tv Making Money With Charles Payne FOX Business November 1, 2019 2:00pm-3:00pm EDT
record-setting advance today at corner of wall and broad for the s&p 500. nasdaq comfortably in record territory. the dow not all that far from record territory a lot to chew on from my colleague and good buddy charles payne. charles: have a great weekend. we're having a good start to the weekend. i'm charles payne. this is make an "money." a blockbuster says the economy is full steam ahead. we have exclusive reaction from the white house. there are new reports coming out just now, the united states and china have reached a consensus on principle after more trade talks. plus i'm going in depth on the message that i'm seeing from this earning season. president trump moving from the towers of morning to the beaches of florida. why the lifelong new yorker is flying south permanently. elizabeth warren has her "medicare for all" plan. how she will pay for it. she says the price tag is 52 trillion but she proudly
proclaims we don't need to raise taxes on middle class by one penny. reality check and so much more on "making money". charles: the economy booming, showing no signs of slowing down. we're doing better experts thought we were. united states adding 128,000 jobs, 40,000 more than consensus. hours worked outpacing expectations. that hid the highest level in six years. i have liz peek and steve moore. this was 128,000. minus 40,000 from the gm strike and consensus revised up 95,000. >> doesn't get any better than that, charles. to see manufacturing would have been up except for this. after all the concern about a slowdown in the manufacturing sector. this is great news.
15th consecutive month where wages go up by 3% or more. i think, look, i think democrats have to be horrified by these numbers. this blew out expectations. absolutely, by the way you mentioned third quarter earnings a second ago. it is one more data point including third quarter earnings where everything is coming in above expectations. i think partly that is because there is underlying economy is so strong, consumer sentiment is so strong. pushing spending higher. i also think it is because people have been bad-mouthing the economy for six months, looking for recession. so far thank heavens has not happened. charles: despate all the bashing. you can make things come to fruition. in addition to all of that, just last three months alone, 325,000. 117,000, more americans entered the labor force. forget polls. all that stuff. to me that is the ultimate sign that americans are feeling much better about this country? >> it is, charles.
looking under the table here. i'm looking for that recession. i just can't find it anywhere. >> look harder. >> i mean, look, pretty foolish now. so many of the liberal democrats and people in the media have been saying that. that has been their mantra, last three or four-month recession right around the corner. boy, i don't see one right now. it is hard to find anything not to like in this report. i agree with you, charles. one of the most impressive things, we're finally starting to see really nice increase in people looking for jobs. frankly, the biggest problem right now in the economy is employers finding workers to fill the jobs. i do worry about that. i do worry at some point, if this boom continues we literally run out of workers to fill the jobs but that is a good problem to have. why wages and salaries are rising so rapidly. it explains 5,000-dollar increase in middle class incomes. it's a tough picture to beat.
when you think about it, here we are, 50 years lows for unemployment rate. mortgage interest rates and inflation. can you get a more beautiful picture than that? charles: list, you mentioned wages, they're going up more for non-supervisory, blue-collar workers. their wages are going up significantly faster than overall wages. when you think about the political calculus here. the argument, whoever is running on democratic side will be running on the platform of shared prosperity but when blue-collar workers incomes are rising faster than everyone else es a isn't that example of shared prosperity? >> jay powell talked about this after the fed meeting. taking about how the full employment economy was in every neighborhood. lifting up people at bottom of the income speck -- spectrum.
by the way i think it is understated because people are trading up to better jobs. we know that. charles: right. >> a lot of people come in off the sidelines, get minimum wage. numbers are skewed lower. charles: increase in retail jobs, we've seen a significant people moving from retail, second lowest paying sector of the employment to things like transportation, warehousing, which pay as whole lot more. go ahead, steve. >> i wanted to add to something liz was saying. i think it is very important. we did this tax cut. we put it together not to help rich people. we really didn't, charles. it was really to help create better jobs, better business environment so employers could hire more people to pay them more. almost like it is working exactly like we had hoped. really it gets to two points. one there was ridiculous article in the "wall street journal" a couple days ago basically said the democrats want to run against the trump tax cuts. bring it on. bring it on.
this has been a huge success. the second point, you know i would make is that, whole mantra that you hear from those 15 democrats on the stage is they have to accept that this is booming economy. nobody can deny that. so their argument for the last year or so has been, only the rich are benefiting. that is just clearly false. charles: sure. >> for the reasons that liz was talking about. there are some other statistics that show the low of the income people are seeing some of the biggest gains. charles: that will be only thing, if it stays like this, they will be able to run on. the fact you're doing great. someone is doing better. liz, steve, have a great weekend. >> thanks, charles. charles: stocks are soaring on stronger than expected jobs report. s&p and nasdaq hitting all-time highs. even with the headlines suggesting there will not be a trade deal. ultimately the stock market reflects the stock market earnings, future potential. investors are loving all those
things. meanwhile the chinese ministry of commerce says the united states and china reached a consensus of principles on phase one after talks with the trade negotiators today. joining me, mellon director of market strategy liz young. >> thanks for having me. charles: what do you think of this market? it has been unloved, stealthy if you were casual observer of the market you would have believer we're at all-time highs. >> it hasn't felt that way. spikes and volatility will make it more painful than it really is. what is interesting about the market. we had the third fed cut. we had signal there would be a pause or wait a while, more data dependent. we still vent had escalation in trade. i wouldn't put too much weight in positivity about trade. it is still a conversation. we need something tangible. the lack of escalation, the market is removing overhanging
risk. we haven't had any new risks come on. charles: that is interesting. makes the december 15th potential tariff hikes easy to pull back for the president. to add even greater spark to this rally? >> i think right now, what the market is expecting is that -- >> that is built in. >> get delayed or get pushed. i think it would be negative surprise went on as scheduled, god forbid got higher. another positive surprise for market, rate now the market is pricing in a trade truce. this sort of low conversation about of things, but nothing tangible. if we actually got a big deal or a deal that was bigger than we thought it would be, that would be a nice little catalyst too. charles: look at market itself. today, for instance, communications services not doing well. goldman came out between regulations, idea of breaking them up, these big names that carried this market aren't going to do well. consequencely google, facebook
are struggling. i find it fascinating investors say look at other areas of this market. they are. >> investors should look in other areas of the market. it is not a situation we can say absolutely with certainty we're headed into a bearish phase or full-blown bullish phase. you have to own all the sectors. i think it is okay to own cyclicals here. charles: you would be overweight? >> in cyclicals? charles: yeah. >> not necessarily overweight. it is okay to own them. what happened throughout the year, people have derisked their equity allegation. they gone into defensive sectors. in the last few weeks, last few month we're seeing reversal of that trend which would be positive through the end of the year. we would like cyclicals to come back into play. they have some catching up to do. charles: from here to the end of the year, going into 2020, the bull market should stay enact -- enact for you. >> escalation in trade or some
surprise we don't see coming the market could grind higher here. charles: other than the impeachment situation. is that sort of noise for you right now? >> at this point it is more after distraction. if it becomes reality, it is something to discuss. the market is not paying close attention. charles: before i let you go, are you managers have been throughout all this? they are sitting in so much cash and avoided u.s. equities all year long? >> depends on what the objective of the money manager is, if the manager is based on fundamentals, difficult to find something attractively valued at certain entry points. we're up over 20% for the year. when you're up that high, nothing has really changed, we have absent earnings growth, it is probably difficult to make the case for certain valuations. charles: look out a year from now, things should be getting better? >> they still put money to play. that is difficult to make that
case on valuation basis. i don't think it is a bearish call by professional money managers. they're looking for the right entry point. charles: i'm excited. a lot will have to play catch-up. thanks a lot, liz. great to see you. >> thank you. charles: we're staying on the strong october jobs report throughout the hour. fresh reaction from the white house. lifetime new york resident president trump leaving the state for florida. how many people flee to new york before maybe we start to change some of these tax laws? presidential hopeful elizabeth warren finally releasing the "medicare for all" plan. the price tag is not too bad, 52 trillion. not only bragging there will be in tax hikes on the middle class. she is calling the savings, the largest tax cut in american history? are you buying that? we'll be right back. ♪. th for the winter.
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charles: huge economic data out today. new information about phase one of the trade deal with china helping to move markets higher. here is reaction from white house. acting chair of council of economic advisors tom mace phillips. thanks for joining us. talk about the jobs report t was almost a perfect jobs report in the sense that you had more people coming to the labor force, wages went up, number significantly higher than anyone anticipated. massive revisions. couldn't ask for more than, could we? >> this is strong report. we're delighted with the result. the president tweeted a 300,000-dollar number. there is some confusion about that. let mae explain. 128,000 jobs added, above expectations of 80, in the 80 range. we had 95, very, very large
revision for august and september. which put august and september at 220 and 180, which are really great months. then we had basically outside of the gm strike, which ca estimates around 60,000-dollar, 60,000 jobs. partly due to gm but also due to the supply chain of gm which we have direct data what they're reporting. some people put that number at even higher at 80,000 jobs. with those, they add up to the 300 number we've been talking about. charles: okay. i'm not going to go through it with you, other than to say, you know, okay, 42,000 uaw, 17,000 census, plus 95,000, nothing wrong even with that particular number we were looking at something under 100,000. the good news this means the november number, december number will be probably significantly higher as we add those back in. i want to ask, we're in a situation, political season now, where democrats are saying, hey,
these things look good on the surface. when you scope beneath the surface, it is amazing amount of prosperity only going to the very top. what do you say to them? >> well, that is, i think completely inconsistent with the facts. we have basically a blue-collar working class boom going on. we have added 6.7 million jobs since the president started, compared to his cbo projection of 1.9 million jobs this time. what you see labor demand here is, dramatically increased due to the tax cuts and deregs we implemented. both in quantity, the employment population ratio which what economists care more b if you look at working age ememployment population, 80,000. we care more about that, because it is not talk. it is actual contracts being signed between workers and firms. charles: i agree with you, my friend. i wish that was number we used
other than the u-4 which is really an imperfect number. we have 30 seconds. i want to ask, you guys scored the new elizabeth warren payment plan for "medicare for all"? >> ca did a big analysis on "medicare for all" in a big report last year. essentially the bottom line is, that what is called free health care is probably a lot more expensive than what we have. so the tax increases and costs induced on economy will far outweigh any premium reductions from the health care. essentially, instead of calling it free health care, you should call it taxed finance government monopoly. that is what it is. charles: i like to get the acronym. i bet you could put it on a bumper sticker. tomas, thank you. >> thank you. charles: once the president leaves the white house he will head home to florida. why he is leaving new york city behind is next.
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charles: president trump says he will make palm beach, florida, his permanent residence after he leaves the white house, not new york city. trump tweeting despate the fact i pay millions of dollars in city, state, local taxes each year i have been treated badly by the political leaders of the city and state. few have been treated worse. i will always be there to help the great people of the city of new york. it will always be in my heart. someone who has my heart, gary kaltbaum. here is the irony. you are moving from florida to new york. >> i have two wonderful kids in the city, i was stuck on traffic
i-4 listening to neil. i had a marker out. i was talking about a 9% income tax. 3 to 6% inheritance tax. city tax, salt thing. i'm thinking to myself maybe i will not move up to new york. i'm amazing, i've seen my kids paychecks stubs. i am amazed what is taken out up there. it is almost a sin to me. family first. everything else second. charles: i know you want to watch your kids grow and go to baseball games and the family. i get it. single family housing permits, not just big earnings like donald trump leaving new york city but i feel millenials are setting up homes outside of large urban areas. that is the only way they have a good quality life taking care of their own children? >> money, business, people,
capital, will flow if they can, where they are treated best. this has been going on for ages now. new york city has a lot of great things going for it. it is new york city. but when all is said and done, i think carl icahn moved here to florida also. i speak, i live in east orlando, a ton of people from the northeast are moving down here, to get away from them. they're setting up shop. they're moving employees down here. the employees are kind of grateful? why the cost of living. ease of movement. all that really does matter when all said and done. i think new york city is lucky it is such a great place. the politicians take advantage of it. charles: i remember grace company when they moved 30 years ago it was controversial. now it is common. i look at bifurcation, new york is great. san francisco. top 5% make 600,000 a year.
bottom 10% make 16,000 a year. opera, plays all that great, can they sustain that long without some sort of a revolt? >> no. and i must tell you, i've studied these things. in san francisco, noticed a few weeks ago a house went up for sale. it was a wooden shack in the middle of nowhere $900,000. i mean a wooden shack, i mean a dilapidated wooden shack. people can't afford, the way the whole system is set up, wealth, where they're building and lack of building and all restrictions all that fun stuff, something has got to change or more people are going to flow to other places. >> gary, great seeing you. we'll see you a lot more around here real soon. >> you got it, buddy. charles: elizabeth warren is not only beating bernie sanders in the polls, but also price tag when it comes for "medicare for all," not budging.
no tax hikes for the middle class. does the math add up. we have a couple political/math experts next. ♪ car insurance so you only pay for what you need. i love you! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ but you don't feel good. with polycythemia vera, pv, symptoms can change so slowly over time you might not notice. but new or changing symptoms can mean your pv is changing. let's change the way we see pv. you track and discuss blood counts with your doctor. but it's just as vital to discuss changing symptoms as well. take notice and take action. discuss counts and symptoms with your doctor. visit takeactionpv.com
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52 trillion with a t. despite the costs she does claim, here is the quote, we do not need to raise taxes on middle class for one penny to finance "medicare for all." hillary vaughn is at white house with more. hillary? reporter: if you add up what governments companies, employees pay for health care, that makes up 32 trillion of the 52 trillion-dollar price tag. that means warren is $20 trillion short. that means she will squeeze it out of banks, businesses, millionaires but not the middle class. joe biden is saying this, quote about her plan, quote, the mathematical gymnastics in the plan is geared toward hiding a simple truth from voters, it is impossible to pay for "medicare for all" without middle class tax increases moments ago, warren was taken back by biden's response. >> wow. the cost projections by medicare
were authenticated by president obama's head of medicare. reporter: warren has over a dozen ways to play for the plan, including $900 billion for a .1% on financial transactions and fee on 40 biggest banks in america. she will get 1.6 trillion from 35% global corporate tax on foreign. neil: for u.s. corporations. she is putting a 6% tax on net worth above a billion dollars. she will change capital-gains taxes to happen annually for top 1%. those changes bring in $3 trillion. her plan would put $11 trillion back in people's pockets, bragging that is the bigger than the largest tax cut in american history. while warren may not raise taxes on middle class, charles, she is raising revenue for them getting an extra 1.4 trillion from them to pay for part of her "medicare for all" tab. charles? charles: thank you so much. rick ungar, host of the rick
ungar show. david webb, host of "fox nation"'s reality check. start with this. so the audience knows. this plan boils down, warren says right now the government, federal, state, pay for this. employers pay. individuals pay. her plan stays the same, individuals don't pay. they will have $11 trillion, a to hillary's point a trillion dollars a year. absolutely phenomenal, rick. this is the plan of all plans? you go to david first every time. today you have to come to me. i knew you were going to do it. this is a problem. listen two weeks ago she told us she would solve this problem, how to pay for it. i thought, well that is going to be interesting because we've been trying for 20 years to try to figure out the state of california, the state of vermont. they both tried to figure it out. over the course of the years they couldn't do it. she would do it in two weeks. i had a feeling there might be a problem. i had a feeling there might be a
problem. she did not i'm afraid. >> rick says they have been trying to figure out for a while, well you guys didn't figure it out, obamacare is not the answer. this sets up a real good battle between her and joe biden, he is already out there hating on her plan. >> joe biden will take her apart on this. go after her on numbers like in the debate which was actually pretty good on his part. here i'm complimenting joe biden but going up against elizabeth warren who has been hiding this plan, i don't know where she has been hiding it under a teepee in the reservation. >> thinking about it two weeks ago. >> she pulled it out look at numbers, will tax businesses where do you think tax will be passed on to? lower wages, all the things businesses have to do to survive at the expense of the middle class. >> can i say something real quick here? for somebody more years i want to tell you has been supporter of universal health care, even single-payer "medicare for all," this so hurts the cause. when you try to sell this kind
of baloney to an american public, i'm sorry they are not this stupid, all you do is set back the on taunt to actually work it out. charles: she did, in her report she says, check this out, i've got betsy stevenson, the chief economist under barack obama at labor department. simone johnson. i have mark zandi, considered the best economist in the country. they all have their fingerprints to on this. what do you say to that? >> i know mark sandi, i known him a long time. to way his fingerprints are all over this. he is way too smart to solve this problem. make really rich people pay for your health care. not going to happen. charles: on the campaign trail, it will boil down to that. she will not have to bet in minutia of this. we're in a system, 24 million people uninsured. another 24 million underinsured. if you get sick, you will file for bankruptcy. that is what she will have to say now that she already answered her critics with this.
whether it adds up or not. >> she didn't answer the question how do you solve problems around medicare spending at current levels. how will she come up with 20 trillion more of the current levels increase as population ages. other factors in play. medicare was so great on initial verse, why do we need all the other parts? we need health care reform. we need to change a lot of things from the beginning to end of life care for this country. it is not about damaging health care for millions of americans. 300 million people, focus on 20 that need. >> you're in the camp of obamacare 2.0? >> that is probably fair to say. i think we need to create the public option we didn't get to create last time. >> because it worked so well last time. >> we didn't get to do it. obamacare, don't get me started on that. he doesn't have time. it did work very well. that aside, you know what? we need the public option. let people choose. i don't want to get rid of private insurance.
let people choose. charles: she has a pretty good bogeyman with health insurance companies. >> who likes them? nobody. >> people like their employer provided health care which cops through the very companies. focus on fixing cost factors as well as access to care. charles: love our doctors. even though, you know what? >> we do. charles: as collective -- >> we like our lawyers all the time. >> never like the lawyers but the doctors. >> see you guys later. new charges in the investigation into united auto workers union. one official is accused embezzling, get this, hundreds of thousand of dollars. we'll have a live report. the ncaa will start the process of changing its rules to allow athletes to make money from names and images. one congressman gives us his take next. ♪
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charles: ncaa taking a major step towards allowing college athletes cashing in on their name or likeness. the board says in 2021 maintaining there still will be amateurism. author of the athlete equality act in congress, republican mark walker of north carolina. thanks for joining us. >> thanks, charles. >> what
is the essence of your bill? >> we drew up this back in march to make sure -- charles: all right. as you can see we just had a bit of technical difficulty there. if we get the congressman back, we'll continue this conversation. what is really compelling about this, to have a republican who sees perhaps merit in some of these student athlete being paid, at least for names and images. by the same token i want to bring the congressman back. we had a little bit of technical difficulty, sir. >> no problem.
yeah, i was just saying that the student athlete equity act, what it does, it insures rights for all students to be able, all americans to be able to have access to the free market. 99% of these student athletes never receive a single dollar from a professional sports contract but in their peak earning times they have to sign
a ban and says, it says i have no access to my amateur likeness while part of said university. charles: what do you make then of senator burr from your great state of north carolina like yourself, who not only is opposed to this, but seems really upset? he says if athletes choose to cash in, they should be taxed also. what do you make of that course of action? >> i very strongly disagree. are you going to tax those at campuses on music scholarship or education scholarship playing in a band or orchestra or using extra time, their own time to be able to tutor? these are for like backup
quarterbacks or other people whether male or female to have access to their image and likeness. when i go see my daughter or son at a college event the biggest question we have where we will eat afterwards. for some of these students and their families, the biggest question do they have gas money to get to sporting event where their son or daughter may be on the front page of the program? the point i want to make, we're not asking the ncaa or university pay a single penny. keep your money. ncaa a non-profit made over a billion dollars. we want to make sure the student have access to the free market. charles: there is major sea change in public opinion. i think you happen to be on the right side of history. i do want to ask you about something else that will be historical one way or the earth. house impeachment. investigators want testimony from attorneys who were privy to a discussion moving a memo from trump ukraine's call to highly restrictive computer system. where are we right now with
this? >> this is complete chaos. not only did nancy pelosi take it from robert nadler in judiciary and put it in the intel committee, as of yesterday, they voted on even changing the rules in the intel committee that gives adam schiff, someone as we know has zero credibility full veto power. even ranking member devin nunez can yield some of his time to other members. once you've been cross-examined by john ratcliffe i can see why. charles: i could see why as well. congressman walker, thank you very much. appreciate it. >> thanks, charles. charles: the united auto workers celebrating two big deals, and they're facing a new headline. new charges in the uaw corruption case where a uaw member is accused embezzling members dues. we have got it for you. ♪.
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♪. charles: with the help of big names like oprah and jennifer aniston apple tv plus debuts today entering a competitive streaming tv market. liz claman has the preview for next hour. >> more than a preview, when there is a winner, charles, there has to be somebody, some type of sector might be losing but before you start selling all your telecom stocks or cable operator stocks, apple, disney streaming, big names, netflix, the tsunami is coming, before you start doing that you have to hear what greg moffitt has to say. he has been known as the top telecom and cable analyst. wait until you hear what he has to say about who really does come out the winner or loser in
this battle. it is not who you might think. yes, apple's stock as you see is moving higher by 2%. it has had an unbelievable year-to-date move. this is intriguing for any investor with any portfolio, 401(k), 529 you name it. you have to watch for this. charles: we will. folks, make sure you tune in to the "claman countdown." that is at the top of the hour. fresh off the uaw new labor agreement with ford, united auto workers president gary jones and other union officials are being accused of embezzle member dues. mike tobin with the year long investigation. reporter: what is laid out in this latest criminal complaint the union leaders were living high on the hog, billing essentially to the union and burying everything in expenses. in terms of cheating on expenses this is next level stuff. the criminal complaint alleges that edward robinson, and six r six other union officials
embezzled $1.5 million in union funds and hit it from the irs. two purchases of sig gas, $13,000 a crack. $20,000 for golf clubs, clothes, green fees. the complaint that the union was double billed for big meals with tabs of almost $10,000 and certain union officials would split the cash left over. other expenses alleged are private villas, high-end booze. also checks were generated out of accounts for philanthropies or cashed by union officials. the only person charged in the criminal complaint is robinson. alleges co-conspirators, uaw officials, a, b, c, d, and e. the "detroit free press" and "detroit news" cit anonymous sources, official a is president gary jones and b is former president dennis williams. jones' home in michigan was raided last august. golf clubs were taken from the
home. alleged $32,000 in cash were found in the home. a uaw spokesman issued a statement to fox business we take any allegation of about the claim of misuse of union funds seriously. the uaw is grounded on the principle putting our members first. that belief has never waivered. the uaw reached an agreement with general motors and ford. this investigation has been going on over two years. this is the 12th person now charged. charles? charles: mike, tell you, really is a shame. we'll find out what happens in the end, if it is true, it is despicable stuff. great reporting mike. thank you very much. >> thank you. charles: we're wrapping up the markets for the month. the nasdaq and s&p are on both record pace for closing highs. the message of these markets you won't hear anywhere else. i worked hard on it. come back. bring a pencil with you. ♪ every time.
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charles: more than halfway through the earnings period, and this week added additional narratives for investors to consider. one, i'm calling it the defined ones. despite facing mounting criticism and government investigations around the world, that could eventually lead to efforts that actually dismantle them, the so-called big tech names are getting bigger. they are exploring new markets, creating new products and building moats around existing businesses. most notably, it's rapid growth in manpower which was once a knock against the billionaires running these companies. you know, they were saying they were much wealthier than the robber barons of yesteryear, yet barely had any employees. that's beginning to change. google and amazon posted earnings misses, facebook missed in two of the last three quarters. for investors, the question is do you hang out in these names that aren't beating the street but are building empires? i say stick with the empires. conversely, there are a lot of hot companies that have recently became ubiquitous in our daily lives but their success has been
more cursed than blessing. beyond meat, for instance. they got all the footage, making only establishment companies create their own versions faster than planned. meanwhile, the stock was hammered and it wasn't the ipo lockup expiration, it was hammered because the company's giving out massive discounts. then there's pinterest and etsy, there's no moat around their business, absolutely no barrier to entry. these stocks and other similar companies have been hammered this earnings season and while several of them will survive and even be great investments, a couple of them will be future fitbits. you know, the fitness tracking company that took the world by storm only to be sold for a song today to google. now, the tested ones, this is another theme. caterpillar, harley davidson, kraft heinz, they are old, tested, have been around for a long time. investors bid these names up on earnings, but i got to tell you, these earnings were actually lower than in prior years. i want to bring in rob luna. let's talk about my thesis here. first of all, the defined ones,
right. goldman sachs came out with a report that said communication services stocks will be under huge pressure for a long time. they downgraded them. they are one of the few sectors not participating today. should someone sell their facebook or google? >> i don't think so. like you said, these are the names you need to have patience with. i think those names, the four you put up there, that's really the economy of tomorrow, of today. apple, facebook, google, amazon. it's noon here on the west coast and already, each one of those companies touched my personal life, mostly everybody out there. these are the companies you have to stick with and like you said, if you are a fitbit, a pinned, one of those people without an ecosystem, you won't be able to survive alone. if you aren't investing directly in one of these companies and are trying to play it on the outside, you are playing it the wrong way. even though they aren't doing well, you need to stick with these big names. charles: it is tough, though, because you hear millenials, they want the alternative meat.
my 7-year-old granddaughter told me she wanted to go to burger king and try the plant-based meat. she must have heard about it in school. they automatically say these have to be great investments because this is where the world is going. >> yeah, you have to be careful of that, though, because you look at an old company like kellogg, we just reported earnings, and a lot of people actually think it's a better alternative. there are companies already in that space that have very profitable businesses and as an investor paying you a dividend. you have to look at the size of some of these companies. when you look at fitbit, the reason that company is being bought out today, it's trading under $2 billion. pin, on the other hand, pinterest is an $11 billion company and if you are someone like facebook that owns instagram, what is pins doing out there that's unique and interesting that instagram isn't already capturing from their average user? charles: the investment themes are good. in other words, these things we know social media, we know the reach of them. it's just finding the right idea. this earnings season, i guess so far we are doing better than
anticipated. what i find completely intriguing is that you don't hear much about tariffs, some of these companies. you hear a lot about the strong dollar and you hear even a lot about higher wages, those sort of things. what are you taking from it, particularly as we go into the last couple months of the year, which traditionally are really good for the market? >> yeah. i think the momentum right now is going to continue to carry this market. if we hear anything good that comes out of china, i think our target has been 3100. i think we will pierce right through that pretty easily. like you said, when you look at earnings that are coming out, so far the companies that have reported actually better than expected. you got things like pmi that are better than expected today. good jobs numbers. there is so much pessimism but you have been talking about it time and time again. every time there's a selloff it's been a buying opportunity. look at the names you talked about last week. 3m, the type of names that got beat up, that was the time to step in and buy them. today they are rallying 3%, 4%. stop listening to the doom and
gloomers. people have jobs, they are making money. there's not a lot of inflation out there and there are good companies that are executing. charles: this is something everyone has to grapple with. i know i'm sitting in stocks almost every single day during earnings period and i'm like i wish i had sold yesterday. how do you deal with the names that get hammered, for instance, like etsy, for instance, or some of these others? i know they come back. roku was one for me that was crushed, it came back quickly but they all don't come back that quickly. is it important that you are able to admit you're wrong and you know, sort of lick your wounds and move on? or do you try to reassess them and hold on? >> yeah. that's a great point. i think most investors, the worst thing out there they have going against them is themselves. and their pride in general. so i think etsy, that's one of those stocks like we were talking about, i don't see how that stock survives on its own. valuations are not too great. look, you have to have conviction in this market or you are going to be shaken out. do the analysis, do the
research. is this a company that has a competitive advantage, are the valuations good. if so, you stay the course. if it's -- charles: i'm going to start knitting and selling stuff to protect my investment. we are at the highs of the session, up 250 points. another crazy week. liz: i want a floppy millenial cap. can you knit one? charles: that's my first project. liz: for me. thank you very much. have a good weekend, charles. we've got a major comeback in this final hour of trade, folks. manufacturing was the spoiler 24 hours ago but better than expected economic numbers today have the bulls charging with renewed energy. is good news finally good news, and could the fed actually be the one to thank this time around? a shocker, the president leaving his louis xiv inspired apartment for the florida sunshine. the latest billionaire defection from new york sparking fears of a real estate crisis. we've