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tv   Barrons Roundtable  FOX Business  August 17, 2024 10:30am-11:00am EDT

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week, globetrotters get ready to pack your bags, august 23rd, is national cheap flight day except many saving season for the air travel industry historically one of the best times to snag a deal as kids go back to school this summer travel search it's in a report from travel agency, cheapo where shows the average cost of u.s. domestic flight dropping by more than one third since june 1st with international ticket prices down 10 percent and u.s. airlines looking to boost the sales during the typical will demand major carriers are in the red for the year and we will be following all of this on mornings with maria bartiromo right here on foxbusiness i hope you will join me every weekday bright and early and that's it for us here on foxbusiness and thank you so much for joining this weekend, having right rest of you you next time. >> barron's roundtable sponsored
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by global x etf. ♪ ♪ ♪ ♪ ♪ ♪ >> welcome to be on under barron's roundtable will be giving on the lights and prepare you for the week ahead object jack modern coming up, the stock market has regained his swagger that was fast, rob research affiliates said that it is time to go to the markets, these names and tell us where the value is later, it is a ceo swap it chino, brian nichol living chipolte don't take on sputtering coffee giant starbucks but with feeling the heat, the higher prices the turnaround jobs a tall order but we begin with our expert panel and three things investors to be thinking about right now, on the barron's roundtable my colleagues, and i mean, meghan linhart ananda barry, the servant bounce back been to tell us about the markets reporting
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rebound this past week the newest all good or all great. ben: it was fantastic and we came into this week worried about sessions we get as if you never that was not too hot and then get retail sales that were strong we gather economic and it was great and also you have this stock market is the best week of the year the best we can to november c1 not just big tech and there are some typically sleepy sectors that is been leading the charge. >> is my favorite utilities are actually beating the nasdaq 100 is here now you also had thanks and you can see you will these are all traits rates have come down and yields have come down in the doing quite well. >> what you think about the entered. >> you could have growth of 5 percent or so and power demand and that will be individual growth of earnings for utility sectors. jack: we watching and we had been, better futures. ben: i wish i would say none of
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our new zealand but it is the fed how and speaking ventures powell and jackson wyoming will be listening for signs of the fed is going to cut rates in september and also signs of that about how much the market is hoping for 50 maybe this probably going to be more like 25 basis points percentage point. >> vice president campaigning on their economic plans including a proposed federal ban meghan on price gouging how will that work i will do any good. meghan: it is interesting we did hear from the harris campaign today actually on friday, that we are sitting there and going to happen his wife a lot more regulation around price gouging particularly in the food and grocery sector and impartially come i do actually think this may be a solution in search of a problem in one of the scenarios where it's really hard to gauge price gouging for tingly national level in new york that researchers actually have some that a lot of the inflation we seen through the last couple of years is due to higher commodity costs and of course, in gains
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from grocery worker so this is something where again, makes a great stump speech of a have to see exactly how this plays out is a teller. jack: andrew visit television, honey feel about the plan. andrew: more economic nonsense from the presidential candidate it is a dumb i did not really problem here and lead according to the problems and they try to have a drop of this is something out of like soviet russia which he wants to do and also give us to plan while she voted to that and this will be about the presidential campaign soon the negative also newly announced prices for medicare for the negotiated drugs and some drugs and is going to have an effect for consumers. meghan: i want to put this into perspective in south harris proposals very much the radical and arguably again, there's not a lot of indication that there is massive inflation or profits that are being done on the grocery side and on the medicare side, this is actually already bought we have had some movement
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on negotiations and how it plays out a little bit of security detail still, we will have to keep this in mind, you know it's worth noting though the wall street lsf set one we were super pharmaceutical have base they actually brushed off this so we'll have to see mobile have to see more progress the line. >> worn buffett's punctures of all the beauty, the former i fire in your sacrum is probably not buffett himself and tell me about that. andrew: on the north of you to has a booth today this doc still 50 percent $3 along with sephora negative moment 15 percent people thought you know buffett is going this out and i don't think it was buffett i think he's too invested in managers work with him and on poems that wes and i thank you so one of them doing it is relatively small purchase step about $3m dollars predict the stock moving is actually looking still pretty reasonably priced no one else is around 15 times earnings c1 $30
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shampoo or something is still up side for the stock. >> yes, i think so. jack: what else is brookshire doing. andrew: keep things and people watching is that they have been dramatically reducing his position apple this year is because i would 50 percent for the apple sales finally be over by brookshire and now it is exactly .000000 shares is something that remember could be the buffett is done la app. jack: any other purchases in the not buying a whole lot of stocks c5 buffett is not fighting much to buy it all brookshire's only brought will be sold hundred billion in this big group big purchase in pico and so this minute so he's really been sitting on santa's not buying stocks not buying businesses will be a lot of cash almost $300 billion. jack: he's not holding something along these combine anything and i don't know if we should be worried about that does not sound super optimistic but thank you for my next guest said that
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>> c1 stocks booted from time indexes could make investors a pretty penny and a new report from research affiliates said that after being dropped from an index, these unloved socks can enter the market by an average of 5 percent year. jack: research affiliates and founder raab joins us now and tell us about the recent research on the guess what i will call stock index monkeys company to get kicked off of the index needs the investor should pay attention to them why. rob: well, one reason to pay attention to them is quite
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simply be company is still exist in indexes will add stocks when they are popular, beloved and expensive and sore to the point where there no longer easy to ignore in the company those companies will then replace the companies that are unlovely, fallen out of favor, typically trading at deep value evaluation levels and the result is these companies get back down by the very selling of the indexes from into levels that often don't make a lot of sense and so we look into this and with s&p deletions and with russell 1000 elections of now deletions leverage the upper four by 20 percent over the next five years and that is a big margin. jack: is the opposite of what you hear usually they say it's great snoozed out into the s&p 500 smooth sailing from here and everybody will have to buy in usa watch out for the reports
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they say this is that companies getting dropped to maybe beside everyone that turns around it as well right new have to be working large number. rob: not it all, we are looking at broadly diversified portfolios of the stocks. the index is called next in i xt and believe that you can even look it up on bloomberg and enough of that certainly the next few weeks you could do that c1 is took to the broad market by money fast bounce back from u stocks and should but i quickly that happened. rob: love finding asymmetries in asymmetries and expectations and inflation and their 2 percent of the next ten years there's way more risk of three that up one so that's in asymmetries, could be up 2 percent inflation in the next ten years of course we could much more likely to go on the upside the economy is currently being bolstered by wealth effect from a booming
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stock market and the consumer spending but the underpinnings of the economy are not looking brilliant, the purchasing managers index is in the worst quintile ever in inventories and during the highest quintile ever rated change of cost of capitol and even with interest rates having couple couple recently on a for your basis the cost of capitol a sort. and the inversion initial rates being higher than long-term interest rates. that this is historically good for some of them plus the so called - has we may already be in a recession the marcus shrugging that up. jack: to risk inflation could be hotter than you might think the economy could be weaker we need help investor to protect yourself against these risks. rob: will firstly witness a bail at all stop that would say diversified. there are three pillars to successful investing some of the
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stocks allow you to participate in the macroeconomy bonds to provide reliable income into top-down portfolio risk and diversify her sleep things like chips in the inflation link box commodities, and emerging market stocks and bonds high-yield bonds in a broadly diversified basketball liquid alternatives can give you wonderful diversification never diversification is a regret maximizing strategy because the market you grab every penny but when ♪ comes to a grinding halt he wish he had a lot more diversify her. >> so don't buy more nvidia with more nvidia but what about the big tech stocks we have 23 seconds left and is there a bubble of the big tech stocks are now will a.i. deliver on investors house here. rob: a.i. will deliver not necessarily deliver on the investor hope because the hopes and dreams priced into the tech stocks are enormous and the
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seven coming to visit seven socks are worth considerably more than all of china more than twice as much as all of japan and more than all of europe. and that is pretty extravagant he would dew point the expression magnificent seven clearly did not see the movie or the seven or debit the faith that. jack: that's on the great indian's nice talking and thank you for joining the show. rob: thank. jack: and starbucks is snatching to fully seo and wil why do some things have to be so complicated?
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the consumer so getting pinchedy inflation. jack: and meghan you are starbucks regular give us your diagnosis of your prognosis did not go to medical school which everyone. meghan: why think you mentioned that this might be a tall order that the connection might be plenty order for starbucks well i am there and maybe a daily basis at the bases i don't know how much a one-way biggest issues that mobile ordering system that i think that i speak for so many other consumers that are having issues to somebody your times are too long to get it ended out and have mcafee to go with you to my that's just not possible these days i think this is a big issue so we were really going to see proof of ownership. >> of your experience abandonment will you start a coffee order on your app and then you see the way to time you say forget it and not waiting. meghan: new york city and plus we have starbucks on every corner we have to abandon orders and once work and pontoon of the sort weekly basis and they upset that i said you know what, no
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starbucks today i'm not going to mcdonald's but i will go to the local coffee shop. >> when challenge. andrew: howard schultz, will be looking over his shoulder maybe second-guessing him i think some of the issues dealing with the try to fix and not been able to do it it seems like everybody has a solution to starbucks problem statement this is not a young company they've had grown-up corporation for years they tried without post other fancy software systems figuring out wait times c5 well he actually could be good news. jack: this a restaurant guys had success doing different things and started a taco bell think was a guy who would during a talk with everybody thought it turned into talk about but he did a double down on what worked for them and fix the problems i think the hope is that he'll be able to go with to starbucks diagnose the problems there and we did of the people that have not been able to do guest he was he was don't think he to read adjusted anything there that,
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the stock drop in percent in the nicholas of you starbucks, he gained 5 percent when you think you do with those stocks. >> i think was starbucks, i am confident that you going to like were starbucks is in here for the stock some not so sure because i think that it kind price all of that into monday with chipolte my son because the stop is pulled back in their been concerns about same-store sales before before he left another stock is kind of price like he's only person could run it is trump bench at chipolte good things heavily and prices have come down this warning of the cost are also bringing back brisket for a limited time division of the same source el else. andrew: i love brisket especially at the high holidays they will tell you that i think the stop chipolte is richly price from 50 times earnings and bill ackman, the big supporter and comeback state in the latest quarter.
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jack: one analyst told me think that starbucks is fair value more excited papa john's and they had a turnaround and turned into an internal around in his ceo is left for shake shack one from wendy's has taken over papa john's is like fast food ceo twister. nancy you pointed out that there's been sort of broader weakness in retail and restaurants including at the hyatt. andrew: you see casual dining is been week area the stock market and businesswise in terms of dinette and brands tough. get strengths like shake shack and so glad to the place out and also the high-end in terms of consumers and leading luxury retailer has had a tough first half of the year in companies like european wax sinners getting wax stock market. jack: this not car wax with the various bodily regions and is a high-end consumer c5's
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discretionary. jack: i don't know how we got here i just back on track meghan when you see from consumer. meghan: i think you make good points, it's interesting because consumers are still spending we saw a really great better-than-expected retail sales for this year this month which is fabulous and no christmas are seeing improvements here and there sales and said this is actually good news i think he was a going forward is a cost-conscious consumer is great for value places like walmart when absolutely gangbusters quarter and so you going to start to see a certain amount of blowback that point forward on certain areas of spinning their valley place. jack: does anybody wanted to get crack at mcdonald's consumers looking to save who meets mcdonald's on that you. >> the market things nobody does they did not have a recorder when they release a few weeks ago but the stock is up about 1e meals coming out and everybody assumes mcdonald's wins value
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mark so if you like will looks like a decent playwright out. >> you go to mcdonald's here and headed and $50 for meal so i don't know about that. >> would mcdonald's these is brian nichols and mason's every stock of 25 percent and intel and everywhere in the hall s&p 500 and think you all and making a bad have the pair of investment ideas and andrews the diamond business is being - by shiny alternative and progressive makes it easy to save with a quick commercial auto quote online. so you can get back to your monster to-do list. -really? -get a quote at progresivecommercial.com. is it possible to be more capable? and more practical? be able to perform here. and here. make a statement while barely making a sound.
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the growth of lab grown stones which are manufactured diamonds which are roiling the whole industry now c1 different from the cubic or whatever it's all right. andrew: these are like well if you like the real thing you need specialized equipment to tell the difference between that and natural in the created cells. and was having else taken the market by storm an estimated that half of all diamond engagement ring so the country now lab grown stones and it's hurting the diamond industry which may never be the same. jack: of the price with young people go shopping. andrew: doing out when the problems of prices of labs have been plummeting itself, that is been made them more appealing and is been hurting the industry leader reported, weaker sales and earnings for the purpose of the year as of this year does not look much better block on the right now by the parent american enemy not yet legally
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high price and there's this whole issue about will be cachet of diamonds diminished now that there are no longer expensive and rare and so see when i will buy a diamond encrusted piano by the time this thing is done this winter telling me. andrew: no resell market lab grown stones and so it is unclear you know just how the diamond market will shake out here sue and got it make and how about sergey. meghan: well i want to point out that housing starts have been really not break into life variances very bullish on really interesting homebuilder and so dr horton is the pink this weekend in part because the company in such a solid track record and so she was the return 25 percent annually over the past decade that is a great track record and i have to say, there are clear skies ahead of you will. jack: like no houses in the make houses and something a good place to be. meghan: yes no great for first home buyers you know those first home first time homebuyers there we go about it from time and you
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know it is one of the things were going to start to see housing you know the pickup hopefully because we have the lower mortgage rates and we also of course have hopefully lower rates over the course. jack: van. >> i'm looking to gilly and biotech has very strong hiv business but it is been a dead money since about 2016 when they had a big blockbuster titus see medicine that actually cured it and everybody else came along ay this hiv business that's great to have a drug trials now that is a prophylactic keeps you from getting looking promising and drug and liver drug approved by the fda this week and it looks like maybe is showing signs of life anything else interesting. jack: great ideas and bend and meghan and andrea thank you three more check out this week's edition parent

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