tv Worldwide Exchange CNBC January 4, 2022 5:00am-6:00am EST
it is 5:00 a.m. in new york and here is your top five at 5:00 a new year, a new record for your money kicking off 2022 in a big way. futures, they are higher once again. apple also higher and making history. it is worth $3 trillion. but one bank looking past the fanfare and pointing out why that could actually be a risk for stocks. one time silicone valley super star elizabeth holmes found guilty on fraud charges. we'll take you inside the courtroom. decision day for opec, under
pressure from the white house, as oil is back to where it was before the spr release later, the results are in. we'll speak to the stock picker who won our go big or go home series and the names he loves right now on this tuesday, january 4th, and this is "worldwide exchange. good morning, good afternoon, good evening, and welcome from wherever in the world you may be watching. i'm brian sullivan, thanks for joining us on a tuesday, we have a lot to do. and again, it looks like a solid start for your money, because futures, they are higher across the board once again not huge gains, but we are seeing about two to three tenths of a percent on all the major stock indexes. now this coming off a new record to begin the year. most stocks and stock groups rose on monday in fact, 11 s&p 500 stocks, they
rose more than 5% to start the year and here's maybe an rbi worthy stat from keith lerner since 1950, we have seen the s&p 500 gain more than 10% in the fourth quarter a total of 12 times. last year, of course, was one of them now following those periods, history says the index also moves higher 11 out of 12 times in the first quarter and with an average return of 5% hey, at 5:00 a.m. it's always about the five, right. of course, history does not always repeat itself but again, it is on your side after a big fourth quarter, the first quarter, 92% of the time also goes higher you know what else is higher that is the price of oil and energy that was a big part of the market story on monday energy stocks, they boomed the xop, oil and gas etf, it rose more than 4%.
opec meets today, and they are expected to down play the impact of covid and global economies and keep their plan to raise output by 400,000 barrels per day. that meeting will kick off right around 10:00 a.m. new york time, but it is opec so don't hold us to that. there's records here, there's stock records overseas, despite some record high covid cases on much of the continent let's get to early trade in europe julianna tatelbaum is in our london news room with the market looking past omicron and all the covid news julianna >> reporter: good morning, brian. that's right european equities are marching higher yet again building on yesterday's gains. here's the picture from a regional per speck fich the ftse 100 out in front, 1.2% higher. today is the first day of trade for the uk market, yesterday closed
cac 40 in france up, just a little bit of red on the board for the swiss market investors taking comfort in some of the reassuring headlines around the omicron variant taking the view it would seem there are tentative signs this variant may not be as bad as initially feared this is showing up from a sector perspective. we have travel and leisure stocks out in front. this is a picture of the individual movers, iag, up about 10%. carnival, all trading higher whiz air up 10% as well. so the travel sector getting a huge boost this morning. investors seem to be taking comfort in the omicron headlines. in particular, i think investors are taking government in the fact that across the world they're cutting down isolation periods. back over to you, brian. >> look at all that green on the screen behind you. the market, indeed, looking past it
let's find out this morning's top other stories including the latest on the struggles of china's heavily indebted evergrande ground. bertha coombs is here with that and more good morning, bertha. >> good morning, and happy new year to you, brian evergrande says sales took a major hit last year amid the ongoing struggles to repay creditors. the most indebted developer reported sales of just over $69 billion in 2021. that's down more than 38% from a year ago shares reopened for overnight trading in hong kong after being halted a day prior closing up more than 1% of the day. but for the year shareholders looking at a more than 88% loss. no end in sight for what's been a nightmare when it comes to air travel here in the u.s yesterday airlines canceling 3,221 flights into, within, our out of the country, as covid
sickouts and dangerous winter weather continue to wreak havoc on would be flyers more than 800 flights have been canceled already today, with reagan national and newark libberty topping the list of most affected u.s. airports. and president biden is expected to select former reserve board governor, sarah bloom raskin as his choice for vice chair of super vision at the federal reserve. that announcement could come as soon as this week. of course, she is also a cnbc contributor, so i guess we'd be losing her brian. >> we may have to. but obviously a lot of respect for sarah, if it's true, congratulations on the gig there's been a ton of regulatory change, boring stuff under the hood of the market that the fdic and others may want to pay attention to
bertha, see you in a few minutes, thank you let's get back to the markets and another record breaking day for stocks to begin the year your first guest says while it can be an emotional time of the year, especially this year, now is not the time to be emotional about investing. following the rules and follow your goals joining us is kevin simpson, founder and cio of capital wealth planning. welcome. it depends on what those goals and rules are. everybody is different but is there anything kind of hard and fast we should adopt as a financial resolution, if you will, this year? >> yeah, good morning, brian i think it's day four of 2022, so if you stuck with your resolutions this far, congratulations. if you pro cambridgcast nated a
bit. as with most things, exceptional and predictable results are fuelled by unique, strict and structured discipline. we implement the three rs, brian, rules, risk, returns. it's those practices that govern everything we do from how we buy stocks to sell stocks whether we're going to invest or not invest and that's the takeaway for resolutions for 2022 it's always about discipline. >> yes, it is. in so many ways. let's get a little more direct on the discipline story, because we're going to talk about apple later on in the next half hour morgan stanley saying it and other tech stocks have gotten so big they may be a systemic risk to the market. apple your biggest holding by far. is this a case you love the company, its sheer gains and size means your discipline says i have got to trim a little apple? >> absolutely. it's never a bad thing selling into the upside.
you and i did a segment a few weeks ago about sell disciplines, anything we own is a 5% target at allocation. when we see apple increasing like this, we'll be pulling back, taking profit, we're not removing the position, but we're just managing risk our rules are based and everything fundamentally is driven by this discipline practice, whether markets are up, down, or sideways, whether we buy or sell, it's hard to know when to sell positions. but if you follow your rules i think that more than anything else is the takeaway here, that's the lesson. the risk management is important in terms of trimming for sure, it's a great strategy. >> we always talk and you and i spoke about this a month ago, kevin, which is we're like when do i buy when do i buy? it's only half the story knowing when to sell i think mr. rogers said know when to fold them in that very famous song.
knowing when to sell is an underutilized and under respected discipline and part of successful investing. >> was it benjamin bram said it best, the portfolio managers who can navigate the down side, handle and manage volatility, because upsides will take care of themselves, will have success in markets it's hard to manage in volatile markets, but if they go up every day, right, i think maybe 2022 will teach us more about rules, risk and returns, because things aren't going to go up every day and it's much more important to dig into stocks, look at the earnings, the fundamentals, to look at the dividends in particular i think dividends will play a big part moving forward in 2022 and beyond >> do you think 2022 will be more of a basic year byrum thinks it will be.
>> i think we'll be higher but i don't think it's a double digit return i think single digits. >> kevin simpson, quoting benjamin graham, i'm quoting kenny rogers thank you for coming on, we appreciate it. under appreciated on the street. happy new year, kevin. we are just getting started on a tuesday when we come back, guilty, the verdict is in for elizabeth holmes, what is next for her apple hitting a $3 trillion market cap but one bank says at that size could it be a risk to the market and your money. and later oil keeps rising will opec bow to white house pressure and raiseutt opuor not? we'll talk about it all, stick around at? it's too windy. but with a huge selection of wellness support products for nutrition, sleep, immune systems and energy, cvs can help them happen a little less.
♪ i see trees of green ♪ ♪ red roses too ♪ ♪ i see them bloom ♪ ♪ for me and you ♪ ♪ and i think to myself ♪ ♪ what a wonderful world ♪ a rich life is about more than just money. that's why at vanguard, you're more than just an investor, you're an owner so you can build a future for those you love. vanguard. become an owner.
and there you have it. vanguard. woah. wireless on the most reliable network nationwide. wow. big deal. we get unlimited for just 30 bucks. sweet, but mine has 5g included. relax people. my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one-upping itself. take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds.
invest billion in her company. holmes defiant in the end taking the stand in her own defense, blaming others, including her business partner and boyfriend but she was not able to convince a jury she was blameless yasmin is joining us now you were inside the courtroom for the verdict. take us inside the courtroom and that moment. >> reporter: brian, inside the courtroom elizabeth holmes showed absolutely no emotion she sat there stone faced almost the entire time. she at one point looked down and the jury really didn't look at her either when they read out the verdict and the jury was escorted out, holmes got up, walked over to her family, her partner, billy evans, her parents, embraced them, her dad kissed her on her forehead and she left the courtroom she got a mixed verdict here the jury convicted her of four counts relating to defrauding investors but found her not
guilty of four counts relating to the patients. they also deadlocked on three counts and the judge declared a mistrial on those three counts some people say this was a case of money versus humanity but there's really a lot more going on here. legal experts tell me pretty much all along they told me it would be really hard to convict her on the patient counts, there was really no paper trail when you compared it to the investor counts really this jury may have just concluded that elizabeth holmes did not intend to defraud the patients, they were just collateral damage along the way, brian. >> there were still, though, guilty on four counts under federal sentencing guidelines, i understand it's upwards of 20 years. al tho although what i read last night most people believe she will not spend 20 years in prison what kind of sentencing might ms. holmes face? >> holmes is facing up to 60
years if you count the maximum amount for the four counts she was found guilty for it's entirely up to the judge here and it's going to be up to her defense attorneys to basically ask the judge to give her a lighter sentence they'll look at her prior record, say she showed some remorse, she's a young mom and they're going to ask to cut her some slack but really you have to wonder what elizabeth holmes is thinking this morning. she was once the darling of silicone valley, she was a billionaire, at least on paper, and now she is facing some major prison time. >> yeah, it is the case that captivated so much, books, podcast, a hulu series as well i know we have "squawk box" coming up. just a small note. the day the first article came out sort of questioning theranos, i was hosting "squawk box" with becky quick, and we interviewed her. and that's, of course, she was just on the cover, i think
forbes or time or one of those, and a few hours later the john carry article came out and becky and i went back and forth in that moment and time and how much changed in a few hours. thank you we appreciate the underground reporting and everything, yasmin thank you. >> thank you. >> yasmin spending a lot of time in the courtroom. still on deck, the winner of our go big or go home series is here get your pens ready because richard sapperstein is here with the stocks he loves right now. the futures are higher and we're back right after this. >> announcer: today's big number, $97.8 billion. that's where the u.s. trade deficit reached in november, according to the commerce department arov t por17.5% erheri ye period. a new record
welcome back you can see there a live shot of times square, it is 5:21 in the morning. it is also really, really cold let's get a check on this morning's other top headlines now that we have the weather out of the way including why a major award show may be pushed back steven romo is in new york with
that and more. bundle up. >> there's a lot more to get to news wise, starting with two of former president trump's children who are in a new legal battle this morning. new york's attorney general subpoenaed ivanka and donald trump jr. yesterday. shortly after lawyers for the siblings filed a motion to quash the subpoenas. the trump family has not been accused of any wrong doing in the investigation. betty white's agent is setting the record straight on the actress' death confirming she died of natural causes he told the hollywood reporter her does was not due to a covid booster shot her death should not be polit politicized. that's not the life she lived.
billboard reporting the grammy's could be pushed back because of the omicron variant it was set to air sunday january 31st this would be the second year the show gets postponed because of covid so possibly some more delayed gratification. brian, back to you >> or maybe the organizers should move it to outside and in a warm climate in the summer there's another option steven romo thank you. >> yep, brian. >> outside in the summer, somewhere else coming up, more opportunity for all of you out there and your morning rbi laying out five small and mid cap stocks and one wall street firm says could double from here you're going to smile like that guy. if you haven't already, be sure to follow our podcast as well if you missed the show because we know it's on really, really early in the morning trust us, we know. you can check it out every day
every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers
with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. the markets and your money keep moving up in the new year futures are higher once again and your morning rbi lays out five small cap stocks that one firm says could double opec on deck, they have a
new leader of the group, but will that change how much oil they actually put on the market. and in the fight against covid, federal officials giving the green light for booster shots for some kids. it is tuesday, january 4th and this is "worldwide exchange" right here on cnbc what is that music apologies. welcome back, everybody. i'm brian sullivan thanks for joining us on this tuesday morning. sounds like your iphone alarm. maybe it did go off. have a cup of coffee here's how your money and global markets are looking halfway through the 5:00 a.m. hour stocks and futures are higher across the board, almost the same, all the major indexes up .3%. all of this coming off a new record high to start the year.
11 s&p 500 stocks jumped more than 5% yesterday, one a company you may have heard about, tesla, rose more than 10% so tesla has the early lead in stock of the year. bonds, by the way, also had a huge move to begin the year. the 10 year yield popping .1%. that doesn't sound like a lot for stocks but huge for fr treasuries the ten year making a seismic shift to begin 2022. oil and energy they were a big part of the market story on monday, energy and energy stocks boomed the xop etf up more than 4%. all of that ahead of a very important opec meeting today, which we we'll get much more on in a couple of moments in the program. but two stocks we want p to get to apple, yesterday becoming the first american listed stock at a $3 trillion market cap, it closed just below that level but still amazing. apple taking just over 16 months
to go from 2 trillion to 3 trillion, gaining 59% for investors along the way. here you go. this is -- by the way, this could be an rbi. apple is now bigger than walmart, disney, netflix, nike, exxon mobile, coca-cola, morgan stanley, boeing, ibm, goldman sachs combined wow. tesla, 13% gain yesterday on the blockbuster delivery numbers stock not responding now, down just a touch still a stock to watch and a big start to 2022. let's get to this morning's top headlines, including developments in the fight against covid. bertha is back with that and more bertha >> just wanted to mention if you watched yesterday in health care we saw a rotation, some of the losers and laggards were the gainers yesterday. meantime, the fda expanding the
emergency use authorization for pfizer's covid vaccine booster in some kids the agency says children 12 to 15-year-olds can now get the third shot it's also shortened the time needed before receiving the booster for the age group from at least 6 months after the first two shots to at least five months the development comes as president biden and vice president harris prepare to meet with the white house covid response team later today to discuss the strategy amid the rapid spread of the virus. the u.s. setting a global daily record of over 1 million cases diagnosed yesterday. more than double from just four days ago despite the dramatic figure, deaths actually ticking down with a 14-day change falling 3% according to "the new york times. at&t and verizon reversing course with their plan for deploying 5g service amid a standoff with the federal government
late yesterday the pair said they had agreed to a two-week delay over concerns with potential interference with aircraft electronics the move came after groups representing u.s. airlines, aircraft manufacturers and airports urged the white house to intervene in the matter 5g deployment will now take place on january 19th. and fanatics agreeing to buy tops trading cards for roughly $500 million, sources confirming the deal to cnbc but would not reveal the terms of the agreement. only saying it will include tops name and sports and entertainment division, not the candy and gift cards line. this deal comes after fanatics in august acquired major league baseball rights from tops once its current agreement wraps in 2025 it's nice to see there's something tangible on paper that people still like. not some nft rookie card
>> they'll probably figure out a way to turn it into that bertha, i'm sure, why not they're -- >> the fact that your phone might disrupt an airplane and they're fighting over it right now, it's kind of a big deal. >> this is one of the things they talked about for a long time and one of the reasons they always insist that you turn off your phone once they start taxiing. and i don't know about you -- >> right. >> -- when i fly, you know that a lot of people do not certainly if you're waiting on the tarmac for an awful long time, people tend to keep their phones on. so it's -- >> yes those -- those people. never me those people >> never never. >> i'm that -- no, i'm that guy. seems like a big deal, 5g, fighting over whether or not
it's going to disrupt airline travel i want the coombs rookie card. don't look now but oil prices are back on the rise. back to nearly the level they were when president biden announced a release from the spr on november 23rd and also adding pressure to opec to add more oil to the markets this comes a day after opec elected a new secretary general. let's get more insight now with amena bakard good to see you virtually again, some day we'll get down on the basement stairs in vienna. for now, what can you tell us about what's likely to happen at the opec meeting today >> hi, brian happy new year to everyone i hope we all get to the release soon yesterday we saw some exciting news we have a new secretary general
in opec who will assume the new role starting on the first of august the person selected was from kuwait he was previously kuwait's opec governor for four to five years. he's very experienced. i spoke with him yesterday and he told me one of the top priorities that he plans is continuing unity within the opec plus group he wants the declaration of cooperation to also continue and he also wants to give opec plus producers in general, a larger voice amid all these transition pressures that we're seeing >> yeah, really interesting move at the top i heard some very, very positive things about him our thoughts and thanks to the outcoming secretary general who's always been kind to us here on cnbc that said, viewers hear the declaration of cooperation, i call it the all for one and one for all deal they made here's the problem, opec, even
if they wanted to raise output more, president biden saying we need more oil, libya has 350,000 barrels a day offline. nigeria is having problems even if opec wanted to raise more output, could they do it? it doesn't look like they could. >> you're ababsolutely right, brian, a number of countries to add to that. many countries can't raise their production we're seeing opec, despiting promising to increase 400,000 barrels a day every month we're not seeing that delivered into the market because countries can't meet their kquotas could this be addressed at the meeting and saying we're going to allow other countries to compensate it's a controversial subject none of these countries would want to see their quotas
revised. and there's really only two or three in the group that could raise their production and have the flexibility to do that that's partly why we're seeing prices rise. there's a concern there's no more spare capacity. capacity is being eaten up. >> two of the three countries that have the ability to do it, the saudis could raise production if they wanted by a lot. and then you have the uae. the uae wants to stay on the good side of the biden administration, maybe there's challenges right now opec, do they have a political motive in any way to revise that deal to raise more output? i simply don't see it, what about you? >> brian, i spoke to a number of sources yesterday, including ones in the u.s. and they said that this time, of course, they still have communication with opec plus members, especially saudi arabia and the uae
they make those calls, check in with them. but this time there was no lobbying ahead of this meeting happening today to add more production than the already planned 400,000. and what we've heard from delegates is that they plan to continue with that 400,000 however we saw in the jtc report which was reviewed yesterday that during the first and second quarter of the year there is a tightness in the market. so there is potential to add more oil whether or not the group will decide to go ahead with that, we'll see. as you noted earlier, it's a matter of spare capacity >> yes, it is. spare capacity, the ability to raise more output. libya has a lot of problems right now. we'll see what opec does i'll see you on that virtual call in a couple hours thank you very much. >> thank you, brian. you're welcome coming up, your best performer in our match up.
richard sapperstein is here to make the case for his top trades in the fourth quarter and what he likes right now as we head to break, some of your other top stories tesla facing criticism for opening a show room in china the latest company to receive backlash where china is accused of human rights abuses particularly against the uy uyghurs. and walmart making the move to carry out cleaning initiatives for the safety of employees and customers. and it is the end of an era. that blackberry you may have tucked in a drawer is officially discontinued for service, at least as far as updates go blackberry announcing the shutdown which was officially announced last fall, means the phones will no longer be able to
welcome or welcome back and good morning, everybody. apple's $3 trillion market cap, you might have heard something about it on cnbc yesterday, is a heck of an accomplishment. a true milestone, and it may also become a risk to your money. that's right morgan stanley out with a note talking about the risk to the
market now one of them is something that we have talked a lot about on this particular show. and that is the idea of market structure. in one part the idea that just a couple of stocks like apple, microsoft, and a few others, pretty much control the fate of the entire s&p 500 and maybe more morgan stanley in the note laying out the risk this way, quote, index concentration itself is a risk for the market. the seven large mega cap stocks that have come to account for nearly a third of the index's market capitalization have performed far better than the index, a phenomenon that creates extreme risk concentration they go on to say that overcrowding in the stocks is already a quote systemic risk and they note that the big seven, as they call them, caused an outperformance of the index by 33% over the other 493 names. in other words, those seven basically beating the other 493 by 33%
they're not saying it will happen but it is something you should take note of as that crowding at the top and that market weight continues to get bigger. regardless of any systemic risk to the market structure the fact is that apple and the other big six for the most part keep rewarding investors who stick with them. one of those is one of our next guests in our go big or go home series, comes out with the new year with a 13% average gain for his portfolio of picks in the fourth quarter, beating our our eight person panel richard saperstein is managering direct at barrens. good morning and congratulations, by the way. i know it's not a real award but we'll send you our thanks for participating and coming out on top in that fourth quarter competition, some smart people you were up against.
what do you like in the new year >> i think investors should realize that in 2021 we had the fifth lowest volatility on record down 5% draw down maximum. and in 2022, we're expecting as the fed pulls away the punch bowl to have more volatility so at this point what we're doing is we're sticking with our overweight in growth overvalue and that's not zero coupon growth stocks. these are what you just referenced, the large cap tech stocks and in addition a lot of names that are cash flow generators. companies that are deploying their operating cash flow back in the business or returning it to shareholders. and we think those are the -- that's a barbell strategy which will be opportunistic in 2022. >> all right so it doesn't sound like
richard, because apple is on your list, that you are that concerned about what morgan stanley just said could be a market risk. you don't sound worried about the idea that a few big stocks tend to control everything, and if they go down, there's almost no way the entire market might be able to go up >> think about it, if half of the capital going into the stock market is through indexes and you have the s&p as the largest one and these companies represent roughly 27%, 30%, depending on what you're including in the s&p, so if an investor is underweight, these names relative to that percentage, and these stocks do well, they're going to underperform so by virtue of the fact of being large and the advent of index, we're seeing demand for the names. in addition they've had a steady decline in beta over the last 20 years, they have large motes around their business,
generating copious amounts of cash flow, their cap x is analyzing roughly $180 billion a year their operating cash flows are growing faster than the overall s&p. we're now seeing the millennial generation, which is the all digital generation coming up, the work-from-home and work-from-everywhere is only benefitting them there's just a host of reasons why these names will continue to grow and thrive relative to other names in the market. >> the runner up, you won the fourth quarter competition, the runner up, stephanie link up 10.5% in the fourth quarter yesterday talked about cisco systems as i understand it that's also a name you like. they used to be the largest company in the world back in 1999, they were the apple, if you will, seems quaint to think about it now what is it about cisco you like?
>> i'm in great company with stephanie, the chief investment officer with hightower i'm glad we both like the same name look, cisco is a transformational company in the sense they're moving from one-off hardware sales to really a subscription model so by 2025, roughly have their revenues will be subscription based. it's a $270 billion market cap, 2.5% dividend yield but they have a 6% operating cash flow, which is relatively high and deploying that in the most efficient uses so cisco has a long road ahead of them. it can be owned for several years in this transformational period moving from sales into more subscription services >> somebody get john chambers on the line, maybe he can phone into the show, i know he's an early riser. richard saperstein, we
appreciate you coming on congratulations for winning our go big or go home series, thanks for getting up early take care. >> thank you. up deck your morning rbi and five small cap stocks that one wall street firm said could double this year plus joanne feeney is here with names she's finding opportunity in as well and a gentle nudge, if you have not already, be sure to follow our podcast, a great way to kick off the new year start jogging, whatever other goals you have, follow "worldwide exchange" on the top of the list. futures are higher across e th board. we're back right after this.
it's the most wonderful time of the year. it is all about t-mobile with their great phone deals for everyone every day including customers on sprint. tell us more dianne. new and existing customers on the magenta max plan can trade up to the new iphone 13 pro and t-mobile will pay for it. customers can also get a free year of apple tv plus. i know you love ted lasso, george. guilty as charged. t-mobile is bringing it all together for the holidays. upgrade to the iphone 13 pro on us. plus get a free year of apple tv plus. only at t-mobile.
here's a direct question. how long are you planning on keeping your new smile? yeah. that's why smiledirectclub has their lifetime smile guarantee™. get a doctor-directed smile you love, guaranteed for life. your life. choose smile. choose direct. ♪ smiledirectclub ♪ it is time for today's rbi and once again we are getting random on opportunity, because research firm btig out with its top picks for the first half of 2022 the list is long
and we read it so you don't have to now btig lays out the stocks with the greatest upside between the current price and price target big names on it, like starbucks and block, which used to be called square. but let's focus on the smaller names with big potential upside. analysts see five small and mid cap stocks with the potential to double this year they list a few more but we're going to show you the names with the market caps above $5 million here are the big names number five, castle bio sciences their price target exactly 100% higher than the current price. same with macerige, they see a doubling number three bumble, their analysts target with 114% gain above where it is right now.
number two babylon holdings. and the most from btig analysts, among stocks with market caps above $500 million, that is sharecare, 170% gain seen in this former spac focussing on mental health. that stock has been taken down by half. and as always take target prices with a grain of salt those are five names btig loves. analysts get it wrong too and the price targets could come down there are other top picks for the year if you're starting or looking for a starting point for a place to do some of your own research as well, and always do that, there are five names to kickoff your day random and hopefully profitable. let's keep the opportunity rolling and bring in one of our favorite guests and that is joanne feeney, portfolio manager at advisers capital management
i tried to make the note that, hey, price targets can change, analysts often get it wrong, i imagine you back up that view. i'm trying to get a starting point. for you, how much if at all do you look at analyst price targets? >> if you look at the data, analysts tend to aim too low in many cases we don't look at the price targets but the analysts can be useful as specialists to dig into details of companies. obviously take these things with a grain of salt, as you said do your own research which is the way we try to focus on our stock selection. as you know we're hand pickers here, we only own about 45-ish stocks in a given client portfolio and we're looking for quality, which by the way we think is going to be increasingly important as we go through 2022, especially given what happened last year with some areas of the market. >> and your list, joanne,
because you have such a concentrated portfolio, you'll take one or two retailers, energy companies and you're obviously considering those to be best in class, best in breed, tjx, the parent of tj maxx and home goods chevron, names you like. >> right you know, this year we think one of the areas that's likely to do well and the way we're thinking about this is follow earnings potential. obviously we saw a lot of appreciation last year some concentrated areas of the market did particularly well. but this year the concern has been inflation, the concern currently is covid but if you look beyond sort of what we think will be a short term covid problem and then look at where inflation is likely to do, and the fed pulling back on some of that accommodation, quality we think is going to be important. we think we'll see more of the reopening trade kicking in as this particular wave of covid
recedes. that's why we think a tj maxx and home good stores will do well as people go back out to brick and mortar and a company like six flags which has outdoor entertainment possibilities does well over the next year or so. these are companies with big, strong loyal customers bases so when you look in those details you get earnings potential for this year. we think that's likely to drive valuations >> you know, six flags i know primarily outdoors, that's like a theme. is that a reopening play or is it more of like, hey, the economy is going to do what it's going to do play >> it's both, brian. clearly consumers are pretty flush, household balance sheets are strong, so the strength is coming from the consumer so as the fed tries to get inflation under control, that reopening play plus the ongoing
recovery of the economy think helps feed the economy they go out and spend at like a six flags. people need to remember headed into this year there's a lot more reopening and recovery in the economy to happen. we still have lots of shortages, that's another reason inflation is elevated because of the shortage in semiconductors and cars across the board. so as supply continues to come back on line we think there are opportunities and then look at the growth names for opportunities for longer term appreciation. >> always bringing the names and we love you for it joanne feeny, appreciate the time thanks for getting up. thank you. all right, folks, thank you for checking out "worldwide exchange" on this tuesday. we're going to see you same bat time, sam bat channel tomorrow at 5:00 a.m. eastern time. in the meantime, squawk and the gang picking up the coverage with futures higher. that's next. have a great day
age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. new year, new start. and now comcast business is making it easy to get going with the ready. set. save. sale. get started with fast and reliable internet and voice for $64.99 a month with a 2-year price guarantee. it's easy... with flexible installation and backing from an expert team, 24/7. and for even more value, ask how to get
good morning stocks starting off the new year at record highs. and apple, it's now become the first company to hit a $3 trillion market cap we'll show you what is moving right now. and an update on the covid surge. the united states reported more than a million new cases yesterday, setting a new record as more companies prepare to enforce vaccine mandates. and elizabeth holmes found guilty on four of 11 counts, including conspiracy and fraud we'll tell you how much prison
time she faces it is tuesday, january 4, 2022 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin and mike san tolli. joe is off this morning. the dow and s&p 500 marked record highs on the first day of the trading year for 2022. the dow was up by 246 points and the s&p was up by .6%. it was the nasdaq, though, that was the relative outperformer. it was up by 1.2% thanks to a positive session from meta platforms, amazon and alphabet all of the stocks moving higher. and the nasdaq the outperformer for the first trading day of the year it was the treasur