tv Barrons Roundtable FOX Business April 16, 2022 11:30am-12:00pm EDT
so i went against stress the paradox by stressing what is most distinctive in christianity we find what can bring us together. spread that's it for this week got sci-fi really great thanks to we will see you more next week with more commentary on wall street journal at large >> "barron's roundtable" sponsored by jpmorgan asset management. ♪♪ jack: welcome to "barron's roundtable" where we get behind the headlines and prepare for the week ahead. the outlook for russia's war on ukraine and dangerous malware aimed at the us energy sector. the former head of cyber command admiral michael rogers. later socially responsible
funds lagged the market amid inflation at the war in ukraine. is wall street rethinking renewables? we begin with the three most important things investors should be thinking about. elon musk's surprise bid for twitter centage and through the market but investors are skeptical a deal will get done. auto stocks trading like they are in recession. a good time to buy shares but a lousy time to buy a car. a mixed bag of earnings reports with big tanks -- banks, which ones might benefit. jack hough, as far as i can tell the only thing that happened last week was elon musk offering $54 and $0.20 a share for twitter. what is your take on this? jack: there were technically other stocks that dropped 2%, bond yields rose, the highest inflation report in four decades, we are entering a
pivotal period for earnings reports but investors were mesmerized by elon musk at his entertaining antics, $54.20 per share for twitter, it is nowhere near the deal price so investors are skeptical it will happen. one big twitter shareholder called the price too low, twitter adopted a poison pill measure to play defense while it considers the deal. to my eye, the price looks bullish but not outlandish. $54.20 does not come from a discounted cash flow model for, the highest share price for twitter includes the number $4.20 which is a long-standing shout out among cannabis enthusiasts. elon says his offerors final. i'm going to guess cheech and chong will not show up with a bid for $54.20. the reports among private
equities, we will see. elon is bound by a settlement related to a 2018 tweet pondering a tesla takeover, $420 a share. at a conference this past week, he railed about the settlement and called the sec baxter's. i can't tell if he is playing hardball or dumb ball at this point but he's no dummy and is fun to watch. jack: i feel like if you gave an argumentative teenager $200 billion, $300 billion and a bond, this is what you would get. is he serious? he is a genius with electric cars and rockets but is this just a plaything for him and will walk away in a few weeks? >> it is kind of a high-level
meta-joke about a successful person saying lowbrow things in highbrow settings. i am not smart enough to get the joke. that is what is going on. if elon isn't the only thing going on right now, we have earnings coming up. it is about a pivotal season. 4.6% earnings growth is the projection for the first quarter but if companies beat earnings it could be 9%. jack: we've got and elon connection as well, looking at the auto show in new york, tesla shares are down 5.5%, investors worried musk was getting distracted by this but companies like ford and gm are trading in ugly ways as if there's a recession in autos right now. >> you are right, the new york auto show this week, the first in two years.
you might have expected before the auto show a conference for investors. might won to the company to be downbeat, stocks are down 20% to 30%, most auto parts stocks but that wasn't the case. they were pretty optimistic about medium and long-term outlooks despite the fact investors are clearly worried about rising rates and supply chain shortages. jack: if you are an investor this might be a value play. if you are a car buyer, it seems like you really ought to wait if you can juice another year or two out of your existing car. al: i agree with you on the stocks. we are at record prices for new and used cars and the wait times are crazy.
talking to people recently if you want a new ford f one hundred 50 and go to the dealer in order it you will wait 5 months, pay $7000 or $8000 more than you did last year and when the car arrives it is not complete. they are starting to shift some of these vehicles without the automatic stop start for gas mileage at stop lights. the microchip, the semiconductor isn't available so they will build it and fix it later. for all of that you will pay more. jack: carleton, let's jump to the banking sector. we saw some earnings. what have we learned and who is best positioned coming out of it? carleton: we have five of the last six reporting yet to the tune of 30%. dealmaking activities and a lot of concerns on geopolitical issues, the banks are excited
about interest rates rising and the economy could be pushed into a recession. looking ahead, bank of america is the last of the big banks, it is the best position for right rising rate environment. we will see what they say monday. monday. jack: by security officials say your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
former director of the us national security agency and commander of us cyber command, admiral michael rogers. thanks for coming on the show, appreciate it. let's start with cyber. what have we learned about russian capabilities from what they are doing in ukraine and the wall street journal reported is like the russian be team is doing most of its hacking. are we seeing its best stuff and if not why not? >> i will disagree. part of a challenge his expectation. historically when we think of cyber and warfare we think of pearl harbor. that implies a bolt out of the blue surprise event that produces catastrophic effect and that is not what we've seen so far but we have seen a lot of cyber activity, offensive, some sort of affect to destroy them, degrade them, deny users ability to access them as well as significant cyber defense.
i wouldn't anyone to think we are not seeing a lot of activity. what we are seeing has not generated the catastrophic effect many people thought would be the war. with respect to the other question, does this mean we are seeing pt from the russians? number one, it is very challenging to have significant cyber affect against high-quality network operator who is focused on defense, very aggressive, using good defense of cyber security capability. that a typical challenge and secondly those activities having been involved in these in my previous life often take weeks and months. what this shows about russian cyber, one of our take aways, we will see what we learn over time. to suggests the russians
optimized themselves for the long-term penetration of networks that are dynamic, not necessarily strongly defended and finding it challenging, to have a significant effect against well prepared network in which the defender is looking for such activity. jack: i hope the us is well defended. we heard there was malware that appeared to be aimed at us infrastructure and it might be appropriate for liquefied natural gas which makes me think i know who is responsible. what can you tell us about this and how much of a threat is it? >> targets associated with good on national infrastructure, talking about liquefied natural gas, targets associated with critical infrastructure like energy, the electrical grid, financial infrastructure,
transportation, aviation, healthcare infrastructure in the middle of a pandemic, those targets have very high potential to be the focus of an adversary. we've seen that historically over the last decade or so and you are seeing it now in the midst of russian activity but clearly the russians are looking at the west. jack: let's pivotal another front, scandinavia. sweden and finland moving closer to being members of nato. how likely is that to play out and what's with the russian response be? >> that is a decision for sweden and finland as well as the nato alliance. both nations have a long history of interaction with nato as participants in nato activities although they are not nato members and sometimes servers.
they are each a little different, sweden has no direct border with russia. finland, were it to become a member nation of nato it would double nato's border directly with russia. i suspect the fin piece has the russians highly concerned because one thing that started us down this road was putin's continued view that nato expansion up to the point it was directly on the border was unacceptable and a significant concern so clearly expansion of nato would be a concern to the russians, finland join it would be of particular concern on the length of the border with russia. jack: recently we heard the ukrainians had sunk a russian warship. i'm interested in your take as a former admiral and ukrainians apparently using helicopters to
attack russian soil. meanwhile a new general in russia gearing up for a major attack on the eastern front. it is all guesswork but as a military mind how do you see this playing out and the may day celebration in russia? >> you are seeing a ukraine that is innovative, aggressive, not passive in any way, very focused and asking itself how do we maximize the value of the capability we have as well as the potential activity in russia is significant to the russians but ukraine has the means to apply military force beyond our own borders into russia. you want to think long and hard about continuing this let alone expanding this effort. jack: not a quick end to this horrible situation. >> it will not end in a small number of days or weeks.
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jack: the premise of esg investing is you can get outsized returns by investing in companies that pay attention to environmental, social and corporate governance issues. energy and defense stocks have been market leaders in tech stocks that have been week. lauren faulk joins us now. thanks for coming on the show. >> good to be with you.
jack: the stocks lagged while the stock they avoid have been searching. wise that? >> the war in ukraine, the conflict has pushed up prices for commodities like food and energy. we heard prices were up 8. 5% from a year ago, had the sharpest driving 40 years and a big part of that is fuel prices. the war aggravated local -- it is good for energy stocks but not good for tech stocks. big tech is an esg favorite. a snapshot of energy versus tech. if you look at the energy sector by this fund it is up 40% this year on the other hand if we look at the technology
sector, it has lost 15%. jack: skeptics are saying i told you so. is this concept fundamentally flawed? >> great question but i don't think it is fatally flawed, and risks, i spoke with one of them, from and why you, a guest on your show a couple weeks ago, the leading expert on valuations and a vote for critics and he says it is the first of many tips for esg and the moment of reckoning is coming. jack: will be look back on this and say it is a passing fad? >> it is not going anywhere. >> i'm curious if you are seeing 1/3 where, at financial
advisors, not shunning industries, push them to do better. what are you seeing? >> it does tend to raise the younger generation and there's a case to be made, more on engagement, excluding companies altogether or focus on scores for external providers. one example is activist investor engine number one which forces exxon mobil to revamp its board of directors to focus on clean energy so engaging with companies to encourage better practices is arguably a more effective way for change. al: with oil prices back that could drive people toward renewables. how are those stocks doing? >> not so well.
it is in part because of high interest rates, high growth tech stocks, energy stocks are long duration, the bulk of their cash flow in the distant future, they feature earnings today but earlier today, the clean energy ets, down 1.5% this year but over the year down 10%. jack: i am jack hough. you right to the invasion of ukraine will put the s back in esg. >> they are showing sps is more important than thought, immediate impact on employees,
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known as 4:20 you are paying attention, give yourself a congratulatory bum hit. i want investors to pay attention to netflix which we report on tuesday, we see a lot of drama from netflix, not just talking about bridget and. last quarterly report, the stock dropped 21%. jack: sounds like rate hikes are on the way. let's move to actionable ideas. carleton, what do you have for us? carleton: we got a higher us industrial reduction print this week, posted earnings better than expected and there are growing earnings in double digits. jack: you have any ideas? jack: he will positively about
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