The SCOTUS Tariff Decision Fallout 2/23/26

Summary

Halftime Report Podcast Summary

Episode: The SCOTUS Tariff Decision Fallout
Date: February 23, 2026
Host: Scott Wapner
Guests/Contributors: Jim Leventhal, Joe Terranova, Bryn Talkington, Jason Snipe

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Episode Overview

This episode of CNBC’s Halftime Report focuses on sharp market declines at the outset of a critical trading week, driven primarily by the ongoing fallout from the recent Supreme Court (SCOTUS) tariff ruling and heightened political tensions. The panel dissects the market’s reaction to policy uncertainty, especially around tariffs, implications for various sectors, and the critical upcoming Nvidia earnings. Also covered: the risks in private credit markets, software’s continued slide, and standouts/opportunities among individual stocks.

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Key Discussion Points & Insights

1. SCOTUS Tariff Ruling Fallout and Market Reaction

• Market in Turmoil: Dow down 700+ points, major indices off by >1%; stocks that saw relief last week plunged again, especially in financials, private equity, and discretionary sectors.
• Political Uncertainty: President aggressively attacking the Court’s ruling, threatening higher tariffs, which stirs market anxiety.
• Quote:

  "What we're seeing today, Scott, is some of the other issues that were pretty big last week, continuing concerns about private credit. I think that's what's hanging on to the financials in particular."
  — Jim Leventhal [02:15]

• Short-term vs. Long-term: Tariffs cap at 15% brings eventual certainty, but global compliance questions linger.

2. Investment Committee’s Tariff-Related Portfolio Moves

• Bryn Talkington exited Nike and On Holding following the SCOTUS decision:

  "When you have a thesis that doesn't work out, I like to move on... There's a downward pressure on these two names because I think tariffs are going nowhere fast."
  — Bryn Talkington [04:11]

• Joe Terranova: Concerns about the constantly shifting policy landscape—mentions rapid escalation from 10% to 15% tariffs and ongoing threats of further levies.

  "There is concern about what the story is going to be...just uncertainty about will there be tariff refunds, what does that look like?"
  — Joe Terranova [05:26]

3. Mega Caps and Upcoming Nvidia Earnings

• Market Leadership at Stake: If ‘Mag 7’ (mega-cap tech stocks) can’t stabilize markets, the rest’s not expected to save the day.
• Nvidia is the key near-term catalyst; much of market sentiment rides on the company's upcoming report.
• Quote:

  "Nvidia is incredibly important. In the last two quarters it really hasn't had the follow through... The hope is that something different in terms of the price reaction can occur."
  — Joe Terranova [07:58]

• Valuation Discussion:

  "The bar is high...But the valuation on Nvidia has come way, way down. This is now a fairly cheap stock. None of this says how the stock is going to react...That's really the tell."
  — Jim Leventhal [09:55]

• What’s Priced In?:

  "What's priced in? It's not going to be a surprise when they have 65 to 70% earnings growth. To me it comes down to we know the numbers are going to be great...I think this is all priced in."
  — Bryn Talkington [11:13]

4. Software’s Persistent Slide & Portfolio Pain

• Indiscriminate Selling: Software stocks are suffering, with indices like IGV at new lows and companies like Snowflake, CrowdStrike, and Adobe all hit hard.

  "IGV is a new 52 week low today...Snowflake obviously hasn't traded well this year."
  — Jason Snipe [15:20]

• Cybersecurity Rout: Even groups thought “immune,” like cyber, are under pressure after negative headlines.

  "Every time Anthropic sneezes, another asset class goes down."
  — Bryn Talkington [22:42]

• Risk Management Approaches:

  "You don't want to turn a winning trade into a losing trade. The stop was elected early this morning and I now have no cyber exposure, whether personally or in the ETF."
  — Joe Terranova [20:05]

• Investment Rules:

  "You never sell a stock making new 52 week highs and you never buy a stock making new 52 week lows. Which all of these stocks are. So while I want to add to this, I'm going to wait."
  — Bryn Talkington [22:42]

5. Private Credit Anxiety and Retail Risk

• Industry Insider Warning: Lloyd Blankfein warns about the risks of selling opaque, less-liquid private credit to retail investors:

  "These securities are opaque and may be riskier than most, but ...if individuals lose money...it's terrible. ...It's so short sighted of these guys to get into it."
  — Lloyd Blankfein (per Scott Wapner) [39:14]

• Panel Perspective: The shift away from bank lending post-GFC explains private credit's rise, but liquidity/education risks for retail are real.

  "Clients have to be educated. They have to understand the risks...But this is an economy ...growing. We have low unemployment. We have a Fed that's projected by the markets to cut twice more. That's not the environment in which a systemic credit crisis..."
  — Jim Leventhal [42:45]

• Retail exposure to private credit has grown to 13% worldwide, largely because of new fund structures and diversification needs (Leslie Picker’s report) [41:21].

6. Defensive Plays, Health Care, and Stock Picks

• Health Care as Safe Haven:

  "Health care, overall, as a sector is I believe one of the favorite sectors for investors...it gives you a little bit of the defensive, gives you a little bit of the offense."
  — Joe Terranova [24:35]

• Upgrades and Opportunities:
  • CBRE Group: Upgraded by UBS due to AI opportunities and cost savings, highlighted as a buy by Bryn Talkington [28:13].
  • Monolithic Power and Texas Instruments: Joe prefers Monolithic Power for its enterprise data positioning [29:52].
  • Off-price Retailers: TJX, Ross, Burlington all reiterated as top picks by Joe [30:57].
  • Disney: Jim calls it “dead money” but too cheap to sell [31:26].

7. ETF Trends and Investor Behavior

• Retail vs. Institutional Flows: Institutions focusing on core/simple ETF strategies; retail pushing into niche, single-stock, and thematic ETFs (per ETF Action’s Mike Aikens, ETF Edge segment) [34:44].
• Quote:

  "60% of all ETFs is owned by institutions... But single stock and thematic trends are being driven by retail."
  — Mike Aikens [35:30]

8. Market Technicals and Sentiment (Mike Santoli’s Midday Word)

• Current Mood: Market facing “incremental caution.” Software’s rout spreading to adjacent growth groups; defensive rotation into healthcare/staples is “desperate, but...working to limit the damage.”
• Market’s internal volatility is high, but the broader S&P 500 only just above YTD lows [45:46].

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Timestamps for Key Segments

| Segment | Timestamp | |---------------------------------------------------|------------| | Market overview and tariff impacts | 00:55–06:36| | Tariff strategy (Nike/On Holding exit) | 04:11 | | Mega cap tech/Nvidia earnings setup | 06:36–11:13| | Software, data, Microsoft vs. Adobe debate | 12:23–19:26| | Cybersecurity/crowdstrike exit | 20:05–21:18| | Private credit risk, Blankfein warning | 39:14–44:57| | Defensive sector/healthcare & stock calls | 24:35–31:47| | ETF trends—retail vs. institutional | 34:44–37:45| | Technical perspective by Mike Santoli | 44:57–46:31|

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Notable Quotes & Memorable Moments

• On Market Mood:

  "A market that's spinning all over the place ... I'm looking to limit damage. ...It really is about playing defense."
  — Joe Terranova [06:36]

• On Risk Management:

  "You don't want to turn a winning trade into a losing trade. ...Price is really the determining factor as it relates to my ability to stay in these trades."
  — Joe Terranova on selling CrowdStrike [20:05–20:41]

• On Caution/Software Capitulation:

  "At some point...maybe this turnaround ...ain't going to happen and that the market is actually getting something right."
  — Scott Wapner to Jim Leventhal on Adobe [18:38]

• On Defensive Health Care:

  "Clearly Lilly with a very significant market cap affords you a very comfortable weighting."
  — Joe Terranova [25:24]

• On Private Credit Retail Risks:

  "If individuals lose money or insurance companies or real businesses lose money, it's terrible. ...So short sighted...for that reason."
  — Lloyd Blankfein (quoted by Scott Wapner) [39:14]

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Overall Tone & Takeaways

The panel is defensive and cautious—uncertainty on a macro/policy scale is infecting nearly all sectors. The mega-cap leadership is crucial and Nvidia's earnings are seen as a possible—but not guaranteed—catalyst for stabilization. Panelists are actively re-allocating, cutting losses, and generally not chasing falling knives in troubled names. Private credit’s retail encroachment draws serious warnings. Health care and selective real estate, retailers, and industrials appear relatively safer. Education and risk management, for both professionals and regular investors, are stressed throughout.

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This episode provides a snapshot of the cautious, risk-aware approach required during periods of high market and policy uncertainty, and illustrates how experienced investors adapt quickly when fundamental or macro theses no longer hold.

Transcript

[Bryn Talkington]

A rich life isn't a straight line to a destination on the horizon. Sometimes it takes an unexpected turn with detours, new possibilities and even another passenger or three. And with 100 years of navigating ups and downs, you can count on Edward Jones to help guide you through it all. Because life is a winding path made rich by the people you walk it with. Let's find your rich together. Edward Jones, Member, SIPC before we had

[Joe Terranova]

AT&T business Wireless coverage, our delivery GPS wasn't the most reliable. Once our driver had to do a 14 point turn to get back on route. A 14 point turn, an influencer, even livestream the whole thing.

[Bryn Talkington]

Not good for business.

[Joe Terranova]

Now with AT&T business wireless, routes are updating on the fly and deliveries are on time. And the influencer did get us 53 new followers though.

[Scott Wapner]

AT&T business Wireless connecting changes everything. 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 sharp decline in stocks today as a critical week gets underway. Yes, we have Nvidia earnings looming a lot more as well to discuss and debate with the investment committee. Joining me for the hour today, Jim Leventhal, Joe Terranova, Bryn Talkington and Jason Snipe. Let's show you what the markets are doing. We're down more than 700 on the Dow, at least 1% declines across the board. We know the two most important stories of the week, the continued fallout from the SCOTUS ruling on the tariffs, the Nvidia earnings on Wednesday. The president continues to attack the ruling. He continues to attack the court itself. He continues to threaten even higher tariffs. And there still remains a lot of uncertainty over that. However, if you look at financials, if you look at some of the private equity names, if you look at discretionary, which is down a bunch today, anything that saw any level of relief last week is back down today. Jimmy?

[Jim Leventhal]

Yeah, and you started with the tariffs, Scott. And as we talked about on Friday, this is going to increase uncertainty in the short run, but in the long run, it should actually reduce uncertainty. There does appear to be a cap with these new tariffs, tariffs of 15% above which the president can't go. So, yeah, there's a lot of questions over the weekend. Are various countries going to adhere to their deals? That uncertainty will linger. But I think what we're Seeing today, Scott, is some of the other issues that were pretty big last week, continuing concerns about private credit. I think that's what's hanging on to the financials in particular. Let's not forget the State of the Union address tomorrow. And there's a lot that's going to come up in that. Not just lambasting the Supreme Court, but the President's going to lay out what his plan should lay out, what his plan is with Iran. And I think that's hovering over the market as well. So, you know, just those two things alone, concerns about private credit and potentially attacking Iran, those would take top billing if it weren't for the uncertainty, increase in the tariffs. Put it all together, there's a lot of uncertainty.

[Scott Wapner]

Yeah, we'll get to some private credit related things as the show develops today. But all those names are down and down a lot. Yeah, the private equity related names, we're talking 7, 8% declines. The major banks like Citi's down 5%. Goldman, JPM are down. Brin. So it leads me to you on this notion that things that got relief on Friday, and I use it in quotes because it was obviously short lived for many of these stocks didn't react the way that you thought they might on this tariff ruling. I think of Nike and I think of on holding which you sold both you sold that, which is interesting to me in that you, you bought them because you assumed that SCOTUS would rule the way it did but the stocks didn't react the way you anticipated they might. So now you're out. Tell me more.

[Bryn Talkington]

Welcome to investing. Right. And so I mean both great, both great companies. Right. Obviously Nike's in a turnaround on is just crushing it. And so I just felt that both of these, on both of these earnings calls, Scott, they consistently talk about tariff headwinds. And so I thought when the Scottish ruling would come out that would kind of settle that. But obviously the Supreme Court didn't even talk about the refunds. You know, we were all witnessing live, you know, President Trump's reaction. And so I felt like the thesis around my trade did not play out. And so I just, you know, sold it and moved on. And so I think it's important that when you have a thesis that doesn't work out, I like to move on and just like let's, let's play another day and another, another type of investment. But to me it just like has a downward pressure on these two names because I think tariffs are going nowhere fast. Clearly with what, what, what Trump came Out with afterwards.

[Scott Wapner]

Yeah. So Jason Snipe, what about you? You know, a lot of assumptions that I think were being made on Friday maybe evaporated over the weekend. And if you pay attention to what the president's posting on social media this morning, whether you believe it's going to happen in the degree that he suggests it might or not, it does lead to an uncertain stock market that looks pretty red,

[Joe Terranova]

there's no doubt about it, Scott. And I think, you know, that my initial response obviously was 10% announcement on what those tariffs would be and Then later on 15% over the weekend and then also communication about additional levies going forward. So I think there is concern about what the story is going to be. Obviously, you know, we experienced something very different in Liberation Day last year is nothing like that, but just uncertainty about will there be tariff refunds, what does that story going to look like? How does that affect margins and how does that affect business going forward? And then just obviously there's the slide that we're seeing in financials. Yes, the private credit story, but also some of the exposure to software. We continue to see that slide. So I think there's a lot in the pool right now that's kind of disrupting markets today. And I think that's what we're seeing.

[Scott Wapner]

I mean, mega caps, Joe, are down reasonably substantially. I said all of the banks, all the big ones, the, there are the private credit names, the software stocks, you take your pick because you got a lot to shoot at today in terms of how this market continues to feel pretty unsettled and uncertain about the road ahead.

[Joe Terranova]

Yeah, that's really been the theme for 2026 so far. A market that's kind of spinning all over the place and I find myself just looking to limit damage in where I am invested. I don't see very much on the horizon here that you want to get excited about. Maybe some energy names. But other than that, it really is about playing defense. And you look today with the financials, think about the financials coming into 2026, one of the favorite sectors. We carry an overweight to it in the etf. And I think the consensus very overwhelmingly was very bullish as it related to the financials itself. So S and P equal weight breaking down in the last couple of days and looking ahead to Nvidia's earnings on Wednesday. I think that just really intensifies the importance of those earnings to try and just steady this market and give investors something that can act as a near term catalyst because I don't see one Right now.

[Scott Wapner]

I'm glad you went there Joe, because. And I'll throw it Back to you, J.P. morgan on sort of what you're talking about. If Mag 7 can't lead us, stocks won't either. In other words, if you're going to have a continued breakdown, Joe, of Mag 7, don't, you know, put all your marbles on the equal weight and the rest of the market saving you? Because according to JP Morgan, it probably won't happen.

[Jim Leventhal]

No.

[Joe Terranova]

And again the evidence is there that it's not industrials moving lower. And when you talk about the Max 7 right now, really it is Alphabet, Apple and in video that really appear to have the strongest bullish momentum and really doing the work as it relates to the bullish price action. So Nvidia is incredibly important. In the last two quarters it really hasn't had the follow through that you would have anticipated off what was really good earnings reports. The hope is that something different in terms of the price reaction can occur on Wednesday. And again that gives you a near term catalyst.

[Scott Wapner]

Yeah, Jimmy, it does come with a lot at stake. Nvidia does to Joe's point, that stock's actually been moving up five and a half percent over the last week. So it's having a little bit of a move into the number Apple's been moving up. Alphabet is in the red today, but not nearly as much as some of the other stuff. So this has to go well at this point with a wobbly market, as I said, with a wobbly tech trade, there can't be anything that, that you point to after the fact and say this is concerning.

[Jim Leventhal]

Yeah, I don't, I really don't want to have to explain a bad reaction to in video on Thursday morning. First off, I think the earnings should be great. I think with everything we're seeing, whether it's the Metta announcement last week, whether it's China sales which start and stop, at least the news flow on it starts and stops. There's every reason to think that the earnings should be good and the guidance should be excellent.

[Scott Wapner]

Good enough and excellent enough. That's where it really, I don't think anybody out there is going to disagree with you in one, in one sense,

[Jim Leventhal]

of course you're going to be good. The questions, you see what the spend

[Scott Wapner]

is, of course they're going to be good. Of course the guidance is going to be good. And Jensen Huang is going to be positive about the demand that he sees off the charts from here for the foreseeable future. But the bar now I feel is at such a level that I'm not necessarily sure that even the best high jumper in the world is going to be able to just easily get over this.

[Jim Leventhal]

I guess you could say that the bar is high. I might actually take the other side of that. Not just to be argumentative, but the valuation on Nvidia has come way, way down. And if you look, you know, low 20s on a forward multiple, if you look at on at a peg ratio around 1, this is now a, you know, fairly cheap stock. At the least I would say its growth at a reasonable price. None of this says how the stock is going to react in the aftermarket Wednesday or on Thursday. And that's really the tell. I think we should take a little bit of comfort. Not just that it's moving up today, but as you pointed out, Scott, it has been moving up. It's been in fits and starts. This is obviously a very important stock for all of us as a portfolio manager for my clients. So we watch it like a hawk. And I do have to say the feeling now you know me, I'm an analytical guy but the feeling is it was wants to go higher. Famous last words. I don't know. Others are participants in this. It feels like it's got a bit to it.

[Scott Wapner]

I mean Brent, the Street obviously is very positive coming into the print. Morgan Stanley expects strong results, very high confidence on the full year. JPM little to suggest Nvidia will not in quotes once again, I'm sorry in parentheses once again deliver a beat and raise loop already bullish. Our work suggests even greater momentum is brewing. So it gives you an idea of what the street thinks is going to happen. I guess it just comes down to whether that's even going to be enough.

[Bryn Talkington]

Yeah, it's like what's priced in. It's not going to be a surprise when they have 65 to 70% earnings growth. I will say this if you pull up a one year chart on Nvidia, so. So while Joe is correct, it really didn't move the last couple of quarters. Over the last one year it's up 42%. So to Jim's point, this has been a great grower over the last one year. To me it comes down to we know the numbers are going to be great. I think this is all priced in. I mean I have calls at 200. I hope it doesn't get called away but that 195, 196 continues to be a really strong barrier that I'm not sure with the sentiment in the market. It's going to be able to get over there. But I mean when you look at the one year performance, this is one of the top performing stocks, you know last year probably the top performing maybe of the mega caps besides Google, the

[Scott Wapner]

worst performing mega cap year to date. Anyways Microsoft think you all know what's been happening in software. So by the way kudos on coming in here today. Appreciate you you appreciate you. Well I mean I have no choice but I mean obviously given. Well Brent can't and Jason, you know they both live out of town. Nice, nice effort Joe. Neat.

[Joe Terranova]

Whatever.

[Jim Leventhal]

Let's. But anyway because it's li Metro Metro north came through needs to up its game.

[Scott Wapner]

So you bought more Microsoft. Do you think this sell off is overdone?

[Jim Leventhal]

Let me be clear Scott. The sell off could continue. It could very well continue. There's no. I'm not coming out here and telling the viewers that this is the bottom. There's no way to know that. What I am telling you is for a long time, over a year I've been underweight this name. I've been half the overall market weight. And you know what, when you're half the overall market weight you're making a decision that you're either going to sell that half you own or you're going to put the other half on on sometime soon. And now the price has gotten to a point where I am willing to pull the trigger again. Low 20s multiple. We know what it does and we know what the concerns are about the spend on hyperscaler, you know, on the infrastructure. But let's not forget that they've got a lot of profits going on in that Azure business. They also have the basic operating software system that is pretty monetizable as well. Great balance sheet. You know we talk about Metta, Oracle and the damage that's being done to their balance sheet. Microsoft is in a net cash position. So what I'm seeing here is a great company on sale at a great price. It doesn't happen that often. Let me go back to where I started. It can go lower from here. I'm thinking about Alphabet last year a whole different story. But let's not forget that was in the mid teens as a forward multiple. So there's nothing magic about 21, 22 times whatever the forward multiple is. But it's a price at which I'm willing to say this is a buy right here.

[Scott Wapner]

All right. And Joe, you're lighting. I don't know man. I mean if you're going to be at home Doing the show from, from now on, you need to invest. Look at, look at Snipe and Brin. Glowing. Yeah, light right at them. Looking great. Joe, do you think that make an investment. Come on. Do you think that Microsoft is oversold? Do you think this is a good place to buy a little bit more like Jim did?

[Joe Terranova]

No, I think you have to wait on Microsoft because I think it's part of the entire software universe that that's under pressure right now. And the Azure growth did show a little bit of moderation in the most recent earnings report. The street didn't react positively to it. So I don't see Microsoft right now as the opportunity when you're looking at these Mag 7 names. And again, it just, to me it's about Nvidia, it's about Alphabet. Jensen Huang addressed it with you in San Francisco about market share. I want to hear about that on the call. Alphabet's got the Tensor processing units, but it seems as though for Microsoft, they're a little bit on the defensive and I don't like the relationship and the proxy that it is as it relates to OpenAI. And a lot of people will look

[Scott Wapner]

at Soft Open Air. Open.

[Joe Terranova]

Open. Open Air. And as an, a lot of people will look at Microsoft and they'll look at SoftBank as that proxy for the private investment in Open Air. I think it's a little bit of a headwind.

[Scott Wapner]

All right, so the IGV is a new 52 week low today, Jason. So if you were looking for any kind of new week, new relief for that space, you're not getting it. And it was already going to be a good week. I mean a big, an important week, maybe not a good one. Salesforce, Snowflake, Workday, Dell, they all have earnings this week. These are pretty important companies at a really important time.

[Joe Terranova]

There's no doubt about it, Scott. And for me, obviously we own Snowflake and I think, you know, the stock is down 25%. I mean the IGV is down close to 30% so far this year. You know, Snowflake obviously hasn't traded well this year and there was a little bit of a soft guy in the operational market, operational margin last quarter and the stock was off around 10%. For me though, in terms of data warehousing, this is the best of breed. I continue to like this stock. I think from an enterprise perspective, you know, there's this theme where you're looking for these unified plays like a snowflake with the tools that they have. So I continue to like this Stock. You know, I think in the short term tactically to Joe's point and to Jimmy's point a lot of the software names could continue to experience some volatility. But I think this is the best of breed in terms of data warehousing. So we're going to continue to hold this one.

[Scott Wapner]

Oh no Jim, look at this. Down 9%. Jonathan Krinski today speaking about you know, what's been happening here, maybe what hasn't been happening. He says it remains a key wild card software does. We felt that we saw capitulation but the lack of a bounce is concerning losing recent support and its long term uptrend would likely create broader market issues. In other words, until you get traction in some of these and you can't have names like this go down 8, 9% just because the calendar turns from Sunday to Monday and we still remained, we remain concerned about, you know, the disruption that AI is going to have on certain kinds of software stocks.

[Jim Leventhal]

It is troubling. I thought that capitulation a couple of weeks ago had had been reached. Obviously it hasn't. And you know there's more news that continues to pile on. It was just a couple of days ago Michael Burry again saying more negative news about not just software but AI overall and whether this is all going to amount to anything and maybe it just cannibalizes software and leaves no, no lasting economic benefit. I do look at things like that and again I'm not saying that today is the bottom but I look at the amount of weight that's been piled on on this sector and I do think it's a time to start selecting stocks. But how I would select these stocks in this space are to go to the biggest, broadest, the ones that have the multi product lines, the ones that have a very specific like Microsoft just as an example. I mean Microsoft, as I said, are

[Scott Wapner]

you giving me one name? I mean

[Jim Leventhal]

I know that's the only one I'm buying today. I mean I do think that that one stands out. I think now, you know, I own Adobe, I'm not going to shy away from that but I'm not adding to that today. That is one that I am concerned. Even though it hasn't shown up in their profits that does seem to be a very narrow focus in terms of the documents and the images that it generates. I happen to believe it's going to come through but that's not one that I want to add today because in the selective environment where we thought capitulation happened it.

[Scott Wapner]

What are you going to add to this thing when it's down like 40% year to day?

[Jim Leventhal]

I don't know. I'm not going to commit to adding to it. No, look, it's been a troubled stock, but it's also, I think, emblematic.

[Scott Wapner]

At some point you got to, at some point you got to maybe, you know, have a conversation with yourself and say, you know, maybe this turnaround or whatever you're anticipating happening there ain't going to happen and that the market is actually getting something right.

[Jim Leventhal]

It might be.

[Scott Wapner]

Let's put the chart back up for the reason that the chart looks. Looks the way it does.

[Jim Leventhal]

You know, it very well might be. And you could have said the same thing to me a month ago and I would have been right to sell it then. So I acknowledge that the stock market is saying something about this stock. I mean, at the moment it's by its own virtues or lack thereof becoming a smaller and less important part of the portfolio. I can always take a tax loss there. I got a lot of other things going well in the portfolio. But there is something to be said by the fact that I'm not buying more of it right now. Scott, It's a little too narrow focus.

[Scott Wapner]

So, Joe, I come back to you because, you know, it's been sort of indiscriminate in relation to software names that have sold off. People come on and say, well, but this group isn't going to be disintermediated and this group's immune to all of this, like cyber. But as we learned again last week, maybe that is not necessarily the case. Anthropic comes out with this Claude Code Security on Friday. What happens? All the stocks in the space sell off in a week. That was already a little troubled because Palo Alto was down after its own earnings report. So this is a big one from you. You sold CrowdStrike personally today.

[Joe Terranova]

I did purchase. I was stopped out this morning. I had a stop in below the early February low at 374.52. I had this position on since December 4th of 2024 at 355. You don't want to turn a winning trade into a losing trade. The stop was elected early this morning and I now have no cyber exposure, whether personally or in the Jyoti etf.

[Scott Wapner]

And that's a big statement. And that's, that's probably the first time in, I feel like three, four, if not five years that you have had no, no cyber exposure whatsoever in anything.

[Joe Terranova]

I could answer, I actually can answer that question. Before the pandemic 2019 last time I had no cyber exposure. So either personally or throw Jyoti, I have had cyber exposure. But right now price is really the determining factor as it relates to my ability to stay in these trades. And price is going significantly against me and I was trained to have a risk management strategy despite what I feel my fundamental perspective ultimately could be. Yeah, in the end, I think cyber is a viable thesis as an investor in the long term. But price is speaking much differently to you right now.

[Scott Wapner]

It makes me come back, want to come back to you. My price tells more of a story than, you know, what your heart might believe. Just, you know what Joe was saying about, you know, how he is viewing this one relative to how you're viewing Adobe. Just to. Yeah, continue on that point Just, just for a moment. Because they're two diametrically opposed views on position and risk management. Let's just be clear.

[Jim Leventhal]

Yeah, I'm not going to shy away from the implication that I'm getting this wrong. I may, I mean, I have been getting it wrong with Adobe. I'm sorry to repeat myself, but I am making a statement by not buying more Adobe right now. I don't care how cheap it is. You know, the one thing I will say in its defense is operationally it has been continually beating and raising, buying back shares, but the stock market doesn't care. And on this one, I'm not willing to go against the grain of what the stock market is saying on Microsoft. I am. And you know what, there are times, you know me, Scott, you know how I invest. There are times where I will say the market I think is getting it wrong. I don't say it with arrogance or conceit. I say what I think. I believe what I know. I believe. I believe that the market is getting it wrong on Microsoft, but it may well be getting it right on Adobe.

[Scott Wapner]

Okay, so back to cyber for a moment, Brin, because you've always played this from an ETF perspective. The bug, right, you vote, you own the whole basket. That's hit its lowest level since 2023 today. There's nowhere to hide.

[Bryn Talkington]

Nowhere. Nowhere to hide. And that's where, when I looked over the weekend that it was back at its 2023 levels, it's kind of breathtaking. So I just like stick to basics when these things happen. And my, my rules are I didn't make up, but I think they're good, is you never sell a stock making new 52 week highs and you never buy a stock making new 52 week lows. Which all of these stocks are. And so while I want to add to this, I'm going to wait and let it settle out just because I do feel like it's catching a falling knife. And and I agree with Jim, like the market gets it wrong all the time. The market's efficient over the long term but you know, obviously we're in this panic because every time anthropic, you know, sneezes, another asset class goes down. I do like what George Kurt said. I think that's very true. He asked clout, yes Claude, if they could be overtaken by Claude. And Claude said, you know, resoundingly, no, but I do think you want to be like, be wary. These stocks are making 250 new 52 week lows on a daily basis. So I'm just going to wait to add to it.

[Scott Wapner]

I'm definitely not playing on what, you know, George Kurt was saying. UBS is defending crowd today along with some of the other names like Octa and Zscaler that have sold off. Dan, Dan Ives, as you would expect, is doing the same, which he suggests these stocks continue to sell off on what he has called a ghost trade fear. So we'll have to watch it. I want to hit a couple other stories too, guys, before we get out of our A block. It's a complete turn into a different sector of health care. Novo Nordisk tumbling 52 week low today after its obesity drug fell short of Eli Lilly's in trial. So we were looking at both of those stocks today. Not that we have novo ownership down 16% but Lilly is a beneficiary, as we said of this reporting here, of this trial. Joe, you do have Lilly,

[Joe Terranova]

I do have Lily. And the stock has over the last several years rewarded for you to stay in the stock. There's been a lot of volatility in it through the etf. We've made several moves both to buy and to sell, but we're back in this name. They have what I believe is a really strong anchor as it relates to market share with these obesity drugs rather. And they're delivering in terms of the revenue growth. So right now health care, Scott, overall as a sector is I believe one of the favorite sectors for investors. And I think it's because of the overall environment we're seeing right now, this elevated volatility. It gives you a little bit of the defensive, gives you a little bit of the offense. And clearly Lilly with a very significant market cap affords you a very comfortable

[Scott Wapner]

weighting in that regard because the window behind him Backlit, right? It's the Photography 101. No, we need to send this guy photography for dummies. Like, what's going on here?

[Jim Leventhal]

Maybe, maybe he was celebrating the USA Hockey win so much that he doesn't want too much light on his face. I don't know.

[Scott Wapner]

I mean, he's totally back.

[Joe Terranova]

If, first of all, it's the snow and if I was able to get out of my driveway, there's nothing more that I would want to do today than sit with you and Jimmy. But I have to get out of my driveway first.

[Scott Wapner]

All right. All right. I mean, I'm just, you know, trying to help you out. Want America to see that face of yours?

[Joe Terranova]

Well, they could see my teeth, right?

[Scott Wapner]

We'll be back right after this. We have our calls of the day. One firm says buy the dip in a name. Bryn just added to her portfolio. We'll do it when we come back.

[Jim Leventhal]

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[Scott Wapner]

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[Jim Leventhal]

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Strayer University, we help students like you go from is it possible? To anything is possible by offering access to up to 10 no cost gen Ed courses so you can reach your goals affordably and fast. Visit Strayer. Edu to learn more. No cost Gen EDS provided by Strayer University Affiliate Sophia. Eligibility rules apply. Connect with us for details. Strayer University is certified to operate in Virginia by Chev and has many campuses, including at 2121 15th Street north in Arlington, Virginia. What do the steam engine, electricity and AI have in common? These technologies not only change how we work, they can transform entire economies. Stephanie I'm Stephanie Wong, host of where the Internet Lives, a podcast from Google and Latitude Studios about the unseen world of data centers. Explore how data centers are unlocking growth in every sector of the economy. From agriculture to medicine to manufacturing, data centers are powering a new era of AI innovation. Listen to where the Internet lives wherever you get your podcasts.

[Scott Wapner]

All right, welcome back. Let's do some calls of the day. CBRE upgraded to a buy from neutral UBS target to 185 from 175 quote. AI fears present rare buying opportunity. One that you saw apparently last week, Bryn, Right? You bought it last Tuesday.

[Bryn Talkington]

Yeah, they had, they had great earnings. They had record earnings. They're actually at the epicenter of a lot of the data center build out as that is being leased out, etc. And on the, on the call a week and a Half ago, the CEO said they've already saved 25% in their research division because of the tools that they're using and they're going to continue to roll that out to their professionals. And so this to me is a great, great example of heavy, driven by the economy, epicenter of real estate. They're going to be a beneficiary of AI using those tools to benefit the professionals that work there. So I think it's a great call. I think it's a good time to scoop this one up at this price as well.

[Scott Wapner]

And by the way, I plugged in, I could have helped Joe earlier this morning. What I put in GPT, what happens when you have a window behind you in a zoom one, you become backlit. Your camera exposes the bright window, not your face. As a result, your face looks dark. Details are hard to see. You might approach, appear like a silhouette. All you had to do was plug it in.

[Jim Leventhal]

Where's the, where's the.

[Scott Wapner]

All you had to do?

[Jim Leventhal]

Where's the background from long ago with all the numbers.

[Scott Wapner]

Use AI to your advantage, Joe.

[Joe Terranova]

But why didn't you add to that input? And there's a blizzard going on behind me as well.

[Scott Wapner]

I mean backlits, backlit. Whether there's a better that if it was sunshine, it'd be even worse. It'd be even worse.

[Joe Terranova]

It would. Let's talk about, let's talk about you. Texas Instruments.

[Scott Wapner]

Like I said, it would be even worse. I'm just kidding. Texas Instruments and Monolithic. And Monolithic Power. Top picks at Citi. Both of them. Top picks. And you own both.

[Joe Terranova]

Yeah, I'm going to go in the direction of Monolithic Power here. This is a name that, that we purchased earlier in 2025. I think they have more of a fundamental tailwind behind them as it relates to powering enterprise data. They've done an excellent job here in capturing market share. This is more of a name that I'm confident about. Texas Instrument. It's a recent addition to the portfolio. The balance sheet is improving somewhat. You're seeing a little bit of a turn in underneath as it relates to the businesses that they're servicing. And now they're making the investment as it relates to AI. That's a little bit more of a prove it story. Monolithic Power is more of an in the moment story.

[Scott Wapner]

How about this, Joe, Matt Boss over at JPM is looking at retail. TJX, target raise. Yes, Ross Target Raise, Burlington, Target Raise 154-232-3356 respectively. For all of those names, TJX does report this week. And you happen to own all three? Three.

[Joe Terranova]

Yeah. I like off price. I like tjx. I like Ross. Burlington, maybe not as much. Yes, we do own it. It's worked for us in the portfolio balance sheet. Not as strong as TJX or Ross, but continuing to capture market share. And it's remarkable what TJX has done specifically related to the market share gains with Target.

[Scott Wapner]

Finally, Disney reiterated a buy today. 140 at Citi.

[Jim Leventhal]

Jimmy boy, this stock is taking a long time to get into gear and every time it shows an upward momentum, it just pulls back. I do think it is too cheap for the quality of this company, both in terms of its brand and in terms of what it actually does. The theme parks, the cruise ships, the studios, the streaming business. I'm sticking with it. But I've got to acknowledge this has been dead money for quite some time.

[Scott Wapner]

Okay. And let's get the headlines now with Mackenzie Segallos. Hey, Mac.

[Bryn Talkington]

Hey, Scott. Former British ambassador to the US Peter Mandelson was arrested today in London on suspicion of misconduct in public office just days after the arrest of former Prince Andrew. Police began a criminal investigation into Mandelson earlier this month after the UK Government passed on communications between him and the late convicted sex offender Jeffrey Epstein. Mexico's president said today her government is working to restore restore peace and security following a weekend military operation that killed the country's most wanted cartel boss. Mexican officials said today 25 National Guard members were killed in the violence sparked by his death after his Jalisco New Generation cartel offered a $20,000 reward for the assassination of Mexican military members. And the Supreme Court agreed today to hear from oil and gas companies trying to throw out a climate change change lawsuit brought by Boulder, Colorado. The ruling is expected to have national implications for dozens of other lawsuits seeking billions in damages claiming the companies deceived the public about the impact of certain fossil fuels. Scott, back to you.

[Scott Wapner]

All right, Mackenzie. Thank you. Mackenzie Segalis. Coming up, ETF Edge with Dom Chu. Tell us what you have on tap. Tom. Scott, an interesting trend is taking shape in the world of ETFs, where institutional investors are more focused on relative simplicity, simplicity in fund strategies, while retail investors are turning more towards niche and exotic ones. We'll have more on that story coming up on the half with your ETF edge.

[Jim Leventhal]

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[Scott Wapner]

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[Jim Leventhal]

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[Bryn Talkington]

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[Jim Leventhal]

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[Scott Wapner]

awards for trucks than any other brand

[Jim Leventhal]

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[Jim Leventhal]

Newer models may be shown. Visit J.D. power.com awards for more details. Chevrolet Together let's drive.

[Bryn Talkington]

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[Scott Wapner]

Sometimes AT&T business Wireless connecting changes everything. Welcome back to the Halftime Report. I'm Dominik here with your ETF Edge. New data is finding Some retail investors have been diving deeper into increasingly complex ETF strategies to gain a trading advantage amid the market volatility. Meanwhile, institutional investors have been sticking with or even reverting back to more simplistic strategies. So which end of the spectrum is more likely to be the winner in the end? And what will happen to the relative losers? Joining me now is Mike Aikens, the founding partner of ETF Action, the firm behind some of those findings. Take us through what exactly you're seeing thematically behind these institutional investors tilting back towards more simplistic strategies. While retail investors, like all of us, may be gravitating towards more complex ones. Yeah, thanks for having me Dominic. You know, if you look at the 13F data, the institutional data sets that come out quarterly, you can see a clear trend with the users of ETFs being predominantly in the core categories, being driven by large investment advisors, broker dealers who are allocating on their clients behalf versus you know, more of the niche areas of the market. So a good example, take silver in the last quarter. You know, you can see a significant amount of that is being driven by retail flow. So just in general, if you kind of look across the marketplace, 60% of all ETFs is owned by institutions. But the one caveat being there is you got to to watch for the trading institutions like Jane street for example. Jane street acquired 20 million shares of SLV last quarter, which is a significant amount and that cannot be tied into long term allocations of the investment advisor. Hey Mike, take us through some of the examples of the ETFs. But besides SLV that we are seeing some of these retail investors gravitate more towards these actively managed more perhaps niche or exotic type strategies. Well, the obvious example is anything single stock related. So whether it be covered calls on single stocks like the yield max strategies or all the leverage inverse, almost all of those ETFs have sub 10% in most cases sub 5% institutional ownership. So it's a hundred percent being driven by retail in those more niche areas. It also plays through though more to the thematic space in general. So the more niche thematic trends, while there is good evidence of investment advisors adopting some of those AI plays and things of that nature, it is still by a wide margin being driven by retail. All right, we're going to continue this conversation over at etfedge.cnbc.com Mike's going to be joined by Aga Kuplinska, the senior vice president of product development over at Tidal Financial Group. A big platform for ETF development and of course distribution. Scott, I'll send things back over to you guys. Okay, Dom, thank you very much.

[Jim Leventhal]

That's Dom Chew.

[Scott Wapner]

Up next, Pe Pain. Private equity stocks getting hit hard again today. We're going to talk about whether private credit is too risky for retail. And one very prominent name is weighing in on that. You don't want to miss it next. Welcome back. We continue to follow private credit names following a report last week that Blue Owl had halted redemptions in one of its funds. Blue Owl denying that right here on cnbc. But it has caused more anxiety around that space. And if nothing else, it is a reminder of just how illiquid some alternative investments can be. Which is why some have said the asset class itself can be potentially dangerous for retail investors. Former Goldman Sachs CEO Lloyd Blankfein took a shot at firms looking to grow their businesses through retail exposure in an interview with the Wall Street Journal saying the following quote, why are you going into this dangerous territory just to make your business a little bit bigger when that represents such a big potential problem in the future. These securities are opaque and may be riskier than most, but to the extent you're selling to institutions, people don't care that much. But if individuals lose money or insurance companies or real businesses lose money, it's terrible. I think it's so short sighted of these guys to get into it for that reason. I don't hear people saying that and I'm saying that. Leslie Picker, following the Money here, joins us with more. What do you make of what Mr. Blankfein had to say about what has been one of the most talked about and fastest growing parts of this industry?

[Leslie Picker]

Yeah, it's profound coming from Lloyd Blankfein because he as CEO of Goldman Sachs saw that firm through the financial crisis. He saw up close and personal, you know what happens when individuals in this country lose money relative to institutions. Of course the firm and this interview with the Wall Street Journal comes in light of his memoir being published as well where he kind of talks about that journey. He saw the transformation of Goldman Sachs, the doing away of prop trading and using their own balance sheet to make investments in a really big way. It is worth noting however, Scott, that Goldman is among the firms that are creating products and partnering with places like T. Rowe and Great Gray and BlackRock to create and distribute these types of investments, these private investments in credit and private equity and other types of assets for 401 s. It's a growing area. It's one that's under consideration and regulators are looking into ways to expand access to the private markets. And of course everything we've seen in the last few weeks in these comments from Blankfein suggest that the education component is really important here. And the fact that when you hear something is semi liquid, it doesn't necessarily mean it can be traded like the types of assets that retail investors are used to on a, you know, minute by minute, tick by tick basis. It's a little different than that.

[Scott Wapner]

And asset managers, as you know, you follow the space so, so closely, obviously have, have made it much easier for registered investment advisors to bring these kinds of products to the masses, for lack of a better description, mean to everyday retail investors.

[Leslie Picker]

Yeah, there's been a lot of innovation over the last decade. Even there are some statistics from BIS which say that 2.2 trillion in assets globally is comprised by private credit. And a decade ago 0% of that was was held by retail. It was all institutional investors. Today that's 13% or $280 billion worth. And that's because of the difference. Different types of structures that have become increasing in popularity, whether it's BDCs, which we've talked about a lot on this show, whether it's evergreen funds, whether it's other types of semi liquid products that investors, retail investors have been kind of piling into at their own request. This idea that there isn't as much diversification these days in the public market. So alternative assets have been a place for them to achieve that diversification. But of course, it comes with different characteristics, such as less liquidity oftentimes, as well as higher fees. And so those are the types of education components. And I think that's what Lloyd Blankfein was trying to achieve with his comments in the Journal as well.

[Scott Wapner]

I appreciate that very much, Leslie. Thank you. Leslie Picker, and pretty provocative from Mr. Blankfein. I mean, I'm wondering how you approach this with your own clients who are clamoring for, as Leslie said, diversification, higher returns in what has been deemed to be a lower return environment in the years ahead, potentially.

[Jim Leventhal]

So we at Charity Partners have leaned into private credit. So obviously we're paying close attention to what's going on here. I do just want to address Mr. Blankvine's comments and say that this didn't happen in a vacuum. Private credit came up because bank lending went way, way, way down after the great financial crisis. And these companies came up to meet a need for financing. Now to the question of first off, clients have to be educated. They have to understand the risks of liquidity and of, of the yield and the credit quality in these. But I think there's a very important fact that's being missed today on this subject, which is in my experience of many decades, systemic credit issues arise when the economy is slowing and the Fed is raising rates. Neither of those things is happening right now. I don't want to brush aside the concerns that we're talking about with software, which frankly, we're talking about every day, but let's not forget this is an economy that is growing. We have low unemployment. We have a Fed that is projected by the markets to cut twice more. That's generally speaking, not the environment in which a systemic credit crisis.

[Scott Wapner]

These, these smart people aren't warning about issues that arise when you have the kind of environment that you're talking about, about the types of warnings that, you know, Jamie Dimon had regarding private credit a couple of years ago were for when the, you know, what might hit the fan, then it's going to be too late to do anything about it because all of these people, some unsuspecting, maybe some not as well understanding of these more, you know, semi illiquid or highly illiquid assets are in their portfolio because their investment advisors have put them there.

[Joe Terranova]

Right.

[Scott Wapner]

I'm not saying unbeknownst to them, however, the education aspect is important. But also we're not talking about Lloyd Blankfein is not saying this in an interview because he's worried about something happening tomorrow.

[Jim Leventhal]

Okay, good. I agree with you on there's not happening tomorrow. But I do think a lot of the concerns that are going on in the market market right now, what we're hearing from clients, what we're reading all weekend long, particularly about Blue Owl, does seem like people are thinking this is happening right now, that there is some debacle happening in private credit. We just don't see it.

[Scott Wapner]

All right. Santol is next. We are back. Senior markets commentator Mike Santoli joins us with his midday word. I mean, I think the word is kind of obvious, isn't it? I mean, as the president ratchet ratchets up his continued anger, the stock market ratchets up.

[Joe Terranova]

Its selling certainly a piece of it, Scott. I mean it's just yet another excuse, I think, to be incrementally cautious. This idea that, you know, 10% Friday turns into 15% over the weekend and we are again denied this idea of kind of a clear policy Runway for 2026. So that's definitely a piece of it. I think this renewed selling cascade in software, whether it's well founded or not, based on hypotheticals that have been aired

[Jim Leventhal]

over the weekend about white collar work going away. I do think it tells you where

[Joe Terranova]

the distressed hands are in terms of portfolio pain and it's sort of hitting adjacent groups once again. Anything owned by traditional growth investors, you're selling one thing because you have losses

[Jim Leventhal]

elsewhere with it all all I keep

[Joe Terranova]

marveling at the fact that this massive amount of internal volatility in the market is still not really resolving the range. The overall market is still hanging in there. We're still like 1% above where the S and P has bottomed several times this this year. And I do think it's testing the market's rotational abilities. The dispersion into defensives today seems desperate, but it's so far working for to limit the damage.

[Scott Wapner]

Yeah, yeah. Healthcare staples leading to your point. I'll see you at three. Thanks, Mike. That's Mike Santoli. We'll do finals after this. Hope you join me three o'clock Eastern Time. On the closing bell, we'll talk about the markets. Obviously, Jack o', Callaghan, he joins me. He works in financial services, but you probably know the name better because he was a member of the 1980 US Olympic Miracle on Ice Hockey team. So he'll join me on the back of that historic win yesterday. All right, quick Names Jason Snipe what do you got? Amazon Brin Infl Joe Burke, Farmer, Pacific Gas and Electric I'll see you then. You've been listening to CNBC's Halftime Report, the podcast you can always catch us live weekdays at 12 Eastern only on CNBC.

[Bryn Talkington]

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

[Leslie Picker]

to make a particular investment or follow

[Bryn Talkington]

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 subscribers subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such.

[Leslie Picker]

To view the full Halftime Report disclaimer,

[Bryn Talkington]

please visit cnbc.com forward/halftimereportdisclaimer Comcast business helps

[Jim Leventhal]

retailers become seamlessly restocking frictionless paying favorite shopping destinations. It's how nationwide restaurants become touchscreen ordering quick serving eateries and how hospitals become the patient scanning data managing healthcare facilities that we all depend on. With leading networking and connectivity, advanced cybersecurity and expert partnership, Comcast business is powering the engine of modern business powering possibilities restricts in supply.