he's auctioning off 900 items were $10 million coming off the sale of his atlanta home is getting rid of paintings to pinball machines and some of the most lavish items included 1990 atlee convertible a grand piano and a cartier sapphire ring estimated to go for tens of thousands of dollars, christie's is hosting the auction and it kicks off on wednesday in new york we will be following on "mornings with maria" six to 9:00 a.m. eastern on fox business, join us weekdays and i will see you on fox news on sunday 10:00 a.m. sunday morning on the fox news channel for "sunday morning futures", exclusive interviewer with lara trump, ted cruz, george papadopoulos and congressman michael walt for us on fox business, thank you so much for joining us have a great rest of the weekend and i will see you next time. >> "barron's roundtable" sponsored by global x etf's.

>> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. i am jack howe and for jack otter. coming up pop potato. january inflation came in higher than expected dampening hopes of an early rate cut. investment strategist chris heisey shares his insight on what it means for investors, move over magnificent seven it is coming down to the magnificent one as investors i next week's earnings report for nvidia why it could be a make or break moment for the stock market. later a look at companies making big moves in a jumpy earnings season but we began with the expert panel and three things investors to be think about right now. on the "barron's roundtable" like colleagues ben levisohn, al

root and elizabeth o'brien. let me start with you a down week for the stock market we have not seen a lot of those on market gone up 14 out of 15 weeks until this past week, what you make of the break in the action. >> i think it's a good thing i'm surprised the market wasn't out more first of all because we had the cpi reading the inflation reading it was hot and not what people wanted in the market had a big selloff on tuesday when this happened but it made back most of the games and off friday due to producer price another form of inflation being hotter than normal relatively flat great year of more than 5% of the s&p 500 i think is looking okay. jack: if the hotter inflation means that rate cuts are delayed what do you think that means for bonds. >> with bonds we already see this happen where you're getting the ten year yield in a range between 3.8% four-point to 5% now it's broken up at four-point to five -- the data comes out hotter than expected both the

economic data and how strong the economy is but also the inflation data you will see that go higher. >> i would be watching two things, one is for earnings we will get nvidia and others. jack: the most important economic indicator that we will talking about earnings for nvidia we will get the at fomc meetings and what the fed is thinking about what we will need to see in terms of the rate cuts and whatnot. jack: for the first time and as long as i recall i can almost describe what general electric does for money there is no more light bulbs were microwave ovens no-show business or mortgages the mri machines have been spun off and there's one more split coming and we have fresh information about that this past week. >> exactly, it is amazing it's almost a decolonization that you can actually understand it now, ge filed a form with the fcc to give us more financial detail about this pain company that's going to be the power business

in the rest of ge will be ge aerospace that is the last two companies that will bear ge. >> it is not official that will probably happen early in the second quarter like april 1 or april 2 timeframe i would recommend not april 1 but they're not going to ask me and we have two analyst days in early march where management will talk about the businesses. jack: if i had ge and end up with the two pieces ge aerospace but why make of that is that a good business. >> a great business a gold standard leading market share in jet engines. those are important for jet, very important for jets number one producer worldwide very strong performance rampant free cash will excellent performer that is the bulk of the value. >> the other piece is ge vern nova's sounds made up and vaguely sunny but this is like

the business of burning natural gas to make power and also wind turbines and lots of other things, is this a good business. >> this is the turnaround. it is losing money lost money in 2023 were looking at maybe a breakeven year in 2024 they generate cash flow they have turned around the gas business it is a reasonable performer, the wind business is the one that is consistently losing money, the job of the management team will be to turn it around expand margins and improve to us all that making wind turbines. >> to keep that part of the stock. >> i keep them all is the easier way to do it. jack: there are early estimates for the raise as seniors will get on their social security checks at the end of this year end sharp disagreement on it. >> the past week the senior citizens league payment at 1.75% the congressional budget office came in at 2.5% there is different methodologies undermine the estimates with different assumptions. it's divisive to say if we

continue on the track is going to be less then seniors have been accustomed to over the past three years. >> they got this year more than 3% in last year was over 8%. >> exactly. >> this year was 3.2% in last year 8.7% because we had a hot inflation in 2022, it is early days we will not know the actual number until october but it's trending lower closer to historic average. >> coming between the two estimates but saves a 2% raise their will focus be watching the saying might cost right now are through the roof i feel like my cost of 10% why are we talking about a 2% raise how do we explain that. >> is a great question people are feeling the squeeze of the grocery store inflation might be moderating and price growth is slowing but that doesn't mean less than people expected but is still moderated and it doesn't mean prices are falling, as some categories are not across the board people are feeling the pinch for sure. >> thank you all, the fed is

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>> january inflation has investors trimming hopes of a rate cut early this year the futures market pricing in a 74% chance for a cut in june, consumer prices are up slightly more than 3% from one year ago that is down from decembers rate the higher-than-expected, wholesale inflation also topping forecast about nearly 1%, joining me and chief investment

officer of merrill and bank of america private bank chris heisey do you agree with the percentage that we just showed is the rate cut off the table and can the stock market keep performing without one? it. >> those little bit in the market for a period of time in the fed funds there's more head fakes the nebraska court, we have to watch the market and pay attention to what future say but is it off for marge, it looks that way we have four more inflation prints to june so 74% chance that feels about right and it might get pushed to july but it is the reasoning behind the cut that matters more than the timing. >> what pockets of the stock market should investors favor. >> we have a push and pull going on good news is bad news, bad news might be good news. >> is good news still good news or bad news. >> it look like the market is pricing to the upside to get a little bit of good news and are

happy because that filters down into earnings as long as yields don't continue to go up. the key is decent news with inflation coming down and yields coming back down, that is more supportive of a full rotation. >> what part of the market can shine. >> this year is a big difference in last year we have the narrow leadership, it is obvious you can call the super six, now the fantastic five or whatever you want to call it but if you move out you see less of a downside in the rest of the market when there are week days that is the cortical point it looks like asset management is started rotation in the sector side of the equation i would look at energy is starting to catch a little bit of a bid and did not do so well last year i would stay away from the utilities, consumer staples when i say stay away you have less exposure keep a balanced approach and technology you want to be underweight innovation and if you look at discretionary which is consumer is a little tired

and still spending on services in industrial seems to be broadening out. jack: do brought onto bonds look tasty or parts of the market more attractively than the rest. >> posted partly on bonds on go forward we believe are going back in time is called fixed income for reason you want to look at bonds for fixed income not the total return that have given you bonds still look attractive the balance in the portfolio and you can see correlation going on between that and equity over the next few years credit spreads are coming in a little too tight high quality across-the-board in the equity market, small caps are looking to get fanfare out there. >> you mention going back in time you said the next business cycle could resemble the 1990s, my wardrobe is ready what you mean by this. >> is important to take a look at all things from the 1990s including wardrobe, music and entertainment but in terms of what's going on in the business cycle using an adjustment and yields that are getting back to

the normal yield curve back then, inflation same thing between two and 3% once we settle down, the actual steepness of the yield curve oval overall, people forget when you go back unfortunately that's when the middle east started to pick up back then a terrible situation but very similar back then and if you look at the earnings of the production of a new profit off of innovation wave back then it was the internet now it's generative a.i. >> this is a presidential election year, can i ignore the politics when i'm putting together my portfolio is there anything different i should be doing. >> i don't how you can ignore the politics it's going to be out there late spring through the election. when you talk about stock market you talk about diversified portfolio rebalancing discipline way to think about matching your goals you do somewhat ignore the politics but you have to factor in the mindset of more volatility but they tend to be positive double-digit positive

with a high hit rate you can ignore them the best way but you have to make sure that you understand it's going to be a little bit more volatile. >> we have 22nd two call commercial real estate of wildcard for the market we talk mainly about office real estate but what are you worried about. >> on the office side the debt maturities, many properties and loans placed in the marketplace at much lower interest rates will have to be refinanced at a much higher interest rates that is why the credit sensitivity in the economy is not big but the interest rate sensitivity in the part of the market the real estate market is very important. jack: always nice to talk with you. one tech company has the power to determine the direction of the market investors are watching the fourth quarter earnings report next week. we'll take a look at what's at (♪)

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>> move over magnificent seven nvidia is proving to be the magnificent one dominating wall street with a company report earnings on wednesday the direction of the entire market hangs in the balance. i'm going to read you some fun facts nvidia multiplied 18 times in price over five years, tripled over the past year get past amazon and alphabet market value to become the third-largest company behind microsoft and apple, what that means if you look at your 401k and you like that what he percent plus return in your index fund you have nvidia to thank for and we should probably pay close attention to the earnings, tell me first of all does nvidia stock looks to inspect them to you? >> almost incredibly no you gave the stats, 1800% over the last

five years, think about this at the start of the run in trading for 33 times earnings, right now 35 times earnings all of the gains have been justified by the incredible expansion and earnings, go back to 1995, intel 95 - 2900% gain it started at 15 times earnings and ended at 44 times earnings, while you want to say bubble it's too easy to say bubble. >> earnings are driving the stock price. >> there are signs of froth because i have a trainer, i know. >> a trainer as in a gym? >> i'm interested. >> he said, acted out you have to squat rack and he said i bought in vda and i'm like that's great he's like in vda and i'm like nvidia but he wasn't sure what the name of the company was.

>> at least it wasn't your cab driver. >> the first part was more comforting also about the upcoming earnings report data center has expected to triple over the past year the total revenue for the fourth quarter is 20 billion but analysts are raising at the last minute $23 billion and more there's been a key shortage of manufacturing capacity and the bottleneck has eased in one analyst said nvidia has to draw the needle on the earnings call and convince investors that the new supply comes online that demand will keep up and that could be pivotal for the market, what do you think. >> the important thing this is not just about nvidia off of the a.i. stocks, everything is going to because there's hope the a.i. will drive their business is going to react to the earnings, if nvidia comes out in any sign of slowing it might just hurt the stock given how bad it out because everything that has a.i. exposure could get hit and i pulled on the market. >> you say some investors can have more a.i. exposure than they realize are more than they want? >> i had a young reader right to me last year with feedback on

his portfolio he owned s&p 500 microsoft on the side and microsoft right entered represents 5%, if you own the index and microsoft on the side you're making a big bet on technology, people said technology of s&p 500 is about 30% maybe closer to 40, he was making a pretty concentrated b but, if you're bullish and you love the sector, great if you're not comfortable with a concentration get a total market index, small-cap stocks, spread it around a bit. >> i thought you can say 50% for coin, 50% nvidia. >> he was a sensible young man. >> small-cap you have to worry because super microcomputer i've never heard of until recently up 200% through thursday's close because it is a.i. is connected to nvidia in a weird way that i don't understand but it's the small-cap wor worth $56 billiond accounted for three quarters of small-cap games this year which

is wild. you have to be careful even when you look at other parts of the market. jack: i wouldn't tell you about a conversation with an analyst he drew key parables between nvidia and apple the iphone prove bigger than anyone expected it replaced everything itself owns a change the cell phone market and nvidia makes the accelerator chips for servers and as a.i. makes its way into new software the market is proven huge, and ten years on accelerated servers will be the flip phones of the data center, you need nvidia everywhere and from the rival amd and he pointed out the robust software ecosystem and growing services business resemble apple do you agree? >> i was get a look at the other side this is more like cisco that's what some of the bears are saying. >> love you remind people cisco was the darling of the internet

boom it was making rounds that it was going to make everything run and went up and up and evaluate got nosebleed levels the bubble popped in the stock is been a good business it keeps making money it's doing good stuff but the stock is never gone back to the previous levels it just inflated too much, the evaluation. when you think about a better case for nvidia that is what you have to worry about it is making the chips right now but at some point there will be others making chips and become commoditized and then they'll have an issue. >> i hope it's an apple not a cisco for our 401k the index funds. coming up elizabeth and al have a pair of investment ideas i love your dress. oh thanks! i splurged a little because liberty mutual customized my car insurance and i saved hundreds. that's great. i know, right? i've been telling everyone. baby: liberty. did you hear that? ty just said her first word. can you say “mama”? baby: liberty. can you say “auntie”?

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report type this week in the stock shot up, there has been a lot of jumpiness around earnings, tell me about that. >> will lift earnings report was fantastic they put out a press release and they said margins will increase by 500 basis points let's five percentage points the people that don't speak financials it turns out there was an extra 0 it was supposed to be 50 basis points or .5 percentage points, the stock jumped 60%, a huge move but what was crazy and drop down but two days after the earnings and stock was up almost 60% despite the typo that was not true. the thing that is crazy you don't need to have a typo in your earnings to have big moves right now, we looked at shake shack this week. >> i'm familiar with the products, 26% gain after earnings then you look at roku which released last night a little problem is down 23%. i don't like just to trust my

feelings it seems a little more volatile i reached out to a company called 22v1 of my favorite research firms and they looked at the numbers and says this is a more volatile earnings season and i think it could be chalked up to two things, everyone is bearish on the economy the economy hasn't been as bad as people thought, some companies are coming out with earnings are much better than expected the getting big moves up but then you have the other companies that are tied to a.i. and whatnot and sometimes they cannot deliver the numbers and are getting punished. we will see this play out for a little bit longer but may be more normal. >> it does not feel nutty it is statistically nutty. tell us about a stock we should be interested in. >> l3 harris lhs, defense. defense has been pretty bad of the biggest six defense stocks in the u.s. market five are down over the last 12 months including l hx, one of the reasons there is an activist investor, de shaw that came to

the agreement in december with two board members, the old ceo is running the business process to improve things, l hx. >> i'm looking at digital bridge, db rg, say that three times fast accompany morphing from a data center to an asset manager in our colleague wrote about it in barron's magazine said there could be 50% upside. >> if it goes down it was bill's idea and yours you knew it all along. >> all take the credit. great ideas, thank you. to read more check out this week's edition@barron's.com don't forget to follow us on x at barron's online, that is all for us, see you next week on "barron's roundtable". ♪ ♪ larry: