cheryl: welcome back, one thing you need to know ahead of next week the tech event of the year kicks off on tuesday, ces is coming to las vegas. the company is set to unveil the new gadgets. innovations are expected everywhere from your living room to the sky, robot vacuum cleaners, smart homes in flying cars are expected to be announced from the world's biggest names in technology. the show will future more than 4000 exhibitors and 130,000 people expected to attend. we will be following all of the big headlines right here on fox business. that will do it for us, thank you for watching, have a weekend ♪ ♪ >> "barron's roundtable" sponsored by global x etf's.

jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. i am jack otter and vestas are expecting rate cuts from the federal reserve but will that be enough to keep last year's rally going. brian levitt will give us his sights on where to keep your money. the magnificent seven bag into big tech with the gold investment of 2023, will 2024 be the year for dividend stocks to shine. will look at where investors can find the best yields. the tech of the of the year kicks off in las vegas and top industry leaders are said to unveil the gizmos and gadgets. we begin with three things investors are to be thinking about right now. stocks dipped in the first trading week of the new year, bond yields are up stronger-than-expected jobs data as investors are concerned about the higher for longer rates.

then the weakest stock of the magnificent seven has been slapped with a second downgrade, it's been a sour start of the year for apple after is and historic 2023 will assess the 2024 outlook. tesla is taking a backseat as the world's largest battery ev seller china's byd is now dominating the industry beating out tesla both sales in affordability can tesla retake the lead read on the "barron's roundtable" ben levisohn, carleton english and andrew bary. the market barely missed hitting an ugly milestone this past week. >> it did it came very close to finishing down for the first four days of the year end it's basically acting as hung over as i felt on january 1. it makes a lot of sense and had a great two months. the stocks that it might not want to ton of went up and up like cruise lines and semi conductor stocks and people woke up this year end said wait a minute did i buy too much of the stuff reducing a lot of those things get hit and a lot of other stuff that did pretty

terribly last year to better such as advance auto parts, pfizer, they all gained, this is the week where the market is trying to sort out what happened last year end get ready for the rest of this year. jack: four straight days would've been since 1928, the jobs report came out friday morning and looked really good on the headline. the reality is more nuanced. >> the headline show 260,000 jobs well above the expectation for 573,000 of the revision downward for october and november. there were other signs of weakness in the job report and the reaction was interesting. when the market sold off on the news and he jumped up quite nicely and gave back most of the gains that finished up a little bit on friday. it is a report that i don't think it will convince anyone one way or the other that the fed will go ahead and cut in march. better than a 50% chance that it will but the debate has not settled yet. >> look at next week we have

earnings. we have bank earnings, citigroup, bank of america, j.p. morgan and now i'm forgetting someone. we have unitedhealth and delta air lines in what they say about the last quarter but what they're saying about the rest of the year to determine where the market goes from here. >> let's talk about they're down stock downward and 5% of what soured investors. >> it was a tough start apple is in danger of losing the most valuable company of microsoft and the problem seems to be the lack of growth and innovation seem to be catching up with the apple that we highlighted in the barron's cover story barclays analyst downgraded the stock this past week and the potential weakness in iphone sales this year end the stock frankly being down this past week is not cheap trading nearly 30 times the current year earnings estimate and earnings may grow about 7% this year on about 3% growth in revenue. that is not all that great. jack: that the pd for the stock only growing 7%.

>> the bull case it is a phenomenal ecosystem about a billion users and warren buffett and brookshire hathaway is the biggest holder and if you gave most apple iphone users a $10000 to give up their phones for the life they would not do it. jack: i hate to say that is probably true. let's talk about tesla they gave up its crown as a leading electric car maker in the world to be yd. >> a big week for losing the crown. in the case of tesla losing the crown as top seller now be why d and china selling more than tesla and is easy to see why, the average cost of a tesla vehicle is about $45000, not many people have outline around. be why d average car sales is $27000. a huge market tap in china moving into europe where the growth of the ev market in the u.s. were tesla is in europe slowing a bit. jack: last year you barron's said by tesla stock at a hundred dollars, now it's 230 and change, what is the play now.

>> i had to borrow from our route to look this over and he made the great call last year. what you do with tesla stock, you manager position, it's never a full buy or sell he thinks it's a hold but you have to rebalance a win, get profits and pull back a little bit take some of the profits not all but when you have the pullbacks filled up the position. one testable he talked a lot are holding up 5% of their portfolio, i'm not advising this but i'm taking information where you take it up to maybe 5%. jack: the big question with tesla is this a car company or a play on electric battery powered future. >> this is the bull and bear debate, the tesla bears are saying that's crazy 60 times earnings, evaluation on the car company, what is the deal. if you are a bull you are saying as part of the cars but it's about the charging station, the software, any other licensing on intellectual property or whatever else tesla can do.

tesla is a volatile stock and one that people personal feelings on, is where you come out on that. jack: stronger-than-expected job growth and wages have investors concer salonpas, makers of powerful pain relief patches for 89 years... believes in continuous improvement... like rounded corners that resist peeling, with an array of active ingredients... and sizes to relieve your pain. salonpas. it's good medicine.

jack: investors are weighing seemingly strong jobs data out of the labor department friday and december the academy added 216,000 jobs versus the 170,000 estimate. the unemployment rate remains steady at 3.7%. october and november jobs growth was revised lower by 71000. joining me now invesco mobile market strategist brian lovett. good to have you here.

2023 is a tough fact to follow. toward the end of the year the market became convinced that growth will continue but rates would come down, the fed would cut, it was super rosy, do you believe that economically? >> i do believe the economic. perhaps the market is a little bit challenged in the short term because the market had already priced it with six interest-rate cuts and maybe we don't get all of that. from my perspective were looking at a nice backdrop, call it goldilocks or soft landing where inflation has come down in the economy has been resilient. that is a nice backdrop, peak inflation, peak tightening, good backdrop for risk asset. jack: nothing in the jobs report i saw the one data point. >> is only one data point, the market didn't even know what to do with it. but if you look at the three month average of jobs, it is moderating some but still in a healthy range. it fuels soft landing. one number that is a little bit

above that could be revised is not the real the story. >> lots of things to keep us up at night from vladimir putin to the middle east to capitol hill, let's talk about that. if we have a government shutdown, et cetera, is there some point in which you start to worry about a debt downgraded and that what that does. >> the market looks past the little incidents that we have. obviously the geopolitical, as long as they remain regional do not seem to have a meaningful impact on markets. the government shutdown tends to not last very long the essential worker continues to work so the market tends to look past it. in terms of a downgrade, in the past we have seen interest rates come down when we've seen a downgrade. i don't lose a lot of sleep over the u.s. data or the credit rating agency says about the u.s. that it is a wealthy country and there's appetite for u.s. bonds. to me that is a nonissue.

jack: if things keep going according to script is that enough for the market to keep climbing or do we need another catalyst. >> that catalyst is going to come in the market recognizing that inflation is coming down and the fed is going to ease. whether it is five or six or three or four to me this sea change in the shift and fed stands moving to a more accommodative one is a good catalyst for the market and you start to get the re-steeping of the yield curve which is what we all want to see and that tends to incentivize risk-taking. >> does that mean the other 493 stocks will hit the magnificent seven and they could do a little bit better can we see a rotation into those. >> that is the hope. >> last year you had a concentrated market, largely because it was ironic investors thought growth was going to be too strong at interest rates were going to keep going up forever. you get a shift were long rates have come down, the fed starts to ease, you normalize the yield curve and you normalize credit

and you make environment better for the financials. that is how you start to reinvigorate things and that tends to broaden out market participant. >> how should investors get a broader participation and therefore under portfolio. >> equal to broaden market, the market cap weighting you ended up with significant concentration in the bigger names and you equal weight of portfolio and get more exposure to value and more of a mid-cap exposure or you can do it yourself, investors are overexposed to mega- cap growth, will think about value in smaller caps and even think outside of the united states. you have seen the dollar come off of the boyle little bit. that tends to be the catalyst for capital to flow elsewhere. >> you and others and i'm guilty, you have to diversify internationally for more than a decade was not the best you are better with domestic stock, maybe that dollar will be the catalyst, one question, china, you have the regime risk their, do you go into china?

>> what you want to do it is very cheap the chinese policymakers are likely going to start taking steps to reinvigorate economic activity. you talk about close in the dollar start to moderate and weathers improving activity and evaluations that are attractive in international markets in china are part of that yes yeah call. jack: the hot stocks could hey, you should try new robitussin honey medi-soothers for long-lasting cough and sore throat relief. try new robitussin lozenges with real medicine and find your voice. you know? we really need to work on your people skills.

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that could all change, investors may once again see the benefits of steady income which comes from investments such as utilities, healthcare stocks and energy pipelines, andrew bary has compiled a list of the best income investments, let's start with dividend paying stocks, what looks attractive to you? >> the whole group of dividend paying stocks looks good from healthcare to financials to utilities, consumer staples, many of the groups did nothing and sat out the big rally last year. jack: tell us about the healthcare sector. >> healthcare begin with flat landscape and the drug stocks were down, yet reasonable growth coming in and depressed evaluation and dividend yields ranging 3% and merck and johnson & johnson to over 5% and pfizer. jack: consumer stocks look okay not overvalued. >> they also sought out the rally and have stocks like pepsi and coca-cola and procter & gamble all at 3% and they could've close to 10% growth in earnings this year.

>> getting a question on financial because the bank she really cannot yields and some of them at the five or 6% for much of the last year where you stand on them now. >> the banks are looking better because they rally nicely in the next two months particularly the regional banks but even there and it's over 5% many of the regionals in the four to 5% like pnc, u.s. bank among the big banks the ones that are doing the best is citigroup, it's up nicely filling almost 5% right now and the cheapest evaluation from the banking analyst at wells fargo topic for this year actually doubled. jack: utilities is a classic dividend income play, what do you think about utilities. >> utilities are looking attractive they have an average dividend yield of 4% he of dividend earnings growth looking at the rest of the decade from the mid to high single digits which could mean 10% total return and the stocks that we

value all that much, their treaty to discount to the s&p 500 around 16 times in the risk of the market. jack: when you look at the bond market you have a huge rally at the end of the year, and use the opportunity and if so is it immunities and treasury elsewhere. >> i tend to favor stocks are income rather than bonds, treasuries are yielding 4% given okay that inflation is 3% heading lower i might highlight tips which are the treasury inflationary securities, they are a better alternative to treasury right now, newly bonds are looking less attractive there is a big rally at the end of the year and particularly inside of ten years in terms of maturity there is not terms of unities there at two to 3% historically tight yields to the u.s. treasury right now. jack: what freaks me out about

bonds, they're supposed to be safe but the volatility has been incredible they went from 3.8 up to five and back to 3.8% in the ended the year that is not what bonds are supposed to do. >> bonds have been viable but we've gotten used to less volatility and if you go back ten, 20, 30, 40 years is a lot of volatility and that's the new normal. >> how you play the energy pipeline known as the mlp the dirty word 5 - 7 years ago, how do you play them now. >> the energy pipeline is a reason to be attractive, for goodyear for the companies last year they had returned 10 - 20% in the outlook for u.s. oil and gas demand is pretty good demand is transported and they have characteristics and you have yields between 5 - 9% on companies ranging from enterprise products, energy transfer, williams companies and they are basically essentially built on the pipeline and returning a lot of cash to shareholders. jack: andrew deserves a pat on the back you've not always been bullish but you were an early

one to call the top and use all this is dangerous. but now you like them better, they've solved the leverage problems. >> one of the things that i worry about mlps were going up last year end the year before and last year energy stocks went down and that gives me a cause for concern on these things. jack: there is scarcity value they are not building pipelines much anymore. one more point. >> the reasonably attractive on a 4% dividend yield and you get some growth in some areas like malls and strip malls even like the property looking pretty go good. >> there aren't too many office holdings as people stay home from work, artificial intelligence will be center stage in las vegas next week as the top tech industry leader showcase the latest innovation. carlson has al (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once, and get closer to iconic landmarks, local life,

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>> it is a tough time to get a room in vegas 130,000 technology are going to converge on sin city but there aren't that many interesting gadgets to talk about apparently. >> i don't think that's fair to say not many interesting gadgets we have the first suv by boston whaler that's going to be announced, we have an artificial intelligence powered grill that is coming out there. not to mention i have no idea what this is i am curious to see but l'oreal the makeup company will be doing something in beauty tech we will find out what that means but the point that you were making is ces the big conference is not tech as we used to think about it where you get a handheld device new music players and all the stuff, every company is essentially attack

company. what you see might not have the same wow factor as before more internet of things and projects than what we've been used in prior years. >> today sadly is your very last show with us. we could not let you walk out the door without living a few of our favorite moments with you. let's go to the videotape. >> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. >> everyone's tried to make sense with what's going on with the economy. >> to i want to be in the market do i not. >> you could not of time this worse. >> i love watching the banks and am looking at cheesy carbs and paying attention to rugby. >> in the interest of journalism all do a taste test. bottoms up. >> that has a lot of flavors. >> you've attended a tupperware party. >> it was the '90s it was the thing to do. >> i know people that bought palatines but i don't hear them

talking about their palatines as you much as they used to, why are you stuck in the past. >> men's underwear sales can be an economic indicator. >> if you want to talk about a diagram i need to diagram for that. >> is the weekend we can be happy. looking around this table on the only woman, thank you so much. ♪ >> thank you. jack: thank you to our wonderful producers for putting that together. you were headed across the ocean to the uk. we are going to miss you. i brought an airplane. godspeed. >> thank you for everything i don't know where to begin, this is been an awesome four years

and i'm getting the clumps. >> i miss you a lot we were both theater buffs and i miss talking about broadway but enjoy the west end of london. >> you have to visit me. >> carleton four years ago i thought i was ruining your friday but instead we unearth the star, we're going to miss you, thank you for everything that you've done. >> i don't know if that's right but thank you. jack: no more dancing, she was the only dancer that we had. have a wonderful life in the united kingdom. we are always here for you. good luck and godspeed. >> thank you to all of you, carleton you'll be missed by the entire barron's team >> from the fox studio in new york city, this is "maria bartiromo wall street". >> welcome to th