republicans thought to be conservatives and drifted to the left over their time on the court now it appears there is a pretty solid conservative majority on the court for a while. >> that's all we have time great thanks to briber and work in laura curran. will be back next wee >> "barron's roundtable" sponsored by global x ats. jack: welcome to "barron's roundtable". we get behind the headlines and prepare you for the week ahead. a gas tax holiday is unlikely but drug price reform is possible. pimco's libby cantrill on whether anything will get done. worries about recession battered stocks and some have

fallen to attractive levels. andrew bary will tell us where to have bargains. we begin with the most important things investors should be thinking about. you might be surprised what cheered investors up, where to find signs of the market up next move. a major shakeup for kellogg, which food stocks are good defensive plays netflix and meta have fallen so low they are value stocks. on "barron's roundtable," ben levisohn, carleton english and jack hough. friday ended with a nice run for the market with the dow up 807 points. what cheered investors up? ben: the s&p had its best week since 2020 and all it took was fed chairman powell acknowledging a soft landing for the economy could be very difficult. you wouldn't think acknowledging we might have a recession if we keep raising rates like this would get

investors excited but the market looked at that and said this means the fed will not keep raising rates as aggressively. they dialed back the forecasts and priced into the market how high rates would go and the university of michigan consumer sentiment survey showed inflation expectations pulling back a little bit, bond yields fell, stocks went up. jack: it was pushing 3.1 something. could that be a recession signal? ben: i don't think so. the tenure started the year very low and double this year. when you get that kind of move you need time to consolidate. we should expect this volatility. it will go up and down and we will see the 3%, 3.1% for a while now. jack: next week a few companies reporting could be bellwethers.

ben: nike and bed, bath, and beyond gives us an early lead, micron should tell us a little bit about whether companies are still spending on tech. jack: let's talk about snacks with the jack hough. kellogg with a big restructuring, and a favorite of mine is cliff. jack: kellogg's splitting into three companies, snacks, cereals, and veggie burger type stuff trying to pool a monolith. craft said get rid of the cheese and other boring stuff, we will change our name and keep the oreo cookie and ritz crackers and that has worked well because there's endless demand for chips and cookies. pepsi at 25 times earnings

because of frito-lay which has doritos and chinos and kellogg is over here saying 17 times earnings but we have pop tarts and cheese it. jack: levinsohn is chewing cinnamon toast crunch. it is a big deal. ben: the same thing applies. jack: it is going to make a new snack global company yet to be named. i like pringle tarts international but it is not gaining momentum. the stock hasn't moved. five years ago, there was project care where they consolidated and it is like a project reverse k where it could raise costs. i spoke to brian about which food stocks are good defensive buys.

craft hines was a disastrous merger but they recently got rid of the cheese. no one keeps the cheese, things are looking up, one more pic, a french frymaker, campbell soup and mccormick, spicemakers way up, if you buy less we need less spice. jack: there is no connection between project k and special k. i need to get to carlton to find out what is going on with the value stock index. they are suddenly cheap value stocks. >> apparently according to russell which reengineered the index, facebook, pay powell and netflix. they have a growth index and it is smaller. there is a lot that goes into

russell's methodology for determining the growth or value side but it comes down to outlooks for future growth and earnings and if you look at these they are down by 60% this year. they have warned slowing growth, netflix and subscriptions so it is possible they are starting to look more like value companies. jack: netflix has been amazing, up $700. we saw it hit one hundred 90. what is the outlook for that company? it has pre-good penetration. carleton: netflix is one that we are taking a look at. what is interesting is it is trading at price-to-earnings that is less than utilities. hi growth oriented utilities, a little shocking there. we got a lot of bad news for the company, bad headlines from the company slowing subscriber growth, they announced layoffs

but the street is taking another look at this would, we are cautiously up to mister, the street is resetting expectations for the company saying there may be a chance for multi-year growth. they may be able to regrow subscriptions by doing a model and cracking down, got to stop using my netflix account. jack: used to be a thing called cable which is subscription only. that is happening to streaming as well. president biden calling for a federal gasoline tax holiday but will congress get that or anything else done? anything else done? pimco's libby cantrill is next.

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ibly15 jack: president biden urging lawmakers to take action on drugs, gas and computer chips but can dc get anything done before the election and will overturning roe v wade change the equation? the head of public policy from pimco, libby cantrill, thanks for coming on the show. let's start with the idea of a gas tax holiday. economists say it will be a dubious benefit but you say it is not happening anyway. the sectary met with oil objectives but anything good come out of that? >> the gas tax holiday is a reminder it would be a suspension of the federal gas tax, 18.4 cents. president biden proposed

congress consider a 3 month pause and congress, on both sides dismissed the request not only predictably republicans to take that up but members of his own party and as speaker pelosi referred to it as a gimmick, and on capitol hill, it is likely do a your other question about what else can be done, not very much. the reality, this is a capacity at the refiners issue, in terms of tools in the white house, they don't have very many tools, they can use their bully pulpit which president biden is trying to do in vain in terms of beating up oil companies for not increasing refinery capacity.

the bottom line is continued tit-for-tat between energy companies and the white house but very much the white house can do from a gas price perspective in particular. jack: looking at the problem more broadly, any tools in the white house arsenal to combat inflation? >> they have done some things. they released oil from the strategic petroleum reserve, the fpr, the biggest release of oil, one hundred 80 million barrels a day over 180 days, the biggest release since the genesis of the fpr in the 1970s. in the price of oil and the price of gas, there's an active discussion in the white house, about removing tariffs on chinese goods that are imported in the united states.

our view is that doesn't move the needle on core cpi, inflation, 4.3%. that is not very meaningful and that would create another political headache for the white house because they would be be perceived as going shot soft on china. the bottom line is the tools they are trying to use or have used and don't move the needle. it underscores the important political issue around inflation, gas and groceries. this is a real political issue, it is different for the country. jack: build back better, interesting to a lot of people, the idea of medicare negotiating, where does that stand?

>> on a scaled back, build back better bill would include, from the consumer perspective allow for medicare to negotiate drug prices with pharmaceutical companies. climate provisions, renewable tax credits on wind and solar and nuclear to hitch a ride and underscore the sense of urgency to get something done before the midterms as relates to inflation. jack: let's pivot to semiconductors, intel delayed a ceremonial groundbreaking of a plan in albany, ohio. hoping congress will pass of this bill that will fund the semiconductor industry. where does it stand? >> this is likely to be signed into law whether it is at the end of the summer or fall or

lame-duck session of congress between the election and the end of the year, it is likely to pass, just going through the nauseating machinations and taking too long but bottom line, we will see a signing ceremony in the not too distant future. jack: the biggest news out of washington, the supreme court, overturning roe v wade, does that change the calculus at all, they are losing big, does this motivate the blue base? >> it is an open question about the political impact. if there's any issue that could galvanize democratic voters who might have been on the sidelines otherwise this could be one of them. it is looming large for voters, gas and groceries, economic problems but this could be the

one issue that suburban women out to vote and particularly in battleground states where they have gubernatorial races and senate races in wisconsin, pennsylvania, arizona and the like. too early to say but if any issue could galvanize some democratic voters this could be it. jack: we will be watching these issues carefully. stocks of homebuilders (fisher investments) it's easy to think that all money managers are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher investments. (other money manager) ok, then you probably sneak in some hidden and layered fees.

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jack: recession fears for the market, so stocks that harder than others, we think about

buying. andrew bary is back. great to see you again. you pulled together a list of the cheapest stocks in the market. they are homebuilders and steelmakers. andrew: homebuilders are down, mortgage rates have doubled. it is a big affordability problem. the steelmaking stocks, in the last couple months, steel prices are down to $900 a ton. jack: prices coming down, no inflation in that area. that the demand issue, what industries are no longer buying? andrew: prices got elevated by the ukraine situation. the big drivers of steel demand in the auto industry which is 25% and infrastructure and construction, road, bridges,

new buildings, the energy industry needs piping for oil and gas and demand from renewable energy, wind farms require a lot of steel. it looks pretty good. jack: andrew, jack hough. i need to put on a hard hat to look at a chart of steel stocks from the past because they have been so volatile. anything change to make the steadier performers going forward? andrew: the us industry has gotten better with consolidation, four companies control 80% of the market and you see a sharp increase in profitability, that allows companies to improve their balance sheets, reduce financial risk, provide returns to shareholders and improve environmental footprint and reduce emissions. carleton: a number of steel companies, talk about the

outlook, an interesting one to cover. andrew: it has a low valuation around three times earnings. it has well-regarded pugnacious ceo, strong raw material position in the pre-good spot for the next couple years. carleton: what about the mystic players? andrew: the only steel stock in the s&p 500, the best balance sheet, the biggest production. it is the go to stock for people who are more conservative on the steel industry and steel dynamics, the smaller version, to produce steel which the input is scrapped rather than iron or. u.s. steel and cleveland clinic produce there steel. ben: one steelmaker isn't located in the united states. tell us about it. andrew: one of the largest

canadian steelmakers has a low cost plan in ontario, the best margins in the industry, cash risk balance sheet, investor oriented, it is a takeover candidate. jack: we didn't talk about one more nice thing about the steel industry which is automakers haven't been able to build, it is a nice customer for steel. see you again soon. roundtable members give their investment ideas next for the investment ideas next for the coming week.

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jack: the fda took action

against the e-cigarette arm of all tria and makes interesting dynamics in the smoking industry. jack: jul e-cigarette are out, the dividend yield is 9%, 9 times earnings. in a past, altrea has performed well starting at the level sheet, there are obvious concerns. the product, cigarettes kill the customers, not a great starting point. i find it strange, the new york times had a question about cannabis they ping --vaping not these pellets are 95% thc and make some people who smoke them profoundly sick. to give a comparison, back when ben was going to grateful dead

shows that is 4% thc, cannabis vapors are collecting high fives for regulators for something that bears little resemblance to the cannabis in the legalized effort. you better tackle stand at the loading dock before he tries to vape all little nicotine instead of smoking a cigarette during his break. i will mention an appeals court granted a stay on the fda juul ruling so we will see what happens. ben: what you have force? ben: might be more expensive than netflix but they've gotten hit really hard. june 21st they dropped 14%. they have rallied since then, but it looks really good right now and can provide balance for portfolio. jack: what your idea?

carleton: colgate palmolive, 2.6% and assuming we keep brushing our teeth and using deodorant in the downturn. jack: great ideas. jack: great ideas. to (announcer) the following is a paid presentation furnished by rare collectibles tv, llc. (announcer) the biggest numismatic event of the year just occurred! the 2021 morgan silver dollars are finally available and you are the first in line to acquire them right now! the silver dollar is the ultimate collector's coin and the most popular silver dollar design is the morgan silver dollar struck from 1878 to 1921.