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tv   Making Money With Charles Payne  FOX Business  October 19, 2021 2:00pm-3:00pm EDT

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♪. >> all right. a quick market check before we go. stocks extending early gains as earnings come in strong. s&p 500, nasdaq on the pace for the longest winning streak in two months. look there, the dow is up 176 points. as oil prices are higher by 1% as well. $83 a barrel, charles payne. what do you think of that? charles: jackie, 100 looking feasible. some people are talking about 200. i have an amazing guest whose family is in the oil business, and she is a market expert. buckle up is all i can say. thank you, my friend. i'm charles payne. this is "making money." the great october turn is beginning. we're seeing it widen out and sectors shifting to rally mode. despite louses housing data and money managers staying inflation is here to stay.
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we talked about that. we have got you covered. jerome powell accused of cashing in the on the market right before a significant drop. odds he keeps the job are in freefall. what is the economic system to replace the fed chair particularly with all the turmoil going on in this administration. not if you want progressives to sign off on a smaller spending package. danielle dimartino booth and douglas holtz-eakin will look at possible scenarios and possible fallout. bitcoin etf it is lifting all boats in the crypto space. which one should you be buying? all that and much more on "making money". ♪. charles: all right. folks, looks like the rally has its groove back, in the shadows of the all-time high. s&p above the 50-day moving average, well above it right now. here's the thing, all the headwinds that tripped up the market last month, they're still
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in place. there is a brand new worry being added to the list. all of sudden china is the number two concern on the list of major money managers. helping me make sense of all this. david nelson, kathryn rooney vera, and shah gilani. is the worst over? have we see the lowest points of 2021. where does the market go here. krv, long time since i've seen you. you first. >> 2021 will keep moving higher. my concern is going into 2022. this is all propped up by the federal reserve. the fed continues to juice the markets. until it doesn't we won't see sustained corrections. we have another six months, maybe 12 months of additional upside for risk assets across the board, not just risk assets by bitcoin and private equity. anything you get your hands on that has yield i think will continue to produce. charles: david, do you agree? >> i think the market is going
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higher. i think some of the challenges you're talking about are real. some of the data speaks to that and yields hitting 1.6%. relative to the s&p 500 free cash flow yield as long as that spread remains in place stocks are still better asset class. i'm still long. charles: shah? >> market certainly can go higher. it should go higher and probably will go higher but i don't think we're out of the woods on a few different headwinds. particularly china is a very serious headwind. if we see something there, if china has a lehman moment, u.s. stocks will get absolutely hammered in half a nanosecond. as long as we stay clear of that, i think the market continues to go higher. charles: let me pick up on that, kathryn. i was shocked, it came out of nowhere. they dot survey. money managers around the world. almost a trillion dollars worth of money managers. all of sudden china was at the top. i thought evergrande thing was in hand. although the missile they
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launched. provocations with taiwan, seems like the country is desperate and i wonder what is going on there? >> if you notice, charles, you've been in the markets for some time, every year we have concerns about china. it is not suddenly out of the blue. china has inordinately amount of debt. we don't know the space of it. they have entities that shouldn't exist. there are zombie companies. china has a lot of head winds and i agree, raise some of what they said, key stakeholder that the president xi is determined to protect above all others is the communist party itself. i think that tells us everything. we look at china's equities. think they bottomed. momentum is to the upside. the chinese government has a very low tolerance for the ordinary citizen to suffer too much pain for an extended period of time because that produces,
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charles, political instability and a threat to the communist regime itself. charles: the irony, they're worried about political instability because they minted so many billionaire and there is massive income inequality. how do we mitigate that, david, with our economy? so many folks coming yesterday, hey this is not the same cold war with russia. our economies are so intertwined it makes it a lot more democrat dance for us? >> its an elephant in the room. china is an adversary ever sense of the word and challenge us on every level, economically, possibly militarily. i think taiwan is likely lost. i don't think the political appetite is there to defend. the good news we're bringing supply chains home. we're bringing chip production back to the united states. charles: that is key. we just handed it all over. let's talk about earnings season. we're in the second week of it.
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so far they're pretty good. we're seeing a few top line struggles. proctor & gamble had to spend extra 2.3 billion. transportation, raw material costs. shah, those shares are getting hit today. is that the thing we should get ready for? any company that can't pass on the entire cost should we brace for those stocks to get hammered? >> i think so and some of those swift downdrafts will be good buying opportunities but i think everybody is going to be prone to that sort of headwind because everyone is listening to what ceo's, cfos are going to say as far as future prognostications of supply chain, interest rates. that will be very telling for investors whether or not the executives see some headwinds for the company. if they say that, if we see that, then we're going to see stocks getting hit based on that but i think if they get hit hard enough a lot of those companies will be able to pass through eventually some of those higher costs. >> before i pass it around here,
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real quick on the banks, they carried the market last week. fantastic earnings. i give you props being early there. do we stick with that trade? >> yes, absolutely. even some of the banks are on their highs i think there are certainly good opportunities. i think they have another 20% to go higher. i think they have pretty clear sailing to do that. charles: the delta variant, cases continue to ease up a little bit here. i think we're seeing signs of shifting and behavior, right? from some credit card data we saw people are spending less on sporting goods, more on entainment. talk about the best way to ride that wave. kathryn, how would you play that? >> we're still in the reopening trade. a lot of couples been working from home, saving on commuting costs, saving on food costs are excited to get out there to travel. travel is still muted. i still think there is upside. you mentioned credit card companies. look at visa. look at mastercard. look at areas such as resorts
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you know, resorts, restaurants, alcohol brands, these are names we're looking at bulltick, as a consumer discretionary sector. but one thing, they're not cheap. if you want to look at value look at names but offshore in europe. if we're still talking about u.s. have a look at these subsectors. charles: it is so interesting because consumer staples, consumer discretionary the only two sectors down today. consumer staples because of proctor & gamble news. on the other hand consumer discretion ney, ulta salons says this will do next few years. the street said that ain't enough because they priced in so much success. how do we get into the trade, david? a lot of people are have been being talking reopening trade all year long? >> you know, i'm still tilted towards value at this point. you were talking about entainment, so i will give you a place i turned to. viacom is a still a liquid asset
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but very cheap and getting free call option on the streaming assets. we know streaming content comes at a premium. paramount film libraries probably one of the best on the planet. under 10 times earnings. you're getting streaming asset for nothing. >> stock never recovered from that debacle. i thought it was cheap at 40 bucks. shah, you're not on the growth side per se. something intriguing happened. 10-year yield spiked and the nasdaq spiked, the growth stocks spiked, the big tech names spiked and the same thing is happening today. will we get to the point we can own growth even as yields go higher? >> absolutely. we should continue to own growth as yields go higher. what willed impact growth stocks will be an acceleration of rate of change in terms of yield. if the yield pops to 1.75. if the 10-year gets to 2% in pretty much a new york minute
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then those growth stocks will get hit. if it is a gradual ascent they will price that in, that we will be just fine. growth stocks will continue to grow. charles: david, shah, kathryn, good to have you back. see you real soon. the pain at the pump obvious. oil and gas at a seven-year high. but here's the thing it could soar even higher. democrats continue to push the war on fossil fuels. jerome powell promised to clean house after the trading scandal erupted. here is the problem. he did a little trading on his own. how will this impact his renomination chances? you will want to hear this later in the hour.
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but then i found out about nonsurgical treatments. it was a total game changer. learn more about the condition at factsonhand.com charles: gas prices hitting a seven-year high, you know that, right? what about 200-dollar? that is being floated around as president biden climate change priorities as this war on fossil fuel. hillary vaughn at the white house with the latest. reporter: charles, the white house is well afair that people at the country is feeling the pain at the pump but they're not going to reverse positions
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they hold they should not increasing fossil fuel reliance and production here in the u.s. but instead they're looking for opec to increase production. white house press secretary jen psaki saying yesterday they are pressing members of opec to address the supply issue here and pump more oil to drive prices down. gas prices are hitting seven year highs in some parts of the country right now. that is already adding to the high inflation that americans are being hit with at stores for everyday goods. the white house says they're working to move gas around the u.s. more efficiently they say some parts of the country are seeing more shortages than others. they also are working to crack down on any price gouging that may be happening at the pump where shortages are occurring but former vice president mike pence said on fox business, he sees the common denominator gas is going uppadyolic n aisdmtratdmnatggppr
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on on ie. tuthey theyheyon't hyyto tame s s he the tec bececau bseec bec gas industry,oay, are same s pameopl peo pcerorsdu ar tgo shut shutnd iten g,reen,, clean cle cle engy. charles? jail hryil thank youy much.ch. mee now,ow,ow magag incipal 7 capit, th b administratio hing ong oo theil industry and opec, russia, not the united states. i mean, monica, let's face it isn't time to call off this war? >> i think any investor is looking for a good value and good yield wants to call off this war because the oil and gas sector really got crushed over the last year. it lost more than 25% of its value. a lot came from the sector having to slash dividends. it is looking really attractive
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charles, oil stocks are cheap relative to the rest of the market. there is strong earnings momentum. they are paying good dividends and they benefited from the recovery in oil prices. >> they have but part of the the recovery, supply and demand, right? we know demand will grow but we have all the issues with supply. then on top of that for domestic drillers at least i can recall twice where president biden taken to the microphones threatening to crack down on the industry if they find nefarious greed and that is disheartening for the industry if you can't drill in certain places and that space will only get smaller. >> the oil sector has been the bright spot in the economy for the next 10 years. now political ideology has made it a pariah. to a certain extent a lot of these large energy producers are ones in the forefront of focusing on renewable energy.
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they are the ones focusing on ev charging points and carbon capture technology and you know, these are the folks that as we diversify will be the ones we need as partners in this energy revolution. charles: you know even of course as you just mentioned over the last 10 years the vilification of the oil industry. this started long before president biden. in fact the esg movement cost billions of dollars the industry needed not to get. the industry has gone begging. people are saying esg is coming around. could they become to the rescue? >> esg is really powerful of $17 million money managed in the u.s., esg touch as third of that. with esg there is a mac mackenzie company has higher esg stores has 10% lower equity. esg ceos get their compensation. esg is impacting how board seats
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get allocated. we saw activists environmental investors take over board seats at exxon. the esg movement is very much driven by women and millenials. those are the subsectors looking past pure profit and thinking about my investments need to match my ideology but i think you know, with a lot of things just the need for these companies to have to focus on the pr of how they're being actors, it is not necessarily playing out to effective policy to meet our 2050 objective of reducing carbon emissions. charles: i have got less than a minute to go. ultimately this big move we're seeing is it conceivable we could see $200 west texas intermediate? >> that sounds really rich to me but i think there is a lot of, a lot to think about in terms of us actually meeting achieving these goals becoming carbon neutral by 2050. we have only 2% of our auto
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fleet is electric vehicles at this point. we don't have the charging infrastructure. we don't have the power grid upgrades that we need. i think a lot of, there is a lot of wishful thinking going on but energy sector is going to be important for the next 40 to 50 years. we'll be pumping crude for sure. charles: yeah. so funny outside of tesla, you look at ev stocks, charging stations stocks, people are getting shellacked on them. the hype is one thing but as you point out we're so far away from the reality. monica, been too long. talk to you real soon. >> great to see you, charles. charles: coming up next the odds are not looking good for jerome powell keeping his job especially new reports showing major hypocrisy. what is the answer to solving the supply chain crisis? maybe do we stop buying stuff? i will ask two of my favorite economists, douglas hoax eakin and danielle dimartino booth after the break.
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♪. charles: well jerome powell making a big show of cracking down on members of the fed that were trading the market but a new report shows that the fed chair himself may have sold more than a million dollars worth of stock in 2020 just as the market was tanking. this report does nothing to help the chances of getting renominated to the job. want to bring in the president of american action forum douglas holtz-eakin and quill ceo danielle dimartino booth. i've been talking about this for weeks a crazy crackpot theory of mine that he could become a sacrificial lamb. president biden may have to throw him to the wolves, progressives wolves, offer lael brainard for a much smaller spending bill compromise. what do you sense? something is odd. he was supposed to be renominated a month ago. what is going on? >> you're right, charles, labor day was the deadline for the white house to make the announcement. we're well past labor day. what is intriguing to me my
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former boss richard fisher said on competing network a few daising a, brainard is the same capacity of a chair of a committee on federal reserve banks throughout the district, she tends to be the person who signs off on these financial documents. if i understand correctly she has been in this position for several years now. so i can't quite get my head, brainard as chair of this committee would be flagging any type of trading behavior if this is something she has been seeing several years consecutively, unless there is something to do with timing and politicking, who would ever say such a thing would be done inside of the federal reserve. i agree with you, looks like there is a witch-hunt for jay powell. i'm not sure it is justified. if i could add one other detail, there was a large trade swirling around social media today, a october trade when the federal reserve right before the emergency measures in february. until that october sale of stock jay powell, the s&p 500 went up 4%. subsequent to that it has risen
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31%. so there is a lot of investigating, further investigating that i think the media needs to do to look into this. charles: real quick, danielle. it is not a secret brainard wants this job. she made specific speeches auditioning for this job. >> she has. we have to remember she was promised to be treasury secretary janet yellen had hillary clinton would be elected. she publicly donated to her campaign which is a big know know at the federal reserve by the way -- no, no. she thought she was in line to be treasury secretary under president biden. that was looked over as well. i think she feels three strikes she is out. i don't think she wants lower provision of vice-chair of supervision, regulation. that is being bandied about. if you look at vegas betting odds, still have jay powell in the running and brainard's numbers have not moved up appreciate i about. to me that says what a difficult
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time the biden administration will have getting brainard's nomination through the senate despite how much warren is backing her. charles: some democrats in the senate already said as much. what would happen to the market if powell wasn't renominated? >> oh i think this is bad for the market. markets hate uncertainty. if powell is not renominated you can't name someone satisfied the progressives sure to get confirmed. powell is the only person who will get confirmed by the u.s. senate. not obvious anyone else would be able to do that. that tends to be outlook for drift at the fed. no real direction. we've already seen quarles down, no replacement as vice-chair of supervision. that is a fed that really is leaderless. so i think that is bad for the market. charles: what about on the along the same line, all the brouhaha with nancy pelosi and members of congress trading the market,
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particularly her, douglas? there are videos and some of the things her husband has done, odd timing. is it time to say public officials get mutual funds but don't get any active trading? >> i don't think taking problems leadership position, speaker of house, you're in a blind trust. you don't know what happens. hire a good investment manager, see at the end of your term. it is just not good for the democracy to have people suspicious. you can eliminate the suspicion with very easy mechanisms. charles: especially with a serious amazing track record would make 99% of money managers envious. >> right. like i said, some people are suspicious. who might that be? [laughter]. charles: let's talk about the next rate hike because you know, more and more folks are saying at least one, maybe two next year. danielle what are you modeling for? >> you know we have seen the supply chain disruptions
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continue to be disruptive. there is permanence to them even if they are abated in late 2022. i think that what is going to happen here that the fed's hand will be forced. they will have to expedite the taper which the market does not really have priced in and start contemplating the next step after the taper, that is actually rate hikes going into 2022. charles, remember how well or not the market reacted with the double tightening of quantitative tightening and hiking rates at the same time. if the taper was to be expedited and we were to see rate hikes over the horizon i really don't think the market would appreciate that especially as there are signposts emerging that the u.s. economy is indeed slowing. charles: no, i don't think so either. one thing to avoid a taper tantrum. a hiking tantrum is unavoidable. if it will happen when it does. i don't have more time. thank you two of the best.
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first bitcoin futures trading making the debut on the new york stock exchange. many say it could actually hurt the crypto cause. we have a crypto pioneer weighing in later. she will trach another victory lap. there is so much anxiety of the markets in general, hey if you've been in the camp sit back and enjoy the rally. i will ask mr. reluctant, kenny polcari. he is♪. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship
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will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com
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as i observe investors balance risk and reward, i see one element securing portfolios, time after time. gold. your strategic advantage.
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♪. charles: so far so good. investors sharing earnings reports so far. the s&p 500 just a small fraction have reported but it has gotten within 1% of record territory and the nasdaq only 2% below its all-time high. i want to bring in kenny polcari. and, kenny, you have been pretty cautious for a while. maybe the moniker mr. reluctant is gone too far but my question to you, is it time to stop worrying and start to learn to love this rally? [laughter]. >> you're killing me. i spit my coffee up all over my keyboard when you heard you say that. listen, here's the deal. i am the at point where i like the rally. you might have loved it when it was 10% lower an rallied to this point but it is getting a little edgy in my opinion. like i said i have not been anti-buying stocks, i have been. i have not been chasing the
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outperformers. i put money to work i think in sectors that are underperformed or sectors doing better going into the new year. i'm so much reluctant as i am cautious. you have to be in it to win it, right? you have to be invested and a well designed portfolio. you can't run scared that causes you to pull back. i view that as a long term investor. if you're a day-trader, you want the volatility. you want to jump in and out. you want the chaos. i don't necessarily want that as an investor. charles: speaking of chaos, october is notorious for that. six of the seven worst days in history occurred in this month s there anything like that possibly lurking out there? is there that type of a risk out there? >> you say that, look what today is. october 19th, remember, actually october 19th, 1987 was the crash. a crash like that i don't think anything lurking or 15, 22% on that day in the equity markets t
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couldn't happen anymore because of the circuit breakers. i don't necessarily see it. morgan stanley they're a little more down. they pushed that move down i think until the new year. i don't see that kind of a reaction. i do see more downside. we're coming into november. fed chair who will make this announcement in early november, whether they will start in mid-november or start in december. i think that is all fine, it is well-telegraphed. but until it starts you don't know how the algos will respond, how people will respond and then if there is this question you discussed in the last segment about a new fed chair or does jay powell have an opportunity, that creates more uncertainty, that will create angst in the market that will be another reason for the market to be cautious an pull back. doesn't mean sell everything, throw everything out with the kitchen sink. not at all. be aware it is potentially coming and set yourself up accordingly. charles: i think that is good. listen to your point. we know it is coming.
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tapering the stock market is handling it well but mike tyson said, you have a plan until you get hit in the face. i have a question about the sec report on gamestop after the close. mania online, brokers enticing folks to do more trading. a little bit on payment for order flow. looks like they may take some action there but just this whole notion of trading to lure retail investors in, you know i have always liked this movement for many reasons. in part also because you know, for the five years prior to it every article said where are the millenials? how come they won't invest in the market? i thought it was always ironic once they invested the same people got upset because they weren't invested in what they thought they should be buying. >> that is an interesting conversation. partly they were not investing because of what they saw happened to their parents, grandparents, aunts, uncles during the financial crisis, they got fearful.
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that is what i would get. what causes me about angst what they're doing today the way they're doing it. i think it is great they're in. i think it is great there is a new generation of investors out there, people actively involved. but what i get kind of hair on the back of my neck steps up the robinhood deal, we keep talking about the gameification, because it makes it as if it's a casino it is a game and i don't view it as a game at all. i never did. charles: right. >> i was, maybe era we brought up. i view as a very serious, it is not a game. it is a very serious proposition to be able to do your homework, do the fundamentals, pick good stocks, build a strong portfolio that is going to weather the storm. that is what i think is the issue. >> right. >> look, they're young, they're great, whatever they got they want want to toss it around. it feels like a casino and that is exactly what the u.s. capital markets should not be as a
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casino. charles: the financial media should take part of that blame. ten minutes into the market they're talking about the winners and the losers. you want to beat a horse race, turn on the tv at 9:35. >> that's right. charles: you're new moniker, mr. cautious. we'll talk again real soon. speaking of new investors i will be answering all of your questions. pile them in folks. we have got this new investor revolution town hall, november 9th, 2:00 p.m. eastern. get the questions in. email them to me at investedinyou@fox.com. by the way if you're in new york i would love to see you, come in and join me and our special guests in studio. bitcoin etf breaking all kinds of the records in trading. a next guest who told me to buy it four years ago, shareses her thoughts. police naomi joins me to tell us where the next opportunities are.
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♪. charles: i guess it was worth the wait, folks. this new bitcoin futures etf absolutely on fire. it has become the biggest new etf launch of the year with record shattering volume pushing bitcoin, nearly the entire crypto landscape higher. i want to welcome back to the guest who begged me to buy bitcoin in 2017, maybe earlier. naomi brockwell, what does this mean for the future of bitcoin etfs and crypto? i heard some people say this might not be the best thing that could happen for it? >> i think a etf is really exciting. it screams mainstream adoption. it means that people are taking this seriously. the particularly the sec stance on bitcoin is bullish f regulators are getting more comfortable with derivatives
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tied to the cryptocurrency, means they're getting more comfortable with the underlying asset itself. very, very bullish out look for me in terms of bitcoin. charles: what would you tell the average investor? buy the etf or buy bitcoin? >> that is a great question. i always tell people to buy the asset itself. i don't think anybody has an excuse not to these days. you can log into paypal, robinhood or any of those, create a account on coinbase, link your account directly. so easy to get the actual asset, there is no excuse not to. that being said i can't deny there are not some great tax benefits in an etf. if you for example, want to invest in etf as ira, you're not subject to pay capital gains on the increase in price of bitcoin in the ira. there are things people should take advantage of. as well, you should be holding the you know lying asset as
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well. charles: now the other coins, maybe dummies like me who missed it despite someone knocking on their door to buy it, what is something ground floorish we should look at? >> first of all, charles, you have not missed bitcoin. as long as the u.s. government continues to print astronomical amount of money, people look to bitcoin as a store of money. that is not going to end anytime soon. you have not missed out on the bitcoin train. that is vital part of everyone's portfolio. bitcoin, these are not just cryptocurrencies trying to do exactly the same thing as the other cryptocurrencies out there. these assets, new types of digital assets trying fundamentally different things. we have new ways of decentralization happening. as the government starts to target exchanges out there,
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we've seen a huge push toward decentralized exchanges like thor, they are permissionless and decentralized. the cash community. they have cutting-edge technology when it comes to financial privacy. all of that stuff is becoming more and more important to the average user. so i think there are definitely interesting things out there to keep an eye on as well as bitcoin but if you already missed out on bitcoin, i really don't think you have. charles: okay. i keep waiting for the dip. naomi you've been phenomenal. >> there is no dip. so lovely to chat with you, charles. charles: see you soon. investors are eagerly awaiting netflix. they report after the bell. will the korean hit "squid games" propel them to monster numbers? we know it will but will that be enough and should you buy, sell or hold? that is next.
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charles: all right, folks, it's earnings reports pushing stocks higher right now, as we head into the final hour of trading and while earnings are coming out mostly beating top line on some of these companies have been challenging i'll bring in strategic wealth president and ceo mark tepper along with brian dietrich. there's a big wave, at least there was right before earnings
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season, wall street got a little bit nervous, and right before earnings kicked off, it looks like these analysts panicked. what are your thoughts? i mean what was that all about because it looks like they made a big mistake. >> it does look like a big mistake but i think we'll hear a lot of would have should have could have this quarter in regards to supply chain issues, cost inflation, wage inflation, things like that, but at the end of the day, charles look. the last two quarters were complete blowouts where you had the actual number come in way above estimates. i don't think this quarter will disappoint but all investors need to understand, this year's easy comps will become next year 's more difficult comps and the market is always forward-looking, so i wouldn't go too aggressive at this point in time. make sure you're diversified in your overall holdings. charles: that's a great point, ryan of course you're the historian. how is the quarter shaping up so far with respect to the past? >> yeah, i mean, charles it's
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looking pretty good, right? more than 80% of companies have already beaten their earnings estimates and they are beating by about 15% on average those are both really strong numbers. now let's be honest though. the financial started things they did really well. do you think supply chain issues and covid are really going to impact that group? probably not, right? it's these next groups that come in that are more important but we could have mid-30% year-over-year earnings growth again, which would go pretty nicely with almost 50% earnings growth two quarters ago and 90% earnings growth last quarter earnings drive long term stock gains this is still impressive. charles: let's talk about netflix after the close the company has a terrible track record with respect to missing its missed three of the last four quarters and every time it took a hit. ryan would you be holding this stock into the close if you owned it? >> i'll tell you this much, i've been watching midnight max. i really like that show on netflix but unfortunately charles i can't talk about a specific company.
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what i can say is this. we would not want to bet against the consumer. look at that retail sales number we saw just last week, this is once again, the u.s. consumer we continue to doubt them, those consumer names still look really good so you can read between the lines, with netflix in general with the consumer names. charles: mark? >> yeah, we're overweight, netflix right now versus our benchmark. you know, we all know they obviously had that massive pull forward and subs added throughout the pandemic which really set kind of a high bar for comps earlier this year, and that's why the stock was kind of in no-man's land the first half of 2021 but as we kind of look ahead to the fourth quarter, you really look no further than the content slate. both squid game and season three had ridiculously high engagement and engagement is what gives netflix its pricing power, right then what else is coming out, ozark, stranger things in the fourth quarter so a very very strong slate so with the q 4 guidance i now is like 8.3 million subs added.
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i think they guide higher than that charles. i think the stock pops and also as the narrative continues to shift, more towards margins and free cash flow, remember squid game only cost them $20 million. like that's pretty good turnout. charles: i think that's what they pay for one episode of dave chapelle. i can't let you go, mark without getting your thoughts on that controversy. listen the company is standing up to the cancel mob. >> they are, here's my take on wokism and cancel culture overall. if you think about the corporations who seem to embrace this kind of stuff, they do it to deflect from pr nightmares they've had in the past, right? all it is for these corporations , it's like a hugh h udini act, like a slate of hands look here and not there. you saw this with the banks everyone hated them coming out of the great recession so as soon as they could flip the narrative and get everyone to stop hating them, they took advantage of it, but with netflix, i can't remember any pr nightmare so they've got
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legs to stand on. >> either deflecting or the company is based out of san francisco one of the two. the other mega growth names reporting this week is tesla. its been on fire. elon musk comfortable the world 's richest man. here is the question for you, ryan. do you think maybe he will stay the richest man after the company reports? >> we think he will, and even if he doesn't, second richest man isn't the end of the world but you think about it charles, automotives. it's not a pure automotive play but what's really amazing look at european autos on a relative strength base, u.s. autos starting to lead one of the biggest things you can buy is the house and a car. housing has been pretty strong, price action in some of these cars an automotives in general have been really strong, again, positive signs for the consumer in the economy as we head into early 2022. charles: mark i let the time drift you got 10 seconds but please give us the symbol of the micro caps name we talked about on twitter because a lot of people are saying you gotta get it in. >> ticker sien plastic surgery
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company, best product taking market share from the big boys. charles: all we need to know. i love talking to you two guys mark, ryan, thank you both very much and everybody is excited by this netflix thing, because you know, this is a company that wall street said was going to fail over and over and over again, for at least a decade and you know what? they always seem to do the right thing. liz claman, you've got another great hour particularly leading up to this earnings report. liz: oh, yeah, and i know you're going to want to stay tuned for this because charlie gasparino has adam aron of amc, i mean, with the whole sec report that is enraging the ape s, you've gotta watch this it is risk on as we kickoff the final hour of trade. investors pumped up by a slew of strong earnings driving them to pound the buy button the s&p and nasdaq looking to notch five straight wins their longest win streak in two months and the dow and the s&p are inching within points of new all-time highs. that meme s

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