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Halftime Report
Halftime Report Live from Apple's WWDC 6/8/26
00:44:05
Scott Wapner and the Investment Committee are live in Cupertino, California ahead of Apple's WWDC. We look ahead to Tim Cook's last Developer's Conference and debate where John Ternus will take the company next. Plus, we discuss the Space X valuation with shareholder Bryn Talkington, she explains her strategy ahead of the record-breaking IPO. And later, we hit some Committee stocks on the move. Investment Committee Disclosures
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- [00:00]
Edward Jones Narrator
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- [00:31]
Venture Global Narrator
At Venture Global, we think about what can be done, not what's usually done through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.
- [01:01]
Scott Wapner
I'm Scott Wapner and you're listening to CNBC's Halftime Report, the podcast the most profitable hour of the trading day. We record this live weekdays at 12 Eastern. Listen in. Carl, thank you very much. Welcome to Cupertino, California, where in less than one hour Apple will begin its most important annual event, its worldwide Developers conference. It's a critical, critical moment for this company and its outgoing CEO, Tim Cook, who presides over his last wwdc. Welcome to this special Halftime report of Scott Wagner. We are live today from Apple Park. The question hanging over this year's gathering, after two years of delays and disappointments, will Apple finally deliver on its AI strategy? And how will it be received by investors? Stock's been surging to new highs lately, close to another new high yet again today, which makes the events here all the more important. Our team is at the ready here on site, our Apple reporter, Mackenzie Segalos, star analyst Dan Ives of Wedbush, CNBC contributor, Big Technologies. Alex Kanchowitz is in San Francisco for us today and the committee is standing by as well. Joe Terranova, he's been aggressively buying Apple shares lately. Jim Leventhal and Bryn Talkington own the name as well. They are with us as well. We bring it out and we welcome you live today to Cupertino. It's good to have you with us. Thank you, Mac. It's great to have you, Dan, of course. Great to have you here as well. Mac. Why don't you tell us what you think we should expect today after what we suggest are two years worth of delays and some would say disappointments.
- [02:39]
MacKenzie Segalos
We're looking at a revamped Siri and I'm thinking about this in four different buckets. They teamed up, Apple teamed up with Gemini. So we're going to see a Siri powered by Gemini. We're talking about capitalizing on this flywheel of data inside the iOS ecosystem. Personal context, on screen awareness, things that they pitched two years ago separately, multi command support. We're talking about an agentic experience through Siri. Third, they're going to potentially open up Siri to other models. They've already had that relationship with OpenAI, potentially opening that even wider beyond Gemini. Maybe anthropic plug in whichever chat bot you prefer to use and then a standalone Siri app, something that Apple previously said that they wouldn't do. This is something that would compete with chat cbt. Of course, this is a big debut for John Ternus, now the incoming CEO, and he has to sell developers on Siri is the ideal platform to build these new agentic capabilities because they really need to get devs on side.
- [03:30]
Scott Wapner
Okay, so what you're telling me is today is going to be all about Siri. And we should have known as as much by the invitation that Apple had sent out. It had a bit of a glow, I guess to it, which some would say, you know, was pointing in these directions. Why has it taken so long? Why are we saying two years after they first talked about Apple intelligence, are we at this moment today?
- [03:56]
MacKenzie Segalos
And if you really want to back it, it's since they acquired the company that became Siri. They were really first on this voice command tech. When you look at the delays of the last two years, a lot of it can be chalked up to management. Right. We saw this huge changing of the guard in the AI team. And as much as we talk about the Vision Pro not succeeding in a commercial sense in terms of sales, we did see Mike Rockwell, the architect there, come in, take over this AI project under Craig Federigh, the software chief, bring in a lot of his Vision Pro team to help rebuild what's going on there. And we saw John Giantrea, the former chief out Amar Supermania and who led engineering at Gemini. So just this really thoughtful reorg, Tim Cook, reportedly more involved in this AI reboot than he had been in any other project in the last decade. Really getting hands on usually yields more to his lieutenants. And then the last thing that I'd say is that they gave up on this fight to be an LLM. That's competitive, right? They are licensing this tech from Gemini reportedly for $1 billion a year, which is nothing against the 20 billion that Google pays them for search.
- [04:57]
Scott Wapner
How does this Match up with your expectations today. You say this is going to be a foundational moment for Apple's AI strategy today.
- [05:06]
Dan Ives
Look, I mean, they essentially threw away the treadmill, threw away the whiteboard, and finally we're actually going to see Apple get in on the AI game. I mean, like, look, you could be late, but when you have 1.5 billion iPhones, 2.5 billion iOS devices, they are going to be the toll collector on the highway. And this is, it's a monumental day for Cook, Hand in the baton. Monumental day for Turners. And I believe, Scott, when I think about what amount of AI is baked into the multiple, what's baked into the stock, I think it's minimal. And that just, it's our view that's the opportunity here after obviously a few years disappointment.
- [05:44]
Scott Wapner
There may be delays, there may be disappointment. As Dan said. The interesting part of this story, Joe, is that investors have largely given Apple the benefit of the doubt. As I said, the stock is right around a new high yet again. Believe it or not, it's added $1.6 trillion in market cap since last year's WWDC. Investors have just assumed that they were going to eventually get this right. Maybe that's in the stock at this point. You've been a big buyer, as I said, right off the top of the program consistently we made a wall to show our viewers the prices and the dates in which you started accumulating this stock again in a pretty consistent manner. There it is. What has sold you on the idea that it was time to do what this wall suggests you have.
- [06:34]
Joe Terranova
So, Scott, I believe I'm getting in front of three things. First and foremost, most importantly, a tangible AI vision. It's been missing over the last two years and as you correctly state, that's allowed investors the time to build positioning and really not be frustrated by the lack of delivery and still have an adequate performance. Secondarily, revenue growth is accelerating for this company, that's for sure. They're going to do 15% in 2026. That's up from 6% last year. And over, looking back three years ago, you're talking about flat revenue growth. And then thirdly, if you think about the momentum factor and you think about the momentum story in the market currently, Apple hasn't participated in that momentum story over the last 18 months. The two largest Momentum ETFs are the MTOM, MTM and SP AMO. Neither one of those Momentum ETFs own Apple. So it's the rebuilding of positioning. And I think collectively those are three catalysts that I'm getting in front of and it's the reason why I've been buying it since the end of March.
- [07:49]
Scott Wapner
Dan, the stock's up 52% over the last year. Why do you think investors have been giving this company the benefit of the doubt? I told you a year ago we still don't have anything tangible on AI. And then we're going to meet a year later and Apple is going to have added $1.6 trillion in market cap. You probably would have said you're crazy. Look, why have they.
- [08:08]
Dan Ives
And it speaks to, you know we went to $400 price target. It's our view and we've talked about is that the consumer has just started the AI path. So when you think about LMS where everything is today, 20% of the world is going to access AI ultimately through an Apple device. They had to get in on the game. Finally they are right. I mean they basically ripped the band aid off and now we're here and it comes down to monetization. I think 75 to $100 per share that could get added because of AI. And then just to put some numbers around it, 100 billion of services you start thinking about could you get an incremental 15, 20 billion of services. That's why it is the sleeping giant. I think today is going to be a Jalen Brunson moment for Cook and Ternus.
- [08:53]
Scott Wapner
You're not the only one who, who thinks that, you know Mac. Eric Woodring of Morgan Stanley says this event today has the chance to quote reframe Apple as an AI winner. He says the stock could be worth 365 to 385 if they get it right. They see upside past 400 to 440. He does. Especially if they do what Dan, I've suggested they can sort of reignite growth, a new growth engine for their services business.
- [09:23]
MacKenzie Segalos
I mean they're already tracked tracking for $124 billion in their services business this year absent becoming the toll booth for consumer. I love how you put it. And so if you are able to capitalize on that, whether that is charging the model makers for being able to port into Siri or potentially this new app store that would be a dedicated home for these new models. It's, it's something that they haven't been able to tap into yet. And what I will also say is that Apple has been big on its chip strategy in terms of on device local inference. So winning at the edge, not having to rely on the cloud that also helps them capitalize on their privacy flywheel, which is something that's always been a selling point with the consumer.
- [10:02]
Scott Wapner
I wonder, you know, Brin, there's a still a bit of skepticism around the strategy itself and whether whatever happens today, and we'll find out, as we said, in less than an hour, if it's truly going to be a needle mover. Moffitt Nathanson is a bit more skeptical than the commentary you've heard from Ives and the one that I suggested from Eric Woodring. They say that today Apple needs to show, quote, evidence of a genuine step change. No more incremental moves, that they need to take a step up or a step forward in a big way to clearly define what their AI strategy is and make sure that investors truly see it and believe in it.
- [10:46]
Bryn Talkington
I think that skepticism is healthy and I think they will execute. First of all, when you look at the Apple like I have the Apple, the new Apple, there's this action button, Scott, and you push the action button and I have Gemini there right now and it opens up and you just talk to it. But right now it can't do anything inside of your phone. But when you think about who the winners are, you want to start with enterprise and you want to start with consumer. Without a doubt, Apple is the consumer winner. Every year, every week we get how much Apple did we spend on our phone? Well, everyone's usage is going up because they're on their phone more doing different AI buckets. And so I just think this is their, this is their technology to win. We don't want to open a iPhone, we don't want a metaphone. We're happy with our Apple phone and I think it's going to continue to get stronger and they have this huge moat. And so I just think that the skepticism is healthy. But I do think there's such good upside potential because really you just need to unlock Gemini so we can go into our phones and we can actually have it do things. And they already have the action button that you just sit there and just very easily could talk across. I will say the one risk though is for all of these apps that are, that are advertised based. If Apple executes, those apps are going to be, I think in a host of trouble because we aren't going to go have to suffer through those ads because we're going to go directly to where we need using that action button that they have on the new phones right now.
- [12:11]
Scott Wapner
I saw you, you know, Dan, I've shaking your head in agreement, nodding your Head in agreement in a lot of what Bryn was talking about.
- [12:17]
Dan Ives
I think Bryn hit on an extremely important point in terms of OpenAI trying to do the hardware. They're going down the phone. That's there's a better chance of me in the NBA than that really be successful from the hardware. Think about what Zuckerberg's done on meta minimal strategy in terms on the hardware. Apple has the moot. They have the 1.5 billion iPhones now. You don't have to be the best and as you've talked about, that's not what they're trying to be. But now they're actually in the game and once you're in the game, the monetization of that, that's what's now going to start to get factored into the stock.
- [12:52]
Scott Wapner
Alex Cantrow, it's where do you come down? You've, you've heard Ives, I've mentioned commentary from other analysts. There's obviously a lot of optimism in the universe around Apple and whatever the strategy is going to be rolled out as today. But there's some skepticism too.
- [13:08]
Alex Kanchowitz
That's right. Well, the optimism, I would say stems in part from the fact that the iPhone 17 is a powerhouse. It's the best selling iPhone the company has ever had. I think that's what's propelling much of the stock growth. So the company's coming in today from a position of strength. Whereas previously iPhone sales were kind of hovering somewhat stagnant, now it's coming in with a powerhouse product and ultimately Apple still is an iPhone company. Now, on the AI side, there are some good signs as it comes in from this position of strength. You're seeing Apple approach this as a much more humble company. It doesn't have to do all the AI development by itself. It's bringing in models like Gemini, like Claude, like ChatGPT, in functions like we're going to see Search RS, which is going to be available according to reports by a pull down from the center screen. So it's going to use other models. It is going to rely on its operating system advantage. And at a moment where consumer AI still isn't a defined category, I mean, the best that you have is ChatGPT right now, 900 million a billion users that's pivoting to more enterprise use cases. Consumer AI is wide open. So these are good signs for Apple. And again, the question is going to come to execution. Can the company take the vision that it's going to show today and actually turn it into product success in a way that we haven't seen in the past few years.
- [14:28]
Scott Wapner
Mac. I feel like AK made a really, really great point where he, he points out that the upgrade cycle has been really strong for Apple and you've heard about it over the last year or so with the latest iPhone. So they do come in at a point of strength rather than point of weakness where we're not saying so when is this long awaited upgrade cycle actually going to happen? Well, it's been happening and part of
- [14:53]
MacKenzie Segalos
that is just this resurgence in growth in China. It's 2/4 ago, 38% year over year growth, 28% last quarter. They're now neck and neck with Huawei in the Chinese market. Their second most important after the US reportedly going to bring out a foldable phone later in the year that sells very well in China. So from a hardware perspective they are winning going into WWDC and then on top of that if you have these new agentic features that come out, Apple is big into hardware gaming so potentially having to pull forward that upgrade cycle in order to tier themselves in to these new capabilities that will be rolled out. Another point that AK just brought up was the fact that consumer AI is wide open. You have the frontier labs like OpenAI and anthropic gearing up to go public which means being as profitable or at least looking to be on a path to profitability which comes from the enterprise buyer, not from the consumer. And so you've got Go Google and Apple that have this data flywheel that's unmatched and what Apple has that you can't match is imessage and that's a huge advantage for them.
- [15:54]
Scott Wapner
Jimmy, maybe the wild card in this story about the stock is the valuation. It's above the historical average and probably by a lot at this point. And that has prohibited some of your committee members from buying the stock. They just can't get their arms around why Apple deserves to trade at the premium that it does. How would you address that? It's near 34 and a half times forward.
- [16:21]
Jim Leventhal
Yeah, you know, I think there's always this tension between the fundamental analysis, which I agree it is expensive, and then on the other hand listening to what the market is telling you as it's done nothing but go up over the last several quarters. Scott, I think the way to play that as a portfolio manager, many people agree with me and we've talked about it on the show, have a core position and have a trading position. My core position goes back to 2013. That's a $15 cost basis. That's unlikely that I will ever sell that. The trading position goes back about a year ago, post Liberation Day at $190 a share. Now, I will tell you my squaring the circle with regards to valuation is that if the momentum gives out for any reason, if all of the, the praises that we've just heard about what may come today doesn't come to fruition, then it gives me an opportunity to at least reduce or maybe take out the trading position entirely. What you're hearing from me is somebody who has a market weight in the stock but is a little skeptical, both because of the valuation that you mentioned, 34 times earnings, three and a half times PEG ratio, and also a question after two years of kind of having Lucy pull the football away from Charlie Brown in terms of announcements, will this be the one that really, as Dan I've says, changes the game as a step function up? Market's been going up for the stock. So I'm happy, but I am skeptical.
- [17:46]
Scott Wapner
Joe, you have to be fully comfortable with where the stock's trading. Quite obviously, if as we put the wall back up, this stock's been richly valued for a while now and you continue to buy it, the wall that we made documents exactly along the way where you have continued to buy it. So do you not have any concerns at all about the valuation of shares?
- [18:08]
Joe Terranova
Don't have concern about the valuation. I don't see today as a make or break moment. If in fact today they don't deliver on exactly all these high expectations that myself and others have and the stock were to fall. I think that the investor base will do what it has done over the last two years, give it the benefit of the doubt and be patient because ultimately they will deliver. They will give you the tangible AI product and it'll go directly in the hands of the consumer. And guess what? They're not spending what the other hyperscalers are to deliver that. So I foresee that they will deliver today. I also have been building this position, as I said, because I think people from a position standpoint have walked away. And I also believe that the revenue growth acceleration in particular as it relates to China is critically important. And that afford. Affords you the time to allow them to ultimately deliver on this tangible strategy. So today's not the break moment.
- [19:14]
Scott Wapner
I don't think I want to take the other side of that because I, I feel I'll bring Dan Ives back in. I feel like this very much is a make or break moment. We've waited two years. People are frustrated with the Delays, you use the word disappointment. The stock has added a tremendous amount of value since last year. We're at basically record high levels now. Do you think it's a make or break moment?
- [19:40]
Dan Ives
Make or break. And I think Cook knows it. Turner developers know it. You know we've been here the last few years where there was excitement and that was ultimately they never came came through on the promise washer sort of shrugged shoulders. There's a reason the batons getting hand to turn us now. And now you look at it China in a much, much better position than it was even a year ago. Two years ago, Cook 10% politician, 9% CEO. Now you're going to have the product. You combine it with the AI strategy. I think that's why we'll be sitting here. Apple have a foreign front business.
- [20:11]
Scott Wapner
Well, we'll talk more about the baton pass. You know, as you say, what could really happen on the stage today here. Tim Cook and John Ternus there together. Is there a baton pass? It is a unique opportunity for those two gentlemen to be publicly together. So we will revisit that for sure. Mac, we'll see you at the end of our program. As we walk right up to the beginning of this, Dan Ives is going to stick around. AK I'll come back to you though on the notion of taking the other side of what Joe was saying that he doesn't see this as a make or break. Investors will just continue to give them the benefit of the doubt. I've says no way that that's the case. What say you?
- [20:53]
Alex Kanchowitz
I think if there was a competing AI device then it would be make or break. If OpenAI for instance had released some AI voice first device along with Jony I've that was selling like crazy then this would be the most crucial WWDC in Apple's history. The thing is the technology has taken a bit longer to develop than a lot of people anticipated. A few years ago it seemed like this AI device was right around the corner. Now it looks like it might be another year or two away. So Apple definitely needs to get its act together when it comes to artificial intelligence. This is going to be a battle that it's going to need to fight and fight well. But in terms of make or break moment, I think we're looking at next year or the year after. Right now I'm just looking for for some progress and hopefully Apple shows us that.
- [21:38]
John Ternus
Yep.
- [21:39]
Scott Wapner
Let's take a look at the NASDAQ in general today guys too. I do want to touch on the broader market and the fact that the tech trades getting a nice bounce because what happened on Thursday and Friday was just downright ugly. And many of the names that had led the NASDAQ lower are rebounding significantly today. I'm talking about the chip names, specifically the memory stocks. We can cycle through a bunch of those. Jensen Huang said over the weekend that the sell off in tech is a buying opportunity. You had to figure that it was only a matter of time, Dan, before investors would look at the declines in those stocks and agree this. I mean, Thursday and Friday alone the SMH was down 10%, right? Micron was down 20, Broadcom was down 19. And maybe that was the name that started this whole bit of unrest in the tech market in general. But what about the rebound today? Do we think that what we witnessed late last week was just a couple of days worth of weakness and the buyers are going to, are going to come in en masse and keep this trade humming along? What do you think?
- [22:37]
Dan Ives
I think buyers are going to continue to be, it's our view dips should be buy especially in a memory super cycle. Everything we've seen in Korea, I mean over the weekend our check showed just even further tightening in Taiwan in terms of supply. You know, Jensen in between meals, you know, in Korea, I mean he's thinking deals left and right from SK to others. And it just speaks to our viewers. We are in third inning, one out, man on second in terms of this game for AI and that's why I think you're going to have these sell offs space X maybe it causes, you know, you know, little white knuckles going into that this week in terms of, you know, sucking out some auction. I think that's the, the wrong narrative of some of these other names. You own the winners in this tech trade. We are still early days and I think, look, think about now, Apple getting on the AI game consumer, that's just going to be the ripple effect. Just like the godfather of AI Jensen's doing in Korea.
- [23:29]
Scott Wapner
You know, Brin micron's target today, 1220. Just to show you what these stocks have done, how crazy they've gone. I just don't recall a time where you've had price targets get blown past so easily and so quickly. Wells had a 550 on micron that's so last week. 1220 is their new target. Marvell's going into the S&P 500 later this month. That stock has been sharply higher. Do you feel like that was just a couple of days of shakeout that we did whatever work we had to do in terms of the tech trade itself, clean it up a little bit and just we're right back to feeling okay about it.
- [24:09]
Pippa Stevens
Yeah.
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Bryn Talkington
I mean I think the water was boiling and we need to take the lid off and let some steam out. Okay. It's because we were just getting just too frothy. You know the marvell to me when Jensen says this could be a trillion dollar company, that's absurd that it just goes up whatever 30%. That makes no sense. Okay. Just that needs to be once again take the lid off and let some steam come out. I do think though a lot of this is more about the analysts being so behind the eight ball. To me going to 1200 is not it's 20% higher. It's why were they at 550 for so long. And so don't forget these analysts follow price action. It's not the other way around. So when it was at 300 they said it was going to thousand. That's relevant. But saying it's going to go 20% higher once it's already had this monster move to me is more about, I think these analysts have really just missed the huge revenue, the huge earnings growth to Dan's point as we are in this like third inning and I think this inning last multiple more innings. But you do have to say that, Scott, the technology is new. We're in very early innings. But don't confuse that with what's priced in. And so to me that's my balance. That's my, my true north is just trying to balance between the, the innings of the technology versus the reality of what's priced into a lot of these stocks.
- [25:27]
Scott Wapner
Okay. All right. So Brin, Joe, Jim. Sticking around. AK Sticking around. Dan Ives is sticking around. We're going to take a break. We'll have more, much more coming up from Cupertino, California, we count down to WWDC kicking off top of the hour. Plus we have the very latest on the blockbuster space X IPO expected this Friday. Our Leslie Picker following how investors might be positioning ahead of that debut. The special halftime live from Apple Park. Back after this,
- [26:00]
Venture Global Narrator
Adventure Global. We think about what can be done, not what's usually done through, through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.
- [26:30]
Pippa Stevens
I'm honored to make history and to make my community proud.
- [26:34]
Dan Ives
What a brilliant tackle from Naomi Kerma.
- [26:37]
Pippa Stevens
What would you like the power to do?
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- [27:28]
Scott Wapner
SpaceX expected to begin trading at the end of the week. Leslie Picker is here with a look at how investors might be positioning ahead of that event. Maybe that's what we've seen a little bit, Leslie, in this market.
- [27:40]
Leslie Picker
Yeah, I think it's more than just a coincidence here, Scott. Space X is targeting about 30% of its $75 billion offering to go to retail investors. And that cohort may be behind some of the recent volatility in the equity markets that we've seen as that cohort sells recent winners to free up cash. Now recently retail investors have been chasing the upside momentum in semiconductors in hardware and AI power names. Micron alone has seen six and a half billion in net retail flows in the last month, helping drive that stock's 87% upside. Now at the same time you've got these US Equity Levered ETF assets which have reached an all time high of more than $175 billion concentrated largely in the Nasdaq 100 as well as semiconductors. BNP Paribas believes its not a coincidence that the Nasdaq's worst day in over a year last Friday came a week before the biggest IPO of all time. And it may continue. The firm says, quote, selling flows in recent winners and levered products from retail to invest in Space X could be very large. According to BNP Paribas. The Firm hypothesizes that retail plus passive flows into the IPO could be about $50 billion if retail sells out of levered ETFs. That can create even more disproportionate pressure ahead of the ipo just given the magnitude of leverage involved in those products.
- [29:03]
Scott Wapner
Scott okay, Leslie, thanks. There's a good look at that you agree, is that is that some of what we've seen in the NASDAQ late last week.
- [29:11]
Dan Ives
Yeah, I think that's, I don't know, percent wise, but I mean it's played a role. That definitely has played a role and I think it caused some investors to be like, okay, maybe sell some of their massive winners, you know, in terms of what's going to happen to Space X. But I do not believe this is sucking oxygen out of this market. It's a near term blip and I think that's what we're seeing today in terms of the rebound.
- [29:31]
Scott Wapner
Alex, how do you think about this IPO as it's about to come to market, how you think it may perform on Friday, which is going to be a really exciting day.
- [29:41]
Alex Kanchowitz
I think the valuation is definitely out of sync with reality. It's way too high. But I don't think that's going to be a problem for Space X. I think when you look at the hunger from retail to get into anything with momentum, joining Elon Musk's Rocket company is about as good as it gets. So I expect them to have a very successful day on Friday and I think that this stock is going to have a big pop at the very beginning.
- [30:06]
Scott Wapner
Brin, how are you thinking about it? Going to buy some?
- [30:10]
Bryn Talkington
Well, you know, we already own it and quite a few funds. But I thought it was interesting. I saw over the weekend, you know Ron Baron, he's taking down a billion IPO price to go into his funds. So, you know, the long term investors continue to stay in. I agree with Alex. I mean on every metric the valuation is, is insane. It will IPO like 30% more than Meta's valuation. And so that being said, there's a lot of excitement. It'll be historical. I do think between Google's raise of 85 billion, now this if matter does the same. We'll see. I mean this is historical to have all of this happening at once. What type of indigestion? But I definitely think part of Friday and also with crypto is definitely people saying I don't have to make it back the same way I lost it. I want to make some room for space. I can try to make some of that money back in this stock. So it will definitely be historic. It probably goes two plus two to two and a half trillion, which is insane on Friday.
- [31:11]
Scott Wapner
Yeah, it'll be exciting. As I, as I said, we really can't wait just for the spectacle of the biggest IPO we've ever seen to hit the market. Especially as we have some questions about parts of the tech trade, how it's received some of the mechanics of positioning ahead of that and then all of it to see how it plays out on that Friday. Let's get to Pippa Stevens now with a CNBC news update. Hi, Pippa.
- [31:36]
Pippa Stevens
Hey, Scott. RTX co founder Sam Bankman Fried has formally applied for a presidential pardon. According to the Justice Department's website. Bankman Fried is currently serving a 25 year federal prison sentence for the multibillion dollar fraud and collapse of the cryptocurrency exchange. The DOJ clemency case status site says he is requesting a pardon after completion of sentence. Pope Leo called for migrants rights and denounced sexual violence in the Catholic Church in a speech to Spanish parliament this morning. The pope's week long visit to Spain will include a visit to the Canary Islands and a blessing of the new tower of the Sagrada Familia Basilica in Barcelona. It's the first pet bull visit to the country in 15 years. And death of a Salesman, Schmigadoon, the Lost Boys and Ragtime were the big winners at last night's Tony Awards with Death of a Salesman taking home the most with six awards including best play revival. Best musical went to Schmigadoon. And best play went to Liberation. Scott, back to you.
- [32:37]
Scott Wapner
All right, but thank you, Pippa Stevens. Coming up next, we're getting closer to the kickoff of Apple's wwdc. But first, today's top movers. We're live in Cupertino. We're at Apple Park. And we're back after this.
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- [34:30]
Scott Wapner
All right. Welcome back to Apple Park. We await the kickoff of wwdc. In the meantime, we want to hit some committee stocks that are on the move today. It's a big deal for Corning. Joe, you own the name. They strike this deal with Amazon to power data centers. What do you think?
- [34:44]
Joe Terranova
And this piggybacks with a prior deal with Meta. Scott, I think this is really speaking towards what the personality of the AI market is. It's about demand and it's about supply. And you see the hyperscalers developing these relationships to secure supply. Optic fiber cable is critically important in that regard. That impacts positively Corning and also Marvell.
- [35:10]
Scott Wapner
Okay, let's talk about airlines because United Airlines says affluent, affluent passengers are still spending money. Global Airlines have slashed their profit forecasts because of what's happening with the war and oil prices. Jim, you can go first. You own Delta.
- [35:26]
Jim Leventhal
Well, I think you just answered the conundrum here, which is how can it possibly be that the one year return on Delta is more than twice that of the S&P 500, even as West Texas Intermediate is 60% higher? The answer is the front of the plane is getting larger and it remains full and that's where these companies are making their money. But I think there's also an important point to be made here, which is that while 2026 estimates have come down for every airline, whether it's earnings or free cash flow, next year's estimates have stayed relatively consistent, which is a way of the market saying that it thinks the Strait of Hormuz or at least the oil market will return to some semblance of normal before the year ends. That remains to be seen. So that's where this could get a little dicey is the longer the Strait of Hormuz closes and oil reserves dwindle, that's what we've got to keep an eye on.
- [36:17]
Scott Wapner
I want to take a look at shares of Lilly too, Joe. This company just continues to have successful trial results around weight loss and the stock continues to react to it.
- [36:27]
Joe Terranova
Yeah, you have the initial shock a shot rather, and then you have these next gen shots. And Eli Lilly is clearly the leader in that, protecting their market share, then also going out and utilizing the significant revenue growth that they're experiencing to fund diversification in their product line. This is a trillion dollar Company well deserved trades like a biotech. I continue to see it moving higher.
- [36:55]
Scott Wapner
All right. We are 20 minutes or so away from the kickoff of WWDC here live at Apple park in Cupertino. We take a quick break. We visit with Mike Santoli on the other side. All right. Welcome back to the Halftime Report live as we said from Apple park here in Cupertino, California. Our senior markets commentator and overtime co anchor Mike Santoli joins us now for his midday word. You're wondering, I think what every other investor is wondering was that it, are we back another V shape, Right?
- [37:45]
Mike Santoli
I mean I think first of all that would be the absolute ideal dream scenario that it was a one and done. You just skimmed away some of the froth. All we needed was this kind of, let's call it a three day positioning adjustment and then you can kind of resume the uptrend. Now most trends really were not broken by this pullback in semis and broader tech. In fact, semis landed on Friday right on their uptrend line from the March 30 low. That being said, it does create the possibility that it leaves the market looking for other things to worry about or dislodges some of that kind of harmonious rotation that we've had for a while. I know everybody wants to say on the way up it's all about earnings revisions and it's fundamentals and capex spend and on the way down it's just positioning. But I mean we only know how crowded the positions are once they get fully flushed. So the S and P bounce at the highs today never even got back to its 20 day average. That's the dead cat bounce level that often is all you get if it's going to just be a reflex move. So keep an eye on that. I think it's fine that, you know, cyclical areas of the market are hanging in there. They weren't the source of the excess on the way up. So I do think you have to be vigilant about it. A lot of the macro questions raised by the jobs number on Friday, do we have to brace for the possibility of an overheat and a Fed response accordingly? Was the jobs number a little more of a head fake and we're going to have to, you know, brace for another lulling growth? I think a lot of those things are still in the mix as we still wait for the IPO supply as well.
- [39:14]
Scott Wapner
All right. You asked some important questions. We have to wait for the answers. Mike, thank you. See a little bit later this afternoon That's Mike Santoli, 15 minutes or so away until Apple CEO. He is still the CEO Tim Cook. He kicks off his final keynote as W@wwdc. We're going to take a look at his legacy next.
- [39:39]
John Ternus
Good morning, good morning. This is my first product launch since being named CEO. I'm sure you didn't know that. It is a pleasure to host you today. Good morning, good morning, good morning, good morning, good morning, good morning, good morning, and welcome to wwdc. Nothing makes us happier than to see hundreds of thousands of developers around the world using our hardware and our software to create and share their latest, greatest ideas. We have passed the quarter of a billion unit sales mark. Apple Silicon will bring amazing technologies. Now let's talk about Apple.
- [40:32]
Joe Terranova
Watch.
- [40:33]
John Ternus
I'm going to dispense with my normal updates other than to tell you everything's going great. We do have one more thing. Wow, that was so cool.
- [41:11]
Jim Leventhal
F1, baby.
- [41:14]
John Ternus
Yes. F1 baby. We've got a big week ahead of us. Let's go have a great wwdc.
- [41:23]
Scott Wapner
All right. Tim Cook through the years presiding today here at Apple park over his final WWDC as CEO. AK I'm wondering if you can speak to that, whether that raises the stakes in some respects for what needs to happen today, especially given the things that we've talked about over the last couple of years.
- [41:46]
Alex Kanchowitz
Yeah, it's going to be weird to be at WWDC or watch WWDC and not hear those good morning welcomes that Cook has been giving through the years. I mean, ultimately, when you look back at his tenure as CEO, remarkable stuff. He started out with the company at a $350 billion market cap is now at 4, $4.6 trillion. So I think he's handing the company over to John Ternus at the perfect time. He's been a great CEO that's really leaned into his strengths in operations to make his products faster, make the battery last longer, the cameras more powerful, and keep ahead of the competition, especially when it comes to the phone and the computer. But now we are going to a moment where computing may be shifting, where there is a new paradigm, which is artificial intelligence. Apple recognizes it. We're going to hear a lot about it today. The results under Cook over the past couple of years on AI haven't been great. But it does seem like he's getting the company in position to factor in the AI conversation. And if you're going to leave, you probably want to leave at the point where you're at the beginning of the curve rather somewhere rather than somewhere in the middle with the answer unsettled. So ultimately it'll be an important handoff to Ternus, but. But I don't think the stakes are tremendously high given again, where the company is today.
- [43:08]
Scott Wapner
Forgive me for stepping on your toes there for a minute, but I think, Dan Ives, it's fair to call this one of the most successful stewardships of an American company in the history of business in this country. But Tim Cook has done here, I
- [43:24]
Dan Ives
mean, look, it's a hall. He's a hall of famer, Mount Rushmore. I mean, when you talk about CEOs, not just American, you know, companies globally and what Cook's done in China, in terms of the political angle, the supply chain taking over, of course, for Jobs, the legend. I mean, like, look, the reality is we are talking a historic period that he has CEO, but he's handing it the baton off at a great time. And I think when you look at that, we're not here if it's not for Cook relative to the success and what he built.
- [43:56]
Scott Wapner
He wants to leave, though, as I sort of alluded to with ak, at least in the CEO role, with something tangible to look back on and say, this is going to be part of my legacy as well. Whatever this company's AI strategy is going to be and how successful it proves to be in the future, he wants to put his mark on that. That's why this is so important today as well. Given it's his last. He doesn't want their AI ambitions hanging out there any longer. He wants to help shape it.
- [44:28]
Dan Ives
He's a tactician. And the reason that they're handing the baton to turn us now, there is a reason. We'll see it here in a few minutes. And when you look at the 1.5 billion iPhones that's not there if it's not for Cook. And look at what he's done in terms of just the build out of the ecosystem of services of the supply chain and China. And I think also Cook will be spending a lot of time in China just given that political tightrope. It's a key part. They are not successful in China if it's not for the hall of famer Cook.
- [44:58]
Scott Wapner
Well, this stock price has made a lot of people rich. 2200. That stock is up under Tim Cook's tenure here at Apple. We're moments away from his final wwdc. We're back after this. We have a big and important interview to tell you about tomorrow. The Liv Golf CEO Scott O' Neill will be live 12:30 or so on the Halftime Report tomorrow. It's an exclusive interview. The future of his tour is very much in question, some might say very much in doubt. He thinks he has a plan to save it. We will talk to him tomorrow. Scott o' Neill of LIV Golf, the CEO, will join us tomorrow on Halftime Report. Tim Cook's on the stage. I can tell you that because we can hear him. He did his signature. Good morning everyone. We'll follow it of course and then we'll have all the highlights coming up on closing bell a little bit later this afternoon. Final thoughts Dan Ives A watershed moment
- [45:56]
Dan Ives
for Apple and Cook and I do not expect disappointment, excitement Mac instilling confidence in developers.
- [46:02]
MacKenzie Segalos
This is battle royale to get them to build on Siri and not on Microsoft or OpenAI. They need to convince them that this agentic plan is going to work.
- [46:09]
Scott Wapner
Okay, Tim Cook, we said he's on the stage. Big, big applause. Not sure if it was a standing ovation or not because we couldn't see, but it sure sounded like it might have been. And he has the chance to deliver today in his last wwdc.
- [46:25]
Alex Kanchowitz
Yeah, we'll listen to the promises, but ultimately Apple has to execute. That's the bottom line.
- [46:31]
Scott Wapner
Let's do final trades if we could. Joe, you have one Old Dominion. All right, thank you, Farmer Jim.
- [46:40]
Jim Leventhal
ExxonMobil. It's going to be a long time before oil prices normalize.
- [46:46]
Scott Wapner
And of course Nvidia is yours, Bryn.
- [46:48]
Bryn Talkington
It is bouncing off the 50 day should go higher.
- [46:53]
Scott Wapner
Okay, so we'll follow everything that happens today here at Apple Park. The Stock Apple is up 2%. We'll see in a little bit. You've been listening to CNBC's Halftime Report, the podcast. You can always catch us live weekdays at 12 Eastern only on CNBC.
- [47:12]
Edward Jones Narrator
All opinions expressed by the Halftime Report participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Such opinions are based upon information the Halftime Report participants consider reliable, but neither CNBC nor its affiliates and or subsequent subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Halftime Report disclaimer, please visit cnbc.com halftimereportdisclaimer your data lives everywhere on prem in the cloud across
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