cheryl: welcome back. one thing you need to know next week. the fight against the opioid crisis that has killed over 100,000 americans last year alone. the emergency overdose medication will now be available to buy over-the-counter. the drugs manufacturer said it is on the way to cvs and walgreens. slamming the price. one box for two doses will cost $45. a life-saving drug is expected to hit stores this weekend. that will do it for us. thank you for watching. we will se ♪ >> barron's roundtable sponsored by global x etf. ♪

>> welcome to barron's roundtable where we get headlines and prepare you for the week ahead. coming up, recession soft landing or no landing at all. conflicting economic data keeps shifting the market narrative. sebastian page where to put your money in this confusing environment. warner bros. discovery has turned out hits but investors have punished the stock. taking the company into the streaming future. ev maker taking shareholders on a wild ride. one of the most valuable car companies then losing 60% this past week. we began as always with three things investors are thinking about right now. ending the week higher after august jobs data show signs of a cooling labor market. best buy producing electronics demand surge. apple expected to unveil the iphone 15 this month.

a flight mare resulted in a hefty fine. barron's roundtable. ben, it was not quite enough to bring august 10, but it was a nice week for stocks. >> it was great. it looked like we would have the worst august since 2015. instead finishing the month down about 8%. that is not so bad. a sign the month started and worried it would go wrong fundamentally but it really was just profits. >> fairly strong. showing the fed effort to tame the job market is working. the jobs report still pretty big numbers there. is moving us towards goldilocks? >> i don't know if i like the term goldilocks. >> you have to worry it will go

a little too far in the other direction. a job market that is still fairly strong. you have to stop worrying about this type of inflation driven by wages. jack: meanwhile, interesting move without hurricane hitting florida in the least populated place in the entire coast. floridians dodged a bullet. warren buffett looks like he is a meteorologist. >> in the economy dodged a bullet. what happened was berkshire hathaway is a big insurer. they placed a bet that the hurricane season would not be that bad. the insured losses are going to be around 10 billion for this hurricane. that compares to 50-65 billion for hurricane last year. 1.8% this week. an all-time high. >> buying more stock.

when covid hit, locked up in our homes and loaded up electronic tvs. after years of past we are set. >> it looks like the consumers darting to stabilize. best buy earnings. the company talked about going forward. talking about the guidance. growing quarter to quarter for the rest of the year. 3% for the week. strong business and consumer demand for pcs. stock up 20%. talking about improving demand throughout the year. this will set the stage for the next few years of a little bit better growth. you will have an upgrade cycle like iphones and computers and you will have dealt with pretty

good artificial intelligence server business. >> speaking of iphone upgrade, that is coming on september 12. one thing they may be buying is a new power cord. >> not only that in terms of the better technology, people talk about the tech curve starting to flatten out for apple. there as that and there is also better memory, better speed. apple iphone sales of $40 billion in q 2. looking for a nice pot to $71 billion. looking for unit growth on a number of iphone sold 4% year-over-year in q4. when you look at that, what is really important for apple is 240 million people of their 2 billion plus installed base are in the window for maybe an upgrade. jack: a nice adjustable market, that is for sure. driving this weekend, if i am stuck in traffic it could be worse. i could be in a plane on the

tarmac. >> american airlines had to pay $4 million for a series of kind of just that, leaving people on the tarmac for several hours and violating the passenger bill of rights, as it is called. activity over the last three years. flights this year have been delayed 24%. up 18% prior to the pandemic. that is because of a number things. most notably, worker shortage. delta is the best performing with only 20% of flights delayed this summer. some of the smaller carriers have seen delays. jack: real quick. how is this affecting the stocks >> it actually does not that much. when it comes to flying that is really your only option. maybe they are little price-sensitive, but you will probably fly out of a six hour flight. jack: sebastian page sharing his

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♪ job growth jumped slightly more than expected in august. 187,000 jobs compared to the 170,000 estimate. unemployment rose to 3.8%. that is up from july. joining me now to sort through these predictions as well as chief investment officer sebastien page. thank you for coming on the show >> let's start with some of these areas of conventional wisdom where you think the market may have it wrong. it makes things interesting. what is the market not getting

right? >> the narrative this week is that the labor market is cooling i am not convinced yet, jack, we have 8.8 million open jobs. the pre-pandemic average was four and a half million. the most that we got in the 20 years leading to the pandemic in terms of jobs was 7.6 million. we are at an incredibly elevated number of jobs. to me, this means that the labor market does not necessarily cool the conventional wisdom is that this will mean that we have more confidence, that inflation is coming down. i think that it is coming down, but there is upside risk, jack. jack: taking a look into people 's checking accounts. you are seeing an awful lot of trash on the sidelines which may

or not be recognized by the market at large. >> right. running out of so-called excess savings. they left some adjustments behind those savings measures. they are hard to estimate. running out for the last 10-12 months. i just look at raw data that is not equally distributed and checking accounts. i see 4.5 trillion. what did we have before the pandemic in 2019? 1.2 trillion. 5 trillion in money market funds jack, so much money in the system still. that means that, as one of my colleagues put it, there is a giant blob of money eating a lot of the negative headlines. jack: that is a great image. in this environment, what areas of the stock market do you offer

the best reward. >> so, cash is a tractive. it gives you 5%. now is not the time to be completely out of the market. we don't do that anyways. we invest for long-term investors. we have a fairly balanced portfolio. what we are doing is taking advantage of relative evaluation opportunities. jack, you can sort of chase momentum and go into large stocks. you can wait for a dip so you can get back in or a third option which is what we are doing, take advantage of royalty evaluation. go to market that have not participated as well. as rest of the market inc. small-cap stocks, high yield being attractive from a good perspective. >> high yield. finally getting some high yield. 9% right now.

the spread between data where treasuries are inflating is not particularly large. how do you break that down? >> that is a good point. not larger wide by historical standards. the total yield for an asset allocator is quite attractive. say 9%. the earnings yield is about 5%. that spread. that valuation spread between total yield and high yield and where the stock market is trading up 20 plus stock market ratio. very wide by stock market standards. i expect may be average default rates in the high-yield asset class for the next 12 months. i invest in actively managed strategies where you can help to bring that down towards zero. on a relative basis we still own stocks. i will add to return seeking assets.

i will do it at high yield rather than that for the next six-18 months. >> we will check back with you to see how that trade is done. >> thank you. jack: one media giant facing some serious challenges. why the ceo is in the spotlight. whether or not it ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. ♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. >> woman: why did we choose safelite?

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jack: warner bros. barbie movie well past 1 billion in sales at the global box office. the summer smash will not be enough to face many challenges they are facing since the merger last year including massive debt , stiff competition and declining profits. andy wrote the story and is

joining the panel now. great peace. thank you for joining us from your long weekend in maine. could you start with a quick overview. batman, barbie, shark week two cnn. today's media landscape is pretty different than the one that david made his name. >> absolutely. a lot of powerful brands they are indeed. this company was formed last year as a merger between warner media which came out of at&t and the old discovery company that has animal planet, discovery, food network, et cetera. they have three parts. the movie studio which has harry potter, lord of the rings and et cetera, that business can be various ethical. barbie, a smash hit. biggest movie they have ever made. you have that over there. the other two pieces are the

networks which i just talked about. not only the discovery but cnn, tnt and tbs from the old warner side. 55% of the revenue of the company. almost all of the cash flow comes from that business as well the problem there is it is in decline. they hoped to offset with the streaming business. of course the old hbo business now called max. you want to offset the decline. then have streaming pickup. sort of supercharge the movie studio. that is the trick for this company. >> barbie bigger than anything i ever did, i want to ask you about streaming. certainly the future. very competitive. can netflix and amazon prime and paramount and disney, at some point you max out. >> already has the market share.

hbo was the original in terms of premium tv. netflix copied from their playbook and they still had not only the catalog of course of the sopranos in sex in the city, just like that succession buried , and a lot of new companies. you can see the competition. it is stiff. as you suggest, jack, who will pay for all of these? that is a real problem. the company's by the way right now are not pricing for profitability. they are pricing for market share. trying to have the arms race a little bit. the company says that they are profitable. warner bros. discovery in terms of their max out for the whole year. but it will be a dogfight. >> gandy, with the stock down so much, does that mean, would you

say the stock is a buy at this point? >> well, jacob, the stock had a terrible session on friday. has not done well since that merger we talked about last spring. it is down and out. value players around sniffing in the stock and have been. you have to really be careful. —-dash catch a falling knife. they could be here. it looks cheap, it could get cheaper kind of thing. >> given how badly the stock is been performing, i am guessing he does not get paid that much, does he? >> famous for getting paid a lot [laughter] unfortunately, it does not match well with that stock performance when we go back all the way to 15 years that david has been ceo

of discovery is a public company , their ipo was in 2008, we asked the firm to track his total take-home pay. that came to $825 million. the stock only up about 22% versus 418% for the s&p 500. i guess these are questions you will have to put to the board of this company. >> how much does m&a factor into its future? >> it could be allowed. it is interesting. the deal that was used to create this company is financial jujitsu called a reverse morris trust. and allowed this transaction to be tax-free. part of the stipulations of a reverse is you cannot do any major deals for two years. that mark, that exploration,

that anniversary, if you will, is in april of next year. you have these companies out there, warner bros., discovery, paramount, a company not in such great shape, and then disney. will we see some sort of combination? we could, who is a buyer, who was a seller, what pieces, what parts? and then of course there is apple, amazon, netflix, comcast out there in the wings as well. >> $48 billion of debt that in buyer would have to swallow. thank you for your insights. really a great story. >> thank you, jack. jack: a pair of investment ideas . my relationship with my credit cards wasn't good. i got into debt in college, and no matter how much i paid, it followed me everywhere. the high interest... i felt trapped. debt! debt! debt! debt! so i broke up with my credit card debt and consolidated it into a low rate personal loan from sofi.

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tesla the most valuable company in the world followed by toyota. the third biggest for a while this week very few people could have named the company. >> i don't know why. haven't you seen a bunch of these vehicles on the road? vietnamese car company that went public. they have seen a huge run-up in its shares. a few reasons for this. electric vehicles on not a lot of -- obviously, tesla, not as many players. people do want to get in on that extremely small flow for this company. less than 1% available for trading. a lot of excitement, people just want to speculate wildly. a lot of these hot ev stocks go up and down. you can go out and buy one if

you have $83,000. >> i've always been more of a buick person, but yes, you can. we've seen these companies go public pre-revenue. it is not profitable right now. >> at least it has revenue. >> it does have revenue. we are starting their. they are ramped up to meet capacity. look at valuation. right now valued at roughly 4.4 million per car sold. 86,000 i think you said a few minutes ago, looking expensive there. you look at arrivals which is valued at about 275,000 per car sold. >> that is pricey. jacob, what do you have. >> at the looks really intriguing to me. trading 13 size. very expensive. it could be a growth stock. it could get a lot better. they have had single-digit sales

growth. this is supposed to be a growth company. there been some consumer headwinds we have talked about all show. if the company can make sure to get traffic back to the site a little bit better than the last few quarters you will get double digit sales growth. market expansion and bottom-line growth. >> thank you. >> this is stock that usually does very well. it is had a bad last 12 months. buying a company that should really help it out. it looks intriguing here. >> a company that is crush the s&p over the last 15 years or so thank you. to read more. don't forget to follow us on x formerly known a larry: welcome to a special edition of code low. republicans on capitol hill,