from the current and a jump of 10 cents from a year end a half ago. it is part of the u.s. postal service ten year plan to boost the agency financial health, to put this in context when biden took office in january of 2021, one forever stamp would set you back 55 cents, go out and buy some stamps before sunday that will do it for us on fox sunday, thank you for joining me i'll see you next week. i hope you'll join us at the rnc for "mornings with maria", 6 - 9:00 a.m. eastern, great rest of your weekend. i'll see you again next time. >> "barron's roundtable" sponsored by global x etf's ♪ ♪. jack: welcome to.

roundtable where we get behind the headlines and prepare you for the week ahead. i'm jack otter, stocks hitting record highs. investment strategist liz and saunders on why jerome powell may be dancing with joy, later a.i. is dominating wall street but there's money to be made elsewhere, media roundtable looked at some alternatives if the big tech plays become a bu bust, we begin with expert panel and three things investors ought to think about right now, on the "barron's roundtable" and your barry, rebecca and jacob sonenshine. andrew, the market did very well this week after the report came out on thursday suggested that inflation continues to moderate. >> that was the big news consumer prices were down 0.1% and increase of about 1%, continue moderation of inflation, now 3% year-over-year in a lower rate than that over the past six months, the key to rallying stocks and bonds.

jack: when you look at the numbers some good news and some bad numbers, write that down for us. >> the big increase that you continue to see americans are feeling that auto insurance up 20% year-over-year and for instance i just got my auto renewal i'm paying 10% more a little bit lucky it's not 20 but i'm paying over 6000 to ensure two cars in new jersey. jack: back to the market in interesting thing a change in leadership. >> you saw a long-awaited rotation that into smaller stocks occurred this week and they were lagging dramatically throughout this year versus the s&p 500 of 15 this was a big move in small stocks, the russell 2000 index gained about 6%, mid-cap around five in the s&p 500 intraday hit the high on friday with a low of the record high less than 1% and the dow finished 40000 up over 1%. jack: of course with the smaller

company they have more trouble paying off debt so the bad mag seven that are making money on interest, do you think the bond yields will continue to come down? >> they could continue to come down you are looking at 2 - 3 breakouts by the federal reserve this year which would take short-term rate five below 5% by the end of the year and that small-cap stocks which are cheap of the large-cap stocks and really this inexpensive on a price basis. jack: good news for consumers. rebecca you're looking at the consumer world, bank earnings this week, what did you see. >> a real divergence that your scene, wells fargo, gpm all reported second-quarter earnings in their real loggers on the day, they have been really strong so far this year, they have been outperforming all of them but wells were outperforming the market so far this year and today use all wells one of the worst days in a few years, j.p. morgan finished the day around 1% down, city

down, the top line was great, earnings beats you saw softness and uc really strong investment banking results from a low base from last year but you see the softness in the consumer and auto loans. all three cfos, wells fargo and city in gpm reflected out that the consumer arsine cracks in the lower end of the consumer, one of the high-end is driving the consumer spending. overall investors were not impressed by these results. jack: on friday but if you pull back the lens to the week, kde was upset enough percent. if you look at the year banks have had a great rally what is driving the longer-term positivity. >> some analysts were saying it's a little bit as investors taking chips off the table because they have been strong players so far this year. the regulatory backdrop as well as the interest-rate, the

direction where the fed is headed is favorable for the banks that did not do a lot for them today but overall investors have sent them higher this year because more favorable regulatory environment in the fed is set to cut. >> you see concerns on wall street of the consumer pepsi reported this past week and you're not seeing much volume growth there on pepsi and what are the problems consumer companies are having is pricing in raising dramatically, pepsi for instance have been prices up 10% and 5% this year end it means a pack of cheetahs which are my favorite about $6 for 8 ounces, $12 a pound. that's out of reach of some consumers. jack: if you like chinos you should go to costco. you're looking at costco's, the stock fell, what is going on. >> after a period of years about

seven years, costco race by about 8% that matters a little bit because of a very high private profit margin so it flows through to earnings. >> they got a lot of upgrades. >> the issue with the stock, comps sales year-over-year were up 6% because a few million more members every year so they're able to grow, they don't even have 100 million members were developing country in the united states you could grow from here and part of the briand is been the value oriented provider in inflationary environment no wonder the comp sales are up 6% over the year the stock was down because it was up 50% since october low. jack: about 50 times earnings is that justified. >> 12% earnings-per-share growth, usually you're not getting a 50 times forward pe multiple for that growth, the reason you're getting it with costco you expect the growth to be durable long term, hold the stock i would not buy it at this level. jack: thank you, the stocks are surging to record highs this

year but where should investors look for maximum opportunity, liz and saunders so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. maya knows how quality care can bring out a smile. but it's been a few dog years since she was able to enjoy a smile of her own. good thing aspen dental offers affordable, complete care

all in one place. with flexible hours and weekend appointments. plus 20% off treatment plans for everyone. loving our patients unconditionally. it's one more way aspen dental is in your corner.

jack: this weeks inflation report increased the fed rate cut in the coming months. even though the markets have a great year many stocks have experienced their own little bear markets, joining me now charles schwab chief investment strategist liz and sanders. great to see you again. >> nice to see you let's start with the cpi data on thursday the fed might be dancing the jig east of the numbers, what was most interesting to you. >> it was across-the-board a better report and the headline was better-than-expected, the

core food and energy was better-than-expected, most of the component parts in particular the rent ended imputed version of that owners of equivalent rent have start to come down and it's the stickier area, it's pretty much across the board and on the same day we got better-than-expected unemployment readings too, that brings both of the fed mandate of the dual mandate into sharper focus, it was a goldilocks kind of day. jack: in response in investors bid up stocks including small caps and others that were doing well is the time to jump into the area. >> i think you have to stay up in quality and the reaction day to the better cpi report everything to have a been working work that day and a little bit of a lower quality bias to what work but beyond the

short-term if you're looking for opportunities admitted under the surface weakness and rotation that is happened, you want to stay up in quality so looking for companies, stocks of companies that have strong balance sheets and ample interest coverage was strong free cash flow with profitability, that's a way to approach the market when you're moving away from what it been the small handful of names lifting performance to such a degree. >> that the point you been hammering home may be could explain that reviewers everybody thinks the mag 77 dragon performance is actually the quality stocks and you pointed out the dispersion between the performance of the high-quality stocks in the lower quality has been in enormous. >> i think there's some conflating that happens when we talk about let's use the magnificent seven as a group because it has so much popularity. they are the biggest drivers of performance for the cap

-weighted indexes like the s&p 500 and the nasdaq. it's not solely because of the price appreciation is because times their market cap in the seven of the largest contributors to performance but they are not the seven best-performing stocks, the top ten best-performing stocks within the s&p, only one of them is in the magnificent seven and that's no surprise in nvidia that's not the number one best-performing, there's two utility in the top ten, from a price-performance there are other stocks that have done well, ge is in the top ten talk about old school we have a multiplier of large-cap and large contributors, there are opportunities that have been in the market it's been a tough environment for institutions that are benchmarked to the cap -weighted indexes. jack: you and i may be the only people on television not talking about the presidential race,

let's jump to that real quickly, you have an interesting point to make when it comes to how much investors should worry about what's going on in washington and what will go one in washington, i think we even have a chart about that. >> is likely to be a volatility driver, that's ultimate understatement given the volatility, it's been so low. at some point the path of least resistance are higher, i think were likely to see volatility as we get closer to the election, the real way is portfolios in the chart that you show, we went back to 1948 and looked at the growth of $10000 invested in the beginning of 1948 and what it grew to by the end of 2023 if it was only the market with a republican was president. the 10000 grew to 300,000 i'm using round numbers, if you only had it in the market when a democrat was in the right house agree to one point to million.

shame on anybody. see the analysis, four times better performance under democrats and the white house versus republicans because if you would've kept the money in this is simple buy-and-hold strategy if he kept the money and the 10000 has grown to 38 million, i don't know about you but i'll take the 38 million. jack: i'll take the 38 million every day of the week, thank you, liz and saunders. it'll be hard for people to believe over the next couple of months but they gotta stay strong. thank you for coming on the show. >> thank you for having me. jack: don't always believe the hype and stocks, the market rallying this year on the a.i. craze, what about the other investing. we'll take a look at

your best defense against erosion and cavities is strong enamel. nothing beats it. i recommend pronamel active shield because it actively shields the enamel to defend against erosion and cavities. i think that this product is a game changer for my patients. it really works. (husband) we just want to have enough money for retirement. (wife) and travel to visit our grandchildren. (fisher investments) i understand. that's why at fisher investments we start by getting to know each other. so i can learn about your family, lifestyle,

goals and needs, allowing us to tailor your portfolio. (wife) what about commission-based products? (fisher investments) we don't sell those. we're a fiduciary, obligated to act in your best interest. (husband) so how do your management fees work? (fisher investments) we have a transparent fee, structured so we do better when you do better. at fisher investments, we're clearly different.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. jack: the market surging this

year on the back of big tech which makes a big time to look at stocks that haven't skyhigh evaluation. were digging in with a cover story, barron spoke with our panel of investing experts to find opportunities beyond the hype. andrew is always great to hear from this panel, of all the pics, which when caught your eye first. >> the one from merrill a noted value on the board of birch shire hathaway and warren buffett think highly of her, whatever choices is mercedes-benz and she thinks the german carmaker is very inexpensive trading for six times earnings of 8% dividend yield and she thinks it's worth 50% more than where it's trading right now it trades mostly in germany but you can buy the shares on the stock. jack: a lot cheaper than tesla. let's talk about scott blackwood of our favorite he looks for the funky tech values on the

corridor now is looking at something in the energy sector. >> he's a meticulous embedded again for decades in the like the oil service company which is slb. he sees the company's been very good because they think they could be a long duration for oil and gas in the stock is trading historically cheaper around 13 times earnings in the 40s right now so he thinks is pretty attractive. jack: he likes the european oils which are cheaper than the big u.s. companies chevron and exxon and he like shell as well as total, shall in particular has been doing well lately a very strong position in liquefied natural gas in the service station network. as ceo has been deemphasizing some of the renewable bets which you been esg driven and investors love to see that. jack: on the esg positive side, todd has been looking at a couple of tech stocks that he likes, can you tell us about those. >> one is google, the search

business at this point grows a little bit but it's a cash cow and you can bank on that because the a.i. capability the alphabet has is able to stay really competitive, it's going to use the cash cow in the large stream of free cash flow to out invest anybody in cloud, a.i. and anything that they want to capture growth google is a company that could grow for a long time so the earnings growth can take the stock higher, broad, with a.i. chips and made a bunch of acquisitions where it can make the right technology and the right to untrue tricks to continue to grow. >> an opportunity and a challenge for google. tell us about sales force. >> salesforce the stock is starting to stabilize in the last few months, the market concern about the celebrating revenue growth to the highest single digits, they pretty much say that doesn't need to be a concern when you look at the products and salesforce can add to its existing customers, the a.i. products, salesforce is still really good at making

those, the get come with higher prices because it really productive for the customers, you can drive sales growth in earnings growth and margin expansion and at some point there will be some price to buy salesforce. >> i'm a little skeptical on the sales force, the stock is trading for 35 times earnings and use an earnings number that excludes all the stock-based compensation and they basically strip out, i'm a little bit cautious on it. >> the way i look at that with the flipside of the stock compensation say your conserving cash salesforce has tons of cash into percent of the $252 billion market cap it's 8% cash when you compare that to adobe and microsoft there two or 3% cash of the market cap, salesforce might not get full credit for high-quality. jack: keeping silicon valley ottomans for years, let's go to a somewhat less sexy sector, biking campbell soup. >> i guess you don't like plain old suit, mario picked campbell

soup and it's been a real blogger but investors and analysts right now are looking at a deal it did last year in acquisition to really drive some of the growth going forward they acquired the brand in the portfolio brands some of those radios and a few others but radios known for the tomato sauce in exclusive uptown manhattan restaurant, that is looked at as a potential for driving growth for campbell's, radios has its own soup now. j.p. morgan analyst in the last week upgraded campbell soup as our colleague jack cow pointed out, the first time in 15 years they upgraded campbell's on the deal noting it was a real potential for growth going forward and the ceo of campbell's last month says he sees so close and radios as one of the most exciting growth stories and he can see it looking like a one billion-dollar brand and will see if that plays out, that's

seen as a real growth driver. >> radios in east harlem is one of the exclusive restaurant it is almost impossible to get a table they don't take reservations about a dozen tables but i understand you got in there. >> i got a guy and i know what guy and i want to go back we should go after this. >> i heard they let warren buffett in their. thank you. jacob and rebecca have a pair of (bell ringing) someone needs to customize and save hundreds with liberty mutual! (inaudible sounds) (elevator doors opening) wait, there's an elevator? only pay for what you need. ♪ liberty, liberty, liberty, ♪ ♪ liberty. ♪ when the sawdust settles and the engine roars the thing you care about is a job well done. but when you get your tools from harbor freight something about the job feels different - your wallet. whatever you do, do it for less, at harbor freight.

♪ (marci) so, how long have you lived here? (opponent) over forty years. (marci) and how are the restaurants around here? are they good, bad, meh? what's the average household income? is there a mall? i don't know. a hair salon? where do you get your hair done? (opponent) you gonna move, or what? (marci) oh, i'm sorry. it's a lovely neighborhood. (luke) marci, we've gotta go. (marci) i'm coming! (luke) we've got seventeen thousand more parks to visit. (marci) you wanna give me a hand? (luke) we bring you the best neighborhood info. (vo) ding dong! homes-dot-com. the day you get your clearchoice dental implants makes every day... a "let's dig in" day... mm. ...a "chow down" day... a "take a big bite" day... a "perfectly delicious" day... - mm. [ chuckles ] - ...a "love my new teeth" day. because your clearchoice day is the day everything is back on the menu. a clearchoice day changes every day. schedule a free consultation.

it's time to feed the dogs real food, not highly processed pellets. the farmer's dog is fresh food made with whole meat and veggies. it's not dry food. it's not wet food. it's just real food. it's an idea whose time has come. (soft melodic humming) ♪ oh there was a tree, ♪ ♪ down in the woods ♪ ♪ the prettiest tree, ♪ ♪ that you ever did see... ♪ ♪ now we all have roots ♪ ♪ and roots help us grow ♪ ♪ we water where we live plant seeds here at home ♪

♪ grow jobs, grow skills ♪ ♪ so what's good makes more more fact'ries, more farms ♪ ♪ more goods on the roads what we make together ♪ ♪ makes the whole world go. ♪ ♪ make the green grass grow all around all around ♪ ♪ make the green grass grow all around. ♪ at jpmorganchase, the investments we make help make businesses happen that make jobs happen, that make communities happen. together, we make momentum happen. jack: it feels like the sale of paramount has gone as long as guiding light on cbs, is a soap opera finally over. >> it may be in paramount's

legacy media company cbs paramount and mtv and sherry bread still good shareholder paramount wanted out for a while, she and paramount reached a deal with sky dance media which is run by david ellison who is the son of oracle billionaire larry ellison this past week, the deal looks good for redstone intercompany national amusement which is a controlling share but less good for the public shareholders. jack: the billionaire do you think he has the chops to run any business much less a business in a tough sector? >> it's going to be a tall order sky dance is a tiny fraction the size of paramount and paramount is the devil and other managers in the past into the be interesting to see if he can make this work. investors and wall street is skeptical how well this will work, the paramount public shareholders are getting $15 for half of their stock, the stock

is trading 11 and the redstone we don't know what they got but the man got $30 a share for their stock it looks a real disparity there could be lawsuits in delaware where the company is based, that could derail the deal. jack: thank you. let's go to actionable ideas, jacob your calling for pizza. >> domino's is a rare restaurant company doing it right a lot of inflation consumers getting choosy about what they buy, domino's is able to add thousands of restaurant locations throughout the world every year end that's a major part of the growth, they have a strategy where it's called the more strategy and are making sure, these stores are to be successful in same-store sales are going to be mild, what they're doing when i get a pizza from domino's is hot every time but not too hot in the delivery times are consistent, you talking about sales growth, earnings growth and quasi-growth stock. >> more strategy why didn't i think of that. >> john rogers has picked

knittel a real blogger down 22% in the last year while the market is at record high some catalyst in the cfo said last month at a conference he reiterated full-year sales guidance and that made investors happy and he sees growth on earnings and revenue in 2025 off a low based, it can look good. >> john rogers a longtime aerial investment on the roundtable. to read more checkit this edition of barron's.com, don't forget to follow was on x at barron's onlin charles payne, town hall, unbreakable invest tore, the greatest wealth transfer ever, starts right now. [cheers and applause] >> this is a fox business special presentation, "unbreakable investor." here is your host,