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Halftime Report
Trading the Volatility 4/10/25
00:58:32
Scott Wapner and the Investment Committee discuss the sharp downturn in the market following yesterday’s historic move.
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- [00:01]
Scott Wapner
I'm Scott Wapner, and you're listening to CNBC's Halftime Report, the podcast the most profitable hour of the trading day. We record this live weekdays at 12 Eastern. Listen in. All right, Sarah, thank you very much. Welcome to the Halftime Report. I'm Scott Wapner, front and center this hour for right here, post nine at the New York Stock Exchange. The markets and what to do with stocks now following the president's pivot on tariffs. We'll ask the investment committee, of course. Joining me for the hour today, Josh Brown, Stephanie Link, Bryn Talkington, and Brent is back with us. You know, by now we are down sharply. We're at the lows of the day. I also want to let you know that there is an expected Cabinet meeting at the White House could happen at any moment, and we are going to go there. We are told a White House official telling NBC News that Elon Musk is expected to attend that. So we will go to the White House. When we do see the president convene his Cabinet to hear what he has to say about where we are now. And that's what I want to talk to you about. To start here, Josh, where we are now because the damage that the president and the administration have caused to all of this doesn't just reverse in a day. And I think you're starting to see some of that. We still have tariffs, big ones on China. They're going to hurt growth, and that's why recession possibilities are still as elevated as they are. But what do you see?
- [01:29]
Josh Brown
I think this is, I think this is like the aftermath of yet another bear market bounce. And these things, things are mentally debilitating for investors precisely because of how quickly they slip away. Yesterday is the 10th best day of all time for the s and P500. I heard that breathlessly reported everywhere. I saw the tables, all the graphs, all the charts. What didn't necessarily accompany that commentary was the context in which we've seen the other nine best days of all time. And I'll spoil it for you. Typically they take place in years like 1933 and 2008 and 1931, and they happen when the market is in a 75% drawdown. A 48% in October 13th of 2008 was the sixth best day ever. We had a huge 11.6% run. We were already down 35.9% from the high. Yesterday is peculiar in that it didn't take place in a statistical bear market, down 20% or worse, a little bit shallower than that. But from My perspective? Close enough. Horseshoes in hand, Hand grenades. The median stock was in its own bear market. Most sectors that matter with market cap were in their own bear market. So what happened yesterday while it was exhilarating and remarkable and a lot of fun and a lot of back slapping and a lot of rich kids who are really proud of themselves because they grew up insulated from the consequences of their own actions, the end result today is, oh wait a minute, maybe we put the financial crisis on hold but we still get to have a recession. So that's how I feel and I don't want to get too negative. I'm not out shorting the market, I'm not a hedge fund. But I just want to give people a really accurate picture that this feels more to me like a classic bear market than it does a correction or a dip or a quote unquote healthy pullback.
- [03:24]
Scott Wapner
Yeah. So Steph, the Vix, which was at 50 yesterday and then got a lot of air taken out of that balloon is on the rise again by a lot. It's at 42 and a half. It underscores you know where we are. I thought Sarah's point was important too. At the end of the prior hour, it's the dollar's worst day since 2022. The typical safe havens have not been such dollar bonds, munis for example, which a lot of our viewers I'm sure are invested in. I'm wondering what you do in an environment. As I said, the damage that was caused here, the self inflicted damage that was caused on markets doesn't reverse in a day.
- [04:09]
Stephanie Link
It definitely does not. There's still a lot of skeptics out there. I didn't see anyone really reverse course. That was negative. That went too. Positive numbers are coming down. Estimates are being reduced. They have been for a while. Target prices are getting cut. This kind of after the fact Scott, to be honest with you, look, it's not often and in fact in 33 years of doing this, I've never been up nine and a half percent in a day. We know the long term total return in general for each year is 7.7%. So yes, yesterday was great. I'm not in the recession camp now, I'm just not. Not with the weekly jobless claims where they are. And you're at 220,000 on a three, six month basis. Recession is 350 to 375. Inflation is coming down. Not to the 2% we needed to, but it's coming down.
- [04:55]
Scott Wapner
CPI report was really good. And on any other Day at any other time. I know we'd be like, this is exactly what we've been waiting for.
- [05:02]
Stephanie Link
Maybe, just maybe we start to get, make good progress on, on inflation and then maybe you get the Fed conversation back. I don't know. I don't think we're going to see 100 basis points of cuts, but maybe if we keep, can keep getting inflation down, that is a good sign. So I am just not in the camp of recession. I'm in the camp of slowdown. I'm in the camp of are we flat? Are we up 1%? Okay, now I want to hear what companies have to say in terms of. Earnings numbers again have been reduced dramatically. The stocks are down dramatically. I want to see how they respond tomorrow. Starting tomorrow, you can't expect they cut, do they? How do the stocks react? That'll be very telling.
- [05:38]
Scott Wapner
I know, but you can't expect, can you, I should ask you, rather than make a declarative statement, can you really expect that these companies who have absolutely no visibility whatsoever are going to give any kind of guidance on any level that sounds good, if they even are able to give guidance at all?
- [05:58]
Stephanie Link
No, but I got stocks down. There are 25, 30% into that.
- [06:01]
Scott Wapner
I know, but if you're having a recession, they may not be down.
- [06:03]
Stephanie Link
Not in that camp. I'm not in that camp. I just told you why, I'm just not. But I have stocks that are down a lot into the print. So the expectations are very, very low. And what is very clear is that Trump and Bessant are watching the bond market. You lose the bond market, you're going to lose everything. And that's why they actually reverse course yesterday in my mind.
- [06:24]
Scott Wapner
Oh, it's clear that, I mean the bond market's, you know, ruling the day we learned the lesson of how powerful the bond market actually is. Yesterday some comments from Jamie Dimon talking about recession apparently swayed the president as well. But again, just look where we are at the screen. This is, you can't normalize in any way what's taking place. Yesterday's rebound wasn't normal. And this activity today, down as sharply as you are, are, as I said, you got a lot of problems to deal with that were self inflicted. Business has no confidence in their ability to see anything. Okay. The fog may have dissipated just a little bit yesterday, but it's still nasty out consumers. You think they're looking at their investment accounts, their 401ks, 529s, pension funds and feeling great about going out and spending money now?
- [07:14]
Bryn Talkington
Yeah, So I mean we all know we're a consumption economy that's 2/3 of GDP. And so consumer sentiment, you can say it flips on a dime, which it can, but it definitely, especially with the unrest become, can become a self fulfilling prophecy on top of CEO sentiment. And it's just hard to believe that we have, we're on the precipice of earnings seasons and I think every company is going to come out like Delta and say I don't know, I don't know, guidance. How can you, how can you say that with a straight face as a CEO? I think the banks will be really interesting because they're at the epicenter because they have, how much are they going to spend, M and A, etc. And so I think we're going to continue to be in this, I still think this 2018 environment on steroids. And if you go back to 2018, you had eight drawdowns between 8 and 15%. Half of those drawdowns were between 10 and 15%. And I think what other nugget you have to sprinkle into this is the Fed is not going to come in. There's no Fed put here unless let's say something breaks. But there's no Fed put because they're not going to be contra to a strategy or tactics they're not aware of.
- [08:24]
Scott Wapner
No, but if, you know, they, you know, people were speculating yesterday who just watch markets. Well, you know, like Mohamed El Erian for example who joined me on closing Bell that in his mind the Fed wasn't that far away from having to do something. Whatever the whatever the something is. That's not a bullish environment.
- [08:41]
Josh Brown
Stabilizing the treasury market is, is historically not bullish. I would also point out that 45 basis point swing in the 10 year is maniacal like this is not. Again I want to say, oh, it's a pullback. Just pick your favorite names and load up. I think you should be a buyer if you have a really long term time horizon. You should not be expect that the buys you make today will necessarily be rewarded a week from now. It's just a different environment. A 45 basis point swing in three days is the most that we've seen since 2022, which is another legit bear market. We've only seen that seven other times going back to the year 2000 and on every single instance the S and p was down 25% or worse that we've seen that. So again that is a classic feature of when the S and P is down big, you get those huge swings in the ten year. Now I want to take it a step further and say, okay, great, we have the carnage. I just don't know if it's gone on long enough to really register.
- [09:46]
Stephanie Link
You've got the market down 15% from highs, 18% for the NASDAQ. You've got stocks that are down 30, 40, 50% from their highs. So I would say, yeah, there's things to be concerned about, but you've got to look at opportunities. Of course you do, long term.
- [10:01]
Josh Brown
But here's the problem. Then they so, so you buy a stock 35% in the hole, come out with earnings, earnings not as bad as feared. Maybe they even give guidance. 43% of companies, the S&P 500, give sequential guidance. So that would be great. And then the stock rallies by 10%. You say, I made a great buy. And then a week later, it's rolling back over lower lows. This is the main concern right now, I think, amongst Wall street strategists this. It's not, are these stocks compelling values? It's, is there a trap door in what looks like it should be the low?
- [10:36]
Brent
Brenda, I do think, though, from our perspective, you have to look beyond what the next couple of months are going to bring totally. And think about a year from now, is that going to be a good entry point into that particular stock? And that's the tax that we have taken. And we added to equity on Tuesday. It didn't feel good that day. The market was up a lot. We added when it was flat and then it went down. But we felt that at that moment it made sense to add a little bit on an incremental basis. And I think in our perspective, from our perspective, again, being incremental about what you do is important in this kind of environment and kind of picking your spots. And as bad as it feels on those down days, I think it's worthwhile to go ahead and add a little bit.
- [11:17]
Josh Brown
I like that approach because there's a lot of humility there. And you were saying, like, I want to own the stock at this price. I acknowledge the possibility it'll sell at a lower price in three weeks, and I don't care. And if you, and if you end up being at the bottom, great. And your biggest regret is, I should have bought more, maybe that.
- [11:35]
Scott Wapner
Would your Nike move fall into that category of, you know, the stock's down a lot. It obviously has the China exposure, everything, by the way. I mean, almost everything's down. Okay, we know that today, but Stuff with China exposures down a bunch. Starbucks, Apple's down a lot. Nike, I don't think you thought you were necessarily going to pick the bottom.
- [11:55]
Bryn Talkington
But no, you know, right around here.
- [11:57]
Scott Wapner
Yeah. But the dollars made here are apropos at least to that.
- [12:00]
Bryn Talkington
Right. So if you look at, you look at a Nike, a Restoration Hardware, I'm quite sure that the goals of the administration, and then ultimately we'll see what happens with Congress are not to have Restoration Hardware, Nike, Lulu, Gap, those products built here. It doesn't make any sense. It's nonsensical. And so I just said, hey, I think in six to seven months, the world can look different. And I think Nike trading at 2016 levels, which has 53% of its sales outside of the U.S. which actually have to start looking at. Because what's going to happen here, I thought that was a good risk reward, trade.
- [12:37]
Scott Wapner
So.
- [12:37]
Bryn Talkington
But once again, you got to be able to step in. I do think on this recession camp, understand there's a lot of smart people in the administration. The recession derails the whole thing. Okay? It derails the whole thing. Because if you look at, there was a study done that says if there's a 2% decline in yields, and let's say we only get the decline in yields because we're in a recession, when you refinance, finance the debt, they save about like $580 billion. But guess what happens? They got into a massive, massive fiscal deficit of about one and a half trillion dollars in a recession. And so the recession camp does not work for this administration.
- [13:13]
Scott Wapner
I'm not so sure about that. I frankly am not so sure about that. And I think they've intimated the fact that if you got a recession out of the policies they think are needed now and are important for the long term, you can live with it.
- [13:26]
Bryn Talkington
I don't believe that.
- [13:28]
Kate Rooney
Play that through.
- [13:29]
Bryn Talkington
How does that.
- [13:30]
Scott Wapner
Didn't Howard Lutnick, the Commerce Secretary, when asked that question a few weeks ago, said, it'd be worth it, it'd be worth it. I don't care what it is.
- [13:37]
Josh Brown
I don't think he.
- [13:38]
Scott Wapner
It's not for me to decide whether it's bluster or not.
- [13:40]
Josh Brown
He said it.
- [13:40]
Scott Wapner
And you talk about a detox and a little disturbance and all those things that you've heard from the administration.
- [13:46]
Josh Brown
Respectfully, he's a billionaire. His lifestyle won't change whatsoever whether there's a recession or not, whether it's a deep recession or not. Literally nothing about Ludnick or his family's lives will change. And it's very nice to see that in front of a camera. But I think when Donald Trump spent yesterday, number one, listening to Jamie Dimon on television, effectively do a podcast for one and tell him, yes, you're probably right about trade, but this is risking a recession.
- [14:13]
Bryn Talkington
And how does the recession help the middle class? How does the recession.
- [14:15]
Josh Brown
Well, it doesn't at all. It decimates middle class. And then he sits with Gretchen Whitmer, who is the way to think about her is she's from Michigan. Her big constituency is Detroit. Effectively she's the mayor of Radiator Springs. And the car people are in hurry for the last three weeks. What the hell is he doing? And then right after that he has lunch with Charles Schwab, who effectively is the advocate for the mainstream American investor largest brokerage. Not one of these people are giving Donald Trump the impression, yeah, it's worth risking a recession to get your way with China. No body is saying that. So I do not agree that they are willing to risk a recession. I get that they're willing to say.
- [14:58]
Bryn Talkington
That they are to go into Steph's camp of like these stocks are down.
- [15:02]
Josh Brown
So I am in, I'm in Steph's camp. I think where Steph and I disagree is just timing.
- [15:06]
Stephanie Link
Timing. Absolutely.
- [15:07]
Josh Brown
100% agree.
- [15:08]
Stephanie Link
I'm with you on timing.
- [15:10]
Brent
So hard to time because how do you know, especially in this environment where the headline changes intraday and it's impossible.
- [15:16]
Stephanie Link
To know to buy in this situation you feel horrible but that's usually the time when it's the right time to be adding to. You're not going to wait until you have another 10% rally. Who the heck was buying yesterday? Up 9%. That's crazy.
- [15:30]
Josh Brown
Well, I think, well people were buying yesterday and they were short coverage and I think that gets to that gets the heart of the behavioral part of this business how hard it is. Which is why we do tactical in a rules based way because I'm not good enough to resist. I see in video up 16% and I'm like, oh, the crisis is over. I can't wait to buy. I don't allow myself to do that because I've been doing this for almost 30 years.
- [15:53]
Scott Wapner
Tom Lee says that yesterday confirmed, at least in his, in his mind and he's been wrong and he's been really contrite and apologetic when he has been wrong. He says the Trump put was confirmed and that now because of that you have the potential to morph into a V shaped recovery Those are Tom Lee's words. City Today has upgraded US and EU equities to overweight because for now the Trump put reduces US recession risks, truist potential for some more upside given how stretched the markets had become to the downside. Morgan Stanley, they say this reduces the immediate downside risk. It does, in their words, prolong the uncertainty though and that the economy still live in on the edge. Watch the 10 year watch oil, right? Oil is saying, oh, you know, demand is going to get crushed because you're back down a lot today in oil which has already been at a four year low. I don't know what you guys do with all of that and the advice that you give to people and the things you do yourselves in this market. In times like this, I don't see a lot of people coming on today and saying, you know what, I'm buying a lot because I believe more in yesterday than today. Steph's already been putting so much money to work recently, she might not have any cash left to put to work.
- [17:11]
Stephanie Link
That's right.
- [17:11]
Bryn Talkington
But I mean if you look at, if you go back to 2018 with all the volatility you were down 4 and in 2019 you're up 30. And so it's like if we have a version of 2018, at the end of the day you were down 4 through all of that volatility and it was a wonderful time. You could have gotten in video there because something happened with a theory and went from like staking to point of stake. I don't remember. There were so many great opportunities to dollar cost average into that. And if you were already fully invested.
- [17:39]
Josh Brown
Just to sit still, where are the biggest opportunities? That's a great example from 18. There's a crypto crash and they crushed in video. Where are those opportunities today? I was thinking oil energy. Those are probably the worst stocks in the last couple of weeks. But what do you guys.
- [17:55]
Stephanie Link
Why would you go to Max 7?
- [17:56]
Josh Brown
Just go right back to Mag 7.
- [17:58]
Stephanie Link
Why?
- [17:59]
Josh Brown
I don't need that. I bought Amazon.
- [18:00]
Stephanie Link
I started adding matter back again recently because it's down 33%, is trading at 19 times earnings. Okay, so let's haircut the earnings. Is it a 21 times earnings for a 20% grower with 40% operating margins and a 3.3 billion people user base.
- [18:16]
Josh Brown
So maybe not the biggest opportunity because it hasn't gotten killed the most, but one of the better opportunities because it.
- [18:22]
Stephanie Link
Has a solid business case.
- [18:23]
Josh Brown
Right.
- [18:24]
Bryn Talkington
It's not.
- [18:26]
Scott Wapner
I'll see your mega caps and I'll Raise you the semis which have gotten obliterated. Right. I mean it's not just Nvidia and it's not just Broadcom down 26%. It's AMD down 48. These are all from the highs 52 week highs. Skyworks down 50, Corvo 52, Marvell 52, NXP 37, Micron 50.
- [18:50]
Josh Brown
Those stocks weren't working before Liberation, right?
- [18:53]
Scott Wapner
But there was this part of, part of the belief I heard from people was first in, first out, maybe as.
- [18:58]
Josh Brown
It pertains to dump so bad that.
- [19:01]
Scott Wapner
Now they can come out on the.
- [19:02]
Brent
Other side of that better during earnings season though. And we heard this from Andy Jassy this morning. He's not planning to stop spending on building out infrastructure. So I think we will potentially hear that from several companies and that could be supported, supportive for this group, especially for an Nvidia that's now cheap relative to its growth rate. So I do think there are some opportunities presenting themselves.
- [19:23]
Josh Brown
What do we do, what do we do with travel and airlines? These stocks are down an average of 30 to 50%.
- [19:29]
Stephanie Link
Can't even make money in airlines. Even in good times, even no way.
- [19:32]
Josh Brown
So skip that. What do you do with the travel bookers? What do you do with Airbnb? What do you do with the hotel chains? I mean these stocks are the most, I'm looking for the most damage.
- [19:42]
Scott Wapner
You see United in Delta today and American Airlines 12%, 11%, 13% respectively, down.
- [19:51]
Josh Brown
That's the consumer writ large, in my opinion.
- [19:54]
Stephanie Link
Well, they were also up 12% yesterday, Scott.
- [19:57]
Scott Wapner
Yeah, I know. But before that they've been getting killed. It was a release, it was a momentary relief rally.
- [20:01]
Bryn Talkington
But it's also that, that those, those airlines are also. Global economic slowdown, US Economic slowdown. We overspent on traveling for years after Covid. And so I feel like you do have a mean reversion trade with those airlines, which I always felt were more rentable than, than investable. And they've done very good if you've rented them in the right periods of time. But I do think it's more of a gauge on an economic slowdown. And also this narrative which I know there's some data points about foreigners are not going to travel to the U.S. it's like in real life, we love European people and they love Americans, the individual people, it's at the government level, at the White House. And that where you're seeing, I don't know.
- [20:42]
Scott Wapner
I would only take issue with that based on only anecdotal stuff. From things that I've heard directly from some of the people on this program who travel in and stay in hotels that are popular with international travel travelers. And you have the managers telling them directly we're seeing far few visitors now from Europe or person who manages a restaurant in New York City where you get a ton of international clientele at the higher end saying, you know, we're slower, we're slower than we normally are. So I think what you might not expect could actually come to fruition, only adding and accentuating the fact that, you know, consumers are going to be skittish and they were already skittish by sentiment, by virtue of where sentiment has been recently. The argument was, well, soft data doesn't necessarily bleed into hard data. We'll believe it when we see it. Okay, you take the stock market down 20% on the NASDAQ and you do what you're doing in the market now and you think that boosts consumer confidence.
- [21:45]
Josh Brown
Really, it's a negative wealth shock.
- [21:47]
Scott Wapner
By the way, the Dow right Now is down 1900 points, 4.7%. The S&P is down 5 and 3/4%. It's a give back of 313 points. Now after yesterday's historic move, you looked at the numbers this week and they were so skewed green that you're like, okay, this maybe is something to build on. Technicians looked at the market said, you know what, I think there's some more room to go given what happened yesterday. And then if you cancel out part of that with today's move, for example, the S and P week to date is only up 1.3%. The Russell's negative by 1%. The Dow is almost flat and the NASDAQ is only, only for the week. I know it's only, what is it? Thursday up 2.4%. So you've erased a lot of what you got yesterday when it felt so euphoric and so good, like we were back, people patting each other on the back in D.C. but here we are.
- [22:50]
Stephanie Link
Because you still have 10% universal tariffs which is going to slow down growth one and a half percent. I am not in the camp that the tariffs are going to lead to inflation. I think actually you could see deflation. And I also think, I think productivity actually will also help. But that's going to help the inflation story in general and the Fed. Right. So I mean, to me, 2,000 point.
- [23:09]
Scott Wapner
Decline on the Dow. Sorry.
- [23:11]
Stephanie Link
Yeah. No, I mean, look, I mean we're going to be volatile for a while because we don't have answers on China. 125% tariffs on China. Like we don't even know how that's going to result.
- [23:21]
Scott Wapner
145. You downplayed it.
- [23:23]
Stephanie Link
Sorry. 145, 145. But you get my point. Like that's the big elephant in the room. We got to fix that.
- [23:29]
Scott Wapner
Well, that's not an elephant. That's not just an elephant. That's like a herd of elephants in the room.
- [23:33]
Stephanie Link
But that's the point. That's the reason why the market's not up again today. Because the realization that we're not out of the woods and we still have 10% universal tariffs to deal with as well. So yes, this 90 day end right now, like pause is good but there is still a lot of questions to be answered and that's why we have to get through that. 90 days China and earnings and that's why the market's all over the place.
- [23:58]
Josh Brown
One of the, one of the things I came on on Tuesday and one of the points that I was trying to bring out is like we really haven't gone through an earnings season with a massive number of CEOs pulling guidance for the next quarter of the full year. And that's like my concern now. We actually saw something interesting. Delta pulled guidance. The next day after I said it, sorted Wal Mart, both those stocks traded up, right? So I don't really know that that's definitely a negative catalyst, but it's something. And if you're expecting to hear guidance from the Fortune 500 and you don't get it or you get, all right, here's our base case. Here's our worst case. Like I don't know what that does to, I don't know what that does to the mentality of the investor who's looking to buy dips. It's like, well, if this guy has no idea what's going to happen this year, why would I place my next buy order thinking that I do?
- [24:52]
Bryn Talkington
But if you think about the cap like companies like a Google, a Meta, Apple, definitely not. Why would they pull guidance? Why would Nvidia pull guidance?
- [25:00]
Stephanie Link
Right.
- [25:01]
Josh Brown
Great question. They're out. They're advertising businesses, right.
- [25:03]
Bryn Talkington
They've been exempt from the export controls. There may be a deal between the US and China on the H, the H, one of the H numbers to let them come in. And so I do think there's companies that will be very strong, will have strong guidance, I promise you. Like Instagram, Facebook. Those things are so addictive. People are going to continue to advertise on those. And so I think that's where you pick your spots. And everyone was so negative on the big tech stocks. I think that's a, that's going to be a place that you have cheap stocks that are growing and that are cap like companies that I think people will look to like to step point on a meta. It looks pretty good here. Sell calls on it.
- [25:39]
Scott Wapner
Premium Christina Parts and Evolos. I think she's at the Nasdaq. Speaking of a high, I mean you're right there. You have a front row seat to this reversal today, which is just downright ugly. I mean The NASDAQ's down 6 and a half percent as we speak and.
- [25:56]
Christina Partsinevelos
You guys really just laid on all of the reasons. Spot on. I'm saying that this rally is masking underlying vulnerabilities. You know, about the minimum 10% baseline, the 145% tariff on Chinese goods still in play. As you said, Scott, those herd of elephants are going to hit OEMs hard. Dell, HP, think of those stocks. They're down over 7% right now. We're also facing semiconductor tariffs that could still be coming in the next few months even if they're on hold. Now you have the diffusion export controls coming in mid May. Remember Biden put those in plays. That's a big impact for Nvidia. They're going to create supply chain disruptions, lead to unpredictable business results and then that's causing companies to rush their orders in pulling forward which would artificially inflate earnings this season. So this uncertain environment is really making it tough for companies to plan ahead. You guys talked about it and Scott, you questioned about guidance. Well, Jefferies points out this morning that management teams will probably guide with quote, extra conservatism in the upcoming earnings season. And then you've got the. Let's add another vulnerability. A ten year treasury hitting a seven year high yesterday, signaling higher debt for a lot of these companies, specifically the Nasdaq. AI spending sustainability is another huge theme. Yes, Google sticking with their $75 billion in 2025 capex commitment. Amazon CEO, I know you guys talked about it. Andy Jassy told CNBC this morning they're not going to cut back on data center spending right now. But he did hint that AI won't be as expensive in the future. So what does that suggest? Nvidia either needs to get cheaper or face viable alternatives. And then let's not forget Microsoft, they already started pulling back on some data center spending. We had that news yesterday specifically with Ohio. So you put all of those vulnerabilities together and we're looking at a potential growth slowdown. And that is troubling for the big tech companies that have been bankrolling on AI's expansion.
- [27:41]
Scott Wapner
Guys, Christina, thank you very much for that. Just helping us layer in what's really happening. Let's show that 10 year yield as well because an intraday if you could please. Because as you see the 10 year yield elevate to the highs of the session, you're seeing stocks move to the lows of the session. Same sort of move you had yesterday. The 10 year is still green. It's at 435. It may not be as high as I think the 451 it got to yesterday, but it is significantly higher than it was pre so called Liberation Day. So that's worth keeping an eye on because that is not an optimal thing to have happen. I should also, you know, we should have this conversation of what really changed yesterday. They reduced the numbers in terms of tariffs down to 10% from numbers that most people thought to begin with were absurd, that were gained through a formula that nobody believed in or thought was valid. ChatGPT seriously. So we took numbers down to 10% from numbers that people thought were already ridiculous. Okay. At the same time, we raised the number to 145% percent on China. And we're surprised that the market is reacting the way it is now. What do we do with that?
- [29:16]
Josh Brown
I think, I think we want to start thinking about, I think we want to start thinking about the two things that matter most to stocks. Once all the Rose Garden meetings and all the rhetoric, once like that becomes a little bit more background noise. I know it's been front and center. We're going to get back to the two things that matter most most, which are earnings and interest rates. The good news on interest rates is that we put a floor in the trade war. Downturn in stocks. When the Fed finally woke up, it took them until Christmas Eve 2018. They were still saying insane things as late in the year as November. Like we're nowhere near normal or nowhere near neutral on the Fed funds rate. And then Christmas Eve that were like, just kidding. And then by January they embarked on the first of three rate cuts and the rest is history. 2019 was a wonderful year. Stocks have been very cheap going into it. Multiple expanded earnings grew. We all lived happily ever after. That is a possible outcome to all of this. And we should just remember, once the Fed does decide that it's needed, it does provide a Huge tailwind to stocks. And that, that's why it's hard to get too negative here.
- [30:26]
Scott Wapner
Okay. I wanted to go there.
- [30:28]
Josh Brown
And then you've got. All right, let's do this.
- [30:30]
Scott Wapner
Let me do this real quick. No, because when you say it's hard to get, you know, too negative from here. I think people learned their lesson, Steph, to some degree yesterday, of trying to get too negative with a president who thinks he can flip the switch, so to speak, at a moment's notice. And you know the pivot that he did. What happens if President Trump comes out at some point today, tomorrow, who knows when, if it ever happens, and says, I just had a productive call with President Xi and we agreed to have negotiations and whatever, whatever and whatever. What does this market do?
- [31:06]
Bryn Talkington
15% explodes higher.
- [31:07]
Stephanie Link
Explodes higher. You have to get.
- [31:09]
Scott Wapner
All it takes is that you need.
- [31:11]
Stephanie Link
And you need some sort of resolution and clarity with China. So at least we could figure out what the numbers are going to mean to companies and to earnings. Right now, we just don't have that at all. But I'm not good enough to time, Scott. I'm looking, I'm looking at what, what you guys tend to look at more than me. The relative strength on The S and P 500 got to 23. Yeah, 23. That's the 12th lowest in this guy's.
- [31:36]
Scott Wapner
Mr. RSI over here.
- [31:37]
Stephanie Link
You preach. I know, but the reach, the fear and greed index got to 2. You know, the last time it was a 2 Covid and the great financial crisis it was 12. So to me and the Vix. You mentioned the Vix, it had the third best week ever last week. So me, I'm looking at investing and I'm thinking long term. Like Brenda, like all of us, pretty much. Right. I'm not going to get the bottom, Scott. But when I see these best in class companies go on sale across every sector. Every sector. Right. You can pick and choose. I'm not going to catch the bottom. I mean, I feel horrible on a day like today because the stocks that were up a lot yesterday are now down a lot.
- [32:14]
Scott Wapner
Funny, I have a lot of stocks. I have a lot on my screen. The only thing I have green on my screen.
- [32:21]
Bryn Talkington
Gold.
- [32:22]
Scott Wapner
No. Well, I don't have gold like in front of me. Is it. By the way, gold's been down, too. Speaking of, no place to hide is the vix. The vix, Every single other stock on my screen.
- [32:32]
Josh Brown
You don't even need an agreement with China. An announcement.
- [32:35]
Scott Wapner
I didn't even say an agreement.
- [32:36]
Josh Brown
An announcement.
- [32:36]
Scott Wapner
I just said we had a, we had a productive call.
- [32:38]
Josh Brown
Yeah.
- [32:39]
Scott Wapner
What is this market?
- [32:40]
Josh Brown
That's it. Or we're going to, I'm going to, I'm going to meet with President Xi, who I love very much. We have a great relationship, we have a great friendship. That's all you really need. And that's why it's, it's really dangerous to be like, oh, we're, the market's down 18%. Let me get super negative now.
- [32:59]
Stephanie Link
Right.
- [32:59]
Josh Brown
Like, I get it, we could go lower. And you know, again, I'm the first to say technically this market's in a really bad place. But because it's so event driven.
- [33:08]
Stephanie Link
Yes.
- [33:09]
Josh Brown
And because it's not yet a full blown cyclical recession, we're not there.
- [33:13]
Stephanie Link
No.
- [33:14]
Josh Brown
And we could get there, but it's not guaranteed. So while it's event driven, I think staying nimble and accepting that there are going to be horrible days like this, incredible days like yesterday, you either want to be a day to day participant in that swing trade or you want to think long term and just say, I don't know if this is the right time, but this is the right valuation.
- [33:34]
Scott Wapner
What about, what about speaking of valuations of things like the financials which are going to start reporting tomorrow. Bren, you own J.P. morgan. It's, you know, it's down a bunch with everything else. And you have to believe that the commentary is only going to be negative or cautious or uncertain. How could it be anything but? But what do we do with those stocks here? Do we, do we buy those on this really tremendous weakness that we've seen of late?
- [33:59]
Brent
I mean, I think there are a ton of buying opportunities, to Stephanie's point, across all kinds of Industries. And J.P. morgan, in our view is best in class financial. So yes, you know, I think it is viable where it's at today. But I think one thing we're going to hear, and there was so much hopefulness about the IPO market coming back about M and A activity picking up and that unfortunately in this current here and now is, is dead that business. So that's not coming back. But I think we will also hear a little bit about the consumer probably from Jamie Dimon. And the message over the last many quarters has been the consumer is still pretty healthy, still have a lot of deposits. So that's a positive. But I do think that we're likely to hear about, you know, uncertainty, uncertainty, especially when it comes to capital markets activity and lending and how that factors into their business.
- [34:49]
Bryn Talkington
I think what will be also really interesting on the consumer is Brian Moynihan.
- [34:53]
Scott Wapner
Because whereas, you know, he has a front row seat.
- [34:56]
Bryn Talkington
Brian Moynihan last quarter was like the consumer spending quarter over quarter, year over year. The consumer is still very strong. And so I think bank of America has a very important read on if he's seen any pivots within that consumption and the consumer because he goes into a lot of detail about how much they're spending. But that to me is going to be a really important earnings report. But I do want to go back to the White House administration. Besson has talked about it every time he can. This is about Main street, the next four years, not Wall Street, A recession, tariffs, all of those immediately. The lower, the lower income. Like 38% of their salary is spent on goods. The upper 10%, it's like, like 10% on goods. This is, they are not going to derail the base that got them elected. And that's where I think level ones need to prevail and say, hey, the recession camp I think is just too loud, it's too presumptive.
- [35:47]
Scott Wapner
I'm just going to go back to the. I think there's a disconnect that exists somewhere in thinking the way you're talking now that somehow this is to take care of Main street and they don't care about Wall street, the relationship. I don't know how many times we have to say this. Don't believe me? Go read the Wall Street Journal today or listen to people like Richard Clarida, the former Fed vice governor, vice chair, excuse me, who was with me yesterday on closing bell. The relationship between the two have never been closer, have never been more intertwined. Confidence on Wall street goes down to Main Street. We don't you're going to sink these companies share price.
- [36:31]
Josh Brown
But when they might, they might. This might not have fully dawned on them, what you and I already know.
- [36:36]
Stephanie Link
I hope so.
- [36:37]
Josh Brown
There was a Navigator poll that came out Tuesday, coincided with the bond market blowing up that night. Navigator is very respected poll and one of the findings was he is losing favor among every group, obviously Democrats, of course, but also Republicans and Independence, specifically on the economy. And in fact, the reading said this is the most unpopular President Trump has been just on the economy alone ever in the 10 years that they've been polling voters about him, when he was in office, when he was out of office. There is a sense that this is just not good for him. And if we know anything about him, it's that he doesn't do things in the end that are not good for him. So I think you are going to be vindicated. However, to Scott's point, it may be a while before they figure out what we are all already know.
- [37:30]
Bryn Talkington
My point was, I agree and yesterday talked about it. The economy and the stock, the real GDP and the stock market going back to 1990 have like a perfect correlation. The magnitude is different. So I'm just saying common sense wise, that would be insane to cause a recession. It would be insane to have tariffs because that affects Main street, not Wall Street. It would not be common sense. So my point is that I feel that everyone assuming a recession is going to happen would fly in the face of common sense. Economics 101.
- [37:59]
Scott Wapner
I got you, I got you. If I misunderstood you, that's my bad. I'm glad you clarified that or at least helped me understand your point of view better. It's more on me than you obviously.
- [38:08]
Brent
Also to say that the time horizon, if we do have a slowdown that ends in a mild recession, the time horizon has to be pretty quick to repair things from elections. So that's one thing we haven't talked.
- [38:19]
Josh Brown
They floated, they floated a trial balloon via the Wall Street Journal yesterday. Something about like White House officials mulling agriculture bailout. Okay, so we did that already. It wasn't popular. It didn't help. Thankfully we didn't have a full blown recession. 28 did have a manufacturing recession. Definitely felt like a recession in rural communities. We sell 12 and a half billion dollars worth of agriculture to China each year. Most of that is soybeans hyper concentrated in the upper Midwest. They float that trial balloon via the WSJ is almost like to their base like don't worry, we're still looking out for you, we're still taking care of you. I don't know that that helps the stock market at all. And I don't think it helps the favorability numbers in the polls.
- [39:04]
Scott Wapner
Speaking of, you know, things that have, you know, but obviously been really volatile or places that you have not been able to hide that you once thought you could like munis, which I already mentioned you had some moves on Tuesday which are still relevant to the conversation today. Normally if someone comes and says, well I did these moves on Tuesday and, and it's now Thursday and we've had these kind of markets, I'd be like, it's so like, that's so like last year. Yeah, but you did sell munis, which I'd like to hear more about and the core aggregate bond etf, the agg, you have some other stuff but tell me about those first, why you sold munis rather than buy on what was the couple days ago the worst day in some 31 years?
- [39:48]
Brent
It was. But so munis are very specific and ours are California munis that we own for most of mostly California client base. But when we looked in aggregate how they'd held up year to date, they had held up remarkably better versus the broader stock market. And so they had grown as a percentage of our clients portfolios. And so when we looked at what could we transition to add a little bit more to our equity allocation that what we felt was a really interesting moment for a long, with a long term perspective. We trimmed some of the bond exposure which had grown, it was bigger than we wanted it, bigger than our targets and added a little bit to stocks. I can't tell you that that was going to be the bottom on Tuesday.
- [40:31]
Scott Wapner
No, we just, we discussed that.
- [40:34]
Brent
It was an interesting time in our from our perspective for a long term investor.
- [40:38]
Scott Wapner
But you bought both the S and P and the equal weight.
- [40:41]
Brent
We did.
- [40:41]
Scott Wapner
Correct. Just tell me more about the psychology behind that.
- [40:44]
Brent
Yeah, so psychology behind that. We still think there's a case for broadening beyond the Magic 7, but given how how much the Mag 7 has fallen and really especially in the first quarter was the worst performing part of the equity market, we do think there's opportunity there too. So we added to both, a small addition to both. But as I said, you know, from what we're looking at is if we do get another leg lower, we may add more to our equity exposure. But for now we're happy to just add a little bit to both of those vehicles.
- [41:18]
Scott Wapner
Okay. I know one big question throughout all of this was where is the psyche of the retail investor? People who are not, you know, necessarily used to seeing this level of volatility now certainly if they were around in Covid, they remember it then. But you've also had new products introduced to retail, things like leveraged ETFs. They've been very popular. Kate Rooney is following that money for us with an update on what you might be hearing, what you might be seeing as you follow that money for us. Because this is your space too, Scott.
- [41:58]
Kate Rooney
Yeah, you're absolutely right. There's been a lot of dip buying. But retail investors have also been pouring into leveraged ETFs, especially the ones that offer amplified exposure to some of their favorite tech stocks. So these funds, they magnify both the gains and then the losses. They are meant to be used for short term strategies or hedging they're traditionally used more by hedge funds, but yesterday. So two of the funds that were among the most traded names by retail investors, if you look at Fidelity's leaderboard at least tends to be a barometer for some of the retail action. A fund that gives three times the return on both the up and downside of the NASDAQ 100, the TQ QQ, it was the fourth most popular trade out there. And then an ETF that delivers twice the daily performance of a bitcoin proxy, Microstrategy, a very risky move there. At one point yesterday they were up 30 and 50% respectively. Today they're down last I checked on 20%. Each varies there a little bit. Todd Stone over Strategic is telling me he saw an extreme explosion and has seen an explosion in levered long volume over recent days. You can see the chart there on the right side. $45 billion worth of action amid some of the recent volatility. The boom had been slowly building last year when assets jumped 51% in this space. That's according to Morningstar Brian Armour over there telling me the allure of some of the big returns is a siren song. As he described it. Some investors cannot shut that out despite the unlikelihood of long term profits markets playing out with these games. And then facts the analysts telling me that retail seems to be attracted to these exceptionally risky and very hard to time products holding them well beyond a single day and that is well beyond the period for which they were designed. Scott?
- [43:34]
Scott Wapner
Okay, Kate, thank you very much. You got a thought on this?
- [43:37]
Josh Brown
So there's two retail investors. The investor that's doing the leveraged inverse ETF stuff. First of all, it's a lot of Robinhood traders on the retail side, but I think most of the volume taking place in those products is hedge fund. I just, I. It's hard for me to imagine $50 billion worth of volume in those products. And it's like people trading from their houses. I just don't believe it. But that's fine. Put that aside. If you really want to know what retail is doing, pay attention to Vanguard. And they're buying. They're buying. JP Morgan confirmed it and bank of America confirmed it. Bank of America said last week every single one of its client types, including corporates, institutions, hedge funds and what they call private client. But that's rich retail. All net buyers and Vanguard flows continued unabated. That's like from my perspective, that's the mainstream retail investor and they are taking advantage of this because to your point, they have Muscle memory from COVID And they were rewarded really quickly for buying panicky markets then. And I think they're doing the same thing right now.
- [44:44]
Bryn Talkington
These things make it seem like options, zero date options are bonds. These things are so risky. They're weapons of destruction.
- [44:51]
Josh Brown
It's like 200,000 people in the country that are responsible for 90% of that volume. And it's a sideshow, not the main event.
- [44:58]
Scott Wapner
Let me take a quick break. We'll obviously keep following the market activity today. We're all off the lows, but the S and P is still down about 4 1/3 percent. Mike Santol is going to give us his perspective next. We're going to welcome you back to breaking news. I said stocks were off the lows. Told you the cabinet meeting with the president is about to begin any second. They're actually in the room sitting at the table and we're just waiting for the audio. And here it is.
- [45:33]
Donald Trump
We're talking about a lot of different things. Consumer prices have actually dropped. There's very little inflation. Everybody predicted a lot of inflation. Very little inflation. Energy costs are down. Interest rates are probably down. They scatter, but they're probably down. Prescription drug prices are even to down, doing very well. It's been amazing. We had a big day yesterday. There will always be transition difficulty, but we had a in history. It was the biggest day in history. The markets so very, very happy with the way the country is running. We're trying to get the world to treat us fairly. This is something that should have been done 25 years ago and it wasn't. It should have been done 40 years ago and it wasn't. But no president was willing to take it on. But yet to. It's not sustainable. It wasn't sustainable. And as you know, without a lot of money being added, this is a lot of money that we could add. The country is making approximately $2 billion a day. And when you think of it, that's we've never done that before, never come close to it. And the number is probably three and a half billion dollars a day. And that makes us a very strong country. But we have Scott here and Howard and some of the people that are working on deals and the biggest problem they have is they don't have enough time in the day. Everybody wants to come and make a deal and we're working with a lot of different countries and it's all going to work out very well. I think it's going to work out really very well. But we're in good shape There is no inflation. There's very little inflation. And I went four years without inflation and I tariffed I took in hundreds of billions of dollars from China and others taxes in China, but we took in hundreds of billions of dollars a year from China and we had no inflation essentially. So we think we're in very good shape. We think we're doing very well. Again, there'll be a transition cost and transition problems, but in the end it's going to be, it's going to be a beautiful thing. We're doing again what we should have done many years ago. We're letting it out of control and we allowed some countries to get very big and very rich at our expense and not going to can't let that happen. It's not a sustainable formula. So I wanted to just thank everybody at the table and maybe I'll go around and ask some of you a little short couple of answers. Pete just got back from Panama and he's been all over the place and you want to give us a little report on that and whatever else you might have to say. Everyone at this table is doing an incredible job, by the way, I have to say, incredible. And the relationships are it's like they're friends. There's really the relationships are very strong, really good. Really strong. And these meetings are very good. And I think, you know, having I don't believe there's any other president that allowed the press to come into a meeting such as this. These are very sacred meetings. These are very private meetings. But we have nothing to hide. And I think it's good, I think it's a good we want to be a word you like to use, Jeff, is transparent. So we want to be transparent and we'll do that by starting with Pete. Go ahead, Pete.
- [49:14]
Josh Brown
Yes, Mr. President, we just got back from Panama last night. We were at the Panama canal with their Southcom commander ships, F18s troops, and signed a couple of historic deals, one which is with the Panama Canal Authority, a framework for US Vessels first and free through the Panama Canal and then also a memorandum of Mr. We'll take.
- [49:36]
Scott Wapner
You out of the cabinet meeting, obviously continue to monitor that anything substantial regarding tariffs from here, of course, we will bring that to you as we continue to watch the markets here off the lows. As I said, S&P 500 still down by 4.3%. The President in the commentary you just heard, quote, it's all going to work out very well, he said, but did add and I think this is important to discuss here on the desk There are going to be transition costs and transition problems, is what the president said. Direct quotes there. I guess my question to all of you is to what degree are investors, investors going to have to face the reality that the transition costs, what are those, what does that mean? Is that the trillions of dollars that has been wiped from the stock market, are those part of the transition costs that investors are going to have to tolerate? Transition problems? Is this part of transition problems to what the administration is trying to do? How do you guys think about that statement? And again, if you put it in total with what we've already heard over the last many weeks, detox, little disturbance, there's been some other commentary too. But now transition costs and transition problems.
- [50:55]
Bryn Talkington
So those continue to be vagaries. Those are not telling us what the tactics around the strategy is. I think until we the collective understanding the strategy, I guess we're seeing the tactics, but the actual strategy, I think we're going to stay in this environment and you're going to still have weak CEO guidance, weak consumer confidence, because we're still unclear what does that actually mean? And so what does detox mean? What does transition mean? I have no, I follow this stuff. I have zero idea.
- [51:28]
Scott Wapner
Does it mean $10 trillion wiped out from the stock market? Is that what that means?
- [51:32]
Bryn Talkington
Yeah, maybe, But I think it's more about, I assume they're talking to Main street and CEOs. And I just think if you think about the Port of L, A. Houston has a big port, the Port of L. A. They get like two thirds of their goods from Asia, a lot from China. So what is the Port of L A going to start laying people off? Because nothing's coming in from China. That's Main Street. And so I just think this is so complicated. And this is where the markets, I think are going to stay in this kind of Wednesday, Thursday environment until there's some clarity.
- [52:04]
Stephanie Link
We just the word clarity. You just need some answers. That's it. Even if you just get incremental, that will be good enough. I think given where the sentiment is at.
- [52:13]
Josh Brown
One piece of good news though, on the tax, like the extending the tax cut front. So the Democratic opposition is completely enfeebled almost to the point of parity. But if the Republicans want their help to work on a extending the tax cut, some of this tariff madness might be like the first casualty of those negotiations. Like they might there, there's, there might be a path where the Fed is coming in as, as soon as this spring and then this summer, all of a sudden There is a little bit of a break in the logjam with the trade stuff because they want to extend the tax cuts like it it doesn't have to go down into worst case scenario which it's too early for us to all agree. Yeah, this is as bad as it.
- [52:55]
Brent
Gets I think depends on what the consumer ultimately ends up doing. But I think that's even going to be muddied up because I think there's probably a lot of buying of large ticket items right now ahead of what people are fearing are going to be higher price pull forward.
- [53:08]
Bryn Talkington
Yeah.
- [53:08]
Brent
A pulling forward of demand. So but I do think at the end of the day given our our economy is so reliant on consumption, if that starts to slow then that is when the rubber really hits the road.
- [53:19]
Scott Wapner
Let me bring in Mike Santoli, our senior markets commentator is standing by for us too as you watch the way the markets have been trading today. Are you watching that the movement in the 10 year treasury yield more than anything because as it goes up stocks go down.
- [53:34]
Mike Santoli
Yeah Scott, I mean what I really and includes that watching is signs of capital flight, portfolio stress, force repositioning. That's what you care about. Now it's not surprising after a nine and a half percent pop in one day you're going to spill lower and try to test the range we're in yesterday in the s and P500. The issue does come when you do have these signs, you know, dollar cracking yields going up again of you know, in the effort to reduce the trade deficit. Our financial surplus is going down. And I know that doesn't happen in just that's not all the whole story of one day. But I think that's what's spooks people and that's what gets the Vix above 50 again which it takes a lot of anxiety to do after you've had a nine and a half percent pop in the index. So I'm watching all of that. The 10 year is absolutely part of that as well. You don't want to necessarily say we're at you know, some kind of maximum alert level on this stuff but I do think this is the overhang here. If the stock market was just about reacting to what it's been doing then yeah those oversight slow washout conditions in yesterday's massive 97% up volume day and a huge rally should insulate us from further new lows for this move for a little while. That's the kind of stuff where you say okay, that gives credence to this 4800 level or so in the S&P 500. But it doesn't really resolve or give people conviction about betting on, on immediate upside. I don't think in a sustainable way.
- [54:57]
Scott Wapner
It's like the only place it looks to hide today, aside obviously from cash. And you're getting a better yield than maybe you thought you would as gold is back green but Bitcoin's down, the dollar is just getting hammered. I mean the euro touched 112.
- [55:15]
Mike Santoli
No, exactly. And you know, Swiss franc is flying. So I mean, I think that's what people look at and say, okay, this is something a little bigger than, you know, what are we going to have to revise US GDP down to based on the friction transactional cost of the, of the tariffs and obviously the China piece of it is, is kind of massive. And now you have this environment where I think, you know, as we said yesterday afternoon, what the President did by his turnabout was cut off, maybe the extreme negative tail scenario. You just don't know how close to the tip it was cut off. And you know, what, what potential downside remains and whether the market's going to have to keep testing the administration and vice versa.
- [55:53]
Scott Wapner
We don't know either, let's be honest, what sort of damage was caused within the tumult within and the turmoil within the bond market. Who got on the really wrong side of that? You don't learn that in an hour or three or five or a couple of days. Sometimes it takes a while to see who had some maximum pain and then you have to clean up the mess after the fact.
- [56:18]
Mike Santoli
Sure. Although a lot of times, you know, a body floating to the surface is, it kind of does mark the end of it or at least we can quantify or have a sense that maybe the damage has been done and it doesn't always happen that way. Honestly, if it could just be a real like tidal turn in people's preferences of what they want to own and what they don't want to own globally, then then maybe we're not necessarily going to have to find an absolute victim on all this stuff. You know, saying all that, you know, within the equity market you have this had this massive reset. I'm really eager to see how stocks react to what's going to probably be lousy earnings and outlooks because that's going to give you much more of a hint of what we've discounted already with what we've done here with a, you know, near 20% move in a pretty short period of time.
- [57:02]
Scott Wapner
Good points and thanks for being with us. And I'll see you a little bit in a little bit. On closing bell, Mike Santoli, let's wrap it up here on the desk. Let's do some final trades. You guys have final trades for viewers today. I mean, good luck with that. Bren, your first.
- [57:17]
Brent
We need Vertex first. Non opioid pain medication. We think it's going to be a game changer.
- [57:21]
Scott Wapner
Okay.
- [57:22]
Bryn Talkington
Brent Robinhood, sell the May 2045 calls. Get three bucks.
- [57:26]
Scott Wapner
Okay.
- [57:26]
Stephanie Link
Steph, Palo Alto cybersecurity on fire.
- [57:30]
Scott Wapner
Okay, same stack there.
- [57:31]
Josh Brown
Crowdstrike. Super defensive with intact. This is an area I don't think you have to worry about. Earnings outlooks.
- [57:37]
Scott Wapner
Okay, I'll see you in a couple hours. You've been listening to CNBC's Halftime Report, the podcast. You can always catch us live weekdays at 12 Eastern only on CNBC.
- [57:53]
Unknown
All opinions expressed by the Halftime Report participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Halftime Report participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Halftime Report disclaimer, please visit cnbc.com halftime reportdisclaimer.