← Halftime Report
Halftime Report
The Resilient Bull Run 9/11/25
00:44:14
Scott Wapner and the Investment Committee debate stocks setting new records and the best way to invest in this resilient bull run. Plus, the desk shares their latest portfolio moves. And later, legendary broadcaster Al Michaels joins us to discuss tonight's NFL game between the Washington Commanders vs. the Green Bay Packers and the 2025 season. Josh Brown also gives Al a new stock recommendation. Investment Committee Disclosures
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- [00:00]
Edward Jones Announcer
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- [00:32]
Sempra Energy Announcer
On energy and as demand increases, Sempra is rising to help meet the challenge. Through our Texas and California utilities, we're investing billions to help power these booming economies. We're building tomorrow's energy infrastructure today, modernizing one of North America's largest energy networks with next generation technology to power the everyday lives of nearly 40 million people. That's positive energy. Learn about Sempra's financial results@sempra.com investors.
- [01:02]
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. Thank you very much, Carl. Welcome to the Halftime Report. I'm Scott Wapner. Front and center this hour, record setting stocks and the best way to invest now into this bull run. Joining me for the hour, Josh Brown, Joe Terranova, Surat set, Jim Leventhal. Check the markets today. We have record highs across the board. There is your picture. 12 noon. In the east, the Dow, the S and P, the Nasdaq all having a very nice day. The ten year, as Sarah was just saying, the lowest since April 7th. Core CPI in line. The bottom line is that rate cuts are coming and maybe rate cuts weren't priced in to the level that some people tried to make the case that they were. Is that the message right now?
- [01:54]
Joe Terranova
I think the message today is that what's more important to the market is the labor statistics than inflation report itself. I think today it was very clear. Initial jobless claims rather seem to be more of a priority than in fact the inflation report. So now we're talking about potentially 50 basis points as, as a cut. We're talking about this just not being a one time rate cut cycle. And I think the benefit for the market is yesterday when we were sitting here we were talking about technology adjacent adjacent names and really the lack of participation from the 493. Well, what do you have today? Today you have the direct opposite. You have the 493 participating. You have the S&P equal 8 up 1.2%. You have the Russell up 1.3% and you have the Fin5 all making 52 week highs. Fin5, bank of America, Goldman Sachs, Morgan Stanley, JP Morgan, Citigroup, all 52 weeks high.
- [02:51]
Scott Wapner
All right. He feels he's proud of himself for calling it Fin5. Is that, is that a you thing? Do you come up with that?
- [02:56]
Joe Terranova
I did, yeah.
- [02:57]
Scott Wapner
You like this?
- [02:58]
Jim Lebenthal
Happy he included Citigroup.
- [02:59]
Scott Wapner
I like how he knew what he meant right off the bat, but I liked how he had to list the names just to make sure that everybody knew how smart.
- [03:06]
Joe Terranova
What I wanted to do was going.
- [03:08]
Surat Set
To create an ETF of no, absolutely not.
- [03:11]
Joe Terranova
I want to make sure I mentioned Citi for Jimmy.
- [03:12]
Scott Wapner
Somebody will. All right, Josh, I come to you. Is this what I think Joe is saying? That this is a 50 bips rally? That what this is about? Maybe The Fed goes 50 next week and the market's trying to. Maybe 50 wasn't priced in. Maybe that's the point.
- [03:28]
Josh Brown
I think that's exactly right and I totally agree with Joe. The market is, I don't think, happy to see a weaker labor market in terms of the human cost, but just in terms of blowing the Fed over. If they're sitting on the fence and they're not sure whether or not to do 25 or 50. I think when you listen to all the candidates for, for the job, even the dark horse candidates, they're almost all saying the same thing, probably to get the job. But also I think they believe it's time. If you, if, if the Fed is waiting to see the whites of their eyes, well, this is what it looks like. The revision was pretty bad. Now you got an increase in weekly unemployment claims. The number comes in at 263,000. The expectation was 235,000. This is the highest print since October 20, 2021, four years ago. So like this is it, this is the moment. So are we serious or are we trying to take a political stance? And I think the Fed's serious. And the market today, the Dow being up the way that it is, following through the financials, doing what they're doing, and then like looking at the other. Yeah, but wait a minute. Looking at the other. First of all, the leading performer on the day today is consumer discretion. And then like when I look at the Dow stocks that are up the most, I got Sherwin Williams, 3M and Home Depot and Goldman Sachs in the top five. Like this is, this is a rate cut. This is a rate cut rally. There's no question about it that today.
- [05:00]
Scott Wapner
Well, it's kind of it's about kind of everything. And that was the point, you know, when I was out at Future Proof Josh's conference the other day, speaking with rick Reeder of Blackrock Surat. He thinks they should go 50 the Fed and maybe the market's trying to get its arms around the idea that it actually might.
- [05:19]
Surat Set
I think that's right because if you do 25, it's kind of like we don't really know what's going on, but we're kind of doing it maybe for political reasons. You do it for 50 because the numbers are now showing that you need to do it and the market is now discounting the 50 and on the other side of it, you know, to go to your fin five point. Why are they doing so well? Well, look at the IPO market, right? You've got IPOs coming. Look at the M and A market. You've got almost every day or every other day you've got something going on in the, you know, M and A world, wealth management businesses. So. And the consumer with lower rates and if you look at companies balance sheets, it's all going to be better. So I think the market's kind of responding to it, ahead of it and I think if 50 comes then at least we'll be there as opposed to being behind the ball.
- [06:01]
Scott Wapner
Jimmy came in with a big bounce in his step today. Well, he did yesterday, but I wasn't here to see it. So now that I'm back, I mean, Oracle coming off its best day since 92. I know you felt good yesterday. I wonder what you were wearing yesterday. Probably had a nice bright tie on.
- [06:18]
Jim Lebenthal
Joe. What did I wear?
- [06:19]
Scott Wapner
Probably. I don't know if I had a bounce in your step.
- [06:22]
Joe Terranova
He sure did.
- [06:23]
Scott Wapner
But you've been raising cash, you've been raising some cash lately. I feel like you were a little nervous about this market, maybe undeservingly so given where the price action has been since you have consistently been trimming some of your best winners. This market just keeps going up.
- [06:40]
Jim Lebenthal
Yeah, I think this is a very good point to bring up. You know, I did trim and I raised cash 10%. And this is exactly why you don't do more than 10%, because the market's just running away. Now look, don't anybody cry for me, Argentina. My stocks are doing just fine. There's more than Oracle in there.
- [06:56]
Scott Wapner
You said the market member, you were sitting here, maybe it was two weeks ago and said, hey, you know, stocks could correct 5 to 10%. I'm trying to. Wrong.
- [07:06]
Jim Lebenthal
I was Wrong. I mean, I don't mean to interrupt you, but hey, I mean, just, just wrong.
- [07:09]
Scott Wapner
I was getting at that.
- [07:10]
Jim Lebenthal
I know, that's why I try to leap in front of you a little bit there. But look, I want to say two things. One, this is getting fully priced in, I think 50 basis points. So I wouldn't be surprised if when you get the cuts, hey, you know, we've already had it. Maybe you sell off a little.
- [07:24]
Scott Wapner
You think that's a risk? Because I actually have heard that from others, that you could get a sell on the news.
- [07:28]
Jim Lebenthal
I mean, I haven't looked it up, but how many days in a row has the market gone up? I mean, it's, this is pretty extraordinary what's going on right now. But what I would say is while I'm talking about the short term, and yes, I did raise some cash, as you know, and we'll talk later on putting a little bit back to work today. But I think that we're missing a point here which is not that we need 50 basis points or 25 basis points, but that actually the economy is going really strong. Look, I see the numbers today. I'm not happy about the weekly jobless claims jumping as they did. But let's not mistake the fact that last quarter GDP grew at 3.5, 3.3%. Right now the Atlanta Fed is tracking at 3.1%. There is definitely a K shaped economy going on. I mean, it's unquestionable. I was out Monday night at a steakhouse here in the city and it jammed to the gills. I mean it is just. And look at air travel. Look at, look at how the, you know, Josh was talking about you say.
- [08:17]
Scott Wapner
I'll have the A5. Is that what you told them about yourself? I'll have the A5. Make it to 10 ounce. Disappointed to 10 ounce.
- [08:28]
Joe Terranova
He wasn't in the hunt fish club, I know that.
- [08:30]
Scott Wapner
Thank goodness he didn't have yet the earnings report. That's coming later today, isn't it?
- [08:36]
Jim Lebenthal
Welcome back. Set it up. No. Did you say one ounce?
- [08:44]
Josh Brown
Yeah, o'.
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Jim Lebenthal
Neill's.
- [08:45]
Scott Wapner
What?
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Jim Lebenthal
We'll do that later.
- [08:46]
Scott Wapner
No, we'll get to that later.
- [08:48]
Jim Lebenthal
Okay.
- [08:48]
Scott Wapner
I want to talk about this note from Morgan Stanley today. They say even if the second half of September warrants caution, it is going to be a herculean task to interfere with strengthening visibility into 2026. Real money simply cannot afford to have a tracking error at this stage of the year. Wolf, today the Mag 7 continue to outpace the other 493. They continue to favor that. It feels like the market does too. Although on obvious days like this, with rates coming down and rate cuts on the horizon, you would expect to see maybe the Small caps up 1.3%, something like that. What do you think of these notes?
- [09:22]
Joe Terranova
I think that we are in. Listen, we. We hear it every year when the S and P has positive performance on. You get through the other side of summer chase for performance. You're about a chase for performance. You hear about a lack of tax loss selling. And I think these are the catalysts that we're going to have in addition to continued strong earnings and rate cuts as you move through the fall. I think the bigger question as you move through the fall is how are you going to begin to prepare for 26? Because in 26 you kind of run out of a lot of these catalysts. It's also a midterm election year. I keep pointing this out. Markets don't like midterm election years. Markets in midterm election years like higher volatility and corrective behavior. So I think at some point later in the fall you have to begin to think about that. But for now you could play into the narrative of the market continues to press higher and broaden out.
- [10:14]
Scott Wapner
When you say you're going to. You run out of catalysts. I mean, the whole point of some of these notes is that you don't run out of the AI catalyst. That's sort of the whole perspective. I was sitting on the stage out by the beach in Huntington Beach. Rick Reeder was talking about that. That's why you're in what. What most people think are still given, even though even with the run in these stocks, even how their. Their pes have, have expanded, that you're still in the early innings.
- [10:42]
Joe Terranova
So I think that the positive catalyst, the tailwind from the investment thesis surrounding artificial intelligence and the innovation advancing towards generative AI, I think that's a secular story. I don't think in 2026, if it's the only story, we will be able to defy a potential correction at some point, I think because there is maturity in terms of positioning for that thesis. Maturity in terms of positioning. Everyone knows you want to be allocated towards AI. That's well known and the cup is pretty full in that regard. So I think that yes, you will see a pause that ultimately refreshes, but I don't think singularly that'll be enough to prevent the 26 correction.
- [11:24]
Scott Wapner
Yeah, Josh, what do you make of this trading desk note from Morgan Stanley? Because we came into September, saying, well, historically it's a really bad month and the market's trying to tell you, well, I know you didn't, but you know what I'm saying. I think that the broad thought was like, well, here we go. Because the market's usually bad in the fall, September and October. And we all know what's happened in October's past throughout history. They say, again, just, just to reiterate, even if it does the second half of September warrant some caution, which maybe some people still suggest it does, it's going to be a Herculean task to interfere with strengthening AI visibility into 2026. In other words, stay with this trade.
- [12:05]
Josh Brown
I think so. And there are a lot of reasons to stay with it. One of the key one for me, and we don't talk about it that often these days, but I'm taking a big cue from what's happening with international markets as, as confirmation of what's happening with the s and P500 and the Russell 2000 here in the United States. States, market after market after market. I don't care where you look. I don't care if it's Europe, Asia, Latin America, China. There's, there's just something very big happening here that transcends whether or not we get 25 or 50 basis points of, of easing monetary policy here in the United States. And obviously what, what all of these countries have in common is a consumer that is doing what the consumer is supposed to do and spend. You look at the data all over the world. But then the secondary thing is this AI infrastructure buildout, which is 100% a global phenomenon. Even the French are trying to be competitive in AI. So I think so long as those things are both moving in the right direction, international stock markets breaking out and AI Capex being a global phenomenon, I think you're probably in more danger trying to fade it, quite frankly, than, than staying put. What could go wrong? A policy mistake. Right now there's an 89% chance of a 25 basis point cut and 11% chance of a 50 basis point cut. So the market's pretty sure that we're going to get something. I feel pretty confident that we will. I just, I would tell people, though, you might not like the rhetoric that comes along with the cut. Remember we used to joke around, we used to have a hawkish cut. Like, I don't know, do you want Jerome Powell in a, in a Q and A talking about maintaining restrictive stance or whatever, or being vigilant about the inflation picture? Like, I don't know how the market interprets that. They might not like the sound of it. So I would never tell people we're all, we're all clear. But look at what's working today. You know, the all park is up 3.3%. The consumer discretionary names are up 1 point. The sector of 1.6% on the day, 30% of the tech sector has an RSI above 60. 13 stocks have an RSI above 70. Semiconductors are making record highs. So like there already is a lot of enthusiasm. So I think there's room to just say look, I'm going to ride this to answer your question, to stay with it. But I don't necessarily have to be out there hunting down my next three stocks that I want to buy. I think there's room to kind of keep both thoughts in your mind at the same time.
- [14:43]
Scott Wapner
The SMH to Josh's point all time high. Micron 52 week high today. Joe Lam research record high today. KLA record high as well.
- [14:53]
Joe Terranova
Those are the two semi equipment names that I like the most. Applied material really hasn't participated as much as Lam Research and KLA Corp Half.
- [15:02]
Scott Wapner
Hey, what about Apple? This stock's been on a good run. You know, they had the big iPhone event as we saw downgraded today. DA Davidson to neutral.250 stays the price target. They say they were unimpressed with the strategy over the past year. I think, I don't know, maybe many other investors feel the same way. They think Apple's going to be a meaningful participant in AI, just not yet Surrott what to do with Apple which is up, it's down on the week.
- [15:34]
Jim Lebenthal
Right.
- [15:36]
Surat Set
So and Apple did what it normally does before you get into kind of their big event. Right. It ran up into it and then we got a little bit of a sell off just because again it was incremental news. Yes, you had the very thin iPhone coming out and you, you know, the 17 is again incremental. But what Apple's waiting to do is at some point when does the AI come and waiting for other people to do it. So, so I think it's, it's one of those things people hold in their portfolio. It's like a consumer staple in the tech sector and it will do fine. And you just kind of like as Kramer says, you don't trade it, you just own it.
- [16:10]
Scott Wapner
And over time downgraded again too by the way at Phillips Capital because of the recent rally. So the stock had the big run. Amazon named a top pick today at.
- [16:19]
Jim Lebenthal
Morgan Stanley Jimmy, love Amazon. I mean all the shots on gold that's they have obviously the retail, Amazon Web Services, logistics. I forget, Joe, what we were talking about some initiative yesterday with robotics with them. And frankly, you know, this is a different valuation than it was five years ago. This is now squarely valued in a way that makes sense to me and I think it will go higher from here. I also think that, you know what we were just saying about Apple and I like this idea of a consumer staple within technology. This is more, I mean this, this is more pizzazz within the Mag 7. This has more reason to go higher.
- [16:54]
Surat Set
Right now because this also has a very broad base of different businesses within Apple. I mean if you look within Amazon, if you look at not just the retail, but now you've got other businesses like their prime video, etc. That are all firing on cylinder. So I do think this is one of, I like it. Probably the best of the seven.
- [17:12]
Scott Wapner
Back to, back to this in a minute. I do have a market flash on Delta airlines. Our Phil LeBeau has that for what do we know here, Phil?
- [17:20]
Phil LeBeau
Scott, take a look at shares of Delta under some pressure. Their CFO out at a conference in Laguna Beach, California. There's going to be a number of companies out there today talking about what they're seeing in the economy. And for Delta, what they're seeing is that the main cabin revenue is still negative. And that is one of the headlines that came out within the last half hour and that pushed shares of Delta down about 4%. The interesting thing is that they were negative in the second quarter, 5%. And at the time when we talked to Ed Bastian and we've talked with him a number of times, they have said they expect that over time that the main cabin would be improving. But clearly that is not the case. That is the lower end consumer continuing to show pressure. So again, Delta saying that the main cabin revenue remains negative. That is the reason shares of Delta and really a number of the airlines are under some pressure. Remember they were up about, Scott, what, 21, 22% from the earnings report in the beginning of July, just through last week. So a number of people have been saying if there's a time for the airlines to pull back a little bit, this might be it as they go into what is the slowest time of the year for the airlines, Basically September, October, really, until you get into the holiday travel season.
- [18:36]
Scott Wapner
All right, Phil, thank you very much for that Update. That's Phil LeBeau, got some ownership over here. What do you think about this I.
- [18:43]
Jim Lebenthal
Think this is a head faked by the market. Sometimes the market just plain out gets it wrong. I think Phil's explanation of it was right on. You're talking about the main cabin. But you know what? That's not where the money's made. It's the front of the cabin. Is that what you're about to say? And look, the headlines from this conference are that they actually guided to the high end of their prior guidance range. So obviously if you look at more than just the main cabin, if you look at the whole cabin, they're making good money.
- [19:08]
Surat Set
And it's the loyalty programs that Delta has with Amex. It's the premiumization, it's the experience that people want. What Delta is doing is creating more and more, more and more premiumization. It's just not the main cabin. You can upgrade yourself or you can buy extra. And I think that's where you have it. In addition, by the way, with Spirit Airlines now going into bankruptcy, you're going to see more demand going into the big.
- [19:31]
Scott Wapner
You can't, you can't tell me that the main cabin doesn't matter. You can't tell me they, you, I mean, Jim, I'm sorry, Jim, you, you can't cite TSA lines and all that stuff to try and make a bullish case on the airlines. And then when there's a drop off in the main cabin, try and argue that it doesn't matter. You know what I'm saying? It's not just premium cabin people are coming through the tsa. You can't use that as a metric to make a bullish case on the airlines. And now Phil comes with his news that's breaking down. It doesn't matter. They make all their money up front.
- [20:08]
Jim Lebenthal
Look, I told you, I went out to a steakhouse the other night, you know, actually charge. It was after that charge for the tofu a lot less than they charged for the filet mignon. I don't know. I mean, you're saying I can't. I'm saying I can and I am. This is the argument that where the money is made is the front of the cabin. And if I. Look, you fly a lot. You know that the front of the cabin has been physically extended. Lot more. There isn't that much in economy.
- [20:31]
Scott Wapner
So you're telling me it doesn't matter if you fly in, the front is packed in that and the, and the rest of the plane is empty. It doesn't matter?
- [20:38]
Jim Lebenthal
Well, the rest of the plane isn't empty.
- [20:40]
Scott Wapner
But you know what?
- [20:40]
Jim Lebenthal
I'm saying, yeah, I don't know.
- [20:44]
Scott Wapner
You look at the TSA traffic and you're like, well, the airlines are going to be great because the TSA counts are huge.
- [20:49]
Jim Lebenthal
Yeah.
- [20:49]
Scott Wapner
Now you're telling me, well, nothing matters as long as the front of the plane is full.
- [20:53]
Jim Lebenthal
Flying in the front of the plane, which they've extended to have more seats where they charge more. I'm not being facetious again, just look at what the guidance was today. They had prior guidance for this quarter coming up, 0 to 4% growth. They now tightened that to 2 to 4% growth. They're doing fine. Regard Delta is doing fine regardless of what the main cabins.
- [21:11]
Scott Wapner
All right, so when we were talking about Apple, I was thinking of buybacks, just to get back to that, because there is a story today about buybacks that I think you guys will be interested in hearing about us Share buyback volumes have further room to increase. This has always been a Joe, a Joe thing when talking about positive catalysts for the market. This means an additional 600 billion of share buybacks, they say, on top of the record 1.5 trillion annual pace seen this year. In other words, the buyback force, which has propagated the equity market strongly this year, is likely to become even Stronger. We've gotten Tapestry 3 billion yesterday, this month, Airbnb and Uber. We had notable ones throughout July, whether it's Newmont or Schwab or bank of America or Southwest or Novartis or Morgan Stanley or JP Morgan. There were others in May and June as well. Joe.
- [22:01]
Joe Terranova
The one name left off there is Berkshire Hathaway. They have not been buying back their stock. But I think towards the end of the year, if we get a rate cutting cycle, there will be more intention to buy back stock. Now you can make the argument, and maybe some of those buys are not good buys, or maybe some of those buys are a little bit overaggressive in their nature in terms of the amount and the quantity. But I still think that acts as an overall catalyst for the confidence of the market. It's a sentiment indicator more than anything else.
- [22:34]
Jim Lebenthal
You know, I love buybacks. And with regards to Berkshire, I think they're going to buy somebody else's stock back. But regardless, look, I like when you've got companies like Apple, like Citigroup, like any of a number of companies, Wynn Resorts, that are buying back so many shares that they shrink the share count. So when you combine net income growth, which is going on in the strong economy that we've got, with a lower denominator of shares. That makes for a pretty good pop in earnings per share.
- [22:57]
Scott Wapner
Last thing I want to do in this block IPOs. We had Klarna yesterday. Nobody interested. Josh? No interest in that. Too busy a future proof to focus enough on it. What do you think?
- [23:10]
Josh Brown
I don't know. There are so many other ways. If you think if you're bullish on buy now, pay later, PayPal, affirm. Like if that's like really the theme that you want to invest in, you're not restricted to buying the shares of a recently public company that we haven't even seen them do an earnings report yet. Who knows if you know we can trust this as a longer term investment theme. So it's not that I'm bearish on Klarna. I just, I think there might be cheaper ways if, if I cared. There's also XYZ block. So like everyone's doing buy now, pay later. It's not crazy novel. And so I don't know that this is my type of situation.
- [23:47]
Scott Wapner
Okay. Lastly, I lied. I want to do one more thing is the banks, we did say record highs, but just to let everybody know, bank of America, 52 week high, City at a 52 week high. That's the highest since August 24th, second straight week. Or excuse me, I read something else. 52 week high for bank of America, 52 week high for Citi. I think I conflated a couple of different things on my, on my notes.
- [24:10]
Jim Lebenthal
Yeah, well, what we were just talking about matters. How long were we talking about the IPO market opening up? And it is opened up. We may not want to buy Klarna. I'm with you on that, Josh. But look, there's a lot of IPOs. We're here a lot of days during the week and it seems like almost every day there's a new IPO coming. So what we've been waiting for in terms of the banks, the big money center banks that have capital markets is happening.
- [24:31]
Joe Terranova
Anyone concerned about valuation on the banks to state you could make the argument it's getting a little bit stretched.
- [24:36]
Surat Set
They are, I mean the price of books are now at the upper end, but their earnings are now moving as well. So I think that is helping. And if interest rates do come down, the wealth management businesses get to be even better because they're going to pedal more product housing their customers to do that.
- [24:51]
Josh Brown
That's why you get a housing cycle. You get a housing cycle. These banks are not going to trade on valuation, they're going to trade on growth.
- [24:59]
Scott Wapner
All Right. So let's do this. Let's. Let's take a quick break. Jimmy has a new buy. He's feeling so good about Oracle and his A5 the other night, no thanks to the tofu, he said, I want.
- [25:09]
Surat Set
The filet, the 10 or 15 ounce.
- [25:12]
Scott Wapner
He can't afford the 15 ounce. I'm going to get for the 10 ounce.
- [25:16]
Jim Lebenthal
Dude, my stomach can't afford it.
- [25:17]
Scott Wapner
Day five is. I mean, come on, we'll do those trades next.
- [25:25]
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- [25:55]
Joe Terranova
Celebrating 30 years of SquawkBox Tomorrow, Secretary of the Treasury Scott Besant on.
- [26:00]
Jim Lebenthal
The economy, tariffs and the fed squawk.
- [26:03]
Joe Terranova
Box 30 tomorrow, 6:00am Eastern and streaming on CNBC Plus.
- [26:24]
Scott Wapner
All right, Jimmy said run, don't walk to Keens in Midtown. And he did so with on holding because it's a new buy.
- [26:32]
Jim Lebenthal
A little bit more running after that meal.
- [26:34]
Scott Wapner
Why'd you buy it?
- [26:35]
Jim Lebenthal
You know, I'll tell you exactly why. We were gonna do a segment yesterday, we didn't do it on Nike. And, you know, you look at what's happened to Nike, Nike, you look at what's happened to Lululemon, you look at what's happened to Under Armour over many years, and you have to think to yourself, is the whole like, athletics leisure space going to zero or is somebody gaining share? And the answer is somebody is gaining share on holdings is. I used to own this, Scott, you may remember, and I sold it earlier this year at about $58 a share. So on the basis of looking at that segment yesterday, I said, what's on holdings doing? I look at it, it's $43 a share. It's got a forward multiple in the high 20s, whereas it used to have a forward multiple in the 40s. And I said, okay, I'm going to start building a position in this again. I'm not saying this is the point at which you build a huge position. The trend, the chart right now doesn't look all that great, but I am starting to build a position.
- [27:22]
Scott Wapner
Where did you initially get out?
- [27:24]
Jim Lebenthal
58.
- [27:26]
Scott Wapner
Okay, so stocks come down and you're back in. Josh, you have a take on this, on this name. I mean Nike we've been talking about, you know, Vuori and on holding and some of these other names that are, you know, taking market share. So I'm interested to get your take on, on Jim's trade in. It rides it up, goes down, buys it back.
- [27:52]
Josh Brown
So on is one of these names where I was right on the story. But I traded it home horribly. I somehow found a way to lose money on this thing. But I started trading it a couple of years back when they really started to emerge as an upstart. They're not an upstart anymore. This is a really well established brand. It's just, it's a, it's a tough category. It's not an area that viewers will remember me making a lot of long term investments in because with fashion, including footwear, fashion comes in, it goes out. People overestimate the popularity, then they underestimate it. And I really feel that this is a market where you have to play, pay close attention and frankly, I just don't have the time in my life to do that. So I don't like that chart. Put, go back a little bit, pull me out. Here's what I don't like about it. You got a double top and then you're in this kind of, you're in this kind of nascent downtrend. You can see that it bounced from this level once before and maybe that'll happen here. If it doesn't like, what's your exit strategy like? Hope the next earnings report is good.
- [28:57]
Scott Wapner
So it's.
- [28:58]
Josh Brown
I, I'm not saying that Jimmy won't make money because his time horizon is probably different than mine. I just don't love setups that look like this. Technically, I got to put my.
- [29:07]
Jim Lebenthal
Said that very eloquently. I totally agree. It's a horrible chart. That's why I'm taking a very small position and we'll see where it goes. If it doesn't work out, if it starts doing a Nike, I'll get out of it. I'm not going to be married to this stock.
- [29:16]
Joe Terranova
I got a question for you though on the revenue growth. I'll put my glasses on to read this. 2021 plus 28%. 2022 plus 2023%. The growth disappears. Down 9, 10 and 23, down 14% in 24 and on pace in 25 to be down 16%.
- [29:32]
Jim Lebenthal
Yeah, I'm looking, so I'm looking at the earnings per share growth Rate on facts, that long term growth rate, 38% revenue growth. I know, I know, I know. I got you. I heard you. But so why are you bringing up earnings? Because that's what matters. Don't do this to me. That's what matters to stocks.
- [29:47]
Josh Brown
That's.
- [29:47]
Joe Terranova
That is not true. What matters to stock is the combination of.
- [29:51]
Jim Lebenthal
Joseph, you know I love you and your way of investing. You wrote the book. It's a great book. Buy high, sell higher. I love it. I'm buy low, sell, sell high. Okay. We're looking at different points in the stock trajectory here. Okay. For me, the valuation on earnings matters. I totally get what you're saying. If this is a growth stock, and it was when it was at 40 to 50 times forward earnings, that was absolutely based on top line growth, the.
- [30:15]
Joe Terranova
Reason behind the deceleration in revenue growth would be. How do I think about.
- [30:18]
Jim Lebenthal
It's a bigger. It's a bigger company than it was. I mean, it's just that simple. It's a lot bigger company than it was. I think also what Josh was saying about almost you were saying, Josh, it was kind of like a fashion company. Like it'll be in one day and out the other. That is a risk. But I think that's a risk that's gotten smaller as the company has gotten bigger. And by big, bigger, that means not just more products, which they have more, but they have more geographic distribution. So hopefully it's not quite as susceptible to what happens to the Gap or Abercrombie and Fitch where they get hot on some, you know, khakis are hot, and then khakis are not hot.
- [30:50]
Scott Wapner
You can't maintain the same level of revenue growth.
- [30:53]
Joe Terranova
I understand that.
- [30:54]
Scott Wapner
I mean, look at the mega caps.
- [30:56]
Josh Brown
I understand that.
- [30:57]
Scott Wapner
Pick those apart, too. I mean, their revenue growth for many of them is not at the same, you know, percentage of what it's.
- [31:03]
Surat Set
It's low, large numbers, but it's also brand. You're betting on the brand. Regroup, regrows.
- [31:08]
Jim Lebenthal
That is not a fad. That it's a brand.
- [31:09]
Surat Set
That it's a brand. It's not a cyclical. It's a secular growth.
- [31:13]
Jim Lebenthal
Exactly.
- [31:13]
Scott Wapner
Well, I don't know too many people arguing that it's a fad at this point either. So. All right, let's do this. Still ahead, Al Michaels joins us live ahead of tonight's NFL kickoff on Amazon Prime. We will talk sports, we will talk stocks, and I think Josh Brown has a new pitch for him. So, Al, I know you're probably listening right now. Get your pen and paper ready. Put the play sheet down for a moment. I know you're studying for tonight, but you better get your tickers ready cause he's got one for you. We'll do that in a bit.
- [31:48]
Jim Lebenthal
Celebrating 30 years of squawk Box tomorrow.
- [31:51]
Joe Terranova
Secretary of the Treasury Scott Besant on.
- [31:53]
Jim Lebenthal
The economy, tariffs and the fed.
- [31:56]
Josh Brown
Squawk Box 30 tomorrow, 6am Eastern and streaming on CNBC.
- [32:00]
Jim Lebenthal
Plus.
- [32:16]
Courtney Reagan
We'Re back on halftime. I'm Courtney Reagan with your CNBC news update. Authorities are turning to the public for tips as they race to identify the gunman and the Charlie Kirk assassination. The FBI released photos of a person of interest just moments ago. Meanwhile, as President Trump was departing the Pentagon 911 memorial, he said he planned to speak with Charlie Kirk's family this afternoon. Poland says the UN Security Council will meet to discuss the Russian drones that entered its territory yesterday. The country's foreign minister didn't say when the Security Council will hold the emergency meeting, but diplomats say five countries, including the UK and foreign France have asked the council to meet tomorrow. The UN has yet to comment. And according to multiple reports, a Korean air flight carrying more than 300 workers from South Korea who were detained during an immigration raid in Georgia has left Atlanta for South Korea. The workers were among 475 who were detained during a raid at an EV battery facility under construction as part of a joint venture between Hyundai and LG Energy Solutions. Scott, back over to you.
- [33:16]
Scott Wapner
Okay, Court, thank you. That's Courtney Reagan. All right, let's do another move. It's from Joe. You sold Marathon Petroleum, right. It's still in the ETF, right. In the personal trade and stocks up 31% this year. So give me more.
- [33:30]
Joe Terranova
This is within the context of the refiner trade that I put on early in August. I sprinkled money towards Phillips 66, Marathon Petroleum and Valero said yes yesterday on the show. I was going to do some selling in each of those. What I ultimately decided to do was sell Marathon in its entirety. Keep Phillips, keep Valero. Why? I think Valero is the best in breed of the refiner names and price is confirming what I'm seeing there. Phillips, I like the potential turnaround here. Elliott Management has an activist stake. They have two seats on the board plus Phillips just they acquired the remaining remaining 50% ownership on WRB Refining from Synovus. The valuation on that is somewhere around 4 times EBITDA. The deal should have been done somewhere around 7 times EBITDA. So it's a strong valuation acquisition. I like Phillips to have a little bit mean reversion here.
- [34:23]
Scott Wapner
All right, a quick break then the legend, the icon Al Michaels. He'll join us ahead of tonight's NFL Kickoff on Amazon prime football stocks and more. Next. We've got another IPO today. It was Klarny yesterday. Today it's figure technologies at the Nasdaq and Figr. It's a stablecoin issuer. And there it is. It's open for trade. And those are the very first trades. This is up big up more than 43% priced at 25. And there you see it's at 38 north of that. We'll follow that tonight at Lambeau Field. The Green Bay packers and Washington Commanders kick off Thursday Night Football on Amazon Prime Video. Joining now is the man calling tonight's game, broadcasting legend Al Michaels. It's so good to see you as always.
- [35:23]
Joe Terranova
Always.
- [35:23]
Scott Wapner
Welcome back.
- [35:25]
Al Michaels
This is an annual treat for me. You know how much I love this show, right? It's my favorite show on television. Mine is Thursday night is number two. This is number one.
- [35:34]
Scott Wapner
Okay.
- [35:35]
Al Michaels
We have a good one tonight. You know, there's no question, judge, that Philadelphia, Kansas City is going to be the, the game of the week. It's the super bowl rematch. But this has to be the next best game on the schedule. You know, Washington last year, 12 wins, got to the NFC Championship game and Green Bay looks so great against Detroit on Sunday. This town is stoked right now. And this town is if they're making super bowl reservations, I understand it is to get Micah Parsons. They absolutely annihilated the Lions last week. It's going to be a lot of fun to watch tonight's game. Can't wait.
- [36:10]
Scott Wapner
Yeah, I mean it was always going to be a great matchup. And then Parsons in the mix and Jaden Daniels, obviously, the way that he is so highly regarded. You guys are going to have a good one. In fact, you have a good schedule as well, Al, throughout the whole season. I mean, you got Dolphins, Bills. I know that the Dolphins didn't look good at all in the first week. The Bills had that miraculous comeback. But tell me about your expectations for the season overall.
- [36:37]
Al Michaels
Well, I think, overall, I think it's the best Thursday night schedule not only for Amazon over the last few four years with the NFL Network and, and Fox. And I think CBS had it for a number of years before that. So I'm going to, I'm going to say that this is our best schedule ever, at least at the outset. When you look at it before the season, of course, it changes. As you can see, week six, it comes up there. Eagles, which means Barkley goes back to the Giants. Steelers, Bengals will be great at the Vikings against the the Chargers, the Ravens at Miami in week nine. And on and on we go. Bears and the Eagles will be the Black Friday game the day after Thanksgiving. And then down the line, there's a Christmas night game in Kansas City against the Denver Broncos who right now, you know are one. And oh, and the Chiefs, for what it's worth, their own one. So we like the schedule. We'll see how it plays out over the, over the year. But we're pretty happy with everything right now.
- [37:29]
Scott Wapner
We'll be watching tonight. Obviously, we're excited about it too. So let's talk some stocks because that's what makes this the most fun. Of course, when you join us, as I always say, your unofficial financial advisor is at the ready. He gave now, he gave you ebay the last time, which you literally bought live during the segment, I think. I don't know if you're still in it or not. You can tell us, but he has another one for you. Just give us an update. Do you still have ebay or did you sell it?
- [37:59]
Al Michaels
I still have it. I have my notes at the ready here. Okay. As you said in the prior segment, not only that, my finger is on the buy button. So go.
- [38:09]
Scott Wapner
All right, Josh Brown, you're up.
- [38:12]
Josh Brown
Good afternoon, Mr. Michaels. I trust your day is going well. The last time we spoke I made a commitment to get back to you only when my team isolated the situation with tremendous upside potential. I have it here. I have a lot of people to speak with today, so if you could just take some notes while I'm going, it would really help me out. The company, Home Depot. All right. Trades on the New York Stock Exchange under The ticker symbol HD stock sells for $420 per share. Okay. We think it could be on the verge of a monster breakout. Control, give me that one year chart. Let me, let me take a look at that. As you can see, HD is in the process of completing a bullish cup and handle formation with overhead resistance at about 430 just a few points away. Al, amongst all of the Dow 30 stocks, HD has the most significant amount to gain from the 30 year mortgage rate falling as this would drive existing home sales to pick up after a housing ice age over the last four years. I think the ice age is over. As of Q2, the company has now posted three consecutive quarters of positive comps. What I want you to do with me today is just start small. Pick up a round block of a thousand shares, approximately $420,000. When I prove myself, all I would ask is that you consider working with me in size down the road. Does that sound fair?
- [39:35]
Al Michaels
Hold on. I want you to know I have owned that stock since Arthur Blank was running the company. That's how long I've had Home Depot. I am going to add. I just did. I took your advice. I added to the collection here. But I have to ask you something. Remember years ago I talked about one stock that I own, fas, the direction three times, banks and all of that. And you told me it's a day trading stock. I've now had it for 15 years. There it is. There it is. But take a look at that. Go back to 20. I've owned this since 2010. That's a chart.
- [40:11]
Josh Brown
Yeah, that's a hell of. That's one hell of a. That's one hell of a charge.
- [40:15]
Al Michaels
Josh, I want you to buy some FAS now.
- [40:20]
Scott Wapner
Yeah, that's only.
- [40:21]
Josh Brown
I'm going to skip. I'm going to skip the triple leverage, but I appreciate the counter recommendation. Thank you, my friend.
- [40:26]
Al Michaels
You got it.
- [40:28]
Scott Wapner
Let me, let me hit you with one more thing, if I could. And, and you make me think about it. When you mentioned you've had this stock for so long, since Arthur, Arthur Blank, you know, you bought the team. Since he bought the team. And since many of the owners who currently own the clubs bought their teams, the valuations have just gone through the roof. I'm reminded of it because I've just finished watching the Cowboys documentary on Netflix, which was amazing. And you're all over it, which was great to see you. And what Jerry's done down there as we just came out at CNBC with our updated valuations. You can find those at CNBC Sport, of course, 12 and a half billion dollars. I don't know off top of my head what the Falcons are worth today, but do you marvel as well when you see how much these teams are worth as long as you've covered this league?
- [41:12]
Al Michaels
Absolutely. Because I know that, you know, Jerry bought the team for $140 million. And as you say, they're worth 12 and a half. When I was doing the San Francisco Giants, who did a ton of baseball, the San Francisco Giants in 1975 sold for $8 million. $8 million, which is like one at bat for somebody like Mike Trout of the Angels. It's crazy. And a lot of it, of course, has to do with media rights. Everybody knows that, but and also too, I mean, I remember when, you know, I used to go to a football game and, you know, get in for 20 bucks. And now it's like a thousand bucks. So it's been crazy. It's been wild. Will it continue on? I don't know. It might. But I mean, in terms of an investment, there's been very few better investments than owning a sports franchise over the last several years.
- [42:03]
Scott Wapner
Yeah. Well, many people think it will continue to go up as we bring it full circle because of companies like Amazon and others who are now in the game. Al, we wish you the very best. You have a great call tonight and we look forward to talking with you again soon.
- [42:17]
Al Michaels
I love it. Every year, tradition like none other.
- [42:20]
Scott Wapner
Yep, that's exactly right. Pardon the masters, but it's all good. We'll see you soon. I'll take him in. All right. Coming up, risky business, what Robinhood just announced that could mean big profits or big losses for retail investors. We'll debate it next. All right. Welcome back. Robinhood rolling out a new slate of features on its trading platform, including the ability for users to short stocks. Now, what's your opinion of this as a shareholder in Robinhood? You can speak to that. As a shareholder, you can speak to it as just the general idea of opening up their platform to investors.
- [43:10]
Joe Terranova
To short as a shareholder. This is a catalyst, a further catalyst, the tailwind, if you would, to continue the positive momentum for a company that fundamentally has recreated itself, diversified the model and has introduced a significant amount of intellectual capital that is really advising Vlad in a very positive way in terms of shorting stocks. It is just not my strategy. I don't believe in shorting stocks. If I want to take a view where I want to short the market, I'm going to go to the S and P, the Mini S and P or the Mini nasdaq. We're going to click the button on the futures and there is going to allow me to get my short exposure.
- [43:47]
Scott Wapner
I mean, I can see some people saying, well, they have, you know, it's this younger cohort. Should they really be shorting stocks and is it dangerous? And then the other part of me is like, well, I mean, if you don't learn now, when are you going to learn one part of the market that many people, including people like Steve Weiss on our program, employ on a regular basis? Basis. So we shall see. But it's obviously the market likes, it's up three and a quarter percent. Finals. We'll do them next. All right. 3:00 Eastern today, closing bell. We'll do it with Ed Yardeni, Bruce Richards, Liz Thomas, Brian Levitt and Steph Eliaga. I hope you'll join me in a couple hours time. Let's do some final trades here on a pretty big day for stocks. Josh Brown.
- [44:32]
Josh Brown
I mentioned Rocket on Tuesday as my final trade. The stock has officially broken out. New 52 week high. Staying long. It looks great.
- [44:41]
Scott Wapner
Jimmy did this just just to put his thumb in my eye.
- [44:45]
Jim Lebenthal
That's nothing to do with you. The stock market's getting it wrong on Delta Airlines. Surrott agrees with me. You know, there's always a feel like.
- [44:52]
Scott Wapner
There'S more extra motivation to this do. What do you think?
- [44:54]
Surat Set
Surround Listen, I think it's the best run airline out there.
- [44:59]
Scott Wapner
Is he trying to put a pie in my face with this one or.
- [45:01]
Surat Set
He totally is.
- [45:02]
Scott Wapner
That's what I thought. What's yours?
- [45:04]
Surat Set
Tech resources. Merger with Anglo. I think it's a great merger. Stocks to go higher from here.
- [45:10]
Joe Terranova
Keep your eye on Tesla. This is a trade of all the MAG7 is the highest. Short interest at 3%. Could go above maze high.
- [45:17]
Scott Wapner
Well, discretionary sector doesn't look like it does today without that right there. I'll see on the bell. Three o'. Clock. You've been listening to CNBC's Halftime Report, the podcast you can always catch us live weekdays at 12 Eastern only on CNBC.
- [45:35]
Edward Jones Announcer
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- [46:15]
Sempra Energy Announcer
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