it did not go over so well. but i think with a little toughness we can handle it and we need to tell young people you can handle a little bit of pressure. >> briefly, finally is this about people bringing young people coming out of college and wanting to bring their safe spaces and the comfortable environment into the workplace customer. >> its whiners whining and that's what they do and they will never stop until you put them in a position where they can't whine and they can't whine when they're not applied by the company. gerry: thank you very much, no pity sitting here my thanks we will be back next week with more commentary interviews in the meantime, thank you for joining us, have a great week. >> "barron's roundtable" sponsored by global x etfs.

jack otter: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. morgan stanley says stocks are entering a dangerous phase. lisa shalit explain. automakers are in a decade-long slump. can branch of the other vehicle help car companies revive profits? is america's ramp up for a record-breaking vacation season? jack identifies the hidden gem in travelstar. three things investors ought to be thinking about right now. bond investors are on high alert with the debt ceiling deadline looming in washington. how long before the x state and why it doesn't bother the stock market, netflix kicked off earnings on a dismal note but the company's crackdown on password sharing could help drive revenue. bud light facing backlash over its partnership with a transgender influencer. the stock is hardly phased.

on "barron's roundtable" my colleagues, ben levinsohn, carleton english and jack hough. we missed your analysis of the stock market last week. what is happening? jack hough: the s&p 500 did almost nothing. it was down 0.1% last week. jack otter: if you had not been around for two years. jack hough: i could have said that and that would have been better. there is always worries out there. none of them are pressing at this point. earnings season is going on. all this news is very company specific. getting big bank stock moves, at&t and tesla dropping. it all evens out. jack otter: that's reflected in vix of 16. it is boring, get excited about the debt ceiling showdown. ben: republicans offered up the things republicans really want.

still can't get everybody to back it yet. kevin mccarthy working hard to get it done. if he does it will get sent to the senate where they will change it around and send it back and it will be lots of negotiations and whatnot. the problem is we are running out of time. the treasury has certain amount of money using extraordinary measures to make things okay but the seats have been lower-than-expected and we could see the treasury run out by june 15th. but before then it would mean we need to get something pastor risk default. ben: the rules of debt ceiling chicken, make everybody believe you're going to crash. as we wait for armageddon we have reports coming out on cpi and growth. ben: pce, the fed's favorite metric. everyone wants to know if we get one more hike and they will

call it off, pce report could tell us something if it shows inflation continuing to slow down. first quarter gdp isn't going to matter much. 1.5% or so. i'm watching jobless claims arising on a 13 point moving average basis. that has a good history of predicting recession, three to four months after that starts happening. jack otter: an icon of popular culture is retiring. those envelopes from netflix, no more dvds after september. carleton: get from while you can. and more important news for netflix. they bungled live viewing of the love is blind reunion. that doesn't bode well for getting into sports which they want to do. they agree as people as were imagine if it was the super bowl or something.

things to get excited about, we need the password crackdown but as an investor that is good. netflix experiment in canada. subscribers do come back when forced to play. the other thing, netflix is getting more money from people who use the ad supported version of it. two things to get excited about. jack: jack otter: front on a list of what we are worried about. carleton: amazon, meta, a lot of these are focusing on cost of cutting and the other thing is when it comes to the cloud which is supposed to be big for those companies, businesses spend less on the cloud and downtime. jack otter: there's no bud light in my fridge. jack hough: i love tiptoeing around culture war stuff and chased by hornets through a manure fire.

thank you for this opportunity. the bud light trans on a can controversy, instagram posts from a trends influencer and sent her, just her custom beer cans. they did not replace all the cans at your local 7-11 with trans cans but there was a back lash, threat against anheuser facilities, kid rock posted a video shooting up but like, what is going on? it's been a minute since i heard that song. there were threats of a boycott. the financial effect of this is likely not to be meaningful for anheuser. the stock has outperformed this year. i heard the phrase go woke ago broke. if you combined anheuser with disney and nike, the three of them are outperforming the market this year which proves an investing thesis of mine, not all stuff that rhymes makes for good investment strategy.

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jack otter: stocks are up probably but is it a bear market rally? morgan stanley wealth management ceo lisa shalit believes investors are too optimistic. lisa joins me now. he you wrote the stock market is entering a dangerous phase is what did you mean by that? >> this has been a market that has been a highly anticipatory development, earnings are dropping in the first quarter,

the fed has done hiking, inflation is skewered and we are moving rapidly to a place of a soft landing that would be confirmed by rate cuts. the dangerous phase, at some point we are going to get the facts, and the market is going to have to reconcile its expectations with reality about whether or not this year's earnings are flat to up, whether the fed has really done hiking, whether inflation is really tamed, and whether they are going to quickly move towards tax. jack otter: i saw an interesting report this week, it is always dangerous to assume that the market is wrong. he said recession is a feature, not a bug. what recession does is ends the inflation problem, boosts

productivity because unproductive people lose their jobs and others work harder. is it possible the stock market is looking through the issues you raised to the postrecession time that everything is rosy again? >> the market is trying to look through things, i've gone through a period where there has been some upside surprise in the data, we have had constructive data points, better-than-expected news on first-quarter growth. there's always been some less good news that the market has shrugged off and things like the banking turmoil in regional banks, the overall market, market declaring, no systemic

risks to a credit contraction that might come from that episode and in our minds, some optimistic thinking. jack otter: the reduction in lending in the aftermath of that crisis was the most dramatic in 50 years. how will that ripple through the economy? >> small and medium-size businesses, the primary banking customers of the small regional banks. account for a huge portion of the economic activity in our country. our view is if that sector of the banking industry pools back and titans credit, there are going to be ripple effects and in some of the survey data that we have seen, it has been confirmed these small business

owners are saying their intentions around capital investment are viewing this as a good time to expand their business at a 40 year low. that doesn't tend to portend good things for the economy going forward. jack otter: what's the best way for investors? any opportunities? >> below the surface of the commercial indices, and the nasdaq index, there's been a lot of folks throwing the baby out with the bathwater and there is value out there. finding opportunities in larger gap financials and suffered pretty badly over the last month and work through a good earnings season, we see opportunities on energy stocks particularly as the supply and

demand of energy titans appear with opec actions on the supply side and the demand that may come through from a rebound in emerging markets in china in particular. real estate investment trust, we haven't loved some of the office space and commercial real estate players in the public sector, they sold off pretty aggressively here and there may be some value in yield in that sector. jack otter: thanks for coming on the show. stocks and revenues have been stagnant for a decade. one automaker is whoa. okay. easy does it. we switched to liberty mutual and saved $652. they customize your car insurance, so you only pay for what you need. with the money we saved, we thought we'd try electric unicycles. whoa! careful, babe!

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jack otter: automakers had a roadblock. sales have been hardly budgeted and stocks have done worse. auto companies are branching beyond cars to boost profits. now root joins the panel. that's a great story. seems to be the automakers are using the gel that philosophy. giveaway the razor at cost, more exciting than razor blades. >> it's the name of my software. they are more phone like, giant ipads glued to every new car. the holy grail of recurring revenue. you stop a car once but have an ongoing relationship. infotainment, the best example is tesla, they charge for premium connectivity that lets you stream netflix in part and

all those apps and things like that that you will be accessing from that screen, have to have connectivity to cellular network, that is what they want to charge for. jack otter: and sell car insurance. >> based on driving behavior, to underwrite or give the data to an existing underwriter to offer better insurance, cheaper products, that is another one. jack otter: for years we've talked about this thing and the difference, debt economists driving. >> it probably is ten times the size of the opportunities of the other two. think about driver assistance, lane keeping, cruise control. as they upgrade on-the-fly, they will hope you will be willing to pay a monthly fee

for that ability to upgrade. jack: i would not buy a car without car play. >> that is gm and they took flak from this. are you taking it from my existing car? mostly new cars and new evs. not that they aren't going to enable those apps but it is like they say why what i plug my iphone into my ipad. this giant thing on the screen, the product is based on google maps. you will have access to the android store so it is like just changing technology. carleton: you talked about autonomous driving and insurance. there is an accident, who becomes liable? that change that imax of the insurance industry. >> yes it does.

we don't have autonomous vehicles. many years away despite any promises from elon musk or anything like that. when we have our first autonomous car, 275 million non-autonomous cars. there will have to be property-casualty insurance. even if everything drives itself, the owner of the accident has to have insurance. w amo has insurance. if there's an accident and you are injured in the back of the limo there is insurance. the owner will provide insurance. ben: where do i put my money if i want to invest in it? >> our colleague eric savitz dealt with this, the chipmaker, cars getting smarter, more chips, how do you connect or process this data? he had the two i like do that,

not necessarily qualified to talk about it. nvidia, qualcomm, other ways to play that, like natural language a i company, you will say my car, order me a burger from five guys. traditional suppliers will do that. ben: what about ford companies? >> ford and gm, it is a moonshot? $160 billion in sales, 10 billion in ebit, a billion and operating profit from infotainment, maybe 20 billion if they solve the autonomous vehicle stock. you are talking about huge opportunity if they do it. jack hough: the stock went curve. what happened?

>> worst we learned, it is a car company. there operating profit margin is 11%, one percentage point better than toyota in its most recent quarter, they are supposed to be a new car company, very bad. to tie into this elon was -- if i make money on cars, driving software -- so actually some of that was surprising and shocking, don't care if i make money on cars because i will so some driving software. jack otter: and take away the blue check. jack otter: thanks for coming on, we will pick up the tab for that. we have a couple stock picks asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional.

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beyond ordinary etfs. visit foxbusiness.com/"barron's roundtable". jack otter: tell us your summer vacation plans. jack hough: i don't have any. are you an airbnb guy? have you used verba? look at you, mr. technology. not worried about -- people like looking at your ring video, video viewing your pajamas. there's a website out there, we will talk about it later. security says you should purchase expedia stock, the owner of this business, 50% upside for the stock over the next year. the company goes six times free cash flow, cheaper than booking or airbnb. the fastest growing part of

lodging his vacation rentals by owner. this business points out if you put airbnb evaluation on that business and discount by 1/3 you get a value of $16 billion, it trades $14 billion and they think it's a big deal. powderpajamas.com. check out. jack otter: let's go to more actionable ideas. carleton: the retail space, we are looking at tjx company, we talked about this a few weeks ago, the dividend that is a good sign but trading cheaper than the valuation and this company has capacity to increase stores by 30% when a lot of brick-and-mortar retailers are looking to cut their store account. if they can do that always a good sign and we are heading into a downturn.

jack otter: it's a retailing person experience. which bodes well for them. jack otter: a different picture. ben: they make tools, they had earnings that were fantastic, the stock jumped 8%. normally you want to avoid stock after that it jumped to the top of its range and broke resistance on that move. the numbers were so good they will be better going ahead. one analyst called the recession resistant which sounds good to have. sounds interesting. jack otter: technical analyst comes out once in a wild. thanks. to read more check out this week's addition of barron.com. - [announcer] this program is a paid advertisement from u.s. money reserve, a company not affiliated with u.s. government or the u.s. mint. philip n. diehl is the president and spokesperson for the company. the markets for coins and bullion are unregulated.

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