNBC's Halftime Report, host Scott Wapner engages with top investors Joe Terranova, Liz Thomas, Malcolm Etheridge, and Steve Weiss to discuss whether the current market rally can regain its momentum. The panel delves into key stocks, market sentiment, and economic catalysts influencing investor behavior.
Apple Inc. (AAPL) as Stock of the Day
Apple takes center stage as the Stock of the Day, experiencing its best performance since May 12th with a nearly 6% increase.
Key Highlights:
- Investment Boost: Apple is increasing its U.S. investment by $100 billion, totaling $600 billion.
- Tariff Resilience: The White House indicates Apple will largely remain unaffected by tariffs targeting India.
- Presidential Meeting: CEO Tim Cook is set to meet with President Trump, highlighting a strong relationship.
- ETF Rebalancing: Joe Terranova discusses personally buying Apple despite recent ETF sell-offs.
Notable Quotes:
- Joe Terranova [02:19]: “I came right out and knew that I had to buy it. The reason is positioning and sentiment.”
- Malcolm Etheridge [04:33]: “Apple is trying just to make sure that they stay out of the ire of the President.”
Discussion Points:
- Momentum vs. Fundamentals: Joe emphasizes positioning and market sentiment over Apple's flattened revenue growth, suggesting collective buying pressure is poised to drive the stock upward.
- Malcolm's Perspective: Focuses on Tim Cook's diplomatic role and Apple's strategic investments to mitigate political risks.
- Steve Weiss's Take: Contrasts momentum-driven investing with fundamental analysis, advocating for undervalued stocks with strong fundamentals over chasing momentum in Apple.
Market Sentiment and Economic Resilience
Liz Thomas provides insights into the broader market dynamics, emphasizing the resilience of consumer spending despite high valuations.
Notable Quotes:
- Liz Thomas [08:37]: “The consumer has been under pressure, but what's happening right now is because goods prices have increased... we have to spend more money on goods, which means we're going to spend a little less money on services.”
- Joe Terranova [13:11]: “I'm looking at something different. I’m not necessarily sure how we return the market to an environment where fundamentals more than anything else are driving the flows of capital into the market.”
Key Points:
- Consumer Spending: Despite high credit card debt and rising goods prices, Liz maintains that as long as employment remains stable, consumer spending will continue.
- Valuation Concerns: Recognizes that the market is more expensive but sees opportunities in minor corrections.
- Economic Indicators: The panel discusses upcoming economic data points, including CPI, PPI, and jobs reports, which will further influence market momentum.
Impact of Buybacks on Market Momentum
The role of stock buybacks in sustaining market momentum is examined, with a particular focus on Apple's aggressive buyback strategy.
Notable Quotes:
- Steve Weiss [10:30]: “What’s driving the market is momentum... fundamentally sound companies like Apple are seen as low-risk holds despite flat earnings.”
- Scott Wapner [10:30]: “Buybacks are pacing for a record this year. July saw a record $165 billion in announced buybacks.”
Discussion Points:
- Buyback Significance: Apple’s substantial buyback program is viewed as a stabilizing force, providing a floor for the stock.
- Contrasting Strategies: Steve advocates for focusing on undervalued stocks with strong fundamentals, while Joe prioritizes momentum and positioning.
Sector and Stock Calls
The panel delves into specific stock recommendations and sector analyses, highlighting both buys and sells.
Leidos Holdings (LDOS) Upgrade
Notable Quotes:
- Steve Weiss [27:53]: “Jefferies upgraded Leidos to buy from hold with a target of $205 from $185... management is executing their plans perfectly.”
Key Points:
- Government Contracts: Leidos benefits from a substantial portion of its workforce embedded in government projects, ensuring steady growth.
- Cybersecurity Focus: The company’s focus on cyber services is a significant growth driver.
Eaton Corporation (ETN) Outlook
Notable Quotes:
- Joe Terranova [29:25]: “Revenue up 50%, data center orders up 55%... momentum is building for semis.”
Key Points:
- Earnings Performance: Strong performance in infrastructure and data center sectors positions Eaton for continued growth despite recent stock volatility.
- Growth Catalysts: Anticipates earnings growth and continued investment in capital goods to drive the stock.
AXON Enterprise (AXON) Discussion
Notable Quotes:
- Malcolm Etheridge [35:27]: “Earnings growth has been pretty solid since they shifted to a software company, selling subscriptions.”
- Joe Terranova [32:48]: “Axon is a momentum-driven stock supported by revenue and earnings growth.”
Key Points:
- Transformation Success: AXON's transition from hardware to software has significantly boosted its growth trajectory.
- Momentum Sustainability: Despite being labeled as a "cultish" momentum stock, the panel acknowledges AXON's solid earnings fundamentals.
Iron Mountain (IRM) and Prologis (PLD) Sales
Notable Quotes:
- Malcolm Etheridge [38:02]: “I sold Iron Mountain on the expectation of continued stock decline post-earnings... Prologis has been a dead stock with no meaningful returns.”
Key Points:
- Dividend Concerns: Despite being strong dividend stocks, both Iron Mountain and Prologis failed to deliver significant returns, prompting sell decisions.
- Market Sentiment: Investors are taking profits and positioning for potential market pullbacks, influencing sell-offs in these stocks.
Market Catalysts and Future Outlook
The discussion shifts to upcoming economic data and potential catalysts that could influence the market's next moves.
Key Points:
- Federal Reserve Actions: Anticipation of rate cuts is a significant market catalyst, with 94% market pricing for a cut. However, upcoming data could sway this outlook.
- Economic Data: Upcoming CPI, PPI, and jobs reports are critical in assessing economic health and influencing Fed policy.
- Job Market Stability: Continued employment levels without significant layoffs support consumer spending resilience.
Notable Quotes:
- Liz Thomas [45:05]: “The next big catalyst, I think, is the Fed and whether or not we get that rate cut... the market is going to be really disappointed if we don’t get the cut.”
Closing Segment: Stock Recommendations and Final Thoughts
The panel wraps up with final stock recommendations and reflections on market strategies.
Notable Quotes:
- Steve Weiss [47:06]: “I’m fully invested till further notice... I see a potential drawdown of 5 or 10%, but we'll recover quickly.”
- Malcolm Etheridge [39:32]: “I'm using the cash to get in position for things that I think are going to happen, like buying ASML.”
Key Points:
- Diversified Strategies: While some panelists advocate for fundamental and undervalued stock investing, others emphasize momentum and positioning.
- Preparedness for Volatility: Investors are advised to remain vigilant for potential market corrections while maintaining a strategic investment approach.
Conclusion
The Halftime Report episode underscores the complex interplay between market momentum, fundamental analysis, and economic indicators. While Apple remains a focal point with its strong performance and strategic positioning, the broader market sentiment is cautiously optimistic, hinging on upcoming economic data and Federal Reserve actions. Investors are encouraged to balance momentum-driven opportunities with fundamental valuations to navigate the evolving market landscape.
Notable Timestamps:
- [02:19] Joe Terranova discusses personal purchase of Apple.
- [04:33] Malcolm Etheridge on Tim Cook's diplomacy.
- [08:37] Liz Thomas on consumer spending resilience.
- [10:30] Steve Weiss on buybacks and market momentum.
- [27:53] Steve Weiss on Leidos upgrade.
- [38:02] Malcolm Etheridge on selling Iron Mountain and Prologis.
- [45:05] Liz Thomas on Federal Reserve rate cut catalysts.