a misfit. this is a new one i wrote. i think you might like it. i hope you enjoy reading and if you buy it i will try to sign up for you, too. i amll ♪ >> from the fox studios in new york city, this is imlar bartiromo's "wall street." maria: happy weekend with, everyone. welcome to the president obama helps position you -- helps position you for the week ahead. coming up, my interview with the c or fo of johnson & johnson, joe wolk is here, the drugmaker halting vaccine trials earlier in the week. i'll is ask him about that and the company's quarterly outlook. then later, i'll speak with ceo john mackey on the rise of online grocery shopping and where retail heads next. but first, let's take a look

back at some of the week's big moments in this week's edition of "the week's talkers." watch. ♪ ♪ maria: you have a scenario that you believe took place here. tell us what you see. >> oh, definitely. they framed general flynn because he was the cornerstone of the insurance policy to destroy president trump in the event he was elected. maria: you've been talking about this, something was to come, for some time. >> if you take a look at this hard drive and you're an fbi agent, you're compelled to do something about it because there are things on it that haven't come out yet that if any fbi agent sat by and watched it, they shouldn't be an fbi agent. maria: the fbi was leaking stories to web sites, and then they would use those stories that they leaked as evidence to renew the warrants to spy on the trump campaign. >> this is a scandal, and it stinks. if you look at what the obama

administration did, it politicized the fbi, the department of justice, the cia. it used them, essentially, as a political oppo research team. maria: facebook officially said we're not going to disseminate this information broadly. twitter officially closed down any account that tried to disseminate these e-mails so that the american people would understand. >> look at the behavior of the big tech oligarchs who want to control the biden administration. they immediately censored this information. maria: what was your takeaway on day one of the hearings for judge barrett? >> well, you heard from the other side that it's all about health insurance, and this doesn't have anything to do with health insurance, this is all about getting a qualified person -- very highly qualified person -- on the supreme court. maria: $29.9 billion in revenue, better than expected at jpm. >> well, it's a wonderful position to be in right now because the yield curve

widening. as i like to say, that makes geniuses out of otherwise low-level iq bankers. maria: oh, yes, third quarter earnings season now in full swing. we heard from jpmorgan and all of the banks, the major ones, the large ones. 42 s&p 500 companies reported so far, 88% of those beat earningses expectations, more than 83% beat revenue expectations as well. let's talk about the quarter and what's ahead with ryan payne of payne capital management. ryan, thanks for being here this weekend. you say prepare for more surprises to the upside. what does that say about the economic recovery give us your stance the on the backdrop here. >> yeah, i think the one thing, maria, is every economic surprise has been in the positive since march, right? so i think, you know, on friday we had retail sales numbers again, they totally blew away expectations coming in at almost 2%. which i always say never bet against the american consumer.

we just love to spend here in america. i think the one thing i'd look at here is what is the trend right now, and that's every economist, every strategist has veered very, very negative. but time and time again we've seen economic data come in better and better. so i think there's two real big influences proright now on the economy, and that's low, low interest rates and the american household able to refinance debt, you know, with refinancing their mortgages. it's really, really fueling this housing boom, and you're also seeing this deurbanization. you're seeing a lot of millennials leaving new york, going and buying houses, and all the economy is around buying a house. it's tremendous. so whatever you're losing on that hospitality and service side, we're really starting to gain back because of these other trends that are happening. maria: yeah. when you look at the mortgage market, mortgages are soaring with interest rates where they are. do you want toal locate -- to allocate capital consistent with where the growth is, so you're saying retail, there was a big

boost in car buying, furniture as well as i just mentioned mortgages. is that how you're allocating capital, or do you have a different strategy? >> i think you have to look at two things here. you have the work from home stocks which have just killed it, i mean, growth is just going through the roof here, and the valuations reflect that. valuations at this point, when you look at growth, you look at technology, it looks a lot like '99, 2000. now, will be, that trend can go on for a very, very long time. it looks irrational to me now, but it doesn't mean those stocks can't go higher. as someone who's trying to get a longer-term return for my clients, i love those beaten-down value names. look at the financials, interest rates have ticked up a little bit. that's good for margins. look at those loan provisions. earnings were very, very good relatively for the banks, you know, better than expected. and even owl. i'm a bold man, maria, you start looking at energy, energy consumption's going to go up a

lot over the next two decades, and supply keeps coming down, and you're basically buying stocks in the energy sector for, like, book value right now. maria: yeah. >> i made a joke recently, warren buffett's laughing at you. he's buying a lot of these companies that are, you know, at their price at their book to value. so a lot of great opportunity out there. maria: so does any of this change with the election and the results afterwards? we're just two and a half weeks away from election day. do you want to look at what, you know, the election tells us in terms of energy or any other spaces? because, remember, donald trump and joe biden have very different approaches to energy. >> that's a really good point, but i think the bigger mistake that investors are going to make here -- and i've seen it time and time again this year, is waiting for the election to be over to get invested, waiting for that certainty. now, you know, when the market recovered, i was one of the few people on wall street saying we may see a v-shaped recovery back

in april. before the summer, again, there was a lot of concern about what the market was going to do. market went up big other the summer, we had a summer meltdown. now there's a lot of uncertainty going on and a lot of investors sitting in cash and waiting. i think that's going to be a big mistake regardless if it's trump in the white house or biden. i think the one trend we can all agree on is they're going to spend a lot of money. maria: all right, ryan, thank you so much. ryan payne, payne capital management president. stay right here, my one-on-one with johnson & johnson's cfo is coming up next. we'll be right back. incomparable design makes it beautiful. state of the art technology makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for 36 months. experience amazing. at your lexus dealer.

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tums chewy bites ♪ ♪ maria: welcome back. a lot of vaccine news this past week. on friday pfizer boosted markets on its news that it could apply for emergency use of its covid-19 vaccine candidate codeveloped with biontech as soon as late november. that was earlier than the market expected, it caused a big move. it has received the necessary

safety data required by the fda, so pfizer shares lifted many boats. and earlier in the week johnson & johnson announcing a halt to its covid-19 vaccine trials after a participant suffered an unexplained illness. i spoke with the cfo and executive vice president joe wolk on the news of the trials and what's ahead for johnson & johnson. >> so, maria, we're letting the drug safety monitoring board kind of go through their analysis. we've learned about this event, singular event, within the last 36 hours. it should really reassure the public that all scientific, medical and ethical protocols are being followed to the utmost degree. and we just have to let that process play out, are let that information be analyzed by the independent board, and we'll proceed accordingly. again, we've had 100,000 finish. maria: understood -- >> -- patients on this platform through other means we ebola, h user e v, zika, and so we have a

high degree of confidence in the safety of this, but we want to make sure we're thorough for this unexpected event. maria: understood. you have to make allowances for the situation where people might actually have an adverse reaction, i get that. but does this in any way suggest that you are having less confidence in a vaccine the way you were quite confident just six months ago of having a vaccine out in the market within the next year? >> yeah. so, maria, with a 60,000-patient study, unexpect add verse events are something -- adverse events should be expected to some degree. i think the best way to answer that is we have not altered our investment plans in terms of expanding our manufacturing capacity. we're still on the timeline for first quarter next year for potential approval, and we're going to let the science dictate how we proceed. maria: understood. let's talk about the third quarter. you reported earnings, posting a double beat on the top and

bottom line. joe, what drove the business in the last three months? tell us where the growth at j&j is today. >> yeah. so, maria, all three segments performed extremely well, especially considering the pandemic dynamics. in pharmaceuticals, a great portfolio of in-line products, a very promising pipeline continues to excel. we believe we led the market there in terms of our performance top line. consumer had very strong the performance within our over the counter medicine such as tylenol, listerine and oral care was extremely strong as well as zyrtec and pepcid. and medical devices, probably the most pronounced impact to our beat, where elective procedures came back in a very profound way. if you think about the second quarter, that segment was down almost 35%. it's down about 4% as hospital systems have adjusted their protocols for the pandemic. we're seeing a lot of those very important elect i have

procedures -- elective procedures coming back to the market, and that's helped our business. maria: what about that in terms of medical devices and seeing that kind of growth sustained going forward? i think in the early days of this pandemic, people were putting off knee rerace inments -- replacements, whatever medical device needs they had. you did see an increase in hospital visits, a willingness for people to get back into the hospital, back into the market to actually deal with these things. do you have any evidence of that this is sustained, that this sustains in the coming quarters? >> you know, i'm bullish that it will be sustained, maria. if you look at the third quarter dynamics, each of the months were down about 3-4%, so it didn't vary greatly. the second quarter you saw a tremendous improvement with each of the passing months. i also have to give a tremendous amount of credit to the hospital systems out there. they are making patients feel safe. they can run their hospital systems in a manner which treats all patients and not just shut

down for the potential to treat covid patients. so a lot of learning has happened over the last 6-8 months with respect to the pandemic on the scientific front but also operationally in terms of hospital systems. maria: in terms of the pharmaceutical business, joe, what do you expect in terms of pricing pressure? many people are expecting prices to start really moving lower with this pressure from government to get lower prices for the consumer out there. do you expect pricing pressure? >> so, maria, we don't only expect it, we're incurring it right now. so i spoke about the tremendous pharmaceutical results we had, and that's really attributable to our innovative portfolio of products that meet high unmet medical needs. we experienced in the u.s. about 7.5% of price decreases this quarter alone, yet we were still able to grow 5% because of the innovation and the solutions that we provide to patients. so this has been a topic for a number of years now. we don't expect it to subside.

but we think the right cadence of innovative products certainly can overcome that, and you can still perform extremely well. maria: joe, let me ask you about the supply chain. this is obviously something that people are worried about. we really got educated on the subject at the beginning of this pandemic when a lot of people learned for the first time that 70% of the active ingredients in our drugs are made in china. what can you tell us about diversifying your supply chain? can you to that in terms of -- can you do that in terms of moving some manufacturing to india? are you expecting to take any supply chains back to america out of china? >> so, maria, when that talk sparked early on this year, we were in a very solid position at johnson & johnson being a global company with very important products to provide. we were never heavily dependent on one specific region or country in terms of supply. so that really didn't apply to us. we want to make sure we've got great business continuity given the importance of our products.

i will say that having a lower corporate tax rate, which we currently enjoy -- and, again, it's still above the 37 countries in the oecd -- that's an important factor. it's no longer a headwind that i might have experienced four years ago when i was looking at anage sis as to where to place manufacturing. maria: my thanks to joseph wolk of johnson & johnson. don't go anywhere, we're talking with the whole foods founder about the future of grocery shopping. it's all coming up. did you know you can go to libertymutual.com to customizes your car insurance so you only pay for what you need? really? i didn't-- aah! ok. i'm on vibrate. aaah! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ (vo) i'm a verizon engineer and today, we're turning on 5g across the country.

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in online grocery shopping. in england, the retail giant took triple its online grocery sales from a year ago, it is one of the jewels of the amazon portfolio. john mackey is the whole foods cofounder, ceo of whole foods, also the author of "conscious leadership: elevating humanity through business." and, john, it is great to have you this weekend. thanks very much for being here. >> thanks for having me on the show, maria. maria: so tell me, john, how the last several months have gone at whole foods. it seems to me that if you can adapt to a delivery mechanism, you're in good shape, but those retailers that have been unable to do so in a fast way, they really have been left behind. at whole foods how have you adapted to more online grocery and delivery? >> well, maria, of course, 2020 has been the weirdest year of my life, the weirdest year in whole

foods' history. it's been a terrible year. the pandemic has, obviously, made a lot of people sick, it's killed now over 200,000 people. it's made a lot of adjustments. but our first thing at whole foods has been to end keep our customers and our team members safe, so we put a great emphasis on that early on. in terms of temperature checks, mandating mask wearing for both team members and our customers, discuss infecting grocery carts. we've been repeatedly named the safest supermarket company in the u.s. during the covid crisis. but, yes, things have changed. i mean, social distancing, people wearing masks, it's more of a transaction to come in the stores instead of peopleling orerring longer -- people lingering longer. our prepared foods crashed. whole foods does a lot of business in prepared foods, and with lunchtime traffic counts way down as offices closed down, we saw that really, really tail off. so we've also had to limit the

number of customers in our store at any one time due to social distancing requirements. on the other hand, restaurants have largely closed down, so so we've actually seen our sales go up a lot. sales have been very strong during the pandemic. but particularly they've been strong for delivery. as you mentioned, our online delivery sales have tripled in the last year, and that's been very challenging to keep up with that. but people are cooking at home, so that's been good for all supermarkets in a way. maria: you know, we had don peebles on, real estate developer, a couple of weeks ago, and he made a stark statement to me that i really was taken aback. he said retail in new york is dead. he he said brick and mortar in new york is dead. without the foot traffic, they're not going to be able to survive. what's your take on brick and mortar at this point? i mean, clearly many cities are on lockdown, and if we see a second wave in the next several

weeks, in the fall, that's only going to worsen. so what's your take now? do you want to adapt even further and keep ramping up the online portion of the business knowing that the foot traffic is not likely to come back anytime soon? >> i think people exaggerate the current trends too much. is new york going to come back? i don't know. my entire lifetime i've heard new york was going to die many times -- [laughter] and new york's a pretty resill cent place. people come back -- resilient place. is it going to come back next week? probably not. so we're going to have to get through it, make people feel safe again. but i do think that's going to happen in the next year, and people are going to begin to return from the suburbs, so to speak, to new york. it's still got a high quality of life, but it's a retail not dead, restaurants aren't dead, movie theaters aren't dead, they're just sort of in hibernation for a while.

maria: so, john, what have you learned from your customers in these last seven months? how have you seen customers change, adapt to these trying times? have you taken anything away that you didn't know before in terms of your customer base? >> i think the weirdest thing that's happened is, i mean, whole foods -- people like to shop at whole foods because we create this, our stores are beautiful, they're fun, food is fresh, and foodies like to come in and pick out their own stuff. and now with mask wearing and social distancing, people come in with a list, and they just -- it's a transaction, right? they just want to get their stuff and get out. i mean, i do the same thing when i go shopping. so what i've learned is people are scared, and you've got to keep them safe. maria: great to see you this weekend, john, thank you very much. >> thank you, maria. maria: john mackey, ceo of whole foods acquired by amazon back in 2017. don't go anywhere, more "wall street" right after this.

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♪ ♪ ♪ ♪ anywhere convenience. everyday security. bankers here to help. for wherever you want to go. chase. make more of what's yours. maria: welcome back. coming up next weekend right here on the program. don't miss it, we've got a big show. we are talking biotech with immunity bioceo my special guest coming off the news that the fda has given his clearance to begin phase one trials for a covid-19 vaccine. plus, over on fox news i'll see you sunday, can't sunday morning futures" live on the fox news channel when with i speak with wisconsin senator ron johnson, senator kelly loveler and devin nuñes, all my special guests. catch the show on sunday at 10

a.m. eastern on fox news. plus right here on fox business, start smart every weekday 6-9 a.m. eastern for "mornings with maria" on fox business. i hope you'll join us and set the tone for the day every weekday. in the meantime, have a great weekend, everybody. thanks so much for joining me. i'll see you again next time. ♪ gerry: welcome to "the wall street journal at large". for four long days this week colorly-i illuminated with charts and images punctuated by long, turgid lectures especially from democrats, amy coney barrett -- president trump's pick for the supreme court vacancy -- managed to school senators, tv viewers and the wider public in the proper role to have judiciary in the american system of government. while democrats tried repeatedly to get her to tell them what she thought about