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Halftime Report
The Best Quarter for Stocks in 6 Years 6/30/26
00:47:14
Scott Wapner and the Investment Committee react to the market having its best quarter in 6 years. They debate what it means for the second half of the year and how they're trading it. Plus, Josh Brown reveales 3 stocks that are leaving his "Best Stocks in the Market." And later, we hit the latest Calls of the Day. Investment Committee Disclosures
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- [00:01]
Edward Jones Financial Advisor
At Edward Jones, we believe rich is more than caring about the latest and greatest. It's also taking care of what gives your life meaning. That's why your dedicated financial advisor meets you where you are with personalized financial strategies that help protect what matters so you can preserve your progress while creating a path forward. The key to being rich is knowing what counts. Let's find your rich together. EDWARD jones, Member, SIPC it's smart to
- [00:31]
Discover Card Representative
always have a few financial goals and a really smart one. You can set earning cash back on what you buy every day. And with Discover, you can get this. Discover automatically matches all the cash back you've earned at the end of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show, see termsdiscover.com credit card.
- [00:56]
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 THE Halftime Report. I'm Scott Wapner. Front and center this hour, the best quarter for stocks in six years. What the second half of 2026 is likely to deliver now we'll ask the committee. Joining me for the hour today, Joe Terranova, Jim Leventhal, Jason Snipe, Josh Brown take you to the markets. Got a pretty nice day, the final one of the month of the quarter. And you could see we are green. Nasdaq's leading the way today in what has been, as we say, a great quarter for stocks. Dow up 12% s and P up 14, Nasdaq up near 20. The Russell 2000 up a little more than 20. What does it mean for, if anything, for what you think the second half might hold?
- [01:49]
Jim Leventhal
I think you forgot the most important statistic, and that's momentum's up greater than
- [01:53]
Scott Wapner
40% on track for its best quarter ever. I was going to bring that up next.
- [01:57]
Jim Leventhal
That is my compass for 2026 and for second half of the year, strategy. Before I went to you, I run a strategy is 50% quality, 50% momentum. I'm asking myself the question I'll address in the second half of the year. Does that relationship need to change? Does it need to be more weighted towards momentum than quality? Because in fact, so far, year to date, that's been the case. I think momentum is your guide. I think if you're looking at the S and P equal weight, S and P market cap and you're trying to pick a winner, I Think that's a foolish endeavor. Each of those indexes are rewarding you so far, year to date, that's vacillating between which one steps forward and takes the leadership. It's been about semiconductors for sure. Software has struggled, but there are areas of software that have worked like Datadog.
- [02:42]
Scott Wapner
Hang on two seconds, let's do so we got the broader view of momentum for the quarter, which as we said is best quarter ever. But throw up now a one month for the mtm because I feel like this is a pretty good debate to have on what you think is going to happen in the second half because we've been questioning what moment. Look at that. A little more choppy, little more, a little more volatile. Leaves the open question of is it going to be a momentum led market in the second half or not. I think, man, that matters a lot for people's investment strategies over the next handful of months.
- [03:16]
Jim Leventhal
So I still believe that it will be. I think a lot of the reasoning why momentum has trailed in the month of June is related to the Mag 7. Keep in mind you're looking at the Mag 7 for the month of June. Each one of those is down. But yet collectively when you look at them on the year only Meta is really the name that's down. Alphabet, Nvidia, Apple, all rivaling the performance
- [03:40]
Scott Wapner
that we're seeing in all down over one month.
- [03:43]
Jim Leventhal
One month.
- [03:43]
Scott Wapner
It mirrors what we're seeing here.
- [03:45]
Paul Rabel
Correct?
- [03:45]
Scott Wapner
That's the reasoning unraveling or unwinding of momentum or maybe in some respects, or
- [03:52]
Jim Leventhal
maybe just a questioning of maybe a correction that kind of alleviates some of the extreme bullishness and positioning.
- [04:00]
Scott Wapner
Okay, what do you think?
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Jimmy
Well, I think all those trends of the stocks that we're showing right now are clearly to the downside over the last month. That's clear. But there's also a lot of jinx up and down. And we've talked a lot on the show the last few days about how the rotations have come fast and furious. I think those rotations are going to continue as the month of July unfolds. So instead of trying to time those rotations and Joe, you and I were talking about this yesterday. Let's not try to time those rotations. I'm going to go with what fundamentally makes sense to me, which is a broadening of the rally on the back of a broadening of earnings, which is what's projected. The rest of the market is projected to catch up with technology.
- [04:36]
Scott Wapner
Chips will not be fabulous going to catch up.
- [04:39]
Jimmy
That's actually what's projected?
- [04:40]
Scott Wapner
If you look at the 400, looking at 50% earnings growth from those other companies.
- [04:44]
Jimmy
If you look at, if you look at projected earnings, third quarter, fourth quarter. I'm getting this from Strategic. I can send you the actual data during the break.
- [04:52]
Scott Wapner
I'm just saying you're not going to get 50% earnings growth outside of tech.
- [04:55]
Jimmy
Well, tech is coming down. Tech is coming down. Remember that 40%. It was 40% in the first quarter. Remember that. And for. And of that 40% getting 40% earnings
- [05:05]
Paul Rabel
growth from the others.
- [05:06]
Jimmy
I know, but just hang on a second. Pull out things are not pull out energy. Pull out the paper gains on anthropic and open air from tech. You've got 25% growth. That's what technology operated earnings growth was in the first quarter. Now if you look at projected for the other 493. And Scott, I'll send you the graph right at this. Okay. But the projected earnings growth for the other 493, 3Q and 4Q.
- [05:28]
Scott Wapner
Get those guys on the phone.
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Jimmy
Okay. I mean, Chris Rohn's pretty terrific on this stuff and I know you know him and you talk to him. Look, it's projected to catch up and then exceed. That's what the projections are. Yes. I'll send you the data.
- [05:41]
Scott Wapner
Okay, so right now. Do it right now.
- [05:45]
Jim Leventhal
I will do it right now.
- [05:45]
Scott Wapner
Do it right now before you guzzle the water.
- [05:47]
On Deck Representative
Do it right now.
- [05:49]
Scott Wapner
This is where the nerve, the anxiety starts to grow.
- [05:51]
Jimmy
Chris, are you listening? Chris, email me the chart, for crying out loud.
- [05:55]
Scott Wapner
Starts pounding like two or three waters.
- [05:58]
Paul Rabel
He's got three.
- [05:59]
Jason Snipe
Hit the go ahead the third and five minutes. So I think, I think we'll see more of the same in the second half.
- [06:03]
Scott Wapner
I think the more the same. What does that mean?
- [06:05]
Jason Snipe
More the same, meaning that I think momentum will continue to have energy and juice.
- [06:10]
Paul Rabel
Okay.
- [06:11]
Jason Snipe
But I think the broadening of trade will continue to have some life as well. I think Joe and Jimmy, I think you're right in that.
- [06:18]
Mike Santoli
Don't.
- [06:19]
Jason Snipe
You don't need to pick either one. Right? We don't. We don't need to pick momentum. We don't need to put the kind of value centric or health care or financial. I think earnings will be positive. Of course. We're seeing earnings estimates continue to rise. We're looking at 24% this quarter. Clearly, semiconductors had been most of that run in video and micron will be 40% of that number. So I will be paying attention to that. But I continue to like some of the areas that have been somewhat left behind, we see a little bit of a spike in health care, which is, which is interesting to me. I think IB investment banking, which I know we'll talk about later, is also an interesting story for me. So I'm looking to broaden out my exposure in the second half.
- [06:57]
Scott Wapner
Josh. So where does the, where does the momentum take us in the second half? Semis are on track for their best quarter ever. Some suggest they haven't reached the peak. So this cycle, and if that's the case and it turns out to be true, then momentum still has good days ahead.
- [07:18]
Josh Brown
Well, first, let's start with the top 10 stocks within momentum. And what you'll find is that nine of them are all. Eight out of the 10 are all trading based on the same theme, which is the data center, Capex build, Micron, it's intel, amd, Caterpillar, Broadcom, Lam Research, A Mat, ge, Ver, Nova. That's your, that's your eight. Every single one of those stocks is rising and falling based on every breathless pronouncement from Meta, Microsoft, Amazon and Alphabet about how much money they will or won't spend next quarter, end of year, next year. It's, it's all one trade. And it's sort of undeniable that that's what's driving the market. The only two in that MT top 10 by weight, J and J. And what's the other one? Exxon. First of all, I don't even know if those stocks will still be in it. The next time it rebalances. They might just add two more Capex stocks. We might just have effectively one bull market powering five sectors and every other stock sort of doing very little. That's, that's what this market is. I actually asked for this chart to be built so people have the context on what's working this year. So I can answer your question. Okay, fire that thing. Fire that thing up. What up? Okay, what I'm showing you guys here is the chart of the year. If somebody said, Josh, explain the, the, the stock, the US Stock market first half of the year. I only need to show you this one chart. What you can see is that the Equal Weight Tech or RSP etf, this is a thing that would own Flex Tronics and. Or Flex Limited, they call it now, and Sienna and every other component supplier or vendor to the Capex build out and of course Microns in here, etcetera, etcetera. That's up 41% year to date. And we're only six months in, that is insanity. The XLK is not far behind but on a percentage basis 31 vs 41 is a material difference. And then I'm showing you the max seven at the bottom of the pane which is actually on an equal weighted basis those stocks are negative. They're actually detracting from the performance the S and P and they look like they were on another planet from what's actually working in Techland. And that is the chart of the year because remember how we came into this year? People complaining, it's, it's all ETF flows, it's concentrated. We've never had a bull market sustain itself with only seven stocks going up. All of the reasons why people told you not to invest or why we were quote unquote long in the tooth. And, and the idea was that as go the top seven stocks in the index, so goes the rest of the market. And it turned out to be the opposite. They sold these stocks all year because these are the companies doing the spending, cutting the checks and they went into the companies that are on the receiving end of the checks. And that is the story of this year. So to answer your question, what do we think for the second half? Well, tell me, are the check writers about to all of a sudden stop writing checks? I don't think so. I don't. It doesn't seem that way. And a lot of the capex plans that they've already been spending money on are the types of things that you can't just stop because then you're throwing everything that you've already done in the garbage. So if you think that all of a sudden something's going to reverse the earnings growth that's powering that equal weight tech index. Okay, tell me what it is. I'm all ears if you don't think so. It's very hard for me to envision a scenario where we don't get follow through. The best, best case scenario, and I laid this out over the weekend, the best case scenario now is that the S&P493 when they start reporting earnings this July, start talking positively about the ROI of all this money they're spending with Anthropic and Palantir and OpenAI and Gemini, they start saying things like yes, we, we actually think earnings will be up for the rest of this year because of these investments that we've already made and continue to make. If we get that kind of commentary in the July earnings season, look out above and there are a lot of stocks that can join the momentum list rather than just sit there and watch everyone else have all the fun.
- [11:53]
Scott Wapner
So what you cited was a bit nuanced relative to what you said. If you're talking about the rest of the market is expected to have broad based earnings growth, there's no question about that. But sounds like you're Jim, talking about the rest of the market versus the Mag 7 that's different than the rest of the market versus tech more broadly because I grant you that the. Well, that's an important, that's an important nuance because the biggest earnings growth in tech at this point is coming outside of the Mag 7 and it's coming from. And the Sandisks and the others. So yes, other parts of the area of the market are going to continue with, with continually strong earnings growth, but tech is still going to look far and away better.
- [12:49]
Jimmy
I will agree with you because it's factual that it is a nuance. However. However, I don't think it actually takes that much away from my argument. Your point is well made. That chips are obviously not. Obviously some of the chips are outside of the Mag 7 and so the technology sector, which is roughly 39% of the S&P 500 encapsulates more than the Mag 7 which is, you know, what is it right now, 30 odd percent. There is a portion. Absolutely, Scott, that is not encapsulated in the mag 7, but that is in tech. You saw the numbers that I sent you and they're actually quite startling though if you take a look at the other 493 which will include Micron, I agree. All right. But we're seeing that the projections are second quarter growth 26% for the other 493, a third quarter growth 30% for the other 493. 93. Your point is accepted fully about the nuance. My great greater point about why I want to be broad in my portfolio and not so tech centric is because of what I'm seeing of earnings spreading out as it flows through and we can think about industrial financials.
- [13:54]
Scott Wapner
That's completely fair and worthy of noting and it's obviously impressive. Tech skewed the overall earnings picture in the, in the first quarter, obviously. Yes, and it will probably in the second quarter as well. The idea is that over the remainder of the year you're going to have enough pickup in these other areas as to why they can outperform in your mind Tech.
- [14:19]
Jimmy
Allow me to make one very important point. Okay, the floor is yours. Profit margins for the mag 7. Understanding the nuance, we're Talking about here, profit margins for the MAG7 are currently just under 25% percent. And I will tell you, it's awfully hard for that margin to go higher, particularly when you look at things like what Apple is having to do because of Micron. Okay. And the other 493, that profit margin is about 10%, which has a lot more room to grow, in my opinion.
- [14:48]
Scott Wapner
The market Jason's obviously been positioning towards Jim's idea.
- [14:51]
Jason Snipe
Yeah.
- [14:52]
Scott Wapner
You've had $2.3 trillion in June wiped out of market cap from the MAG7. And why you have bank of America today say, take profits in S and P secular growth by large value encyclicals. Jimmy might as well have written a note.
- [15:05]
Jason Snipe
Yeah, yeah.
- [15:06]
Scott Wapner
And I think to work for bank
- [15:08]
Jason Snipe
of America to, to that point. I was reading kind of a note on Micron earlier today, just talking about the moderation in price increases on a going forward basis over the next few quarters. Right. So that the idea that again, blowout earnings. I mean, it's a 13x on earnings from this past quarter to now. Right. But there will be a moderation. I think that's where you'll see some dispersion. Just like we saw last week. The S and P was down five days in a row and there was more up than down stocks in the market.
- [15:39]
Jim Leventhal
So listening to Josh, listen to Jimmy. Jason, here's the question. Is this a 493 opportunity or is this a small cap opportunity in the second half or does it not even matter? It's a little bit of both for me.
- [15:53]
Discover Card Representative
All of you.
- [15:53]
Jimmy
A little bit of everything. I mean, look, absolutely. I'm not suggesting to anyone watching that they go out and sell their Apple, sell their Alphabet or anything like that.
- [16:01]
Scott Wapner
Nobody's taking it that way. We got it, your honor. Everybody knows that.
- [16:10]
Jimmy
Okay. I didn't think everybody know it. I've said it. All right, here's my point. I think you may see better growth in share prices outside of technology. I think technology share prices are going to be great. I love the setup on Alphabet right here. But I equally love the setup on ExxonMobil with how it's come down from its high. I love that setups.
- [16:28]
Mike Santoli
Right.
- [16:28]
Jim Leventhal
You people don't trust it.
- [16:31]
Jimmy
Well, they. Yeah, because they've had the football pulled away from them while Lucy and Charlie.
- [16:36]
Scott Wapner
I mean, it is the best quarter since Q4 of 2020, the best first half since 1991 for the Russell.
- [16:43]
Jimmy
And back to my good friend Joe here, the king of momentum. Would you not say that small Cap right now has a heck of a lot of momentum as a sector. Maybe not the individual stocks, but the sector itself has momentum and that begets buyers.
- [16:56]
Scott Wapner
Health care looks like it has momentum. It's a soft sector this month. That's why you have to view this this quarter which is ending after today through the prism of almost two markets. First part of the first 2/3 of the quarter the market had an entirely different makeup than what it looks like today. Health care was a nothing burger. Now it's woken up top sector this month it hit a record high. Earlier today it gets to a move of yours. You bought more ABV.
- [17:23]
Jason Snipe
I did, I did. AbbVie is obviously up 17% over the last month. It's taken taking some win with obviously what the price action has been over the last few weeks. What I will say about AbbVie, they made a strategic acquisition, immunology space purchasing apogee that's going to, that's going to increase her space in, in a number of areas that I think is going to be accretive for them in the long term. Renvoak Skyrizi have been absolute juggernauts for this stock. We don't even talk about Humira anymore which was 25% of their business two years ago. So I continue to like this stock. I think there's momentum there and I think it's a stock that you should own in the second half of this year. Absolutely.
- [18:07]
Scott Wapner
Well if you look at so the IBB record high today, mm. XPI highest level since February of 21. You've been buying more of that as
- [18:15]
Jim Leventhal
the weeks have progressed and we'll continue to buy more of the xpi. If we could pull the chart back over the course of the last five years I think this will break out ultimately above the 175, 180 level. But momentum is now beginning to show itself in health care. We own names like Illumina, West Pharmaceutical, Merck, which I gave as a final trade the other day. Insight and then Eli Lilly. Eli Lilly has been momentum for the better part of the last three years but now it's more broad based participation in health care. I would have that on the radar in the second half.
- [18:48]
Scott Wapner
Then there's Josh Financials which have obviously woken up as well over the course of the last month. Citigroup leads the way but Goldman Sachs month to date has, has taken a, you know, a negative turn. But that was one of the stocks of the last quarter. Quarter for sure. Year to date up 15%. You don't own it but you own JPM. What do you think of that space?
- [19:10]
Josh Brown
Yeah, and I bought Citizens Financial last week. Judge, we, we talked about this KRE chart. Let's put it back up. Why not give me a year to date or something? So first of all, one of the most important concepts here, a lot of people look at stock prices and try to extrapolate something about the economy. I don't do that. But okay, I'll, I'll play the game. If this chart looks like this, this is, these are not companies that are engaging in crypto, okay. These are companies that have, that have their books loaded with things like mortgages and small business loans and, and helocs and automobile loans and credit cards. If this chart looks like this, right? And almost every stock you can find that makes up this index looks just like it. And then I show you the industrial charts xli. Could you think of a better read through to the environment for lending? Risk taking, business formation, borrowing. Could you think of a better pair of charts to look at and to conclude things are pretty darn healthy? I think this thing has legs for me. This combination of the regional banks, the industrials both breaking out at the same time speaks volumes. Now again, I don't play that game. But for the people that do, what else do you want? What else would you possibly want to see? You think it's a better environment to have the max sevens lead the market? I like this better. This to me tells a much better story. So I'm long cfg, which is in this index, long JP Morgan. I would point out the rally in financials started as a capital markets and exchange phenomenon and has since broadened out to regular bread and butter lending place. Consumer finance plays business, business lending like that's what's happening right now. And I love to see it. I love a market that's being led by regional banks and industrials and that's exactly where we are right now.
- [21:08]
Jim Leventhal
Joe Fifth Third did 29% revenue growth in the last quarter. That's one of our top holdings. Josh is right. As it relates to the regionals has been a very strong momentum tailwind in the insurance companies and that has been there for the better part of the last nine months. It's travelers, it's Allstate, Morgan Stanley and Goldman Sachs I really think are benefiting from the IPOs. Space X, SK Hynix is going to follow in July and the others that we're going to see during the course of the year. We'll dig a little bit deeper as the show progresses into the exchanges, when we talk a little bit about what's going on with Robinhood, the exchanges have been a source of disappointment. We're going to try to uncover why that ultimately is happening as it relates to what I'm seeing for momentum with the money center banks. We had a build up in momentum as we were sitting out at the US Open. I could tell you in the last couple of days it's beginning to teeter somewhat. So I'm watching that very carefully. The JP Morgan's, the Citi, the bank of America. Not saying it's reversing. I'm staying with my JP Morgan long. I'm just identifying that we are seeing a little bit of a waning in that momentum in the money center banks, the regionals.
- [22:18]
Jimmy
This is about basic banking, as Josh is pointing out. This is lending, right? They're borrowing from government sources and they're lending to consumers and small businesses. That is also writ large in some of the money center banks like Citigroup, like Bank of America and those two in particular. I only own Citigroup also have the added benefits of, of the markets, of the IPOs and all of that. The thing to consider about the financials, I hear you on insurance and exchanges. I look forward to your comment. But this is about credit quality. Number one, you've got a strong economy, you've got a strong labor market, not a lot of firing. This is about credit quality. That's why the financials are performing.
- [22:53]
Scott Wapner
All right, month to date, the regionals up almost 8%, seven and a half. Still ahead, the setup on Nike ahead of earnings tonight. Plus Josh Brown's best stocks in the market. And later, a halftime exclusive exclusive with Premier Lacrosse League co founder Paul Rayboul. We're back post nine after this.
- [23:13]
Josh Brown
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- [23:40]
Josh Brown
There's only one Ozempic.
- [23:43]
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- [24:50]
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- [24:51]
Scott Wapner
Stocks on the move. Well, Nike's probably going to be on the move one way or the other tonight. They report earnings shares are down 48% from their from their 52 week high. You bought it last week, so you got a lot on the line tonight, Josh.
- [25:04]
Josh Brown
Not a lot on the line. I did leave it on the line
- [25:06]
Scott Wapner
because got a little bit on the
- [25:07]
Josh Brown
line, a little bit on the line. Enough on the line, enough on the line. Look, we, last week we talked about this idea that it's going to be a bad quarter and everyone knows it. And quite frankly, the only thing that's going to matter is the 27 guidance. But here's, here's what I would say. Consensus is at $0.12 on earnings, 10.85 billion on revenue. And if they come in with something like that, you're talking about a decline of 14% and 2% year over year respectively. So everyone knows Nike is not doing well right now. That being said, estimates have already been slashed by 45% for this quarter over the last three months. So the revisions have just been absolutely relentless. Three months ago the street had them at 22 cents. So obviously nothing like that's going to happen. The thing to keep in mind is Nike has beaten earnings eight straight quarters and the stock has done nothing but go down. Which tells you the print is not the risk, the risk is the guide. And here's the problem and I'll get to the good part in a second. They already guided China down by 20%. If the decline comes in smaller than that, great. If they signal the cleanup of the Chinese inventory situation is nearing an end, that's great too. If China keeps deteriorating or management has nothing positive to say about a turn there, the stock probably Sees a three handle like this is just the reality. The last thing I would tell you is this is a situation where you have a stock trading at 1 times trailing sales. We haven't seen the stock trade this cheap since 0809, which we know was going on back then. I wouldn't say it's a value stock, but it is the lowest valuation you've been able to buy this in a long time. And literally nobody likes it. And so I dip my toe in the water. I reserve the right to buy a little bit if it gets killed on the print tonight. But I do think we're nearing the point where it literally can't get worse. And in that environment, for a stock like this, it's very possible for a small amount of good news to translate into a 10, 15, 20% return. So that's what I'm playing for here. It's the worst stock in the market right now.
- [27:23]
Jason Snipe
Take it.
- [27:23]
Josh Brown
Take everything I've said with a grain of salt. But that's what I see.
- [27:26]
Scott Wapner
Jimmy, you're a value guy. You don't even like it. Deep value.
- [27:30]
Jimmy
Look, I know, I know, but I mean, look, Josh will be the first to admit this chart is gosh darn scary. Josh, I mean, my hat tip to you. I mean, you're being. You're being more of a value guy than me. I hope it works out.
- [27:45]
Paul Rabel
I should have my head from a
- [27:48]
Scott Wapner
guy who knows a scary chart or two in his portfolio.
- [27:51]
Paul Rabel
Jimmy.
- [27:51]
Jimmy
I mean, we can do roll reversal. You pick it at the bottom, and I'll pick it up as it's going up. Believe me, I want this to work for Josh and for Nike. Frankly, it's American icon.
- [28:01]
Scott Wapner
You're not. You're not tempted at all?
- [28:04]
Paul Rabel
No.
- [28:05]
Jimmy
Just no. I mean, every quarter. I hear you, Josh. I hear you. Okay. Nothing of what I'm about to say is disagreeing. But every quarter is just worse than the next one. And I mean, I'm. I'm pulling a page out of Josh's playbook. Let's wait for the momentum to go higher before getting in. But I don't know. I mean, should we take your temperature? This is so unlike you.
- [28:26]
Scott Wapner
Should we look at Adobe?
- [28:28]
Josh Brown
I'm allowed to freelance.
- [28:29]
Discover Card Representative
Don't do that.
- [28:30]
Jimmy
He only has one. Listen, your honor, you're supposed to be objective. The scales of justice, they balance each other. Josh is on one side, I'm on the other. We're all good.
- [28:40]
Scott Wapner
Okay? Targets raised for both Delta and United today. Delta to 105 from 75. United to 165 from 130. That's at Wells. All right, Jimmy, I'll give you Delta, Okay?
- [28:53]
Jimmy
I said yesterday that it is overbought. I do think it's overbought. I'm telling everybody. I'm getting a little squeamish now. I have to my right Joe, who is in it, and on the screen to my left, Joshua is in it. And I learned from these fabulous investors. So I'm sticking with it for now. But I have to tell you, I think it's a little overvalued. A little overbought. We got earnings and I think it's the end of next week and we'll see what comes in. But those earnings estimates need to come in pretty darn dynamite to justify the price rise that even for a halo stock like this, this rise is greater than what you're used to as a long term Delta holder.
- [29:27]
Jim Leventhal
United returned 54% in this most recent quarter. I said to you yesterday, Jimmy, I truly believe whether this is good for the American Flyer or not. I think we've got a duopoly going on right now. Pay attention to me. We've got a duopoly going on right now. Currently it's about these two airlines. They're capturing market share from the other airlines in terms of customer service. American flyers feel comfortable. Right? Global flyers feel comfortable that they're going to deliver on customer service relative to everything else.
- [29:57]
Jimmy
Aye aye, sir. I'll just point out the estimates have not budged all year. Year. $8 a year for Delta. What you want to do?
- [30:04]
Scott Wapner
I want to do one more before we take a break. Only because you tease the Robin thing earlier.
- [30:07]
Jim Leventhal
Big conversation.
- [30:08]
Scott Wapner
Target goes to 113buy@ Deutsche Bank. Look, we had enough. The airlines.
- [30:13]
Jim Leventhal
No, but this is a serious conversation because we, myself included, we advocated for the exchanges going into the end of 2025. I talked about it in 2026. I got it wrong. CME is sitting at a 52 week low. No, I think Lynne Fitzpatrick will come in and she will carry the leadership that Terry Duffy had for the last 20 years. But you can't ignore ICE, NASDAQ, CME, all underperforming.
- [30:39]
Jimmy
Why?
- [30:40]
Jim Leventhal
I think they have to wrestle with the prediction markets. And 24,7 Robinhood does stand out. To me, Robinhood stands out the current quarter for having strong prices, performance, a divergence from what Bitcoin actually does and I believe the Trump accounts, which I think you're going to be dealing with that right when we come back on July 4th.
- [31:05]
Scott Wapner
They go live on Monday.
- [31:06]
Jason Snipe
Okay.
- [31:06]
Scott Wapner
I'll be dealing with that.
- [31:07]
Jim Leventhal
Okay. So we'll be talking a lot about that. But the Trump accounts are a significant catalyst for Robinhood. If you think about the potential for millions of new investors, the first step that they're going to take the toll with that app is going to be Robinhood. So I think that's why you're seeing the outperformance that we're seeing for Robinhood and why it's standing out along with interactive brokers relative to the other exchanges
- [31:33]
Josh Brown
which are not working.
- [31:34]
Jason Snipe
Okay.
- [31:35]
Scott Wapner
Best stocks in the market from Josh Brown. It's coming up next.
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I've got ideas.
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- [33:23]
Pippa Stevens
We're back on Halftime Report. I'm Pippa Stevens with your CNBC news update. New Jersey Republican Representative Tom Kaine Jr. Revealed that he spent months away from Congress being treated for depression. Kaine gave the news on the House floor on his first day back. He had missed more than 100 votes in Congress this year and had not been seen publicly in D.C. or his district since the March Kaine first revealed in April he was dealing with a personal medical issue. A federal judge rejected Meta's bid to dismiss multiple states claims that Facebook and Instagram were designed to addict children. The judge said Metta did not comply with the federal Children's Online Privacy Protection Act. Meta says they strongly disagree with the allegations and that they've worked with parents, experts and law enforcement to protect users. And Nestle told Reuters it plans to remove remove artificial food colorings from all products worldwide by the end of the year, making it the first major food company to do so. Nestle has already eliminated artificial food coloring in the United States as Health Secretary Robert F. Kennedy Jr. And the FDA target the ingredient and other processed foods. Scott, back to you.
- [34:28]
Scott Wapner
All right, Pippa, thank you. That's Pippa Stevens. Josh Brown's best stocks in the market. Are we talking about three that are leaving the group today? This is sad, Josh.
- [34:38]
Josh Brown
They have, they have already left the group. And yeah, so one of the things that we do with the column at CNBC Pro is every time we write up a name, we talk about where we would be wrong and what's the risk management and how do you risk manage a position that right now looks great but things could change and what are those levels? And I think we've been really consistent in saying it's really about trend and then we want the story to line up, but it doesn't work the other way. And so let's talk about three, which were terrible calls that we made. I think it's we've had some huge winners on the list this year. I get to talk about the time. So here are the ones we were wrong about AT&T was atrocious. It it really looked like it was setting. Here you go. If you look back to March, it looked like it was setting up for a big breakout. We said 30 would be the level. It never quite got there. It's all that at 29 and it rolled over hard. The risk management kicks in. You're coming out of this name about 26, $27 a share is what we wrote back then. You can see that it's been straight down from there. The technical supported the thesis in March and then the stock failed to follow through. And it's very important that you have those stops in so you don't end up married to a name that really has no support whatsoever. No Bottom in sight. I actually think the stock gets into the teens. CBRE was another bad call that we, that we wrote up. This is an example of getting the story right, but the market tells you you're wrong. They've actually had nothing but incredible results. Revenue last quarter up 19%. Earnings per share up 81%. But the market changed its mind about the staying power of this company. In the age of AI, they treated some of these information companies, which is basically what a brokerage is, as though they were about to be disrupted by anthropic. And that's where the risk management gets you out. This was probably our worst call this year because of how quickly it fell apart. We had a stop in the 135, 140 level, depending on whether you were a trader or investor. Obviously the whole thing's been invalidated. I don't think this name will be on our list for a very long time. Last but not least, Chevron, cvx. We wrote this company up twice. We talked about it last September, we talked about it again this year. This is an example of in the end, a commodity company being a commodity company, and there's really nothing that you can do about that. In late March, this stock basically invalidated the highs that had been making all winter. Slipping and sliding around the 50 day like it wasn't even there. Dropped below the 200 day, like it didn't even exist. There is no support in sight for this stock. High quality company, but no longer a best stock in the market. We were wrong about it. And the important thing is you don't have to ride it all the way down, defend it, come up with reasons why you weren't wrong. You go in with a stop, the stop takes you out, you lick your wounds and you find a new name to, to get involved with.
- [37:38]
Scott Wapner
You own cbra, right?
- [37:40]
Jim Leventhal
We do. So, yeah, let's talk a little bit about this. We've done. This will be our fourth trade in CBRE in the last five years. We bought it at 134 at the end of April. Here's the important point. The prior three trades, they all worked. But forget that for a second. What's important is that the longest duration of any of those trades is only four months. Scott, when you look at momentum, you have to understand it needs more than just the earnings growth, the price appreciation, it needs the participation. And you really don't get that in these smaller sectors like real estate, like energy, like materials. And if I look at our energy holdings, our real estate holdings, our material holdings, they're not very long in duration because you're not benefiting from that passive index flow, that technology, that financials, that health care and consumer discretionary get.
- [38:31]
Scott Wapner
All right, coming up next, our halftime headliner, Paul Rabel. He's the co founder of the Premier Lacrosse League. They had big news today. We discuss next. I welcome back to developing story this hour. The Premier Lacrosse league announcing a $100 million Series E fundraising round today. It's the largest in its history led by the private equity firm Ares and billionaire Josiah. Paul Rayboul is the PLL's co founder, president, chief creative officer here. As you see at post nine. It's good to have you back and congratulations on this big day.
- [39:16]
Paul Rabel
Thanks guys.
- [39:16]
Scott Wapner
All right. So it's your first fundraise since 22.
- [39:19]
Mike Santoli
Yep.
- [39:19]
Scott Wapner
So it's been almost a handful of years.
- [39:21]
Paul Rabel
Why now think it's this critical growth window for our sport. We have the Olympics in two years. First time lacrosse will be there both on the men's and women's side in 100 years. We just renewed our ESPN deal for another five years. They also invested in this round. We've launched the women's Lacrosse League and now we're expanding the pll. So there's this near term sprint and also using growth capital for the big aspects of our business.
- [39:44]
Scott Wapner
I read a quote in which you said the intention this direction quote the intention is to stabilize the business with this capital, find ways that we can accelerate growth. We share in the sentiment that we shouldn't raise any more capital unless there is a clear designated growth opportunity. And at this stage that's usually through some form of M and A. Can you expand on that? What you mean by that?
- [40:04]
Paul Rabel
Well, we'd always be open to taking on more strategic investment and that's what happened with Aries and Joe. And we weren't necessarily looking to raise, but we knew this time and place that we were in then. If you think about future opportunities, the one thing that makes us different from the big four team sports leagues is we're a C corp. We're wholly owned. So when Aries comes in, they get access to an investment at the league level across the teams through our broadcast relationship and so on. And that's different than the NBA or the NFL. The next wave could potentially be breaking that off in parts and selling teams.
- [40:38]
Scott Wapner
How do you come continue to grow your revenue streams which essentially boil down to media rights, sponsorships, tickets. It seems to me based on some of the people that have joined your group and that their backgrounds and what they're going to be doing on the creative side around original storytelling.
- [40:57]
Paul Rabel
Yeah.
- [40:57]
Scott Wapner
To me speaks to you viewing yourself as some media company in addition to what you're doing with lacrosse. Like the ability to take the content you have and monetize it off the field.
- [41:09]
Paul Rabel
Yeah. Well, I think Wall street is now putting a premium on this axis, on this asset class because it is the counterweight to AI in a lot of ways. And in real life experiences are becoming more important as we look for ways to get back into the community. So if you're referencing Glen Powell and Rob McElhenney, two of the best sort of prolific actors and producers, Rob and has done what he's done with Wrexham and. And Glenn is working as a creative advisor now to the company to help us build storytelling. But zooming out in the media environment, this year there's been $67 billion in media rights transactions globally. Half of them are in America. That's up 10% year over year. But that's only one area where you look to grow the business. The other for us is the sponsorship side where we have 16 Fortune 500 partners and they come into our model going back to that single entity where they get access to the league team players and they can be more versatile as they come into the PLO and wl.
- [42:05]
Scott Wapner
I don't think you've disclosed this, but I'm going to ask you anyway. With this round of, you know, 100 million in the series, what does it value the league at?
- [42:13]
Paul Rabel
We haven't disclosed our valuation. It's a meaningful step up for investors and it's been that way with each subsequent round. The last round that you and I talked about was led by Chernin. The round before that was Arctos and Joe Sigh led our Series A.
- [42:25]
Scott Wapner
Do we get to a point? You're still tour based, right? You're a tour based system. You travel around.
- [42:29]
Paul Rabel
Yes.
- [42:30]
Scott Wapner
Set up the big top in a, in a stadium and you have a bunch of games. When do we go to a city based model where you have, you know, wealthy people who are watching this show and who invest in stocks in this place, be able to buy teams?
- [42:42]
Edward Jones Financial Advisor
Yeah.
- [42:42]
Paul Rabel
Well, we looked at the history of professional lacrosse, which is only 25 years. And I often tell people the difference between lacrosse and football, basketball, baseball in America is we didn't have a pro sports league in the 1900s. A lot of it is nostalgic, is generational and property building over a long period of time. So when we looked at the challenges, we wanted to say, okay, how can we be Most agile and quick to market and grow this enterprise value at an IP level. And from a revenue standpoint, before we go sell teams, because I or my co founder Mike don't love the strategy of launching the league and selling teams. Teams kind of licking your finger, put in the air and say, hey guys, grow this with us. Whereas now we're positioned, if and when we choose to do that, to sell teams with meaningful revenue tied to it. IP that's been developed database for fans.
- [43:29]
Scott Wapner
I mean, because you know that there's got to be deep pocketed investors out there. As you know, private equity gets more interested in sports who are looking for the next big things. You know, valuation have gone up so much for the, you know, the Tier 1 leagues and even in some respects for the Tier 2s, you've got to be looking at that as with a tremendous amount of opportunity.
- [43:52]
Paul Rabel
Well, you mentioned it. Tier 1 really is everything because if you think of the value proposition to pro sports, it's scarcity, which means you have the best players in the world and a limited number of teams. So it's one in, one out the door, which drives price for investors. You also have live IP that's being developed. So you have the live broadcast podcasts where the advertisers come in and then you have all the ancillary programming. And then these are real operating companies. I think owners in sports used to often historically look at these assets as a live Picasso against their wall. Now many investors are seeing the multiple revenue and the growth. I mean the NFL since 2000 has increased on average 13x. That's three to one, the index.
- [44:31]
Scott Wapner
There's massive bullishness around women's sports. Sports, you guys obviously saw that with the women's league. How big can that be?
- [44:37]
Paul Rabel
Well, the macro trends are obvious. You see the valuations. The WWNBA and the NWL. WNBA has been at it for 30 years. But on the lacrosse side, it's faster participation growth at the youth level for girls than boys. Like I said, the women are in the Olympics. That'll be for the first time. And then we have these big emerging personalities. In many cases they have larger followings than the men's players who have been playing, you know, professionally, having the ability to for the last decade and a half. So for us, bringing the property to the table and then taking a piece of what we've Learned from the PLL these first 8 years was part of the reason.
- [45:12]
Scott Wapner
Appreciate you being here. Congrats on the news. It's been fun tracking the evolution of the pll. And we will continue to do that. Paul Rabel, thank you.
- [45:20]
Paul Rabel
Thank you, sir.
- [45:21]
Scott Wapner
All right, Santoli's next. Mike Santoli, our senior markets commentator, overtime co anchor, joins us now. Interesting quarter, right? Sort of 2/3 one way. The last third raises some interesting questions. Now for the rest of the year,
- [45:38]
Mike Santoli
it really has, I mean, you know, I kind of freeze it as a delicate balance that the market is facing, but it probably overstates the vulnerability. Not so much delicate, but it's just kind of it sort of this churn that is playing out in a benign way. So I always go back to mid May when you did see the relative peak in Mag 7. And then after that it was just purely semis carrying the market for a few weeks. And then as you say, the last couple of weeks broadening out. Last two days it's gone the other direction where it's basically mega caps oversold, getting picked up. So I do think that that's all kind of the market's homeostasis. Right. One thing gets out of whack, you want to try to bring it back and counter it. And I think it's fine. We might be in for a little more of a macro type of market for a little bit here right before we get to earnings. It's going to be wars, it's going to be jobs. We've got to figure out if yields can stay contained. So I think it's all to the good. I'm definitely mindful of some of the little anomalies and extremes that are popping up. You know, funding stresses in, in, you know, financing tech levered trades, things like that, where you say, okay, maybe some stuff has to cool off. So far it has. And I will also say all the focus on those anomalies is its own little wall of worry. I'm glad we're paying attention to them.
- [46:56]
Scott Wapner
All right, good stuff and I'm glad you are. We'll see at 3:00'. Clock. That's Mike Santoli. We'll do finals after the break.
- [47:04]
Paul Rabel
All right, we're back.
- [47:04]
Scott Wapner
We got some more calls. American Express, Jason Overweight Initiation 396Price Target, Piper Sandler. We view it as one of the cleanest compounders in consumer finance.
- [47:14]
Jason Snipe
Yeah. So I think as it relates to American Express, I mean, the stock's down a little, a little over 8% so far. Year to date. They are focused on the upper end of the K. And we kind of talked about regionals early and I think that's representative of what's going on on Main Street. 20% of their portfolios now build at a higher rate at $895 versus a 695. So I continue to like this stock going forward. Given the price action we've already seen, I think there could be momentum. Josh and left.
- [47:39]
Scott Wapner
What? Sorry, just. What about rocket by benchmark, 21 bucks.
- [47:46]
Josh Brown
Yeah, the stock looks good today, but it's really gone nowhere for a year and I don't think that it's really going to be part of the market leadership group unless and until we see downward pressure on rates and more activity in housing. Given what's going on with inflation and some of the rhetoric out of the Fed, I don't think you're going to get much help there anytime soon. So I think this stock remains in this sort of low to mid teens area. I would love to see it break out and I'll change my tune, but it's been a really long time.
- [48:16]
Scott Wapner
What about Uber, Josh? Uber and Waymo ending their robotaxi partnership in Phoenix.
- [48:23]
Josh Brown
Yeah, look, I think it's pretty obvious that these companies are going to be head to head competitors in a lot of markets. Uber is primarily focused on having as many companies with autonomous vehicles on their network as possible. Waymo is very focused on being a complete end to end solution with their own app. It's nice that they work together. I'm sure both sides learned a lot about the process. But you will see Uber in these markets with lots of autonomous partners. Waymo just is not going to be one of them.
- [48:53]
Scott Wapner
You have thoughts on this, Jesse?
- [48:54]
Jason Snipe
Yeah, I think, I mean to Josh's point they've already, listen, they've telegraphed this. Well, they've already got partnerships with Neuro and Lucid. So I think it's, it's a kind of a non story for me and I think Uber will be the premier platform going forward.
- [49:06]
Scott Wapner
Okay, let's do some final trades as we wrap up this quarter. Pretty good day for the NASDAQ to 1.3%. Like raising its hand today and saying don't forget about me as the second half, you know, officially begins. As we spend on good portion of the top of our show debating what's going to lead the market and whether momentum still has its momentum or if it's waning.
- [49:28]
Jim Leventhal
No, I think you just stay focused on the earnings growth that is going to continue to present itself for these semiconductor companies. And that's at the heart of the technology story.
- [49:37]
Scott Wapner
Okay. Farmer Jim Micron.
- [49:39]
Jimmy
I mean I think Adam Parker, Adam Parker put it very well yesterday when he said this is like buying in video three years ago, buying it today.
- [49:47]
Scott Wapner
All right, Jason Snipe, Palo Alto Cyber
- [49:50]
Jason Snipe
has been on fire, but I continue to see these new age gentic tools continue to work for this stock.
- [49:55]
Scott Wapner
You're having a good day. Is that name and then Josh Brown, what you got for us?
- [50:00]
Josh Brown
I think Apple's going to have a good second half. I was thinking about which of the Max 7 had the best setup and to me this is the one.
- [50:08]
Scott Wapner
It's got a nice move today. Be watching that stock. Certainly get into the new iPhone and all that. I'll see at 3 on closing bell does it for us. The exchange begins right now. You've been listening to CNBC's Halftime Report, the podcast. You can always catch us live weekdays at 12 Eastern only on CNBC.
- [50:30]
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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 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 with my Sapphire
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Jimmy
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Josh Brown
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Scott Wapner
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Jimmy
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Josh Brown
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