Skip to main content

tv   Making Money With Charles Payne  FOX Business  April 13, 2021 2:00pm-3:00pm EDT

2:00 pm
that put a lot of pressure on him. neil: a lot of pressure. well-put, my friend, thank you very much. charlie gasparino, following all of those developments. the big story of the day right now seems to be johnson & johnson and its vaccine, a pause, something close to 7 million doses administered in this country because of six blood clot related developments not tied to it. the pause is on. we'll see for how long. to charles payne right now. hey, charles. charles: good seeing you, neil, my friend. i'm charles payne. this is "making money." breaking now the s&p 500 back at a record high despite the biggest scrum in inflation in nine years. the question, is this temporary or not. we're less than 24 hours for the most exciting ipo in years. coinbase how much will investors chase the stock. we'll discuss. our market experts will weigh in
2:01 pm
on all of that. meanwhile millenials are extremely confident these days. some in fact say too confident. i love it. we'll see what rebecca walser has to say. she will weigh in. shocking news that neil was talking about on the vaccine front. the cdc and the fda announce a pause on johnson & johnson shots because of a handful of blood clots. i will ask dr. jenette nesheiwat what she thinks about the risk. we have art laffer to compare biden-nomics versus trump-nomics all that and much more on "making money." ♪. charles: two big news items right before the opening bell. the centers for disease control advising the pause on the johnson & johnson covid vaccine. after sir, patients developed blood clots, one decide. main gauge of inflation came in hotter than expected, march cpi number, .6 of a percent month
2:02 pm
over month. we'll bring in a medical expert what is next for the johnson & johnson covid vaccine situation, what 2 could mean for the goal of herd immunity. i want to bring in reaction to the cpi number in this market, president, ceo of strategic wealth partners, mark tepper, bellpointe chief strategist david nelson, let me start with you. cpi number came in hotter rather, than expectations but it wasn't as frightening i think as the whisper numbers. where does this put the fed? can they remain accommodative longer? >> this is one data set. the march ppi was double what analysts were expecting. the message of the taper is out there. i'm actually kind of surprised that 10-year yield stuck where they are. we can't get above 1.7%, which interestingly where we were pre-pandemic. inflation is out there. the inability of rates to move
2:03 pm
higher above these levels and speakses in part to the defensive mood we see in the market today. large cap secular dominating. that is a defensive trade. this is not the risk on trade. charles: mark, i comb through the cpi number, first of all i love finding investment ideas of it, i'm a big believer in companies that have pricing power. what stood out to me was jewelry and watches up 7%. >> yeah. charles: signet, a stock that sells that stuff up 134% in the last year. what about living room furniture? that was up 4%. bassett furniture up 379% in the past year. let me ask you your thoughts on the cpi number and if there is any sort of stock out there not necessarily associated with the cpi report but generally you like with pricing power. >> you mentioned pricing power. i love pricing power as well. i was coming up with the magic formula. what leads to pricing power. here is what i came up with,
2:04 pm
high gross margins, brand loyalty, differentiated products and services knowing your customer inside and out the first name comes to mind, nike. direct to consumer model. reducing costs. innovative from a product standpoint. obviously you have the brand strength. nike knows their customer. if i were to pull out my phone and open up instagram right now they will probably show me the exact shoe that i need to buy. when you package that all together, that is when you control the price. as for the cpi number, really no surprise to me. i look at it as being in line, i wasn't blindsided. i was expecting somewhere in that range. i expect the fed will not raise rates anytime in the future. charles: certainly wasn't the red flag it could have been with the ppi number. is there something you like based on the pricing power of the company? >> what mark said, high gross
2:05 pm
margins points me to technology in a company like adobe. a doak bee was first to e brace the subscription model. relative to all things in the market, especially the cloud, it is dirt cheap. charles: mark, david, hold on a bit i want reaction to the next story, the other big story this morning. switching gear that development with the johnson & johnson vaccine bringing city md medical director dr. jenette nesheiwat. 6.8 million folks, seems like an infinitesimal number got the blood clot. of course that news sending shockwaves and of course what is interesting of course is that millions of americans were already hesitant about this jab. what should we know at this point? >> like you said, charles, let's keep this in perspective.
2:06 pm
out of 7 million americans that have received the johnson & johnson vaccine six, that is less than half a percent have developed these very extremely rare blood clots. so what is going to happen at this point is tomorrow, an independent immunization committee will meet. they will determine whether the vaccine is safe enough to continue to put in the arms of americans. they're going to gather data. they will look at cases. they will review the information they have. they will decide, do we need to make modifications to the vaccine? do we need to look to see if there is anyone that might be potentially at risk of developing clots. they will gather that information. hopefully will only take a few days. they hopefully resume using this vaccine, it is a really good vaccine. it has 72% efficacy. potentially can save your life. most people at this time the benefit still outweighs the risk. definitely a conversation you want to have with your doctor. charles: i saw in belgium they said the same thing you said.
2:07 pm
they are not going to pause. when you put all things being equal. with that in mind, think how much the biden administration pushed the notion, we've got to get the herd immunity, dr. fauci, we have to get heard immunity were they too cautious here? i know it is easy to second-guess, but if the goal is to get everyone vaccinated is there a chance this news might be doing tremendous harm towards that goal? >> charles, i don't think it will cause tremendous harm towards that goal because let's keep in mind, johnson & johnson only accounts for 3% of the vaccines we're giving in this country. the majority of the vaccines we're giving is moderna and pfizer which uses a completely technology, remember the mrna technology, different than what astrazeneca and johnson & johnson are using. it accounts for just a small portion of the vaccines we're giving, i don't think it will a
2:08 pm
detrimental impact. i think it is important to continue to vaccinate everyone with the vaccine supply that we had, with johnson & johnson, with moderna. we are on the way to reaching that herd immunity because of hundreds and hundreds of thousands of americans that have already been vaccinated and those who have already had natural infections. that gives us a sense of where we're going and myself, i'm still diagnosing positive covid cases but much less than we were a year ago. much less severe as well. charles: so you mentioned mrna, which is messenger rna, of course where we were a year ago. this gets back to the whole debate over "operation warp speed." certainly every drugmaker benefited from the way they truncated the process, three phases of the fda process, but also, this messenger rna technology, some folks are talking about it ultimately helping to cure cancer. we can't underestimate how
2:09 pm
amazing this whole development has been, can we? >> you're absolutely right, charles. "operation warp speed" has been a miracle and a blessing, really in my opinion is the reason for saving thousands of lives. globally vaccines save thousands of lives each year from measles, polio, meningitis, hepatitis. i have really think we can move forward in a positive direction. i'm not overly concerned with the pause of the johnson & johnson vaccine. i think they will get this data and use it to ensure safety of americans and then go from there. charles: right. dr. nesheiwat, thank you very much. always appreciate your expertise. you're right on the front lines. you know better than anyone. hey i want to bring back mark tepper and david nelson. guys, i don't want to sound callous about all this but in a way this is great news for those that hope the fed keeps rates down forever. you remember yesterday when james bullard from the st. louis
2:10 pm
fed the tapering will begin once we had 75% of americans had the jab. it was already going to be to be a challeng put the fed keeping accommodation, keeping the punch bowl out there. >> i would be very surprised if the fed tapers or raises rates this year. it is not happening at 75% vaccination rate. that is arbitrary. doesn't fit the dual mandate. without a doubt rates will have to go up in the future but right now, charles, there are too many unknowns to allow for what could potentially be a pretty significant policy error. you're having issues with vaccines. multiple variants of covid-19. some have pretty substantial mutations. you have the reopening quite possibly could be lumpy. with all these unknowns. i don't see the fed changing course. at least for the rest of this year. charles: david, yeah, i don't
2:11 pm
think this year, but they're talking about 2024. i think, if you listen to powell he makes up a different metric every other day for not hiking rates so again i don't disagree with that i wonder how far out they keep this going. let me go back to the reopening thing, reopening stocks, david. obviously reopening stocks under some pressure. you know, the stay-at-home stocks are up today. we've gone back and forth with this now for at least six months. how should investors watching this show make changes in the portfolio? should they be chasing this kind of stuff? >> it is probably forces you back to the center of the boat. what we're seeing in april is almost the flipside of what we saw in the first quarter of this year. in the last quarter energy and cyclical stocks led and you had technology at the bottom. turn that upside down you have this month. technology and telecommunications have topped. energy and cyclicals at the bottom. even small caps are lagging. it tells me right now that to mark's point things are a little
2:12 pm
bit lumpy. investors are a little bit concerned. what you're see in defensive action. i would move to the center of the boat and have one foot in both growth and value. charles: mark, we have coinbase coming out tomorrow, the most exciting offering in some time. davidson said it would be 440-dollar stock. moffitt said it will be a 600-dollar stock. how are you playing it? >> i absolutely love coinbase but, charles, i'm kind of a coward when it comes to these new offerings. typically we like to wait six months before we hop in. i may get a little antsy to get into this one a little early. look, the great thing about coinbase, when you look at crypto overall a lot of people are concerned what the underlying value is when it comes to crypto but with coinbase it's a legitimate company with legitimate earnings. so one of the names that we've held for a while, i've been beating the drums on this name for a long time silver gate
2:13 pm
capital. the ticker is si. it is the crypto bank. you look at coinbase, all these big crypto companies, your normal banks of the world don't want to do business with them. so who works with them? silver gate capital. it is essentially a fintech bank. they're center of the crypto universe. i would play it that way. charles: let me switch gears to infrastructure. this battle is going back and forth. president biden invited some republicans to the white house. david, i saw something interesting yesterday, a lot of these 5g tower makers did well, cci, amt and i'm starting to think now maybe is a good time for investors to put together maybe the stocks that end up in the final infrastructure package. it will be something. it may not include elder care but perhaps include things like broadband. how would you be positioned for it? >> 5g is part of infrastructure. in the world of 5g everything
2:14 pm
points to semiconductors. more chips, faster chips. complex chips. the 5g standard is 10 times the rate of 4g. the best way to play it, applied materials, semicap equipment space. we need more chips and factories. that is the home base where they live. at 20 times forward earnings, you're buying into the future, buying into one of the most exciting technologies in a generation at just 20 times forward earnings. i don't know what is not to like about that. charles: mark, do you got a name for us? >> yes. i'm going with, do qualcomm inside the phones or do xilinx in the towers. xilinx obviously is merging with amd. you can play it any of those three ways. charles: all right. we got a lot of great ideas. we've gone almost every aspect of what is happening in this market right now. again i think the next 72 hours in this market will be absolutely explosive. mark, david, thank you both very much. >> thank you. charles: corporations are taking the role of woke police. they have taken us on but what
2:15 pm
happens when they have to go against their own self-interests? the dangers of crossing the woke rubicon. millenials are quickly dismissed by wall street elite and the media. that is not stopping them. they feel more confident about life in the markets than ever. we'll explain why that is great. some think maybe too great. we'll be right back.
2:16 pm
2:17 pm
bike shop please hold. bike sales are booming. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from our resume database. claim your $75 credit when you post your first job at
2:18 pm
want to save hundreds on your wireless bill? with xfinity mobile, you can. when you post your first job how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at
2:19 pm
charles: exodus from georgia in protest of the voting law this time with will smith moving his new movie, emancipation. this will make more movie productions and businesses to leave the state this is moment actually been coming for a long time, folks. corporate america has taken massive gambles and they have been buoyed by the fact it has inbackfired. think about nike and the situation with colin kaepernick. dirks sporting goods when they decided to ditch guns. not only hurt their bottom lines but the stock prices rose to all-time highs. but now big business is at the
2:20 pm
edge of what i call a modern-day rubicon. let's call it the river woke. if they cross it there is no looking back. they will have to be for higher corporate taxes, they will have to be for more regulations, embrace unionization and all forms of profit sharing. joining me representative mark green. i saw your videos on wokism. i know you're concerned and dial in on this but i think it is too soon for big corporations to wed 100% to the democratic agenda. they're right on the cusp there. at some point if they say we want to be good corporate citizens they will rue what else will be demanded of them. your thoughts? >> yeah, no doubt. thanks for having me on, charles, thanks for watching videos too. look, american airlines and delta air lines think that it is racist to have an i.d. to vote, are they racist because they require an i.d. to fly? what these corporations got to realize if you bend the knee to
2:21 pm
the woke left, you're going to be targeted at some point. ask j.k. rowling, all these folks basically the woke left flipped on them. there is a new harvard study that is very revealing. it shows that 64% of americans, 64%, think that this cancel culture is a threat to individual freedom. if you dig into that study a little bit more only 13% of americans don't see cancel culture or wokism as a problem. that is 73% that think it is a problem. 63% who say it is a threat to freedom. i would be very careful, if they cross as you say that rubicon, it is going to backfire. charles: they're right there. they are right on the cusp and i'm telling you the closer they get the harder it will be to pull back. let me switch gears here a little bit because president biden continues to hand select republicans to come to the white house and i want to know if you have reached out to the administration? would you like a seat at the table? if so, what would you tell them
2:22 pm
with respect to infrastructure and taxes? >> sure, you know, on the infrastructure side, they need to make their push about infrastructure. we do have infrastructure issues, whether it is roads. our waterways which barges actually decompress the roads. when you think about these big barges that take tens, to 2018 wheelers off the roads, we have not updated the lock and dam structure in 40 years. we need to fix desperately infrastructure. what they do with the green new deal, no, they haven't asked me. i reached out to other issues like covid, vaccinations, things like that, even bipartisan with democrats have gotten no response so. charles: we know elder care is not infrastructure but just a simple fact that they're trying to ram it through like this, they're using public opinion polls, what does this say about just, listen no, one thinks
2:23 pm
washington, d.c. is a bastion of sincerity but what does it say about goal or promise of more bipartisanship and unity? >> it is pretty, it is a pretty poor, in fact they're doing just the opposite. you look at the issues on the border, there are democrats who are very concerned about this. they're having to be quiet about it. they can't speak out against the administration. that, china, issues with china, you know, bringing manufacturing home. there are a lot of democrats who want this that are in the congress but the administration is just ignoring them. they're plowing forward with this progressive agenda. i think it is, i think it is just the opposite what they promised. charles: yeah. well, it is still early and hope springs eternal. keep up those great videos, congressman, mark green. we'll talk again real soon. >> thank you. charles: speaking of polls, folks a new one finds that most retail investors think the market is in a bubble but they keep buying because they love it! what does it mean for your
2:24 pm
money? coming up president biden fully embracing economic policies even his own party is ejecting. art laffer, he wrote the book on the booming trump economy and he will explain the risk of biden-nomics. ♪. these are the people who work on the front lines. they need a network that's built right. that's why we created verizon frontline. the advanced network and technology for first responders. built on america's most reliable network.
2:25 pm
built for real interoperability. and built for 5g. it's america's #1 network in public safety. verizon frontline. built right for first responders. - hello, friends, michael youssef here. to some people, the cross is a symbol of division and hatred. to others, the cross is an offense. only those who place their whole trust in the christ
2:26 pm
of the cross will receive forgiveness of all of their sins and guilt and receive eternal peace. will you come to christ today? - [announcer] visit to find out more.
2:27 pm
if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.
2:28 pm
charles: well for years the only news about millenials about the lack of oomph, right? lack of investing, reluctance to start families. the fact they were camped out in their mother's basement. that has all changed. we all know about the reddit investing revolution. it is not just about the stock market. yesterday's consumer survey by the new york fed i was struck not only those under 40 years old confident about the market going higher next year, by a huge margin their confidence over whether or not they lost their job, the ability to get one in three months, far more than anyone in the age group they feel confident about that. i think it is important these
2:29 pm
folks are unafraid. if wall street bristles at the notion there is too much optimism, they see it as a contrarian indicator, i would push back against that. joining me from walser wealth management, rebecca walser. rebecca, there is a survey from e-trade shows 75% of these retail investors, mostly young folks that the market is fully or somewhat in a bubble but 61% remain bullish though. i know, i know how this feels. they're essentially saying it is bub bubblelicious and i love it. what do you think about it? >> i think it is essential they are bullish, and we need to get some level of normal, whatever that, we need people optimist take to get out there to spend their money because we're 70% consumer driven. it is very good they're optimistic. people played dust in the wind at the high school graduation,
2:30 pm
you don't want young people feeling like there is no hope so this is group but i do sense a little bit of danger, charles, because i think they will think the fed will bail them out and the government will bail them out that is not necessarily a lesson for our young people f we have global pandemic the government will come along and save us. that is not right either. charles: here is the thing, the media, endless memes more often than not about the reddit trading crowd eating crayons, things like that. i saw a survey 88% of millenials are investing their own money. they have taken control, but of the same group only 55% said they were confident in the money making decisions. this is what we want to do, beyond trial and error, let's help them out, rebecca. what is the better ways to justify the confidence? what are the lessons they can learn now, not the hard way? >> start with play money f you're not confident in what you're doing, make sure whatever
2:31 pm
losses you take are not painful and certainly not your rent or car. charles: does that include the stimulus checks? >> i don't know if they're covering their rent or living at home, charles. get your system down. find out what works for you. then perfect it and start pulling in bigger dollars that will have a impact. obviously you can't stay on the sidelines forever. charles: all right. let's pull back a little bit, right? let's not make, let's go beyond the markets for a moment. >> yes. charles: listen, one of the things i love about you, rebecca, your passion for this country and our nation is mired by division, by doubt. i do find solace younger americans, gen-zers, millenials seem so eager they want to put themselves by the bootstraps, they are confident. i want them to gain for confidence. i want your thoughts where we are as a nation. depending where you watch your news or how you consume it, there is a lot of things to be concerned about?
2:32 pm
>> charles, 2021 will go down in the record books as a historical making year. history is being written this year. we just don't know exactly what it is yet but this is the moment where these millenials and our younger generations will be really tested as to their resolve, is it the america of your parents and your grandparent? not talking about the bad things. there is a lot of bad things we need to work on. i'm not talking about those things. i'm talking about the good things. the moral fiber of this country. innovative spirit, entrepreneurial spirit, i came from this but i became that. we look to the younger generations to understand that, to come into their own on that. i have no doubt that they will. charles: agree with you 1000 percent. rebecca, always enjoy our conversations we'll talk again real soons. >> thanks, charles. charles: there are some ideas, so many trends, so many conversations i want to have every show. there is not really enough time. i write about this every single day. i invite you to read my daily market commentary every single morning. it is pretty good. go to to check it
2:33 pm
out. it is free. biden-nomics is pushing trumponomics to the side. social is the next piece of the agenda. the laffer curve, they're kicking that to the curb. the man behind it all, art laffer has choice words that biden is putting us on. intel ceo insists when it comes to nvidia it is playing off, not defense. but the market already has spoken. there is a new semiconductor king. others are lurking. get your pen and paper out. we'll talk about making money with the chip sector next. what ! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq
2:34 pm
♪ why do you build me up ♪ like you ♪ (build me up) ♪ ♪ buttercup, baby ♪ ♪ just to let me down ♪
2:35 pm
♪ (let me down) ♪ ♪ and mess me around ♪ ♪ and then worst of all ♪ ♪ (worst of all) ♪ ♪ you never call, baby ♪ ♪ when you... ♪ ♪ say you will... ♪ carl. what have you done? think anyone will notice? yes. yeah. if you ride, you get it. yeah, they will. geico motorcycle. fifteen minutes could save you fifteen percent or more.
2:36 pm
2:37 pm
♪. charles: folks, three months into the new presidency i think we have a clear understanding of the economic path president biden will pursue. it is not the well-worn path
2:38 pm
that has been taken, it's a well-worn path taken around the world, not in america recently but around the world throughout history. the thing is every time it has failed. more recently in america we taken that path, what they call neoliberalism which championed the wisdom of free markets. in fact even democrats acknowledge the efficiency of the marketplace. this orthodoxy got its big boost from the extraordinary economic success during the reagan presidency. that is when it established its bonifides. the man gets lion's share that created this, art laffer. he is in fact considered the father of supply-side econmics. the interesting thing it all went down in a washington, d.c. bar in 1974 with a diagram drawn on a napkin. a curve that became known as the laffer curve. today president biden will throw the napkin and the laffer curve away to go in the opposite direction. some say it is bold, some say it
2:39 pm
is revolutionary, but my next guest says it is extremely dangerous. former reagan economist and trumpnomics author, art laffer. this article was trying to dismantle all the talking points of the laffer curve, all the success seen in reagan recently through trumpnomics. i would ask you to go through them with me. welcome to the show. always an honor to you. >> a pleasure to be with you, charles i'm. charles: markets left alone which is the orthodoxy, get prices or more less right. they say it can't be true. if it was truecar costs wouldn't go through the roof. cost of global climate change, all the things say that discount the notion the market is efficient. >> everyone knows there are some inefficiencies. ronald khost got nobel prize, for it, externalities, carbon
2:40 pm
has externalities i proposed a carbon tax, i proposed offsetting it 100% with income tax rate reduction that cuts it 100%. i can't get one democrat to support it. al gore supported it. these guys think everything is wrong with free markets. and it is not. free markets work really well. look at eye surgery, lasik surgery or plastic surgery, any of this stuff versus the controlled areas of health care. they do much better, much lower costs, costs have been dropping and quality increasing. markets really working. these guys are just nonsense. to answer it really correctly, i may have not been raised in a farm, charles, but i can sure as heck tell a rutabaga when i see one and they're putting out rutabagas. i thought that was fun. charles: say tax cuts, orthodoxy tax cuts increase private sector investment.
2:41 pm
that is not really how it works. in fact that the trump tax cuts only produced a windfall of gains used for stock buybacks and that real product investment, productive investments actually fail. what do you say to that? >> let me address buybacks if i may. if a company gets a huge windfall, let's say of profits, it does not have good investment opportunities, that company specifically doesn't, shouldn't that company return those funds to shareholders and let them put them in other industries where they have higher rates of return? that is what is called a stock buyback. there is nothing wrong with stock buybacks. they're just wonderful. they really allocate capital far more efficiently. these people who demonize stock buybacks don't know straight up. they really don't, charles. stock buybacks are a sign of markets being very efficient because companies return funds to shareholders who find better places to invest. that is what markets are all
2:42 pm
about. charles: let me ask you about one more though, they say according to the laffers of the world deregulation liberates markets, ingenuity, liberates the economy, it helps big time but they say the only thing it really does is create anti-consumer scams. you know deregulation, where should regulations be? >> no. what they're saying there are times when deregulations do cause scams, that cause monopoly profits. that is true from time to time. that is why we have antitrust legislation. we're always trying to refine the legislation to make it more correctly focused solving a real problem, but when you look at something like what trump did with transparency on the health care industry that is a huge problem because of government. because of regulations. if you had transparency, that sector of the economy, 18% if i might say would be far more efficient, prices would go way down, quality of health care. look at universities,
2:43 pm
501(c)(3)s all done by regulations, by tax gimmicks all that stuff. do you think our colleges are educating your kids well today? if you do you surely haven't been there. charles: tell you what, art, we're out of time but president biden has gone down this path of biggar gant juan government, bringing back the welfare state. if you don't mind we'll ask you come on the show from time to time and hold our hands and things would be okay. >> anything but holding your hand, charles, i would love to come back on the show. you have a great day, charles. i love being on your show. [laughter]. charles: thanks a lot art. we'll talk to you again real soon. another changing of the guard this time in the tech world, nvidia is leapfrogging intel and we'll tell you why and where there are some other opportunities. there is a lot of smaller tech stocks particularly semiconductors that want to step up as well. we'll be right back.
2:44 pm
eft. ♪♪ you can spend your life in boxing or any other business, but one day, you're gonna take a hit you didn't see coming. and it won't matter what hit you. what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ incomparable design makes it beautiful.
2:45 pm
state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $349 a month for 36 months. experience amazing at your lexus dealer. some say this is my greatest challenge ever. lease the 2021 nx 300 for $349 a month for 36 months. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;)
2:46 pm
2:47 pm
♪. charles: well don't look now but here comes the nasdaq, folks, being led by those tech names once again getting a boost from lower bond yields and a bump in the stay-at-home stocks. i've been saying for the past two weeks, tech, kind of return
2:48 pm
to that position of investment comfort food. it keeps you warm, makes you feel good, but has enormous upside potential. bring in a guy who knows tech stocks as well as anyone, disruptive tech research founder. lou, your thoughts on start with today's session for a moment. the big stay at home names popping pretty good on this johnson & johnson news. i would like to know before this news i thought they were oversold. where do you stand? >> look, it i still think there is a lot of selling to go in some bigger names of stay at home. netflix is one for me to be cautious with. user growth will slow. we're all done with netflix and chilling. we've been doing it for a year. zoom communications this, is something look back three or four years wish we never had to zoom. we have so much fatigue. citigroup is zoom-free fridays. we'll have zoom-free zones. this company is trading 100 billion-dollar valuation, which is two times the size of
2:49 pm
the entire video teleconferencing market. move from the state at home stocks to reopening stocks. a lot of economic growth trends, whether there is vaccine hiccup with j&j. i think that is only temporary. the trajectory is surging economy and reopening globally. charles: let's talk about the semiconductors and there is a lot right now in part because of the historic supply crunch. before we get into the broader market, i'm really fascinated by the baton being passed from nvidia. it continues to dazzle this company, living up to the hype of more than a decade ago. intel meanwhile continues to fade. for the past five years, folks, nvidia's stock is up 300%. market cap of 77 billion. intel up 106% in the same time with a hundred billion dollar less market cap. have we seen a official changing in the guard, lou? >> i think we have, we agree.
2:50 pm
intel is like your grandfather's chip stock just like general electric was. you just have to leave it. they are cheap for a reason. because they are not an innovator anymore. nvidia did a amazon strategy. they landed and expanded. had great gaming chips and seen them dominant artificial intelligence and moving into data centers. with the arm acquisition they are literally into every growth sector you can imagine. nvidia, there is another chip play, nxpi semiconductors, those two are the new leaders in this space i think everyone has to have a position in their portfolio. charles: before i let you go, what are you most excited about in the tech space at this moment? >> love semiconductors. love a small cap play at 10 or $11. it's a pick and shovel play on the entire semiconductor industry. i love biotech. the pandemic one of the benefits of it proves we can innovate with science to get out of the almost all the challenging
2:51 pm
health situations. love the companies in that space, doing things in the vaccine world which is tff pharmaceuticals. they can eliminate the cold vaccine storage requirements which accounts for 80% of cost of vaccines. i love a company, qbil pharma. immunotherapy space could have big implications coming up with phase one data coming out in the next quarter. love biotech and chip stocks. charles: i'm with you a thousand percent on biotech. i wish i knew them as well as you did. believe me i wrote down both symbols. lou, appreciate it. investors are waiting for america's biggest banks to give their earnings reports in the morning. coming up we have a bank bull who has been so spot on. you would have made a fortune if you listened to him. don't worry, he has more ideas. he is
2:52 pm
next. (vo) ideas exist inside you, electrify you. they grow from our imagination, but they can't be held back. they want to be set free. to make the world more responsible, and even more incredible. ideas start the future, just like that. i am robert strickler. i've been involved in communications in the media for 45 years. i've been taking prevagen on a regular basis for at least eight years. for me, the greatest benefit over the years has been that prevagen seems to help me recall things and also think more clearly. and i enthusiastically recommend prevagen.
2:53 pm
it has helped me an awful lot. prevagen. healthier brain. better life.
2:54 pm
keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at
2:55 pm
charles: well, big banks are going to kick off earnings season tomorrow. we've got goldman, jpmorgan, wells fargo all posting before the open, so which ones should you own before the news? let's bring in eddie gabor. i want to give you props on a number of big bank calls. take a listen. >> one area i think investors can go into, it's a higher risk play, but they're cyclicals. look at the banks. i know a lot of people hate the
2:56 pm
banks because of the low interest rate, but citigroup is still down 30% year date. again, if this economy continues to trend upwards like it has started right now, these beat-up companies like the citigroups of the world could be a handsome reward. charles: that was a grand slam. you also gave us jp if morgan on this network -- jpmorgan, so you're on the spot. which banks should i own going into this earnings season? >> i still really like citigroup. i think citigroup has actually lagged on a year to date basis. i believe they have the most upside here in the near term in regards to the big banks. jp is my favorite bank because of the way that they're run with jamie dimon and his team, but if i had to pick one, i would stick with citigroup right here. charles: all right. let's switch gears because the most exciting news is going to be coinbase tomorrow. i'm on the edge of my seat.
2:57 pm
it starts trading. get this, last week da davidson said we're going to go to $440 as a target. i thought that was nuts. this morning moffett went to $600 a share. i mean, should people be chasing this no matter where it opens, eddie? >> look, this is the most exciting ipo we've seen in many, many years. i kind of think back to the internet when that was first introduced. this is out of character for me. me, personally, i'm going to chase it with a portion of what i would allocate to coinbase. hook, there's 95 million millennials out there today. they're going to continue to drive crypto to levels that far exceed our expectations right now. it still is a very underowned asset. most people still don't believe in it. it is a real asset, and if you want to get ahead of this thing, you need to start getting in at some point in time. for me personally, i may get in a little bit too high. if it pulls back like many
2:58 pm
ipos do, i'm going to buy more because crypto, to me, is a great long-term buy. charles: and, by the way, we're going to have the analyst who made the $600 call tomorrow. i cannot wait to talk to her. before i get to what you really like the most of everything, quickly on risk. we got this johnson & johnson news out of left field, a higher than anticipated cpi report. not only is the market holding up, but during this hour we've actually gained some traction. what are the risks, and should people still be in this market? >> look, i think, in my opinion, for the right investor you should be in this market. the j&j news is a nonissue, in our opinion. they have under 5% of the vaccines that were going to be distributed out, is j&j. so it's not anything that's going to change the recovery. we are heading into the acceleration that we've been calling all year this next quarter that's going to be some of the largest in our lifetime. we're never going to see anything like this again over
2:59 pm
the next three months. so there's still a lot of nonbelievers out there, and as a contrarian, i'm buying that all day long. charles: what should the folks, because you're not alone. a lot of people, we saw records amount of money pouring into this market. where should they be looking, what are some of your favorite stocks and sectors right now. >> so my favorite sector right now, a big bull on oil heading into the year. oil has really stalled over the last few weeks. it's the one recovery play that has a double-digit drop in martha hasn't recovered -- march that hasn't recovered. nov, down over 20% in the last month. look at a company like exxon, it's down 10% on the last month with a very handsome dividend. so if this recovery is going to happen the way the so-called experts are calling it and we believe, you cannot have this acceleration in spending and recovery in the economy and not have oil go up, in my opinion.
3:00 pm
so i'll be surprised if oil's not at $75 a barrel by august. so you may have to be a little bit patient, but i expect oil to rip within the next couple of weeks, so i continue to add to this position. we bought more today as well. charles: all right. eddie, tell you what, you've been spot on. thanks a lot, my friend. meanwhile, we're getting some really good traction as we head into the final hour of trading. liz claman, the next 24-48 hours is going to be very exciting. liz: indeed, indeed. on so many levelses, from coinbase to what's happening with j&j. either way, south africa, the latest nation to put johnson & johnson's coronavirus shot on hold. they're calling it a pause after u.s. regulators decided to take the cautious move earlier today. european regulators, canada also seeking more information after the pharma giant says six women under 50 developed blood clots after getting the vaccination.


info Stream Only

Uploaded by TV Archive on