my wallet. that is it for us this week, jerry will be back next week with in-depth interviews on the wall street journal at large. thank you for joining us. ♪ >> "barron's roundtable" sponsored by invesco cute cute cute. >> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead i am jack hout and for jack otter who is on vacation, dry those tears to be back next week. coming up used car prices are up 42%, honk if you're hoping is transitory carbonic ceo weizen.

later it is turnaround time for boeing we have the latest on the 737 max and the stock. but we begin as always with three things investors should be thinking about right now. the stock market has slipped into his news but value stocks could be perking up, how to profit. the latest inflation reading is 5.4%, spicy, what it means for the market and has bitcoin replace gold as an inflation hedge. disney theme parks are bouncing back, i would high-five to see if it was it against protocols what the numbers tell us about the travel outlook, on the "barron's roundtable" carleton english, it's august and traders are on vacation, market volume is down in businesses showing everyone guest host but an important market shift is afoot involving value stocks, what do you think. >> that is right i'm trying to stay awake but when i have i

been noticing value stocks have been taking a breather for the last couple months and showing signs of life, big news from caterpillar, goldman sachs and chemical companies, part of that has to do with last week's payrolls report which put to rest the idea that the economy was peaking but the infrastructure bill has become a real thing and that has triggered a new rotation out of growth and back into value. jack: retail earnings coming next week, what are you looking for. >> i went to see partially how retailers like kohl's and macy's are faring it will tell us a lot about other people are going back to physical stores and whether the old retailers can get people to continue to shop digitally. i'm also looking for a glimpse of how the consumer is doing overall there such a big part of the u.s. economy that we want to go there still spending their dollars and will get some signs of how the delta variant has impacted shopping in august.

that's basically what were watching for for earnings. >> the biggest risk facing the stock market right now. >> has to be too much exuberance right now it's quiet but if investors decide they need to push the market up a lot higher that can be the signal that it's time to get out. jack: the stock and bond market don't seem to be bothered by the higher inflation rating to the markets have a right? >> i'm going to slip a difference the market expect some level of inflation is going to be here to stay maybe not the 5% year-over-year that we've gotten used to but certainly not less than 2% that we've seen over the last decade we have a number of things going on a 3.5 trillion and other budget resolution in the senate in 1 trillion other infrastructure package in the consumer price index flow june from july but that was a slight using a car prices and all the things that people regularly by, the food, the gas prices, those are things

that were still seeing prices go up and why economist macy's transitory, real people spending real dollars right now are saying transitory but is it everything transitory, transitory for how long. jack: inflation hedging, i don't typically go for this wisecrack or, here is grandma seemed like a nice lady, used to buy gold as an inflation hedge and your granddaughter says sure, let's get you to bed. she sounds like a sassy bitcoin buyer to me, whose side are you on team grandma gold or team bitcoin granddaughter. >> splitting the difference. the thing with gold as an inflation hedge as many people who say it is, will also say never really was true if going off the gold standard, if you went ahead of inflation you need to build a portfolio with things or using a buying. one way the commodity fund that

gives exposure to energy prices, material cost, the cars, the autos all the stuff that you will be buying that's what you want in your portfolio gold or bitcoin i don't know what they'd use case of bitcoin and may not be the best best. jack: commodity fund you get a little grandma gold in the base metal the steel and the aluminum, let me go to you, disney's result there's a small domestic profit at the park, do you think we learned anything about travel demand going forward from the numbers? >> we learned this incredible demand for travel, the unit as you said had a profit but when you look at other companies are reporting about current result in disney closed in early july and it's a backwards look but look at southwest airlines they say cancellations are up and it's accelerated and expedia said they seem backward movement in july in airbnb which had a

fantastic second quarter, their declining. it seems to me we can get a hiccup in travel in the second quarter people are really worried about the delta variant and many people are canceling but it does show is that there are tremendous demand as the airbnb result. >> streaming is supposed to be a stay-at-home activity not a reopening activity but disney too, when you make of that. it's everything company in the economic reopening play, they had a great quarter inch tree be 160 million subscribers and in the fall the open a number of big markets in asia. jack: thank you wall. coming up bumper profit on used cars but when will buyers get a break on right away prices, these are my actual, i will talk with carbonic ceo ernest garcia,

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jack: new cars are in short supply and demand for used vehicles has gone bananas. our next guest runs one of the fastest growing used-car sellers and it shares are soaring, carbonic founder and ceo ernie garcia. give me the pitch, why would i go to carmona to buy that used vehicle or to sell my vehicle as opposed to going to my local car dealer. >> taking for happiness we really appreciate it.

at carbonic customers go to our website tens of thousands of cars to choose from they can go through the entire process selecting the car and getting a value for the trade-in that takes minutes and they could go to the first process schedule delivery will deliver to their doors next day and a seven day return policy by virtue building the model and a completely different way we save our customers around a thousand dollars and the ease of the experience of saving the selection drives people to us and when it comes to selling your car that the releasable experience as well you can go to our website get a value in two minutes and will pick it up and give you a check whether you buy from us or not that's how the business works. jack: i wish i had a marching band and some party streamers so i could do justice to your quarterly numbers. let me point to one that stood out gross profit per vehicle $15000 per vehicle. several years ago that was a thousand dollars, it's a remarkable change what should

investors think about, or conditions unique and they should think those numbers will come down in the future or do you expect the use vehicle trade to stay this profitable long-term? >> sure undoubtably the specific conditions are definitely unique we are in a strange time where car prices are higher than they've ever been before but we've made very consistent sustainable progress over a long period of time, five years ago it was a thousand dollars and it's marched up yearly for the full year we expected to be $4000 and we do that by investing in our process by building the different model by vertically integrating more deeply there's fewer three parties between us and the customers that we can give a great value to our customers and build a great business. i think the most fundamental forces are still at play and we expect to be a play for a long time. jack: you must have customers coming to you saying my chevy is beating the stock market the

priced abuse cars going up so quickly but if they turn it in them to buy a vehicle that's not so fun with the higher prices, when do you think customers might get relief on the prices that they're paying for used vehicles right now do you have any prediction in the quarters ahead? >> i think it is hard and i apologize for not giving specific but so far over the last year end a half everyone has predicted what would happen and it's a bikini question. with covid and waves going across the world with new-car supply chains being as complicated as they are where there's thousands of parts manufactured in different parts of the world it's hard to say when the supply chains will recover when new cars will have new normalized numbers and until that happens there will be some destruction or some disruption and new and used car pricing, the cop located question but will be paid into attention like

everyone else. jack: i saw you went over 100,000 vehicles sold, that number is multiplied versus several years ago but then i saw your 1% market share. what do you think about how big this business can become. >> to your .5 years ago we sold 18000 cars in the entire year and a q2 of this year we sell 100,000 cars in a single quarter that gives you a sense of how quickly that is growing five times as many car sales and one fourth inward rubbing really quickly there is a lot of demand for this offering and we put out a lot of goals putting out 2 million plus cars per year, the 2 million is important in 40 million cars changing hands the use card site alone in the u.s. and we think with our

simple offering of giving customers a great expense and great price at a deep and incredible selection we have something that appeals to a lot of people so we will work hard to build back as quickly as process we can. >> the first car you ever owned. >> it was an old forerunner with the bangor engine and could barely make it a pills we had to get on push sometimes i diced the mere and all my friends in the back with a pretty good sound system we were excited and it wasn't good by any measure but we thought it was good. >> it sounds good to me, ernie garcia, thank you for joining us. coming up, lock your tray tables in the upright position we are talking boeing turnaround potential and the 737 max. potential and the 737 max. ♪

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jack: this week's barron's cover story looked at how boeing can bounce back barren senior writer in the industrial specialist heavy machinery joins the roundtable tell me three things boeing should do to breathe life into its shares. >> taking for the title, three things, number one i think boeing should design a brand-new plane slightly larger than the 737 max to address key product concerns, help it stop market share lost against the market share rival and energize engineering workforce. number two i think that they should sell stock i think that the pandemic has blown a big hole in its balance sheet partly through no fault of its own i think selling equity will be well received by investors to make better balance sheet could

bring investors back to the company that might have worried about the balance sheet. number three i would like to see them spend more money on r&d it is come down to the pandemic and it's a wrong time to do that i think they need to be bolder and think big. jack: you think you could learn a thing or two about general electric by turnaround, what do you mean by that. >> broker great american companies, hit by hard times, both have ceos on the board and it's how fast he acted at general electric, he dramatically reduced that and brought a new management as it paste that was dizzying. and dave calhoun has not gone as fast and i think he could take a lesson from larry and speed up the pace of change and it would

help boeing in the long run. jack: if boeing gets it right what do you think the upside looks like? >> i said 325 up abide 25%. there's a number of ways to get there but european rival is up about 15% from the all-time high boeing very roughly down 50% from the all-time high, better execution and more confidence from investors and you close that gap. >> i have a question about dave calhoun bowen ceo he spent many years before going to nielsen he's been on the board of boeing since 2009 he's been the ceo since january 2020. tell me a bit about his management style. >> i think as a straight shooter, maybe even too much of a straight shooter depending on your opinion into you talk to, he rebuffed ideas about rebanding and some people took

exception to that. it is been a rocky start i would say and i think he's done a good job and gets good marks for managing through an incredible crisis which is covid, he managed ge aircraft engines the franchise through 9/11 so he's no stranger to crisis and what you have to do to keep things on the rails to mixed travel metaphors. but now it's time to think about the future and get out of crisis mode. jack: carlton. >> to rebranding the 737 would be silly what's in the broader take even consumers they can pay attention to their airline tickets during the whole time. >> it is true i think the max, dave calhoun has said as much and what are the reasons he said he wouldn't change the name he

wasn't going to market his way out of the problem is probably the right answer but ultimately the plane is bought and put in service by airlines, they're the ones that he has two win the confidence and trust, the max as boeing points out as phone 250 flight hours since being reintroduced definitely needs to keep a pristine safety record but as long as things look good there shouldn't be a branding or consumer backlash. the other thing to know consumers don't have a choice because the max is much cheaper to operate than older planes. the airlines to take deliveries are putting down the old ones and fly knocks because it saves them so much money. you're not worried that bookers traveling on their phone are good look at the flight details and say 737 max are not the ones i heard about from years back,

is that not a concern. >> i think 3 - 6 to nine months i think they might do it now six or nine months from now giving a clean bill of safety and clean safety record i don't think the do that right now. >> you mentioned china is one reason boeing needs to look for the future, what is the issue there? >> china wants to do its own planes 737 planes and a probably two generations before america generation travelers on a chinese plane or whatever. 25% of the aerospace market, before china is its own planes in the air and start thinking about that i think but we would be well served to have the strongest most up-to-date technology that it can and that's one of the reasons they should do a new plane and that competition will come down the road at some point and i think if you don't fix correctly or

you wait to fix or do nothing right now i think that will hurt you and china down the road. up next roundtable members give their investment ideas for the coming week and carlton has some boozy news about mountain dew. stay right there. ♪ (judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the market. (other money manager) but you still sell investments that generate high commissions, right? (judith) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money? only when your clients make more money? (judith) yep, we do better when our clients do better. at fisher investments we're clearly different.

>> pepsi and boston beer is teaming up to make hard mountain dew i'm pretty sure it's a hard mountain dew but do you think fruity boozy can market has gotten too crowded. >> i'm thinking this is too

crowded, just remember a few weeks ago the boston beer said overestimated the demand for hard seltzer's and decline in soda drinking seems like a double we meet on as a bad idea. you will have some confusion because earlier this year mountain dew came out with an energy drink now they're coming out with an alcoholic drink it's like the jefferson airplane one makes you fancy and one makes you sleepy. jack: what about the helmets with the candy to put your energy over here and booze over here. >> i'm going to stick with the travel theme and go with the vacations worldwide the timeshare company are calling andrew berry in the story, these are stocks that could have double-digit compound growth potential. it could return 20% according to money manager who also called the balance sheet impeccable. jack: ben, what you like. >> i like wendy's i one day

stent as a means stock but it's done nothing since june 2020 and had great earnings and big plans for the future the stock is on the move an interesting one to look at. >> great idea, thank you to read more check out this addition at barron's.com don't forget to follow us on twitter at barron's >> from the fox studios in new york city this is "maria bartiromo wall street". maria: happy weekend to all, welcome to the program that analyzes the week that was in helps position you for the week ahead. i am maria bartiromo inflation and prices on everything from groceries to gasoline their cars on the rise i'm asking investment strategist where things go from here. the number of migrants encounter crossing the border