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tv   Making Money With Charles Payne  FOX Business  April 14, 2022 2:00pm-3:00pm EDT

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2021 was an exciting year for evergold. the company discovered its first high-grade gold-silver domain at its flagship property in northern bc. the excellent drill results set the stage for a bright 2022. evergold. neil: the dow up 104 points. usually my friend charles payne can keep that going, and then some. charles: they call it the cp effect. may be the musk effect today, neil. neil: i hear you. charles: good afternoon, everyone, i'm charles payne, this is "making money." breaking right now the stock market is taking a back seat to the elon musk show. the drama revealing cracks and divisions in our nation. i have brilliant minds on wall street and i have a few thoughts to share as well. banks showing earnings reports as they made a bundle on trading. are these the same suits calling retail dumb for actively
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trading? the biden administration activates the inflation push. they said it was dick enworld back then. some americans could not find food. i can't wait to seek might teeth into this latest kinard. all that and more on "making money." ♪. charles: you heard elon musk make as $54.20 all cash offer for twitter. the way the news is covering this underscores how hostile the media has become to free speech. i was livid listening to nonsense about funding and how musk could convince wall street toe back him and maybe he would have trouble doing that. of course i tweeted as much. listen there are other questions. what the business model would be? the fairness after single person owning the quote, unquote, the public square. all specious stuff in the grand scheme of things. in his letter to the ceo musk points out free speech potential, he says how generous
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the offer is, how he could unlock the potential of the company. he also notes that this offer is his best and final. the reason for so much of this phony coverage is fear musk would allow president trump to return to the platform but in might actually be good for business. you know, when jack dorsey permanently banned donald trump, then the sitting president of the united states on january 8th, 2021, he probably felt it wouldn't hurt the business, right? he thought he had a pretty good runaway. here is the thing. he thought like many multinational corporations any loss of domestic american business would be made up outside of this country. so the company posted their earnings results a month later. the stock rallied 13% that day. 24% the next week. this was for the prior three months! the move lasted through march 1st. it peaked over $77 a share, guess what, folks, it has been downhill ever since. make mo necessary take while this is about free speech, musk knows free speech is a great
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business model. there is the excitement that social media is not working. it is just not for twitter. take tiktok for instance. they will do more ad revenue than twitter and snap combined this year. as far as execution, business execution, in the last 12 quarters, twitter's management missed wall street consensus nine times during the same period tesla only missed three times. there are other metrics i can go through with tesla, spacex, that bee low the notion musk couldn't handle this particular job. if twitter accepts the bid it would be a victory for free speech by the way the very foundation america was built on and the only the way the nation can be dismantled if we take that away. there is other news out there, folks. market, including banks having big-time earnings reports. i want to go through them now bringing in yardeni research ed yardeni. i know you write the movie reviews, i dig them a lot, but this musk twitter drama better
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than anything you write this week. what are your thoughts. >> it is fantastic. when he takes us to mars we will have twitter to keep us entertained during the free time we have. i have no problems with free-market capitalism. if musk has the where with all to buy twitter, i think is fine. you made a very good point and that is at the end of the day companies should be run for profitability. it is not the only consideration but certainly should be there and to the exten that musk can focus the company on businesses that will expand its revenues and earnings, that's a good thing for the shareholders. neil: i think so. listen, they have got meetings today. the management's there. a lot of pushback. but i think ultimately if you strip out all of the midcall ideology, musk might be just what they need over there. i want to talk to you about earnings. >> sure.
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neil: start with the big banks, right? solid numbers for the big money center banks. they made massive amounts on trading desk but interestingly missed on investment banking. what is your take so far from the banks? >> i think the takeaway on investment banking it's a cyclical industry. sometimes the cycles can be very short. certainly in the first quarter there was a lot of tumultuous events including market coming to realize that the fed was turning -- charles: ed has frozen on us for a moment, folks. usually when this happens they come back. i will try to buy a little bit of time here because what i wanted to talk to him about next is the federal reserve president, new york federal reserve president williams, he came out today and actually said what a lot of people on wall street know and understand but on main street you would be shocked to understand. the federal reserve wants to cap the jobs market. they want to slow undo the jobs market. remember they have a dual
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mandate. they have to keep inflation under control and maximize jobs but they're saying this time around no, we want to, i won't say destroy the jobs market. they certainly want to curb the jobs market. we have 11 million jobs open. i'm not sure exactly how the if you had does that. another thing i've been talking about for a week the fed actually trying to derail the stock market this is where they're having a tough time. they want to derail it 20%. that is palatable, right. if we go down 20%, what is to stop it going down 30%? this gets down to the wealth effect. the fed loves the wealth effect but now it is on steroids. this is called a soft landing and we will see if they can do it. i don't know if we get back ed, but brian belski, the permabull who has been perma right. before we talk about the market i want your thoughts on musk and
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twitter? >> i think it is amazing. it is great theater. as you talked about earlier puts pressure on media to be more forthright and we'll see what happens. i think it is really, really interesting. again, once a disruptor, always a disruptor. an, if he can disrupt twitter i think that would be marvelous for everybody. charles: you know so funny the average share price target on it was 44. twitter hires goldman sachs with a target of 30. sell the stock in december because it goes lower. will be funny to see how it plays out. the market has had similar drama over the last year. what is interesting you are the elon musk of bulls. every time the market is hit, they look for belski, want to give you a little bit of problems if you will. we're in a little bit after range, brian. came off-key support, double-bottom, that was fantastic but we couldn't break
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out. is this a base being built right now? if so, what breaks us out? >> i really think so. we've been taken behind the woodshed the last couple weeks as people are jumping on the bearish bandwagon but looks to me like we're trying to bottom out from a price performance perspective in the price performance. we're topping out on bonds almost today we're hitting new highs again in the 10-year treasury yields so the price has been excessively weak but we think that is way overdone in terms of the bond market weakness. that we'll see a bottom in prices and a top in yield, i think counter cyclical rally is coming in bonds which would be very good for the stock market. that is something you're not hearing from anyone. charles: this is my theory, what i'm leaning toward myself, the market takes off the day the fed officially hikes the rates 50 basis points. am i nuts? >> sell the rumor, buy the news,
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right? remember in the old days you just had dissension on the fed which was actually quite prevalent in the '80s, '90s. we all sang kumbayah together once the new millennium came in. now all of a sudden the fed governors can't stop themselves from the bully pulpit, social network, social media. i wish they would be quiet. it is causing more problems. think about this, think about this, in march of 2020 10-year treasury yields at four basis points. they came back down and tested them in may, five basis points. that means at current levels i haven't seen, 275 basis points. 275 basis points, 10-year treasury yield has gone up, the fed has only gone up 5 basis points. the market, the bond market is already reflecting already reflecting what the fed is going to do. the market can't go down anymore than than this, i really believe that, charles. charles: right. >> we'll see a ral in bonds that
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fuels the stock market rally. i think you're right. charles: let me pick up on that for a moment. my theory is, we talked about whether the fed can hike 11 times in a row. can they really be volckeresque. my feeling they can't. they're trying best to jawbone the market down. i don't think when push comes to shove they will make tough decisions many people are baking into the cake? >> i'm 100% agreement. my business problem with investors right now, they're too macro, stuck in the academic books. what we've done before. we're not seeing before. we had a black swan event called covid. we dropped the bomb on it in terms of fiscal and monetary policy. we snapped back very quickly. this whole base of transitioning to normalcy will take more time than anybody thinks. my view, investment strategy group view, we will do 50, 50, we will see what happens. we'll see what happens.
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the fed base case inflation would peak in the first quarter. we get the war hopefully behind us. lower energy price. i think there is chance inflation is peaking right now. charles: i agree with you, having said all of that, what is the biggest risk right here for the markets, the equity markets. >> i said on air and in print i think the market is being too laws say fair with respect to the war. if we have one bad event over there, charles, the market could be down pretty substantially. if we have quick resolve, positive resolve in leadership, stock market would be up 7 or 8% in one day. that is the risk. what do you do? i still think you own high quality assets which brings people back to north america, canada and the united states. i think our companies in this region are exquisitely positioned. >> i've been in' agreement with a lot of what you said, brian. see you soon. >> thanks, charles. charles: we'll stay on these markets. including talking about the esg
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movement. you've been hearing about it. more must be done in terms of accountability from the movement. they should do no harm. also your paycheck doesn't go as far as it once did. but the white house said that is the result of the heroic money printing. it could be a hobson's choice. kenny polcari can't wait to discuss it. he is next. ♪. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today.
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charles: so the influence of esg investing has been in the news a lot lately in part hurting its development of no, sir sill fuel industry and sort of continued frustration over a lack of community. assets under esg management soared to 123 billion instead of 51 billion to set a on executive annual record. here is the thing, that esg is on its way to $53 trillion that would be more than a third of the 140 trillion under management. my next guest happens to be a pioneer in esg investing. federated hermes chief market strategist phil orlando joins us. phil, there are two things on this i want to discuss with you.
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first how esg may have hurt the oil industry, production there. you can't get any money from wall street for a long time. consequently that has meant less supply. less supply meant higher prices that hurts the middle class and poor americans, when you think of it that way, it doesn't sound responsible. isn't that supposedly the central idea behind esg? >> charles, first of all, thank you very much, for having me back on the program. second of all you're absolutely right. we're dealing with a conundrum right now. that on the one hand from a esg perspective we all want a clean environment an a conversion to responsible, renewable energy sources but on the other hand we're dealing with a very difficult situation with the russian genocide in ukraine and the problem is that russia is the third largest energy producer in the world and you've still got developed economy, united states, germany, europe, that are still doing business
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with russia, buying their energy, their oil, their natural gas and they don't want to introduce the sanctions necessary to create the leverage militarily because they're afraid of the void from an energy standpoint it would create in their economies. charles: right. >> so the solution from our perspective is in all of the above kind of scenario. i think we need to continue along the path of developing responsible, sustainable, energy sources but we've got to recognize that right now in the here and now we've got to as a swing producer in the united states, for example, we have to unshackle our energy production since we're able to fill the void of these other allies of ours and keep our economy and the global economy humming and use the leverage it get russia to stop the genocide in ukraine. charles: phil, it is common sense, but even since this war has begun, i think deutsche bank
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and credit suisse, they have even gone further in saying they won't make any investments into the oil patch. let me ask you about this, on the investment front with respect to esg why is it necessary to have protocols or a process like this? i had phil blancato on the show yesterday. he said something pretty intriguing. i want to hear this now. neil: take a listen. >> picking esg stocks good social environments and this name manipulated for marketing purposes. you buy buy companies with good things you have success in the portfolio. i think this is marketing ploy. charles: does he have something there, investment managers looking for companies that do, quote, unquote, the right thing. >> that is exactly right. our perspective you want to engage with companies, tobacco companies, weapons company, companies theoretically that are bad es-d companies. if you're engaging with senior management and the board of
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directors and helping them make good decisions when they come to the proverbial fork in the road, you will make progress. i think ultimately that's the solution you want to try to orchestrate. charles: i can't let you go without asking the question of the day, elon musk show. your thoughts on this. i mean there are some different angles to it, right? there is the investing angle. i think the free speech component of it. which by the way is actually revealing just how much we are at odds in this country today which is something ironic. >> you know, i'm right with you, charles. certainly elon musk can with pocket change purchase a company the size of twitter. i think the more significant investment here is the reduction of free speech. i think a lot of folks like elon musk are very frustrated with some of the anti-free speech activities from social media that we've seen throughout the
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industries over the last couple years. this is his personal effort to try to reverse that tide. charles: they call it surveillance capitalism which i think is not capitalism. it is certainly not what we built this nation on. phil, i miss you. been too long. thank you very much. appreciate our conversation. >> thanks for having me back on, charles. happy easter. charles: happy easter. see you soon. meanwhile the folk, white house making a stunning admission on its role running up inflation. we have that for you. despite bargains online shopping ain't no more. we'll get the pulse of the american consumer from our favorite consumer expert hitha herzog. she is in studio. (vo) for me, one of the best things about life is that we keep moving forward. we discover exciting new technologies.
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charles: so the white house now
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admitting its $1.9 trillion relief bill helped spark the current inflation crisis but as usual they are trying to put a positive spin on the outcome. in fact take a listen to jen psaki just yesterday. >> the alternative would have been we would have gone into a massive economic downward spiral. many americans would have not had enough food to put on the table. so we chose the other path. charles: all right. this morning the pr campaign continued. cea chair celia rouse told "axios." go back a year ago. it was not at all a given we would be here today with historic growth and low unemployment, stating the american rescue plan was kind of an insurance policy. so you know me i went back a year ago. job openings in march of 2021,.1 million. at the time all-time record. looked at household debt service payments percentage of dispoisable income, guess what? all-time low. you know what that meant? household balance sheets were
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never stronger in the history of this country. here is what happened with all of that extra cash, real, real hourly wages have been down every single month including 2.7% last month. joining me now slatestone wealth chief market strategist kenny polcari. kenny, the united states, we have the biggest rise in inflation of any developed nation. of course there is a lot of blame to go around. what do you make of this new pr stunt? >> i think they had no choice, right? becoming almost impossible for them to keep going up there to blame it on putin, xi jinping or anyone else, they had to take responsibility. jen psaki did it in usual way, tries to spin negative into a positive by we would go into a massive economic decline. first of all, general, define everybody, what you mean a massive economic decline you just pointed out the economy was in tiptop? there were massive amount of jobs,million. consumer balance sheets were
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strong. world was coming back from this pandemic. i don't know where she is getting her info from. i think they overdid it. now they're backed into a corner they had to admit they had some role. charles: obviously certain people as always were doing worse than others but i don't think we had starvation issue. she made it seem pretty dire, the best of worlds, in this case the worst of all worlds. you know i got to get it, your thoughts, musk and twitter? >> listen, i love elon musk because you know what? he stirs it up and now he has brought this whole conversation right to the forefront. look, like it or not, twitter has become the global public square whether they like it, don't like it. we're going back and forth, who gets censored or canceled. if you say something wrong they shut you down. that is baloney in a free market and society. he is right that democracy depends on the free flow of ideas that allows people to have a conversation within the law. no one saying get up there to
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threatening to kill people. that is certainly not what you want to do but conversations within the realm of what's right is exactly what should happen. so do i think it is ultimately going to happen? i think if he pairs up with donald trump or peter thiel, ups his bid, maybe. at current level, i don't think it is. what is comical twitter went out hired goldman sachs to advise them, goldman sachs hassle rating. this is 80% premium over what goldman sachs says it is worth, unbelievable! charles: hope they come out tomorrow, up the stock. never mind, it is a buy. >> we'll probably are going to have to. charles: speaking of the market, you've been spot on. do you sense we're starting to bottom out a little bit here? we do get hit from day-to-day, time to time. seems like we're starting to build a base here. or do you still think, you said we may have to retest the lows?
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>> i thought we were going to retest like those january, february lows. i do agree with you it feels a little bit more confident. it feels like it wants to build a base. like anything, one really negative headline coming out of eastern europe or get more negative eco stat, u.s. economic stats could send us lower once again. i think that yesterday they tried really hard to downplay the inflation story. yields went down. all of sudden everything is great. once those bids start to disappear, there is a repricing, when 10-year treasurys get to 3% i think that is when you see trouble once again. charles: right. >> but i don't think we're going down tremendously again. i don't think we'll test the lows anymore. i think in here it will just churn and build a base. charles: we have your picks on the screen. so mining, peabody, freeport, a lot of those names which are hot right now. >> right and they have really performed so beautifully in the last month anyway. charles: they have. kenny, thank you so much, my
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friend. talk to you real soon. >> happy easter. charles: retail sales out this morning. i don't know they didn't really do a lot for me, a little bit of a buzz. there is something intriguing if you go through the data. i think maybe the bigger news was consumer confidence. that consumer sentiment number came back really nicely. i want to bring in donagher. you have a new firm. >> i -- charles: i haven't seen heath that in two years. >> thank you very much. charles: i love the outfit. talk first about the retail sales number. general impression of it? >> retail sales number is typical, right? we're seeing increase in inflation. people are certainly feeling a little bit of that pinch. so you're seeing these online sales dive a little bit. but for the most part the consumer is, you know -- charles: some things are up, right? electronics were up. >> of course. charles: certain things. >> gasoline prices is really what was carrying it, right?
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so that is what we have to look at. in terms of online sales, you know, to your point, it was diving. charles: what's wrong with, is online thing done? because the reason i ask, according to adobe, we have the biggest spike in online prices ever. apparel up 12, 16%, groceries up 9%. internet sales in february down 16%. we don't see this all the time. is the internet, is the hype over the internet the only place to shop is that gone? >> no. according to the data catalyst institute small businesses rely on five different ways of selling their product. online especially using those digital tools like online social media, it is there. last time i went into a store to buy something here in new york was probably before the pandemic. maybe a year before that. everything i purchased these -days is online and through instagram. charles: really. >> small businesses are doing
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it. charles: did you buy the dress online? >> i went to the store. i know the designer. i bought it from her. charles: consumer sentiment, i love what we saw in consumer sentiment. we came off a 11-year low. we came way above consensus. that is driven. could the consumer come back the second half of this year? >> i think so but i want to just caveat that. these numbers are still not up to the levels we saw in january. still way below what we saw 10 years ago. we want to make sure we're caveating that. charles: right. >> i want to stay positive. consumer, we talk about frugal fatigue. we have a long time since we've been out purchasing things. being able to be with people and we have to then purchase things for those people if we will go see them. so i think that is what we're seeing right now. charles: to that point, we heard carnival say the best week of bookings in 50 years. delta said things will get a
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whole lot better. you only live once. forget about the future. we've been locked up for two years. when i take the mask off, i'm free, i will party. are we in the yo -- yolo economy s that where investors look is the retail space? >> we were looking airline sector right before the pandemic and into the pandemic and we saw that dive. yes, absolutely, we want to see people wanting to go out and travel, wanting to see everyone. i don't know necessarily the yolo economy or -- charles: revenge shopping, that the term? >> revenge travel. yes, i think that is definitely a sector we all as investors should be looking at. charles: what is the hottest trend? >> inflation is really impacting how cone superintendenters should be spending. according to donna gear, luxury brands are getting expensive. we'll start seeing brands coming in. maybe a little bit less luxury.
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charles: talking like tapestry, coach, kors, that type of thing. >> even brands like brandon maxwell. that type of brands. we'll see a spike in that. retail market of luxury goods, charles, that is real deal. charles: i hope, real posh, some of those resellers, their stocks have been unmitigated disasters. now i will take a second look. health that, good as always. charles: love to hear you a comment about the show, a guest, anything, financial advice. we have all the experts the tweet me @cvpayne. we had a fun segment yesterday. the story we had four straits of bitcoin investors, psychopaths, narcissist, one investor said, they forgot visionary. one of my favorite guests tracy shugart says, that pretty much sums up any trader. keep the comments coming. we'll be back with the busy market and more thoughts on elon
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♪. charles: so the market grappling with a number of issues. in fact many investors have never seen some of these things before like the invasion of ukraine. what about rainaway inflation at 40 year levels? we haven't heard that, right? potential for stagflation, haven't heard that since the '70s. can the fed take away the punchbowl without messing this whole thing up? i want to bring in strategist dan green house. let's start with the federal reserve. every day they're jawboning the markets down. they're pretty blunt about it. are they trying to soften the blow and why is the street
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reacting this way? because they think the fed's going to blow it? >> i mean i think there is a fair amount of concern that they will quote blow it depending on your definition but i think the important thing for everyone to realize is what we the country is dealing with from an inflation standpoint is something that we haven't seen in, depending on your time frame, 30 or 40 years. charles: right. >> so this is new to everybody. even those of us middle-aged or advanced age on wall street. we never lived in a rising rate environment, excessive inflation environment. so how everybody reacts both from an investment and economic standpoint is a real uncertainty and there is a lot of us, particularly the fed, that are feeling their way through this minute by minute. charles: they're feeling their way through. lael brainard, for instance, she has been aggressive in her commentary. she said something that really knocked the market a week earlier. if you look at the thread of commentary for her, a year earlier things are great. we want to go over a little bit,
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feels like there is no problem. it feels like they're learning on the job. as they learn on the job feels like the market has less confidence in them. >> everybody has to recognize a year ago everything was fine, we'll let this run a little further, you were still in the heart of the inflation is transitory moment. charles: where there was a point you stopped believe being i'm pretty sure even though they kept saying it? >> no, that's right. they were certainly late to the game. let's not forget they had been, they were buying mortgage-backed securities, aka, supporting the housing market just several weeks ago, well what can be classified in some case as housing bubble or excesses in the housing market. well into the spike inflation beyond which could be classified as transitory. they have certainly been behind the eight ball. even if you give them credit for several months this will be transitory when everybody believed that they have been very late to the game i would argue, yes. charles: so the question now, recession, stagflation and how does, how does a portfolio,
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what's the ideal composition of a port foal, the sectors that you're looking at? >> yeah so i think the important thing for everyone watching to realize there doesn't appear to be anything imminent. corporations seem to be doing just fine. households are flush with cash. the types of things you see before a recession, an increase in weekly jobless claims, aka, people losing their job, slowdown in hiring, the monthly employment report we all follow, any sort of indicators don't seem to be here right now, by most accounts, if not all accounts, economy is fine. from investment standpoint you will be fine as well. the question becomes as the fed does what it is going to do, at least what it says it is going to do, likely to see although we already had it, increased volatility and more dispersion between the sectors. getting that right is, let's say incredibly difficult. for the people watching this, the important point i think you would make, there is very little reason to be panicking if you will in the short term. charles: from a psychological point of view, we're in the
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middle of this war. it has gone on a certain period of time ironically, historically those geopolitical events after around 30 days the market turns around, starts to go higher so we got that. we know the fed will go aggressive out of the gate. there is no negative news on the horizon we're not bracing for. could there be a sea change in sentiment that might take the market higher? >> yes, oddly enough to say it would be higher inflation. there is as you probably well know, many viewers know, emerging narrative, if not emerged narrative we're in the moment of peak inflation. perhaps february, march, springtime we'll see the highest rates of inflation we should come down from here. that was always going to happen whether it was december or march, you were always going to get over the hump so to speak. the question now for everybody how fast do you fall, to what level do you fall? from an investment economic standpoint those are crucially important questions. so in terms of looking out over the next six or 12 months, if
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inflation comes down more slowly or perhaps an additional spike for whatever reason, that will really complicate the picture for policy-makers and investors. charles: dan, you're fantastic. one of the best. i appreciate it. >> thank you, sir. charles: folks there is never enough time on this show to go over the ideas. we have amazing guests. i have a few thoughts. we could have spent the whole show on elon musk streets. check out you will love my daily commentary. my take on the media war on elon musk. there are favorites out there. we have two of our favorites, rob luna, erin gibbs. so get your pen and paper out. we'll be right back. ♪. this is what real food looks like
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psoriasis really messes with you. try. hope. fail. no one should suffer like that. i started cosentyx®. five years clear. real people with psoriasis look and feel better with cosentyx. don't use if you're allergic to cosentyx. before starting get checked for tuberculosis. an increased risk of infection, some serious and a lowered ability to fight them may occur. tell your doctor about an infection or symptoms or if you had a vaccine or plan to. tell your doctor if your crohn's disease symptoms develop or worsen. serious allergic reaction may occur. best move i've ever made. ask your dermatologist charles: you know another one of those sessions that, just couldn't keep the traction going, right? listen, investors have a lot to chew on and listen, i have a feeling that we want to rally from here but it is just tough to put a finger what the would would-be catalyst would be. i want to bring in rob luna and
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erin gibbs. erin, let me start with you. seems like the market is waiting. here is the question, is this consolidation or purgatory because it feels like the latter? >> it does feel like purgatory. i think while we're going through a lot of these bank earnings, that is sort of the next two weeks sort of dominated by banks, we know they will have massive contractions. we're looking at an average of 20%, 25% earnings coming back down contraction so i think that sort of negative headlines is going to continue and so, even though a lot of stocks are getting hit the most are technology and, are still doing well, i don't think we're going to see that, sort of backup towards the top end of the trading range until we get done with the banks negative news. charles: get the banks out of the way? >> i think that will weigh on sentiment. charles: rob, your thoughts? >> to your point, charles, i'm
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happy about the consolidation we're going on right now. if you think the bottom was put in last month on the 14th. we're only 30 days into this. with bad news we could have seen a lot of volatility in the market. tomorrow, good friday, the market is closed. i don't think anyone will step up to be brave. i think some of the technology names, if you look at in particular, i think they're trying to put in a bottom right here. the fact that they have not broken beneath those lows gives me comfort. charles: add to that, the spike in the 10-year yield, they're down, with pressure but keep holding to your point. that is actually a positive. today, defense and cyclical names are edging higher. we have key date, most of the data came in better than expected. yields are spiking. with that in mind then, rob, a lot of folks made the transition. they loaded up on commodity stocks. they have loaded up on defense names. but then you have eclectic winners today, nike is up, caterpillar is up, cdw, marriott. so you have got these individual
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names that are rallying and these sectors that are mostly defensive. how do you decide the theme of your portfolio? >> look, i think in this market we talked about it before, charles, you will be experiencing a lot of volatility. you have to have conviction in the long term names. for me it is one or two themes. it is growing earning, in the way of paying that back in terms of dividends to shareholders or long-term growth with the idea you're experiencing volatility. i stick with those type of names. some of these names, especially commodities, especially airlines i think those are more of trades. if you do those look for of technicals. conviction in your long-term investment thesis will get you through the volatility. charles: erin, you have growth names, right? >> i actually sold out. a couple were stop losses. i was wrong, had to get out. charles: stay disciplined. >> stay disciplined. i wanted to get out before earnings season. charles: you're sitting own a lot of cash? >> sitting on a lot of cash. charles: you're ready to pounce. >> i'm ready to pounce looking
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at trading ranges. charles: what would make you pounce? >> part of it is sentiment. i want to get out of earnings season volatile. right now i'm very defensive. i will see a lot of negative reaction. charles: before i let you go, talk about musk and. >> i do not get into twitter. it is not a catalyst to buy stock. it is fun to watch. charles: rob, i got to get your thoughts on it. >> i'm a catalyst all the time, charles, for free speech. so i love the idea of him taking it over. i was reading your tweets about idiocy worrying how he will finance it. that is not what this is about, guys. charles: let me tell you something if the richest man on the planet can't get a loan, we're all in trouble. that is all i say. rob, that is nice tie, my man. >> thank you. charles: i will tweet you later on my address. i need one just like that. rob, erin -- >> send it to you. charles: this is the kind of thing audience needs. share my takeaway what rob talked about the mainstream
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media going up against elon musk. i think they will lose this battle one way or the other. we'll be right back. ♪. ♪ ♪ we believe there's an innovator in all of us. ♪ that's why we build technology that makes it possible for every business... and every person... to come to the table and do more incredible things.
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charles: all right, so elon musk, he built a company called paypal. he sells it to ebay for $176 million in 2002. he takes the proceeds and says i'm going to work on two dream prompts, tesla and space, and. so the same experts all over tv today told him back then he couldn't pull off either of those projects. ed today he continues to come up with few ideas. now, every time i think of elon musk, i'm reminded of the song, donald fay begin's big hit. the dream can's in sight, you've got to admit can it. at this point in time it's clear, the future looks bright on that train all graphite and glitter. undersea by rail, 90 minutes from if new york to paris.
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by '76 we'll be a-okay. what a beautiful world this is. what a glor glorious time to be free. great thinkers have dreamed for centuries, and i hope free speech remains among them. in the meantime, the market is struggling, folks, i understand this. we've had some great conversations with some amazing guests today. we've got a whole lot of things out there. i think the spike in the 10-year yield really is troubling for a whole lot of people. this is a 40-year rally that seems to be going away. and what happens with bonds historically is they move secularly, so they move in decades. so if this is over, then yields may start to go even higher. but honestly, the 10-years at 3%, 4%, 5%, honestly, it doesn't matter, it does not change the fundamentals of microsoft, amazon or any of them. as they get cheaper, you should be licking your chops. in the meantime, i'm rooting for elon. all right, liz claman, i'm going to hand it over to you. i wish i had better things, the
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momentum in this market is all gone. liz: i know. what happened? charles: i don't know. liz: the dow just turned negative, down 31 points. everything in the red except for the transports. elon musk going full gauntlet mode. during a live ted audiocassette interview in vancouver, he said some pretty dramatic things. the tesla ceo opened a window into his reasoning behind his now-hostile takeover bid for twitter. already the largest shareholder of the social media giant, early this morning musk announced he wants it all and has made a $43 billion bid for the entire company. we've got the analyst who this morning predicted the board will accept the plan, but with news breaking this afternoon that twitter may defensively put a poison pill into place to block musk, is that analyst about to reverse that call? you a may be surprised at what he has to say. musk making clear that as the richest man in the world,


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