senator scott is put himself right over the target. i'll be back next week with more in-depth interviews on wall street journal. thank you very much for joining us. >> we could be on the headlines and prepare you for the week ahead. coming up, blockbuster first-quarter tech earnings this week what it means for the economy in your portfolio. with one of the most influential women in finance. the super media and later as more states allow recreational marijuana, opportunities opening up an american pot stock which industries been called the lord will be here when we begin is always with what we think of the most three important be thinking about it now.

flat not reacting much but stronger earnings reported that many or the president's address to congress. big tech earnings soared above forecast the stock didn't move much in the chp shortages beginning to him karmic earnings what you expect from gm's report nicely on the roundtable so ben, this flemish week in the market a heckuva nice month . >> is a fantastic month, the s&p 500 really hasn't done much under the last two weeks and what is interesting is that under the surface, there was a lot of movement this week. we saw the s&p 500 growth has big positions paypal tesla another hike find growth stocks dropped 2.2 percent. and per child pathway and others, they rose 1.4 percent. saloon we also saw signs of life in reopening trade with the s&p

500, it has big positions and things like royal caribbean cruises, gas storage and list of volatile stocks was up on the 2 percent. that seems an interesting side of them may be investors are heading in that direction. jack: so what is moving this, this is the great rotation that we've been talking about for a long time. >> i think it was a bit of a pause there as we saw things like yields pull back a little bit and we got signs that maybe that has changed, biden wants to spend more raise taxes. but that probably some point happen and they did nothing and we have the gdp report that it was really, 6.4 percent. still managed to miss the estimate. i think but we are sing here's maybe goldilocks coming back and it's going to be a good strong economy but not going to be so strong anytime soon. >> cement they want to hear from you about these incredible

numbers that came out over the wake and tech stocks just blew it out of the water investors - >> you said that, on average the same stocks in microsoft turn in profits were 40 percent higher than expected. and very little happened. some were bigger surprises than others facebook and google alphabet. they were among them in earlier in the pandemic, a lot of investors and kind of written them about the reliance of online advertising. but there resilient and they're alive and well a facebook first-quarter profits doubled over a year ago and alphabets troubled. jack: so those kinds of numbers of companies of the site is really unusual in one of the raw numbers that just me away was apple purported $89 billion of sales in just one quarter. guest: and i was 12 billion or about 16 percent more than expected it really just

underlines the fact that people love the products produced not just the iphone, there's new faster laptops revamped ipads and watch all doing well. jack: that is a lot of earbuds is to sell. we looking for next week. guest: much of what we have seen a big tech points in fact that the cloud remains a major driver of the, things like - they will see reported in the next few weeks and we will know more than printed sue and google's numbers were also good that coming is probable that some of that but they did better. so carlton we are hearing great things from the platform companies and apple but of course the chipmakers having trouble and that's impacting other companies including the car manufacturers. guest: yes, i think it touches on something that beverly just said about how we all loved our devices. so many things have chips in them now and the chp shortage that we've been hearing about over the last few months, actually seen this in cars. about 40 percent of the cars now

actually comes from electronic and tech enabled products so it is tough to get those things in the cars off the lots are made at least out of this production in the second quarter is going to be done about 60 percent and that's when have an impact on profits about 1.6 billion profits after it released its last earnings report. jack: is a good point about the makeup of the cars. cars are becoming computers with rubber tires that's from intel. so let's talk about gm, anything good coming up, do you think that they have been hit as hard as for. guest: no gm has already warned the impact of the chp shortage, they called in a billion-dollar and maybe a little higher but the test will be to see if they were correct on the target or they are going to have to kind of increase that impact a little bit more. jack: is a tough time to buy a car i guess. guest: is a great time someone though. jack: supply and demand, coming

up, bank of america's on why she is more bullish on the economy the stock market. she will be here next. ♪ ♪

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sue and what is a blowout first-quarter tech earnings me to the economy your portfolio and should we worry about inflation think of america's super congratulations on being named one of barron's most influential women, it's great to have you back on the show. and when the focus on your long-term but to start can you give me a quick reaction for the past weeks incredible earnings report. guest: is no a lot. i think we all sort of expected it and you look at the endless,

they have revised their numbers aggressively ahead of earnings. tech companies are coming and strong. it is really been a strong quarter for tech and for some of the more areas of the market. i think what is interesting to watch as they bring action from the companies. what is so surprising to me we seen this over the last couple of quarters, is a very muted reaction of companies that been on the earnings and sales in fact right now we are tracking about 50 days of a positive reaction which is very low relative to the average to have percent on beat so i think this is a great learning season. for bullish on for 2021 been the market reaction is generally muted which is - the folks are already there, they're already owning stocks that are exceeding estimates. sue and some of your reports of hinted at that and you say you're more bullish on the

economy than the market we justw a chart that showed evaluations target did we just reach a point we can't go it too much higher from here. guest: that's one of the reasons that we are not that enthusiastic about stocks but it's just not the only reason, evaluations in and of themselves can get a lot higher than i think that we have seen that before. they got little bit higher. so that alone is not enough to say go someplace else. but if you look at a variety of different things so if you look at indicators, we tracked wall street enthusiasm about stocks were now at a level where that's just recommending an allocation of equity of that is the highest we have seen since 2007 we all know what happened after 2007, on a great time to buy stocks. so the bullishness of wall street makes me worry a little bit. mike s&p is 3800. will blow but we are today and we are the lowest on the street, is forecasting . significant

returns for stock. so that's another reason we are not that enthusiastic printed and i think the other kind of risk and this is the payback. when you think about what we have seen from the stimulus, from the feds and the fiscal stimulus has been this zucca free money and is been great because it staves off what could've been a much deeper and much more damaging recession for the u.s. economy. i think it had learned from 2008 policymakers learned from 2008 majority quick and aggressive bituminous when he started see the economy. and now we are left with this deficit and i think the president of biden and his administration have started to hit really kind of .2 strong potential for some kind of reversal in the tax policies that we seen over the last four years so reversal of the trumps

corporate tax cut rated maybe even hiking capitol gains taxes. so some of these negative headlines can wait on us as we move into the second half of the year. and then on top of that, we have watching in a work is just inflation. and i'm sure that you have seen this, we've all been talking about it but if you just look at the number of the cost pressure during this earnings season just over the last few weeks, it is through the roof printed piece on this inflation, cost pressure, wage inflation, raw materials and supply chain disruption still affect kind of this global shut down. so they worry about in the second half of the year's health displays through in terms of corporate earnings to actually start to see inflation overheat and margin compression. our potentially worse, do we see that had been forced to take up

more aggressive stance on tightening and i think are the things we need to worry about. but the evaluations two-point in the market is really an this great news but not necessarily some of the potential negatives. to atticus is not ready to think that if the stock market did so well when everything was horrible, to be of everything becomes good, the stocks will do so also we are out of time but would can you briefly give us where the sectors that you might like most. guest: in an environment the economy is doing right, financials industrial because i think we will see this pickup and energy is another thing that we like. in healthcare in the long-term secular coming out of a global healthcare pandemic, we think it will going to seek higher spend this secular on healthcare. jack: thank you so much i always

love your insight. and coming up, half stocks are catching fire and what you might want to add cannabis to portfolio. portfolio. ceo fan, joins us next. did you know that geico's whole 15 minutes thing... that came from me. really. my first idea was “in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain. so i thought, what about... 15 minutes. 15 percent. serendipity. 15 minutes could save you 15% or more on car insurance.

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jack: this is not your father's bearings, our cover story pot stocks, in april the house passed a bill allowing the marijuana industry to use the federally regulated bank system with desperate with the tax more states are looking towards legalization, green thumb industry founder and chairman joined us now, thank you so much for coming on the roundtable.

>> thank you for having me. jack: you come from a proud legacy of entrepreneurs and barely legal businesses, your great-grandfather was an investor in jim beam distillery. what are the odds that the senate will pass this bill making it easier for comedies like yours to use banking services. >> we think safety for the safe act makes sense that you mention past generations and we set about four and will say it several times, history does not repeat, and rhymes. we've seen this movie before, were living as americans in cannabis is prohibition 2.0 and we see such an unbelievable growth ahead and were really excited on where we set. jack: the banking issues are the first step, it's very difficult to do things as simple as get money to the bank or take loans or issue shares on the market. but after that step, what are

the odds of federal legalization. >> it's important you said take money to the bank, get loans, various things, the mso's which we are warm are able to do all those things, it's more complicated. we talk about the hurdle of execution also that the big differentiator for green thumb but getting money to the bank is operating with high quality u.s. banking institutions, these are not money center banks but these are local and regional bands under banks filing sars reports and doing it legally, employees are paid through direct deposit, cash goes to the bank but simple things like credit card and various 401k and insurance are cumbersome or impossible. jack: i want to ask you about the total addressable market, by our estimate and looks like $100 billion when you include illicit and illegal sales. do you agree with that and if so, that looks like a pretty good runway for growth but what

if we don't take the steps to make banking easier to get federal legalization, can you stop request mark. >> 100%, green thumb operates positive net income per gap with compliant with the sec and registered even with state rules and federal rules and conflict, this is a classic american tail, we are able to execute and go ahead and do that even under the current system in terms of the size of the market you bring up 100 billion let's look at that in several different ways, the way we would look at it top down bottom up, crisscross and make sure we understand the number, take a state like colorado in the six-year, of legalization last year, $2.1 billion, that was 25% growth in about 6 million people if you extrapolate that to the u.s. based on size you get a number

around 100 billion not gives us a lot of competent, 80 billion but either way that's going to make the u.s. cannabis industry, larger in size than u.s. spirits. i going to make the u.s. cannabis industry larger than u.s. wine. the last thing i would say your question, which is a good one is total addressable market, the tm, one of the lenses looking at things a little bit differently we prefer to think about something like the total addressable problem, not the market but the problem, have any people don't sleep so well or how many people would prefer to see better, how many people would prefer lesson guide or pain or no hangover, we think the consumer is pretty wide, pretty broad across the united states, that makes us think that there probably conservative, certainly not too high but at

the same time it doesn't matter much for us, were headdown focused inside the business state to state. this is a state to state market at this point and there's a huge runway for growth, we think hundred is decent number but if i had to bet i would take a bigger number in a decade from now. jack: a quick lightning round with some of the other stories, some of the stocks we got, i will start with you, you are looking at key relief. >> it is over a 9 billion-dollar market cap trading over because of the regulations that you guys mentioned earlier, 105 stores in 23 states. jack: been you are looking at true leaves. >> that is right, true leaf i have seen sales dublin 2020 expecting growth in 20 to anyone. his focus primarily in one state but looking outward, the one hitch the stock is going up from 10 - $40 over the past year and that something to be a little

cautious of. jack: investors that don't what to pick an individual stock, the person who runs barron's, tell us and etf. >> there is seven pot etf's, the 1.7 billion etf in g alternative, the global fund in a five year track record, all the others less than two years old as more stocks get listed in the u.s. and federal legalization to compare yourself you have a lot etf's to choose from and they will be a lot more transparent and a lot more cheaper to. jack: thank you for telling us about your company, thinks panelist for the insights into the others, up next the roundtable members will give you their investment ideas for the coming weeks. stay right here. not everybody wants the same thing. that's why i go with liberty mutual — they customize my car insurance so i only pay for what i need. 'cause i do things a little differently.

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jack: the wall street journal and barron's teamed up with realtor.com to analyze housing prices with the hottest real estate markets. >> based on indicators ranging from local wages and vanities to the foreign-born residents which high economic. jack: barron's took the data into something interesting, let's crunch this and see what would be a good place to buy and. >> were looking for a good value, great places to live where places have not gone through the roof. the midwest and the south dominate the top ten, the winner was indianapolis and surrounding suburbs of favorite spot for

entire rees st. lucie employee came in at number five. jack: a favorite spot for mets fans on that's where they play in the grapefruit league before the season starts. let's going to actionable ideas, carlton i really like your car insurance company that is done a great job over the decades. >> were looking at progressive and has a piece on it. it's a .4% a special dividend back in january paying $4.50, they say the growth company and a slow growth industry. jack: .4 doesn't sound like a big payout but if you get the extra one. ben what he looking at. >> looking at sherwin-williams, and reported earnings their focus was they want to raise prices, with everyone talking, the ability to do that is a great thing. they are interesting. jack: a lot of people that want to do work on the home at this point, they spent a lot of time

over the past year. those are all great ideas, thank you so much, check out this additional barron's.com, don't forget to follow us on twitter at barron's online. get your shot, be healthy and will see you next week on "barron's ♪ ♪. larry: hello everyone and welcome back to "kudlow", i am larry kudlow, great to be with you. here's a question a lot of people are asking these days, if the economy is booming, why do we need all the new government spending plans and president biden's first 100 days, the democrats got a 51 vote reconciliation victory for