Good. You were with us last on march 23rd you said then, this could be near a bottom. You said that you were, quote, nibbling and it was time to buy a little if you were a longerterm investor are you surprised how far weve come and how quickly weve gone there since that day yeah, its been a bigger move than i thought it would be, for sure but look, theres been a lot of fed action and a lot of government packages since that day and on that day and since that day and, you know, a lot of that probably moved the market than it has the real economy up to this point. So those things happen now the question is, whats the right value for the market now well, thats an interesting question your friend, stan drukenmiller yesterday said this was the worst the risk reward for stocks was maybe as bad as hes seen it in his career. Hes had a long career, david. So do you feel the same way that stanley does how would you put this into context now as to what the right valuation for the market is . Dans much older than me, hes had a longer career so, anyways but, yeah, listen, i think i dont know, its definitely, as of yesterday, now the market is down from yesterday. I would say that 99 was more overvalued, 99 2,000 but i would say its one of the most overvalid markets, maybe the second most overvalued ive ever seen at that day. You know, i thought, if you talked to me yesterday, i would have said, before the market went down, they would have been 15 down and 5 uptype market you know, so, no, weve come down a little bit over the last two days, but still, i mean, that would probably mean its a little bit different risk rewards but its you know, the market is pretty high and the feds put a lot of money in here and its a question, has there been different misallocations of capital in the market. And certainly, youre veeg pockets of that now in the stock market and the market is, by anybodys standards, pretty full but then again, you know, its theres a lot of liquidity there and the fed is still there, so. You know, im not going to its too hard to say that the market cant go up or Something Like that, but its not a very good risk reward market. Ill say that. Youre in a position, obviously, where you dont have to do anything in the market but how does your view today reflect how your positioning looks today . Well, were, you know, listen, i think when we were talking back in march, we probably brought it up you know, weve been relatively conservative since, you know probably january i think that we probably brought our positions up to above 50 in equities and and now i would say that were probably more towards the 10, 15 level in equities. So not short, but not, you know, very guarded, i would say. Mmhmm. When people ask you, and youve sort of alluded to this and we raise this issue all the time and we get asked the same questions, im sure, that we do. How can the stock market, david, be where it is if the economy where it is. Is it as simple as the fed and washington and the amount of money that has been put into the system and does all of that put a floor under stocks, in some respect . It doesnt put a floor in the individual stocks. So depending which sector youre in now, you know, banks are down a lot today. And listen, if youre sitting at zero Interest Rates with this sort of economy with loan losses in front of you, you know, that sector is down today it may still be too high if you look at where it was when we were zero Interest Rates before in this world. On the other hand, you know, i mean, some of the tech stocks like in amazon may be not that overvalued, if you looked at what was before. Look, we went back and looked back in 99 to get a gauge of it and in 99, at sort of the peak, the forward earnings were 24 handle for the s p and maybe 70some handle for the nasdaq. And i think yesterday, those numbers were probably 23 for the s p, pretty high, by the way and for the nasdaq, it was probably in the 30s, low 30s so not that so its you know, im not saying the nasdaq is cheap by any stretch like that, at that valuation, but im just saying the overvaluations, 99, was more where youre having pockets is theres some crazy pockets, though, of misallo way, you knoo have some of theanies, if you s and some of these other sectors. Its down today, maybe they should be lower. You can make arguments if youre zero rates for like defense for four, five years its very difficult to make money there and you have the loan losses. So its a market of stocks and i do think, though, that, you know, as i said, i think that youre somewhat overvalued, you know, but, you know, its hard to say you know, that doesnt mean that you still cant go up. But as i said, i dont believe its a great risk reward you happen to own many of the stocks that have done well, whether its the googles or the amazons, which you were just speaking with. And the question becomes, as youve watched these stocks go up, almost unabated, its really been amazing, how long that can continue to what point those individual names are fully valued or become overvalued even in an environment, david, where we know that those are the ones that are going to do well, not only now, but on the other side of this, how do you think about those names that you own specifically scott, i have to tell you the truth, theres some days awake up and say, why am i if it was nicer outside, i would go golfing, okay . I mean, its theres you know, the fact that some of those names may not be tremendously overval lly overva mean theyre not full. There are certain things happening in the economy that could make them worse. Amazon is a perfectly positioned company. That doesnt mean its not fully valued, either, here and some of the other names you mentioned, you know, talking about a google or a facebook or something, theyre advertising companies. They have a lower multiple and they look like, again, that theyre not rich but they must be full. Fully valued so thats youre getting that sort of thing. And you have individual stocks and i dont want to mention smaller individual stocks, because theyll move, but people have to be very careful about some of these smaller nasdaq names that are just nuts just sort of ridiculously, ridiculously 99type, overvalued sort of names. Are you i know you dont want to mention specific names if we said there was a basket, if you will, of some of these socalled virus stocks, i mean, i think i think people can surmise, what youre talking about. Im not talking about virus stocks im just thinking, just you know, just general parts of the nasdaq that are just some individual names im not specifically mentioning a virus stock. And quite frankly, listen, if you thought that there had to be, instead of 30 million tests a month, 30 million tests a day, theres some things for Testing Companies could be you can say theyre cheap and there could be 30 million tests a day to really open up this country fully if we dont have a vaccine. So im not going to comment on that i dont know know those names. I have looked at a couple of things there are blind pools that people have invested in that went too high. And maybe i should have been more specific. So i guess im talking about ill say some of the names, you dont have to. But the ones that weve seen really go up a lot, that a lot of people have piled a lot of money into the pelotons of the world and the zooms, those socalled stocks, i mentioned them as virus stocks versus the once that have done really well my apologies i should have been more specific in the way i asked those numbers. And i dont know pelotons numbers, but some of those stocks, nothing specifically, but some of them have gone too high and people have to be very careful. I think theres not good analysis for states of economy in the future. I mean, this is a question of what you think is going to happen this virus or the situation is not going to last forever at this state on the other hand, it doesnt mean that we get a lot better. Just you ask the overall stock market question. With these, you know, these virus stocks, it doesnt mean that people arent going to go outside and, you know, put i dont know how peloton will say, look outside, and i dont know the numbers of peloton, so i hate to talk about it. But i would rather walk outside today. Do you feel comfortable and confident that the bottom is in, that were not going to go back and test that because of the actions of the fed and the congress yeah, i think that the bottom is in. I think probably, if the situation remains, you know, if were just dealing with a virus, and theres no other issues that come up, i mean, there is an election coming up there can be, you know, that well have to deal with if the tax rates are going to stay the same, depending on who gets elected, that has to be involved that the market has to deal with as far as regulation and other things, depending on who gets elected. That may affect the market valuation. We have to make sure that, you know, with china and such, the rhetoric doesnt get to such a heated level that theres a war or Something Like that but if you just are talking about, were in this sort of phase in trying to figure out the virus and, you know, how things get better or how we you know, how slow it recovers afterwards, yeah, i think, you know, it might, in that respect, there might have been a bottom put in that doesnt mean theres not, you know, you cant fall significantly from these levels. You mentioned the banks, for example, with rates being as low as they are and taking a look and trying to make an investment decision, as some of our viewers are undoubtedly doing, looking for value and maybe some of the cyclical names that theyre trying to look at now, that have lagged, some of the higher Growth Stocks. Is there a point where you look at an airline stock, david, which you used to invest in, or a bank and you say that some of these values are worth taking a shot at here i mean, listen, i mean, airlines, as long as the middle seat is open, which it should be, are difficult stocks i mean, theyre difficult. And i dont think you can count on more pure giveaways from the government in that sector. I mean, its kind of whats interesting, the government chose to give money to those particular companies that way they did. Im not saying they shouldnt have supported them. I probably would have supported them, you know, in a with a huge facility and bankruptcy, so they would continue operating. And not worry about the shareholders or the bond holders, butjust make sure the airlines run but, you know, you know, this is a little bit tricky right now, as far as some of that stuff right now, as far as the money to give away so it depends. Thats a tough sector right now, the equity, i think. If the listen turns around and theres a vaccine tomorrow, that changes, okay . You know, as far as the banks are concerned, listen, i like i want to be invested in the banks at some point. As i said, my problem is, if you think theres a long period of zero Interest Rates coming up, theyre just trading forgetting about the loan losses themselves, if people look where the stocks are trading where you had these loan period of zero Interest Rates in the past, i mean, their past, and probably, you know, im talking about the years from more or less 11 through 16, you know, you would not be you would not be looking so fast at those banks im not saying theyre tremendously overvalued. Theyre just tough investments so and i have to worry about loan losses, also. And the general economy. So if the fed is going to be its one of those funny sectors. If the defense keeps these rates at zero or near zero, its for, you know, multiple years, its just tough to, its a little bit tougher to make money from those companies. And theres still something called earnings out there that you have to have how are you thinking about the reopen in general . By the way, i want our viewers to know, youve given millions of dollars, by the way, to Coronavirus Relief i think you should be commended for that, for stepping up and urging people of, you know, maybe not exactly of your means fully, but certainly close to it, to do the same but how are you thinking about the reopen and how its going to go look, i mean, like i said a few minutes ago, i wish there were more tests so it could be smoother, but look, until this vaccine or tremendous amount of tests are available, it seems to me that were in this 25 to 50 type world for a lot of the services that we all have come to depend on you know, andi think that, you know, im a proponent of some sort of social distancing. You know, when you you know, that you should open things with some sort of social distancing whether thats 25 capacity in restaurants or 50 capacity or, you know, and some sort of distance and maybe a little bit less distance open here than it is in inside spaces, you know, i just think that you should youre supposed to try to open up and do that with mass or whatever and, you know, so now, if we open up that way and its a long time, this is you know, people are going to be disappointed on what numbers look like. You know, so,and i think that what you mentioned stan before stan is looking at that and the same people are too optimistic about the v. I think people are talking about the nike woosh more as a possible trajectory for the economy and that might be right. Again, its going to be you know, some people will say, testing, testing, testing, testing. And i think if you had if you had it on your phone that you got tested in the morning and, you know, then you could see that every day or any day you wanted to go to a restaurant that you were tested, the restaurants could run on a higher capacity numbers. Thats why i say testing or other sort of venues, so you could have big venues again that are fully open if you could go to the door, scan your phone like you do a ticket and you could see that you were tested this morning and you were fine and go in. You know, or something you know, even if you make some people wear masks or not but, you know, you dont have it so, i dont know we dont seem to be close to that point yet, but at some point we will be and then the question of vaccine, obviously so if you get a vaccine, and the problem with the vaccine is to make so many doses i mean, i dont know, Second Quarter next year, maybe, if were lucky. Its just a lot of the logistics of the doses, when people really have to do the numbers and the analysis of what it takes to make those doses and the logistics to have enough doses to make a difference, its going to take a bit of time, even if you get the right vaccine. So people have to be realistic about how they do numbers. Mmhmm. I mean, its they have to make sure they get the right analysis and timing of Different Things and like i said, if we could do, instead of 30 million tests a month, if you could do 30 million tests a day, now youre talking. So as were talking about testing, were talking about the reopen, masks, and you even tests that work reliable tests, im speaking about. Of course and youre going to need that if were going to play football this year you are, of course, the owner of the carolina panthers. Were dying for football, david, you know people are. Are we going to play football this year, do you think . Well, the nfl put out their schedule and, you know, its not so hard to, you know, test the people that will be you know, the question around playing football, because youre talking about playing baseball in july, right . So, i think whether they can do with the Labor Agreement youre really asking what are you really asking . Whether we will be able to play football on empty stadiums are you asking, will stadiums be filled which part of the question are you asking im asking if were going to play, period i would be surprised, frankly, if youre asking my own opinion, if we have fans in the stands, if were going to play in the fall maybe we will in some capacity, bu but you would know better than that me. Are we going to play football under any circumstances this year, do you think i think if baseball comes and you see them playing soccer in europe and were scheduled for football, i think there should be enough tests available to make sure that were safe on the field. As far as fans in the stadium, you know, if anybody is comfortable going into, you know you wont be having full stadiums, but that doesnt mean you can havent have some fans in the stadium, either if youre comfortable in being in a closed airplane for a crosscountry trip, you know, 18 inches apart, maybe with two seats in between you and being 5 feet away from each other, you might be comfortable in an openair stadium maybe maybe, right . Or if youre doing to are you going to a restaurant, if youre 6 feet apart, are you okay with 6 feet apart in an open air stadium . You know, so its practical. People have to its an analysis of what makes sense and not get you know, if thats what it is if you think that you can be closer and if you happen to have everybody wear a mask in a stadium, maybe you can be, you know, a little bit closer than that maybe you can be 3 feet away if you have masks or 3 1 2 feet away, whatever the number is with masks im sure youve seen some of the simulations with masks or no masks and how people can be. So, you know, an airplane, people are 3, 4 feet away on an airplane its a question of whats practical, what makes sense, some sort of distancing. Tests, da da da da da. What opens, what doesnt open, football, as far as the stadium and fans there should be some amount of fans in the stadium, depending on what locale and where you are and what the local rules are i mean, there could possibly be. So, yeah, listen t, the scheduls out. Youre a Washington Redskins fan . Thats right, thats right. Whos your first game Philadelphia Eagles are you going to win . Of course what kind of question is that. I wish i knew the rest of your answers as sure as i knew the answer to that one hey, i think we play you guys this year, well win that one, too. There may be some dispute on that point, but thats the 13th game of the year, so well see what happens yeah, we will i know youve got to run lets leave it on that note. I wish you the best. Thank you for being on today all right, thank you, stay healthy. Thats david tepper joining us our Investment Committee is here to break it all down, too. Stephanie link, pete najarian, cnbcs jim cramer, the host of mad money. I have to go to jim. I know jim will not like my answer about our first football game, but thats the way i roll. You would say the same thing if somebody asked you the question against my guys. Thats where im going. We play you a lot at the beginning of the season. I love to start with a w. Its just a great show of emotion. That was such a great interview. Lets just break that down for a second he did not say he hated the market he said there are places that are really overvalued. He said there are other places that are interesting theres more stocks that are overvalued than he would like. More stocks that could really take a hit but i love about what tepper does, is he doesnt just come on and say, hey, the market is overvalued, its awful, blah blah blah. He actually and i know you tried to pull individual names out of him and he was probably reluctant to do that, he has big positions and doesnt want to move them himself, but he plays fair, open hand. And if everyone did what he did, it would be a delight. I dont even know why he does it judge, i dont know why hes so forthcoming. Ping hes a great guy. And when i heard you had him at the beginning of the day, i said, this is the guy i want to listen to. Hes going to define what we should be thinking about and worried about. And thats exactly what he did, in a stock forum not in a way which was political. And i really thought it was just a great just a great interview. I appreciate it so much, jim. What i didnt realize, to be quite honest with you, when i was prepping for the interview, and i went back to look at the day that he was on with us, i didnt realize that it was march 23rd, the day of the low and what he had say that day about nibbling and he certainly wasnt suggesting that people go piling into stocks, because he accentuated the point of, sure, buy a little not across huge swaths of the market, but i dont think anybody, jim, saw the kind of v move that weve had. And as he rightly said and as Stan Druckenmiller opined on yesterday, whats next and thats where i want you to opine on for us now, whats next we had this move and now what . Im candidly for my Charitable Trust looking for stuff to buy we raised a lot of money because we thought it was going to come down there is no v. You get these moves right now and theyre throwing away some really good stocks, along with throwing away some really bad stocks it is absolutely true. Ive been using the figure 11 trillion good, about 17 trillion bad so that you may think, well, hold on. I dont want to be in a market where the 17 trillion bad but im looking at microsoft, okay ive been saying, if microsoft were to come down, now its joust pouring down i cant back away and say, i cant touch microsoft. I think its intrigue welcome because its a total winner in this environment and its a great Balance Sheet and has control of its own destiny boy wib boy, ill tell you, its web services doing really good not as good as amazon. But i would love to hear from the panel, because im sure everyone on the panel realizes that everything is being thrown away, all at once, and some shouldnt. And its our job to find the some that shouldnt be and skip the others, which are myriad and frankly very dangerous okay, so, steph, thats where im going to bring you in right there. What do you say to jims analysis and his questions i think hes spoton. There are winners and there are losers sometimes, though, the losers, the ones that are so hard, as david tepper just talked about, the runs that you can actually make a lot of money on, if you can time it correctly. You have to have a balanced portfolio. Weve been saying this for a while, but i want to go back to what david tepper did say, and he said the markets rallied because weve had an enormous amount of stimulus to put that into perspective, we have 38 of gdp in the u. S. , going to stimulus. Monetary and fiscal policy, and were going to get more fiscal down the road, most likely put another way, m2, money supply is up 14. 5 yeartodate. That compares to 4 in 2008. So you do want to own risk assets, when theres all of this liquidity in the air i mean, you just do. But you have to choose carefully. And i do say the barbell still works in my mind, because i do think the reopenings are going to lead to a recovery of some sort, so you do want to have some cyclicals you want to have some banks, by the way. But you also have to have some of these Growth Stocks that are longterm secular winners. You have to have some banks, those are your words why . Why . Because i think theres value there. I understand the zero Interest Rate policy and i know the challenges there, but you have these stocks trading at seven eight times earnings maybe those earnings have to come down, because loan losses have to go up, but thats not a surprise if you believe what i do in terms of the economy and seeing a gradual recovery, they will benefit as well. I do like the paypals and the finteches and the Health Care Stocks of the world. And also the f. A. A. N. G. Names and technology and those are groups where i am overweig overweight, but i do feel like these other stocks are just throwing them waep they have a lot of leverage if we do see a recovery youve got to stay patient youve got to stay patient pete, are you a buyer of stocks today, or do you think the market is pretty full, to use the words of tepper . Others are giving their opinions, too, but where do you come down and whats your money talking today . Sure. Well, when i listen to david tepper, he makes a lot of sense. Hes talking about risk reward and where we are right now is, the reward theres a heck of a lot of risk for the reward where we are so one of the things ive done for a long time, scott, has been, how do you actually trade your portfolio and steph, i know, is a very aggressive trader, as well i probably am the most aggressive on the panel, just because i have so many different option roles that i play, as well so when im looking at this right now, what really stands out for me is, i was looking at my positions, coming into today. And at one point in time, i came back with you and i said, i had the fewest number of option positions ive ever had. I think i was down to six. And yet my stock positions were rising and why is that . Because we had a lot of volatility we had volatility anywhere between 50 and call it 85. So opportunities to buy stocks that are getting sold off and sell huge premiums against those. Ive been taking some of that off. Now if you look at my portfolio, youll see that ive probably added just in the last three or four days, ive probably added about 18 positions to my present positions that i already had so those are all on the options side of things, however. Not on the stock side. As a matter of fact, ive gotten rid of a few stocks. So i think you just have to move around in the market that were in right now, scott. And you guys were talking about the risk yip stocks. Those are the really the ones that im talking about in terms of data dog and twitter and go through your various names of all of these kind of crazy zoom are you telling your brother that yes, because your brother is buying data dog and other names, too. Yeah, and so am i and those are on the options side, because i have my list my risk is limited jons not buying those stocks, i guarantee you that hes buying the options in those stocks and thats what ive been doing. So i have a huge portfolio now, those have been running like crazy to the upside absolutely nuts runs a lot of short covering, a lot of Different Reasons on why these names are moving to the upside i agree with david tepper. Theyve probably gone way too far, way too fast. But that doesnt mean they arent phenomenal trades and you better be disciplined if you want to be on that side of the trade right now. Wait a second data dog lets just give you the brief on it, all right . Its the largest beat this quarter, all right its the largest beat in raise in technology this quarter i would not own it, but at least, lets give it its due theres three companies that were beating raises this quarter. Lets give data dog that opportunity. Steph, you know that thats one hot sector and they did do a great quarter. I dont want to buy it its too high. But you understand that that was a great Conference Call and really, theyre doing a terrific job. It absolutely was and actually, the secondbest one was paypal absolutely. How great was that quarter . 13 revenue growth, total payment volumes in april recovering to 22 growth in the second half . Theyre seeing a lot of momentum the problem is, these stocks are expensive. This thing went from 31 times to now 43 times so youve got to be disciplined. And to your point earlier, jim, you definitely want to have a list we used to have a list together. And you want to on the down days, you put it together and thats when you start nibbling, right . Right and were talking about i think that tepper is right i get these lightning round calls, i look at these stocks, theyre parabolic, and theyre you dont know what they are and theyre all hype and theyre spaks and whatever paypal and data dog are too hot, but they are the only ones that really put up good numbers skpempb and everyone elses numbers are kind of awful versus these guys. I wanted to distinguish between the tepper hates which i believe are the runs that never have anything cooking at all. The stock is too high. You deviambiguous mentioned n disciplined. Speaking of, lets bring in our submariner, former, our naval officer, mr. 13 is what i call him now, because, Jim Lebenthal, your cash levels just keep going up and up, not by large amounts, obviously, but they keep going up, reflecting sort of a more cautious market view and waiting for your opportunity are you going to get an opportunity . Well, maybe this is it. And youre right, there is a drip, drip, drip aspect to the cash build, which submariners dont particularly like the sound of drip, drip, drip, but the conversation were having is one of stocks. It started with david tepper saying its a market of stocks so i sold something today and im doing it because of the fundamentals of the economy, right . Constellation brands, its a great Beer Distributor you have the lockdown in california by however you want to define it continuing, it looks like, until august, at least in l. A. County and youve got a slow emergence in new york. Look, all of this hurts restaurants, it hurts bars, and a company like Constellation Brands, they sell a lot of kegs. Thats where they make their money, is selling kegs of beer i like beer, but im not buying it by the keg. Nobody has anybody else in their home, as far as i know before you go to the one you bought, jim cramer, im guessing that you have thoughts about jim selling Constellation Brands constellation is having a problem in mexico. Im not sure exactly where the talks are, but i am worried that constellation, this is not a highquality problem, its going to run out of beer, which is really incredible. The inhome consumption of corona is very strong and theyre having real problems it does not seem like theyre going to can you imagine they had a big Cinco De Mayo if you run out of beer, its not a good situation just because i do if things opened up and you knew that they had a consistent supply, i would be intrigued by what theyre doing in terms of hard soda, hard seltzer. But, yeah, jims right theyre constrained right now. I thought for sure that they would be deemed essential and that every single that many bars that were open. But the new rules on bars is horrendous i own a bar, a mexican bar if were following the tennessee pledge and the tennessee pledge says you cant open a bar at a bar, youre not allowed to have one, because we dont have any the city doesnt tell us what to do its new york, its that guy, de blasio we dont know what to do were we lying on that pledge. Well go out of business nine times. Every time they give us more ppp, well take it and go out of business again its really, really tough. I agree with him good call. Jim lebenthal, you use that money and you bought verizon yeah. And look, its hard for me to get really excited here. What are we talking about well, jims excited youre the one who bought the stock and youre not excited jim cramer didnt buy stock and hes excited its not tmobile, but listen, im going to call it what it is, all right . Its kind of a chicken way of still keeping your equity exposure im not putting you down, jim. It is what it is its a 4. 5 dividend yield and look, the multiple on this stock is going to expand by like half a turn every year or so youre going to get 4. 5 and maybe 5 on Capital Appreciation for right now, thats okay but i think, you know, look, were talking about stocks, but scott, you led with, hey, im dripping into more cash here and its true. I used that as an opportunity to raise. Im a little bit above 13 and thats this overall discussion of the v versus u. And i think the market right now is recognizing that profits arent going to come back in a v shape, whether its because of whats going on at constellation, or the fact that middle seats on airplanes have to be empty or whats going on with commercial real estate, et cetera, et cetera. By the way, like jim, i think you said, im getting my Shopping List together so am i, so am i i think you got a little more patience is called for, before i if you, Jim Lebenthal need a Shopping List, just use jim cramers covid19 index. Theres some good news on there. And theyre perfect and theyre the ones that do well in a shutdown what can i say theres a lot of companies that do incredibly well in a shutdown and look, if zoom does come to yes, i would even buy zoom again. I would. I would go back to zoom. Its not my favorite, its come up too far but there are a lot of companies that were made for this moment and that are doing well. Look, were going to hear cisco tonight. I dont know what cisco is going to do, but they have webx and that is a fabulous business. That is the really secure zoom, so to speak. And maybe this is their quarter. Theyve missed a couple of times. I dont know steph, can they pull it out . I think that if you listen to what juniper said about their supply chain issues, i think that theyre going to have some supply chain issues. The question is, can they offset it with other things we know Service Provider is going to be very weak. It has been for a while. Enterprise spending, we dont know but to your point, yes, webx is right at the core of what were talking about here, right . So hopefully they were able to execute. In the meantime, excellent Balance Sheet, pretty good dividend yield and a very cheap stock. So if its weak, this is the one i would actually add to, absolutely how come, jim, its not i your it didnt make it way into the index, though you had to hit certain benchmarks had to be up a certain amount, they are not and the stock has been an underperformer, of late, its done okay. But its not those stocks are all companies that have really hit their, you know, crushed the benchmarks look, is peloton on that list . Yes. Is peloton a big joke . No why . Because these gyms are going to be the last thing thats opened and people are desperate to be able to stay in shape. And you cant get one to the last week of june. I like that situation. I dont want to own the stock of peloton, its obviously gone parabolic. I dont like to buy parabolic stocks, but i get the case its not phony i get the case interesting, netflix, roku, which Jim Lebenthal can opine on in a second, snap, spotify, akamai, trade desk, thats Home Entertainment providers. Akamai got hit badly yesterday. You have to start looking at it. Home entertainment is here to stay i dont believe the vaccine is anywhere near. And i think the world changes when we get the vaccine. I thought that the rhetorical questions that tepper talked about in terms of whether you go to a football game, the answer is no, not without a vaccine you wouldnt what, do you want to sit next to 70,000 people that have a cold no, thank you. Right thats not going to be a reality. Vox was 50 and nobody was in there other than say the judge, maybe a kid, okay. Box is made for four now that would be good. Health care is your Biggest Group of your index. Youve got 20 stocks and i think were going to put some of them up and ill go through or you can tell us the ones that you love the most on this list because there are a lot. As i said, 20. Eli lilly, he made the quarter so baxter, put that on, because im going to be with steph. D dexcom, just did a convert at 0. 25 it had a very big run. Dwl glaxo is finally moving and if you want to know who is on the far turn is the glaxo sanofi vaccine, which is very good. Abbott, theres a story today about the new york the nyu hospital that says that their tests are unreliable i directly dispute that. They are doing things wrong, theyre not doing the tests right. Theyre doing the time of transport is too long and theyre doing the tests wrong. Theyre using viral transport medium forget the complaint its wrong abbvie, cant wait to speak to them that combination is great. Another steph name sensy, incredibly cheap. You cannot beat them in terms of medicare, medicaid for managed care united health. My hat is off to them. Can they be better gilead, too much promote, not a lot of bad money coming down and it will be fine. Hey, pete regeneron, by the way, is the one that have will the antibody. I dont know if cramer is looking to pick a fight with you, but costco, walmart, dollar general, home depot as his retail survivors, i dont see your minneapolis stock on that list it was on the it should be. It had a spurt jim, you made a mistake i caught it on that day when we said it was doing badly that was really remember when they gave the 40 number and it ruined the performance. So i had to take it out. Target were talking about, for those target is great i did target last night and i said target is fantastic theyve been on fire. Theyve been on fire, by the way. A bummer for them youre right and jimmy, i will tell you this, as well. Its really sticky the one thing Brian Cornell talked about was how sticky its going to be when we do come out of this and everybody says, well, were going to go back to normal, everybody will drop this, no, theyre not. Target has acquired, and when you acquire, which is very difficult, then, until you screw up, people will continue to want to be there. And i think thats one of the reasons why a lot of people have missed out on target this entire run. Lets go back to the fact that this was a 60 stock, came running all the way up and here we are, and then it pulled back once again but i think each of those pullbacks has been an opportunity in target. This one might be i put together the list on a certain day and target had its big moua brian came on and said great things about the dotcom and the stock went down. Thats when i put the list together you are right, that was a great day to buy went down to 104, 105, that was crazy this thing goes to 114 come on, lets go lets get this done alphabet, amazon, apple, microsoft. Obviously, stocks that have done well pb but even tepper himself said, okay, well, you know, the market look pretty full that doesnt mean it cant go up, right . These stocks have done well, that doesnt mean that they cant continue to go higher. Is that in the calculus of how youre thinking . There are clearly defined perceived winners versus losers, so to speak. Every one of these i can make i can make an earnings per share growth versus where the stock is, that makes sense and amazon, i just think, i dont know anyone who hasnt survived so far the pandemic without Amazon Amazon is the pandemic 4 billion, theyre spending, to keep their people healthy. And this company is i dont know my mean, i dont want to go to the store, judge i dont. So i go to amazon. Well, you and a lot of other people well, what are we going to do target good online, but target is great pickup. Walmart, great they got all of those warehouses, which are actually their stores but the love for amazon has become i mean, look, guys i mean, i leave the boxes out for a day, because thats what they tell you to do. And i do how many of you guys leave it out for a day . Everybody . Jim, im cleaning things ive never thought i would be cleaning its become kind of ridiculous you know i use a clorox wipe after i eat lunch. You know, here i go, you know i know its not right, its poison i feel you, man i really do. I cant believe some of the things im wiping down its insanity. Jim lebenthal, on this list of jim cramers in his covid19 index, give me two names you like the best well, okay, we got to go roku, i know yeah, well, roku has just lost its momentum, right this thing was a beast in 2018 and 2019 it went up more than 100 in both of those years. It also came down by more than 50 . This year and into the late 2019, its just been stuck in a range. So without momentum, then you look to valuation and you say, im not going to earn it or excuse me, own it at ten times sales. Bring that down to high Single Digits and maybe i can get around it. But youre talking like an 80 a share target price, just to buy it so thats a notouch for me right now. Its got no momentum but the one that i think is interesting on there, with amongst many, is pfizer. And i know thats one of your Many Health Care plays there, but theyre a leader in the vaccine candidacy. Their share price is basically where its been for the last four years theyve done a lot in terms of restructuring the company. Good dividend yield. I think good leadership. That ones that ones at the top of my list and i bought it recently thats the verizon of that group and i totally agree with you. I think pfizer is the i was wondering if you were going to say that. I am a little transparent but people are watching at home and are trying to figure out, well, we mentioned all of these stocks what are the ones that they could buy and then buy more of if they went down . It would be verizon, it would be target, okay i would feel greatly just great about those, and pfizer. And i want to hear steph bac baxt baxter i would throw in salesforce. Com its up 4 service now is at 25 and trades at a discount to workday. And i love the fact theyre not going out and doing all of this m a. This year, i think theyre in the sweet pot and i think youll see operating leverage i think youre right. Getting killed, this thing is down 10, people should buy it. This work. Com is real. Service now is great, but its not look, he when i look at what benioff is doing right now about opening in phase ii, its really remarkable mcdermott is unbeatable as a salesperson, obviously, at now, but i agree with you, steph. Thats why you have that little red bull behind you that you always talk about when we watch you. I want to get a quick comment and a couple of your books. At least. I want to get a comment quickly from you, pete, on our conversation now, because this plays into a lot of things that you think about. Pfizer, i believe you still own, right . I do. Ive owned it for many years, yep. So to play along, i would say this i own pfizer, i love it. I would agree with what jim said, both jims, that it hasnt done a lot in terms of producing as a stock, but it has that dividend yield and we also like the fact that they are in the vaccine world. But i throw in merck love that name i think great leadership there, as well. Thats another name that i would toss in there. And the one thing about microsoft that we all do understand, i think, and thats why its performed so well and the selloff wasnt nearly as harsh as everything else, but part of the reason behind that is, theyre in the sweet spot of just about everything there is in terms of what they are as a company. And when you look at the fact that theyre competing and beating slack. When you look at all the different areas, where theyre either winning or catching up, and i would say theyre catching up against aws, so theres so much going on right now within that stock alone that microsoft is i think its a mustowntype name its one of those names where either you own the stock or are owning the calls or owning it in some, way, shape, or form, because they seem to be in the exact spot you would want to be given the backdrop of what weve got here in america right now. We could spend three hours talking about all of these stocks there are so many interesting names to chat about, which means well just do this many days well take a quick break, well come back. Avenue capitals marc lasry joins us next. And a reminder, you can always watch ltetos veorisn uli on the go on the cnbc app were back right after this. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. All right. Welcome back we continue to watch stocks today. They are off the lowest levels of the day still looking at a dow thats down about 500 points. S p is down a touch more than 50 points lets bring in avenue capitals marc lasry for our weekly checkin on the markets. Marc, welcome back this time goes so fast it does, doesnt it and then it goes so slow, sometimes. Some of these days feel like they take a week all right, so, you havent really been a huge believer, i think its fair to say, about this move in the market. Its been too far, too fast. Thats fair, right yes so i had david tepper on a few moments ago. Did you have a chance to hear our conversation i did okay, overvalued, he thinks the market i want to lets thereon what he had to say, remind people, and we can react on the other side of that, okay . Sure. All right its definitely, as of yesterday, now, the market is down from yesterday. I would say that, you know, 99 was more overvalued, 99 2000, but, yeah, i would say its one of the most overvalued markets, maybe the second most overvalued ive ever seen at that day now, its important to note, marc, that its not like david tepper hates this market he said that this market could still go up. Our camera is moving around a little bit, but well fix that so, because a point. Okay, the market goes up and you want to say, well, the market looks so overvalued. Risk reward is so bad. But then on the other hand which tepper brought up is you have the fed, the congress with the money flowed into the system how are we supposed to think about it now you hit the issue head on so if we were dealing with fundamentals, the market wouldnt be where it is because Everybody Knows ebitda numbers will be lower and more issues but when somebodys pumped 4 trillion into the economy, and theyre willing to pump even more money, its hard to figure out. So you sort of look at that. Theres a rule in investing which is dont bet against the fed. And i think thats what equity players are doing. If you talk to equity players, theyre going to go, look, the feds my put im going to keep on investing and i know that things will be fine if you talk to Bond Investors they look at it and go, look, companies are telling you that theyre at 20 of where they were in at the end of 2019. This is going to end bad and thats the dilemma so i think for folks like me im just going to look at the numbers and telling me it gets worse so ill just wait. Yeah. It is interesting. Jim cramer with us, too, marc. Marc, you are so right. It is a put. Like i was looking at three stocks i would have shorted if i was a hem fund manage. Royal. Roig caribbean, carnival and norwegian. You have 50 in a week they all got Royal Caribbean got the money last night so what is happening i think over and over again what you think should just go to zero gets bailed out and then feeling better and i keep coming back to the, wow, how did that get saved everything seems to get saved except for some retailers and does make you feel like be careful. Theres real bargains. Dont hate carnival at 8, different than carnival at 50. I think youre absolutely right. Thats the dilemma you are saying hows the company able to borrow money when we all know that nobody can get on those boats for at least six months or a year so because the fed is there . Thats the put so you have just got to wait until companies arent able to borrow money or until reality comes back look it may never come back if thats the case, thats fine but i think over the course of the next three to six months companies will have you will have more and more filings, the winners and losers on the health care side, those are the winners. Right . Talking about amazon, who isnt who isnt using amazon . Of course theyre a winner i think david was right and you are right on the Technology Side youre going to see that those companies, those are going to be huge winners, apple and facebook but i think for just, you know, run of the mill companies theyre going to start having huge issues. Didnt we sort of i guess kind of learn our lesson about this, marc, ten years ago plus and the fed came in and it came in hard in the crisis and now it is coming even bigger and making clear and powell did it again today. This was an ill do whatever it takes kind of comment that he made today without saying those exact words. Yes, we need some help on the fiscal side, too it is going to be expensively and costly but worth it. As long as you have that, i know that it may be distorting certain parts of the market and propping things up in some eyes but so be it thats the you got to play the game thats being where the rules are and how its being played. I totally agree with you. That is what is happening. We are not going to bet against the fed. What we are going to do is wait until companies have to restructure or file so youre going to have those companies. The question is how many is the fed instead of a 20 default rate, will you have a 10 default rate or 5 . I dont know what it is but what i can tell you is every day youre seeing more and more companies having issues and you oar right. Heres the new rules of the game so im not betting against the fed. Im not going short the market even though i think its overvalued david said he wasnt and may have reduced the equity exposure but not going short because he knows the rules of the game and if anybody knows on the equity side it is david te the tepper. I agree have you done anything since last week, any areas of Corporate Credit . We are still investing but it is what we talked about. Investing about sort of, you know, i think for us a percent a day. Well keep on investing money. Were just going to average in so i think theres just we are just seeing more and more new names. So far so good. I asked david about the nfl coming back. There was a call what was the call yesterday yesterday. With adam silver. Uhhuh. You guys coming back . I think we are. I think everybody wants to come back i think were we will have games without fans obviously. And then the question is, how do we keep our players safe and i think once we can figure out how you test and get the results right away well get there but, you know, my hope is that we get there end of july, early august thats when we can finally Start Playing but it is all a function of whether we can test the players. And, you know, just one more thing. I know youre a big fan of the redskins and we need you to be a fan of the bucs and then you have the two best teams. My son loves giannis. Thats all we need. Appreciate you checking in with us. Always. Take care. Answer some of your questions, too we have a few minutes before we run. Stephanie link, first, okay . Sure. Firsttime investor, mike in new jersey, what are a couple of top stocks to invest in . Well, i would just go with quality. Blue chip. Great Balance Sheets great management teams i could give you 100 names but i would look at google for sure. It is not cheap. I like starbucks, still down 16 on the year. J j raised the dividend. And Union Pacific as a cyclical. Good stuff. Jim, to you, perry in spring valley, california, with the current market uncertainty is current 30 cash position too defensive . Whats a reasonable prudent cash position dont say 13 . Thats a little going do say 13 . You know i am. But that 30 is a little too much right . Perry, i hope you have been listening to the excellent conversation we were just asking with marc and dave earlier you dont want to fight the fed too hard i may be at 13 so you might consider that. Jim, pete in north carolina, is usb a buy i think its a hold for me. I dont know i guess you want to maybe start buying if you didnt own it here i think the reality is when we look at the company it is very, very inexpensive steph talked about the banks to have a presence in this is a Warren Buffett name. I think it does go higher eventually but takes time. Jim cramer, it plays into your index joe wants to know, my portfolio lacks Health Care Exposure are there any particular companies that currently have more room to run because of the runup, joe, i want to give you a 3bbvie. Balance sheet is good and dont have to buy it all in one fell swoop if it keeps going. Awesome jim, you have chuck i have chuck. Look i cannot predict it. Last couple of quarters not that strong but he has some divisional lines that are good always worry about Service Provider never worry about chuck being a straight shooter he is a falcon fan which really is very confusing. It is the wrong bird there you go. All right. Jim, lets do this quick to get to finals. You own it steph, you own it. Jim first quick though. Listen. Cisco disappointed nine months and since then its about guidance the estimates coming down for 2020 and 2021 and need to not disappoint on guidance. Steph give me ten seconds. I think they get a pass on guidance everyones getting a pass of guidance nobody knows what guidance will be but you have to keep an eye on supply chain. Thats the problem this quarter. Steph, quick, final trade. Ulta. Whoo jim yeah, well, you know what, cisco. Pete najarian netflix jim, you have a quicky for me tjx awesome having you. Thank you, everybody kelly evans picks up the breaking News Coverage right now. Masterful how he squeezes all that in. Scott, thank you hi, everybody. Fed chair powell said the path ahead is highly uncertain. Stocks are sharply lower as wall street starting to fear we need a new symbol to explain the new economic reality we are about to face plus the Global Supply chain in tatters in the wake of covid19 and news that at least one Major University on the east coast is hoping to have students on t
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