♪ ♪. maria: welcome back one thing you need to know ahead of next week. here we go a big week ahead in addition to the inauguration we also have the world economic forum and dabo switzerland one of the most unflinching gathering of global leaders in business and government. i will be there and i will be speaking with bank of america ceo brian moynihan, microsoft president brad smith, carlisle founder david rubenstein nyc president lynn martin and nasdaq ceo adina freeman. i hope you will join us on "mornings with maria" live six to 9:00 a.m. eastern next week from davos. that will do it for us on fox business. thank you for joining us have a great rest of the weekend and i will see you next time ♪ >> "barron's roundtable" sponsored by global exit etf's.

>> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. i'm jack otter. president-elect trump expected to kick off with a flurry of executive orders on day one as he enters the white house monday, public policy libby kantrowitz and on what it means for the markets in your wallet. we begin with the expert panel in three things investors to be thinking about right now. on the "barron's roundtable" jacob sonenshine, megan leonhardt and al root. jacob it was a rocky couple of weeks for the stock market, this week really found the footing in the s&p up almost 4%. >> the market came into the cpi saying oh my god with rates up, is the cpi, is inflation going to be really bad. it wasn't it wasn't so terrible you're down a few% from the all-time high in java relief rally. >> i want to make sure were not

overstating how benign this report was. we got a nice bump on core inflation but it energy and food cost, that was a bit painful for consumers and were nowhere near the fed's 2% target. >> economist tell us we don't eat or travel. >> make inventions inflation is not that close to 2% and by the way the s&p 500, peter daut before its all-time high. i will say in defense of economist that in the short term they can divert but over the long term and headliner pretty close. we had salacious details and political pot shots in the pete hegseth confirmation hearing for secretary of defense but we did not hear hey pete, the chinese have 230 times ships as the u.s., what are we going to do about drones congress did not ask great questions. >> convergence of policy versus politics versus soundbites.

i'm feeling like all reference jack hough he starts to break out in cold sweats when you talk about politics but now i will channel ben levisohn what about the stock. trump 2.0 for defense has built contracting reform that the simple way to stated. faster deployment of new technology, last oversight unless development money and less fixed performance-based contracts these are the things we can all get behind. investors are nervous. they do not like uncertainty, shares of lucky, general dynamics, l3 harris some of the biggest contractors are down 10% since the election. investors are not so sure was going to happen. >> let's hope that anybody selling $200 hammers is out of business soon. >> that's one thing they want to reform the $200 hammers doesn't mean lockheed was making $200 on a hammer it was all of the

oversight. >> in the new warfare, drones are taken on huge importance are drugmakers doing well. >> one of the big winners the biggest defense contractors down 10%, credos there invested in hypersonic technology unmanned aircraft technology that is up almost 50% since the election seek and see where the winds are blowing. let's switch to gasoline. gas prices are up almost 1% and demand is up almost 1% over the past four weeks versus a year ago economist a great that means economy is kicking in, drivers say. enter terrible and pay more the pump. >> economist are about as well, inflation we did see in the cpi the energy cost made up about 40% of the gain in headlines. this is not totally great news and consumers not super happy. it is interesting oil prices have been on a tear since the start of the year and what we haven't seen as actual prices at

the pump also going on a tear they have been taking a policing roughly the beginning of december $3 and now 310, 311 this is a little bit more and there is a muted response, that is doing to helping refinery capacity, that has been in place for a while and arguably we should see that coming to kick by the end of the year we should actually start to see a little bit of a decline in the second half of the year. it's good news for consumers. >> refiner stocks are responding. >> too much capacity so they're not necessarily benefiting from the uptick, philip 66, marathon petroleum, though stocks have underperformed the s&p 500 over the past 12 months. overcapacity might continue to be an issue. only on wall street is philip 66. >> that stock has done well in the long term at a nice dividend. for "the bottom line" for drivers normally in the summer season because more people drive more demand and you see gas

prices go up, you don't think were going to experience that this year. >> is interesting i think we will see non- opec nations like the u.s. in this upcoming demonstration start to really drill baby drill, we keep saying that but it is true that should help with supply in the second half of the year we may see labor day prices and things like that where we see an uptick. it might be a nicer gift for consumers. jack: thank you very much markets are waiting moves on taxes, immigration regulation under incoming president donald trum where ya headed? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management

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and he reportedly has more than 100 executive orders plan for day one in office from immigration and terroristic climate and energy the incoming president is pushing forward his agenda fast and hard joining me now head of u.s. public policy libby cantrill thank you for coming by it is busy season. president-elect trump becomes president trump on monday he will be watching carefully, what are the biggest move that will happen on day one. >> as you previewed we are expecting a surge of executive orders. of 2017 were any indication he announced several overarching executive orders on day one. back then we were expecting him to do the same i think you be around the areas that you outline on environmental energy regulation the drill baby drill and rolling back what president biden has done as it relates to lng and drilling on federal lands' end what have you. i think you will also have a

series of executive orders on immigration and the southern border in particular. some of the bigger things like a broader deportation program he will need funds from congress but in terms of slowing the flow of migrants on the southern border he can do that unilaterally. the last thing will be on tariffs that's the thing that the market is worried about, what is likely to happen on tariffs, day one but then over the course of his first year that's what you could see if you see any market reaction on tuesday it'll be because of what he did or did not announce on tariffs. jack: immigration will take a while does have an immediate economic impact. can he do anything on tariffs that will have an immediate impact. >> it depends on the scope of what he announces. the lowest hanging fruit from a legal perspective is seeking increased tariffs on china we have tariffs on $300 billion of products from china you can see him increasing those, does not

have a big economic impact probably not. the bigger one which is a real open question which is sophie does this day one or if he does it at all is this idea universal tariff putting a 10% terra on all countries on all products. that will probably be inflationary because you don't have the substitution effect and some will depend on how currencies react and what have you. again that's less likely just to think that legally has more questions around. >> if there were a retaliation that could be inflationary as well. >> it could also hurt growth, this is tariffs in their extreme if they're not sequenced and one thing that we could see on day one is is previewing providing forward guidance in a fed speaker on tariffs saying is going to increase tariffs on particular country in a particular time if they don't provide. >> you did not mention tax cuts that the day one but there on the agenda extending the tax cuts from trump won.

what could be different. >> as you know anything that is regarding spending or tax cuts has to go through the u.s. congress. it will likely not be day one, to be the first year the end of 2025 is when the trump tax cuts expire. our messaging to clients we will see a full extension of all the individual trump tax cuts, for how long is it for four years, ten years and are they permanent that's on the table as well as can be costly and affect the deficit but the market will react positively to that, the big question what is different what additional tax cuts we could see. i think we will see a compromise on the salt local tax deduction and right now at 10000 cap, that could increase to 20000 maybe 30000 in california we would all love that. additional no taxes on tips that will be tailored to specific industries.

>> i thought that was political. >> i think he will do it and there is political will to do it all among the republican side. i think there will be additional tax cuts the last thing from an economic perspective is an extension of continuation of policy that doesn't move the needle in terms of new fiscal stimulus you could see the additional incremental tax cut that may provide an upper booster growth. jack: were almost out of time one of the biggest investment implications possibly at the end of the yield curve. >> our view has been going into the election coming out is a steeper yield curve more yield at the long end. that may be a little bit less compelling given that inflation is coming down so you will see yields coming down as well, volatility is going to be the thing in active managers. >> again there is good and bad and it's a question of scope and sequence he and how the markets

react. libby cantrill thank you so much variance panel g what tractor supply customers experience is personalized service. made possible by t-mobile for business. with t-mobile's reliable 5g business internet. employees get the information they need instantly. this is how business goes further with t-mobile for business. louis! cut! more mud! action! louis, louis! cut mud on her face! louis! okay everybody, that's lunch! (♪)

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for millions of families, like my own. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. ♪ ♪ esteemed investors share their topics we're going to look at where they were putting their money the barron's cover story this week. farmer stock pick then we will get to hear but i want to highlight a few of your favorite. >> i thought you did a great job highlighting a lot of the entertainment stocks. we had pics like the atlanta braves in madison square garden sports, those were interesting because this is something that consumers are gravitating towards as well the services sector picking up and staying strong even post pandemic.

the braves are an interesting one it's an official team that's a publicly traded company when it comes to baseball stocks with a double wave with online gambling as well as being in person, it's kind of fun. >> media online sports seems to have an advantage. i got a safer going to talk sports briefly this monday night every new thing the college championship. this is an investing show let's go back to the mag seven. >> he's picked at least three of the stocks. i am guilty of complaining, my gosh, they even open up into heavy and the indexes and you look at the growth it is incredible. >> the a.i. training is alive and well. it's kind of comforting when you

have a professional like back to back years triple digit gains, i cannot continue i should sell the stock and he says i like nvidia and arm holdings and meta platforms. evaluation is surprising. 76 times calendar 25 earnings but he points out is going to go north of 20% for the foreseeable future nvidia 31 times earnings he came up with a great staff fiscal 26 estimates rose 80 and 85% over the past 12 months. things are getting way better than anybody imagine for nvidia, that's a good one he continues to say meta is an a.i. beneficiary investing in a.i. and he adds the tiktok band that is best for meta an instagram platform. >> zuckerberg is cozying up to the new president. >> can't hurt. >> at&t not exactly high-tech but there's an interesting

dynamic. >> they also own at&t is not like technology but he mentions every 1 dollar price increase is 4% to free cash flow because at&t has already gone through x-uppercase-letter that were rolloff. >> another old analog stock. >> philip morrison is doing new things it is a smokeless product that is higher-margin and the fact that people are adopting it is adding a little bit of revenue growth but the higher-margin you get double digit ups growth. >> is not the only consumer stock and i hate to call philip morrison consumer stock but i'll go on an ohio bench and say i was really excited to see smokers among the pics this is something near and dear to my heart i grew up near orville and i've been to the smuckers capital building and all that good stuff headquarters but this is a very strong recognizable brand they've done great acquisitions over the years, they appear butter and jelly deck is beautiful he together this is something i think investors could get behind in is

doing very well on the fundamentals for the company as well. >> that was john rogers there for the wholesome pick. >> henry allen left 0 price to set up his own shop. i don't understand this he likes the firm, they are lending the money at 0% as interest rates go up, i like the trade but i don't have a going to make money. >> you raise a good point henry knows what he's doing, first of all he says are growing like crazy, topline growth 30% for the next three years, that is his call. >> he can make it up in volume. >> if you are making money make it up in volume. and they just got integrated with shopify online platform company but they have to make money eventually. they are expected to turn positive profitability in the middle of 25. he said i really like it when companies go from loss to profit it wins over people like jack otter. that is one of the reason he likes a firm companies have to make money we have not cracked a

new code but he sees that happening this year. >> they do get a payout when they get me to buy something even i'm not paying interest. lazard was on the list that was an interesting choice the banking industry. >> john rogers, m&a is going to have a good year in 2025 but he thinks you have a pretty good comp over 2024. does a slight majority of the business advisory their diversified asset management. if you think were still in a bull market asset management do pretty well. >> absolutely on fox business. what was one more pick. >> we like fox court clearly because of the tv show. i don't understand if there's anything else "barron's roundtable". >> it might be big news what do you think. >> we haven't talked about bonds i'm going to mention a couple of pics the franklin floating daily access not floating rate because if the rates take up that might be a hedge in a portfolio and

the rest of the bonds are getting hit this is a bit more risky agency investment agency is the ticker owns mortgage-backed security little leverage. if bill ackman on doing well and fannie and freddie works out you'll do very well. it is true for any and freddie are privatized you could get hit also, it's an interesting play, double digit earnings, double digit dividends. what do you think do you like that pick. >> i don't. i was going to say it's an interesting, i appreciate her thought process but that's more risk and willing to take on. >> gamble that way. meghan and jacob have a pair of investment ideas. al has the latest on the billionaire space race between jeff bezos and elon musk. when you're a small-business owner, your to-do list can be...a lot. ♪♪

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>> some say elon musk in jeff bezos might be engaged in a manhood contest in this guess it is about rockets and they both under both failed spectacularly. embrace failure. the only path forward is failure failure is good how many times can i say it. we had to rocket launches this week i love covering rockets i may or may not own merchandise from both companies. first we had jeff bezos blue origin they launched the rocket first tests are supposed to recover the booster they missed the ship and landed in the atlantic read elon musk the seventh to the space system largest rocket ever built by humans the top section blew up spectacularly over turks and caicos. >> we don't know.

>> why is failure good thing. >> fix and fail. >> is a much better paradigm than the old space nasa go back to apollo 13 failure is not an option and put it this way spacex has spent $10 billion over the entire history what is it got for that profitable wi-fi business for million subscribers it built its own city in texas nasa will spend ten times amount of money on the sls system that's going to take american astronauts back to the moon and mars, ten times the money they launched at once. >> you convinced me failure is good. >> dupont memoirs the big chemical company people are aware that the going to do a spinoff at the announcement this week of the spinoff will happen in november that means in november when it separates the electronics business which

analyst thank could trade up to 18 time earnings and the implied valuation doesn't bring it there dupont is at 75 a share in it could be close to 100. >> i think most people have heard of dick's sporting goods, not sure if they've heard of the competitor that is poised for breakout and devalue buy-in about you trade where consumers are being a little bit more value conscious and it's interesting with a clean balance sheet and a couple pickup. >> the stock is up. >> this edition of barron's.com follow us at barron's online with the latest updates. that's all for us we will see you next wee