CNBC ‘Halftime Report’ crew talk American Express, Cleveland-Cliffs, Snap, and two banks

Written by: Jayson Derrick
April 23, 2021
  • American Express stands to benefit from pent-up travel demand and rising rates.
  • Investors may want to hold off selling Cleveland-Cliffs and Snap on recent strength.
  • JPMorgan offers investors the most diversified revenue stream in the banking space.

CNBC’s “Halftime Report” crew fielded a handful of questions from viewers. The four stocks mentioned during the Q&A session include credit card giant American Express Company (NYSE: AXP), mining company Cleveland-Cliffs Inc (NYSE: CLF), social media company Snap Inc (NYSE: SNAP), and bank giants JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS)

Amex: Is it too late to buy?

Shares of American Express are up more than 20% since the start of 2021 but it isn’t too late to buy the stock, according to Aureus’ Karen Firestone. The asset manager said that American Express is well-positioned to benefit from a rebound in vacation spend, especially pent-up demand for business travel. American Express will also benefit from higher interest rates.

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“We still like the stock here and it’s [trading at] a discount to the market,” she said.

Cleveland-Cliffs: Is the momentum over?

Cleveland-Cliffs reported “excellent” earnings on Thursday and the company is led by an exceptional CEO in Lourenco Goncalves, Cerity Partners’ Jim Lebenthal said. 

Goncalves raised Cleveland-Cliffs’ outlook for the second time in 2021 and the company is on track to end the year with a leverage ratio of 1.0 with expectations of moving lower in 2022, Lebenthal said.

“I previously said I might sell this in the $25 range — nope,” he said. “I’m going to hang on to it. We are going to be talking about this for the next year.”

Snap: Time to pocket a 250% return?

A viewer asked Jon Najarian if now is the time to sell Snap at a 250% return. According to “DRJ” the stock can find major support at around $56 and he will be looking to re-buy the stock should it fall to these levels. The investor was advised not to sell at current levels, especially after the company reported impressive earning results on Thursday.

“This investor is a lot smarter than me because I didn’t own it from $13 all the way up into the $60s,” he said. “So, kudos to you.”

Buy JPMorgan? Morgan Stanley? Or both?

Last to field questions on two banking giants is NewEdge Wealth’s Rob Sechan. Sechan said his firm only has a position in JPMorgan. JPMorgan offers investors the most diversified revenue stream within the entire banking sector and should benefit from rising rates and lower credit costs.

“I like both but we only own one,” he said.