CNBC's Final Trades: These 2 Health Care Majors, Verizon Communications And iShares 7-10 Year Treasury Bond ETF

BY Benzinga | TREASURY | 07/04/22 10:45 AM EDT

On CNBC's "Halftime Report Final Trades," Jenny Harrington of Gilman Hill Asset Management said Verizon Communications Inc. (NYSE:VZ) is trading at nine times earnings and 5% yield, which is "better than a bond."

Jim Lebenthal of Cerity Partners mentioned that Bristol-Myers Squibb Co (NYSE:BMY) is a "very safe play" with a "very forgiving valuation, decent dividend yield." He added that it is operating in a space [health care], which seems to "have a nice uptrend to it."

Check out other healthcare stocks making big moves in the premarket.

Pete Najarian said Pfizer Inc. (NYSE:PFE) has solid free cash flow and pipeline. "I think there's a lot more room to the upside for Pfizer," he added.

Rob Sechan of New Edge Capital Group said that treasury yields and credit spreads are both close to a peak. He recommended to buy iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) and "sell whatever high yield proxy."

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.