tv Barrons Roundtable FOX Business August 14, 2022 11:30am-12:00pm EDT
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and feel fulfilled. and they turned out a brighter kid. that is not what a lot of teachers are being asked to do anymore. james: we have to leave it there. thanks guys appreciated. that is it for us this week for gerry will be back next week with more in-depth interviews right here on the wall street journal at large. thank yo ♪ ♪ ♪ barron's roundtable sponsored by global x. ♪ ♪ ♪ welcome to barron's roundtable we get behind the headlines ever pray for the week ahead. i am jack hough in for jack otter. coming up a massive new climate bill include acts perks for existing nuclear power. why is an american building new
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energy power. ios duke ceo lynn good. will mayor consumers get on board for new incentives for home, solar and electric vehicles? which companies could benefit? we began always has three things investors should be thinking about right now. better than expected inflation numbers boost the market. is it too soon to celebrate? disney is the new king of streaming surpassing netflix and total subscribers. but could disney's upcoming price hike knocked off the throne? and retail take center stage inexorably what rings like giant like target and walmart tills with the help of the economy? on the burns round tilt and all-star trio my colleagues al alex, carleton english and andrew berry. carlton lists are with you but we have inflation reading this past week. unchanged in july does that sound good news? update now from a year ago sounds like bad news. do i smile? do i frown?
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do it raise an eyebrow and stare off into the distance and contemplation question are how to feel about this. what's at the beer celebration not a campaign celebration. while this is good to see inflation trending downward. nothing we got from the print is not going to stop moving as aggressively as it had been of the economic data we got over the past two weeks adjust that either. last week's jobs demand much better than expected processing upward pressure on wages. we are still in a very inflationary environment. eight have% is better than what a lot of economists feared, still well at the 2% target by the fed. without take the beer celebration for now. the s&p 500 is at one point was down more than 20% for the year but is climbed about halfway back. for somebody was waiting to get in on the downturn is it too late? >> i don't think it's too late. kind of halfway climb back is usually a significant measure for technical analyst. the thing you have to keep in mind though is even if we may be
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off we could still be in for a shaky time ahead. expect a little more market volatility ahead. it's an improving sign we have climb back. b6 bed bath and beyond is full. amc entertainment was to do a preferred issue. the ticker is going to be a pe. the kids tell me that as a nod to mima traders ethical way of saying that. are we back to silly season here for the market? and if so how much dog themed parity crypto should i buy? >> i don't the grenfell season was not generate 2021 for this kind of goes back to the challenge the fed has. when you see investors wanting to take the speculative bets that's not the sign of a cooling economy. i don't think we are full on silly season we are seeing a little too much exuberant so be associated with the chilling. jack: walt disney reported subscribers blessed ahead of netflix rate raising prices
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investors seem pleased the stock jumped, what is your take? what does really powerful statement from disney. you are right there now about 221 million total streaming subscribers across their platform. as to netflix 220 and change read what is so interesting about the report is their raising prices and a very different way. they're using advertising in very different way than netflix is about to bring you netflix is using advertising to drop the base price of it streaming package in order to entice new subscribers were diseased in the opposite the going to make you pay more to avoid ads for the going to be added to the same price that you would pay today for the base package. it's a very powerful statement sprit speaks the pricing power. and it tells you they have a different model. has a pretty good library they still spend a lot that little bit of a cushion there. jack: evans piling to add support instrument for disney has played at experience netflix
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not so much. howdy think netflix would do? which one would you buy questioner. >> knowing what to with advertising one has gone out of their way to push back on advertising from their start. it's hard to see how netflix is going to so quickly turn on the ad's pouch for i do not know how to work to get into the content which is been designed for half an hour or hour blocks did not have advertising. i guess they put at the beginning? netflix is really going into a very new and untested set of waters for them. jack: really quickly the themepark spicy disney world price that the check to make sure they're not zimbabwe dollars it has gotten that's is there any pushback from visitors at this point are we going to have hyper mickey mouse inflation questioner. >> it doesn't seemed like the ceos document keeping -- pushing prices higher for the theme parks have more people than they know what to do with these crowded parks. they are overcrowded as long as they come there raising prices. jack: audrey we get prices on home depot low's on wednesday.
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the ceo of a decking company business is good but some of the retailers might hold too much inventory they might do sell down the second half. why do you expect from the big box home-improvement change? >> both have seen some slowdown in their growth in the last six months the stocks have been hit. sound about 20% this year. investors are more cautious with the second half of the company. what spending trends they see the second half to 2023 when things could be better. jack: bluebells got walmart and target coming up. but you look at their questioner. >> both companies are reliable have two profit warnings each this year the stocks have been under some pressure for a particular target. target stuck with way too much inventory. but investors again are looking past some of that bad news to what could be a better 2023 but will see what they have in the
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second half. jack: very quickly recommended target of the show about a month ago for it's done well but if you had to buy one of these four stocks we mentioned home depot, low's, walmart, target which would you buy? what home depot's with the best managed in the country. at 19 and two and half dividend yield. jack: past preferences no future result is got a hot hand over here but we are hearing a lot about washington about wind and solar and the need to transition to clean energy. why aren't we building more nuclear power plants question mckay will the duke energy ceo
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of zero emissions energy. why aren't we building nuclear power plants question rejoined me now duke energy ceo lynn go good. let me start the question i get all of the time from readers, listeners, viewers. they say we need all this new power for these electric vehicles that we are going to buy. words are going to come from? from my knowledge to be have total of one nuclear power project in america where building more? it's a to be with you today. today about 50% of the power we produce in the carolinas comes from carbon free nuclear. and so the question your posting about isn't nuclear going to be part of that net zero future? we believe it is. but we are focusing our attention more on next-generation nuclear, small modular reactors, advanced nuclear storage. believe that technology is promising if it develops over
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this decade it will give us an opportunity to bring more nuclear in, and the 2030s and smaller pieces, smaller number of megawatts. jack: i want a follow-up i wasn't smart to study physics in college. i studied economics we pretend to be scientists will be argue about money. help me too understand this technology and what it does that the current generation of nuclear power plants doesn't do. how does it move the ball forward? >> jack, think the issue of the term current technology and the larger scale nuclear reactors we built in the 80s and 90s, one of which is under construction today is that they are very large, large capitol investments. and frankly, the ability to put them in service on time and on budget has become challenging. the small modular reactors from a smaller piece. the expectation is we will be able to place them anywhere in our system. perhaps even at the location of a retired coal plants. to be have the ability to bring nuclear and at a pace and price
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that is more predictable. i think that is the work that needs to occur in this decade. to make sure promise actually delivers. early 2030s for this technology? xers a couple demonstrations and also advanced nuclear underway in the u.s. today. but we are watching this closely over this decade. duke supplants with it let's consider for the early 2030s. we are an advocate for more research and development eventually technology develops. i would think of it more prevalent in the 30s. busy summer questioner nuclear the inflation reduction they are tax to nuclear power. he's doing for things the government want you to buy or build now parade this is for existing generation. you got the largest regulated nuclear power business in the community. what does this do for you and your customers? >> i'm really pleased with the
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provision, jack. it recognizes the importance of nuclear in this conversation about climate and karma reduction. and so what it does is it provides an opportunity for those nuclear plants that are so valuable to earn a credit as we extend their license and continue to operate them. it is nothing but lower the price of the clean energy transition to our customers. i think it is a win for customer support we are delighted to see nuclear recognized. jack: you have a big wind and solar business as well pretty recently announced a strategic review of that business. it's code for will sell if someone makes a good enough offer. why is now the right time to sell? i hear about people running into wind and solar investing why is it a good time for duke to sell? good to know it jack we've been momentum and are regulated utilities. the commercial business represents about 5% of our earnings. and as we look ahead and every
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utility, the transition of generation, a movement toward clean energy is accelerating over this decade and continuing into 2030s. we believe the time to step back, make some choices, evaluate whether that commercial business belongs in the hands of a more strategic owner will be in a position to grow it. duke is focused on growing our renewables and great investment in the regulated utilities. jack: lynn, i want you to help make a better utility investors. one of the things that is unique about yours business is prices free to go to a regulator say like to increase our prices for the regular gives you permission or not. you have to make what's called a rate case. resizing up different utilities across the country what makes for a strong rate case? what are the things regulators want to see from a country like yours to give you the permission you're looking for? what's it is a really good question, jack. i was at the compact front regulation depends on
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outstanding customer service. outstanding operational excellence. commitment to your communities as you build, as you restore hurricanes, as you do the work that is necessary. because our customers count on us 24 hours a day. we talked about the need for infrastructure, they need to move through its all about what kind of service we are delivering. i would also say q. week care deeply about affordability. we are an infrastructure builder. we recognize we cannot keep raising price. so how do we continue to do our work as efficiently as possible to find that right balance between infrastructure growth but affordability for customers? jack: lynn good thank you for a quick thinker jack. jack: energy companies are embracing renewal. our american consumers rating a greater question of the panel except in incentives
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jack: the biden climate and plans include new incentives for home connoisseur, electric vehicles but other better than existing incentives? will they change consumer behavior and what does it mean for investors? it is the cover story for this week's edition of barron's. alex, i like tree hugging is much as the next guy. especially when the trees are stepping cash into my pockets. business bill for me? was i think you like the billboard with the things a change of sanchez penalizing fossil fuel burning. at this point their inducements to push homeowners and businesses start embracing clean power. one other things and there is a 1200-dollar annual credit for up to ten years to do things like insulation, new doors, new windows, ac units and if you are really organized you can really max that out you get up to $1200
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each year. her jack, you are an organized i think you could find a way to do a new project each year, right? that previously was a cap of $500 for a lifetime. i $1200 per year. jack: are not the solar incentives? we arty have solar incentives. to the new ones make solar a better deal or not for someone who has been on the fence? what he think it is the solar industry? like the viewer on the fence there's probably now there's no reason to not do solar per this bill is doing is bringing back some previous credits i had expired. you're going to get a 30% tax credit to put in a new solar project in your house but that includes a battery back up what can do a lot of things with now. so, it will change the equation for e-book deduct 30% of your solar panel project with these things can cost $20000 at the significant amount of money. jack: you say there's no reason not to do so would never happen to know a solar skeptic he sitting right over here. andrew barrett what is wrong
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with home solar? >> solar is great. it's better done on a big scale by utilities than by individual homeowners were less efficient and more expensive to do it that way. and it tends to benefit wealthy homeowners remain on the grid and freeload off lower income people have to maintain it. jack: based on the new bill would you be buying solar stocks question requested much of the by electric utilities which i think among the best place in the growth of renewables in the next decade. jack: carlton new incentives for electric vehicles, same question to you. to these make electric deals vehicles a better deal for weathered able to buy went and what assuming for the investment case for tesla? what some little bit nervous to be falling andrew here. [laughter] i was to the devils in in the details on the new plan. the new planet does open up a number of vehicles that had ernie met their caps out tesla, gm had met their tap. for tesla investor probably good thing. the thing to note though, the other positive issue can take the deduction up front the cost of the vehicle. it also includes used vehicles
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for the first time also good. the thing is, part of this bill has requirements on where the vehicles heather components produce. not a lot of the vehicles -- make electric vehicles right now to meet that requirement. so there is a tax credit out there but good luck being able to use her for the next time especially were also doing with inventory issues with autos. jack: you do not have thought about falling andrew. you should be a little worried when he's following you. you are skeptical there too why? >> i just don't know how necessary they are pre-these easy credits are going to benefit affluent buyers of ev's who would probably bind the cards anyhow. there's a shortage of ev right now. there's a six month wait to get a test they have to get at gm. i'm not sure why they need it right now per that could be a shortage for years right now. jack: alex our cover story on renewable makes favorite of stocks give us too because when they haven't talked about is hydrogen for the two hydrogen related stocks we recommend in
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the story plug power which is hydrogen producer, blue energy it makes machines burn different gases including hydrogen. jack: audrey you said earlier it you like electric utilities. i neglected to ask you for one. give me your favorite among electric utilities per. >> on the buses to current d dominion energy has been a 3% dividend yield. i saw the biggest growers of renewable energy offshore wind. probably the best way to do wind power right now. jack: thank you operate roundtable members members give their investment idea for the coming week. alex is talking about eight chicken soup take over. soun
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buying a red box for a dollar in change a share. why did i see red box was recently trading 15? isn't chip chicken soup for a soul a book i read at the airport in the 1990s? isn't red box something for were not splashy enough going for blockbuster card, help me out precooked is a cautionary tale for early meme sockets a story we should be talking way more about. so red box has been struggling to survive the last few was because the movie system is all messed up. their kiosk for dvd rentals have not been working for they basically worn they were going to go bankrupt for they got a rescue package in the form of an acquisition from chicken soup from the soul. it is about a dollar a share. this was approved for the private equity owner that had the majority of red box stock wanted this deal but it's pretty much a done deal. but for some reason mothers meme stock investors or other investors out there push the stock up to $18 at one point even though this deal is done
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preacher enough what happened, this week the deal closed just about a dollar for every one who had bought it for 18 bucks was out of luck. and it closed, it is over this number chance to make up those gains for this is what happens in that meme stock mania gets out of hand. there is no logical reason for this. and i can't explain it. jack: chicken soup for the sole owner of the streaming service crackle, and are you knew that already pre-tell me about a stock you like, andrew precooked the think berkshire hathaway morning buffet turns 92 later this month he is as sharp as ever for the company is doing better than ever. the stock is down about 15% from its march high and trade pretty reasonable at three times book value. investors would like to see more buybacks from brookshire. jack: carlton what do you like question or quixotic simplicity we had a few stocks and are pointed to a go for the select spider index. exposure to the whole sector you
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get a deal close to 3%. jack: at the classic what would andrew do strategy? i'd like it. to read more check out this week's edition of barron's.com per don't forget the files on at barron's online. that is all for us, see you next week on barron's roundtable. dr. michael youssef: let not prosperity be your all-consuming focus. money and prosperity are not evil in themselves, they are very important to god. when god prosper individuals, it's almost always for much higher purpose than just getting rich and happy. today i'm gonna challenge you to rethink this whole concept of prosperity. male announcer: up next on leading the way.
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