tv Making Money With Charles Payne FOX Business July 22, 2020 2:00pm-3:01pm EDT
to a little called apple. melissa francis joins me 4:00 p.m. eastern time. we'll have the numbers pretty much as soon as they come out. as soon as we figure out what the company reported. we'll see you then. thank you for joining us here. i'm connell mcshane filling in for the great neil cavuto. over to one of other greats charles payne. take it over, charles. charles: thank you, connell. we'll watch 4:00 p.m. on the knows. good afternoon, i'm charles payne and this is making money. markets are bouncing around in very narrow trading range, you can actually cut the tension with a knife. there is more hopes for swift vaccine news as operation warp speed strikes again. the largest deal to provide americans with free doses of a vaccine. with the earnings results, connell talked about tesla, microsoft after the close. the results could move the entire market. what are we learning from other earnings reports already in? then there is the cold war. that angst starting to ratchet
up as u.s. orders china's consulate in houston to close. the big question when will corporate america join in this fight? at least 15 people shot last night in chicago as gunfire erupts outside of a funeral home. local opposition remains to president trump sending in the troops. talking about the federal law enforcement help. we'll take constitutional look at this what it says there with jenna ellis and the human toll with deneen borelli. we have a power packed show on "making money". ♪. charles: the broad market essentially spinning its wheels clearly wasting for microsoft and tesla to report quarterly results after the bell. they lost a little bit of oomph after reports yesterday stimulus talks were going poorly. i bring in three favorites to go over whole bunch topics. kaltbaum capital management,
gary kaltbaum and katheryne rooney vera and heritage capital's paul schatz. gary, we're watching the market. it is quiet on the surface. it is quiet. you like technology and technology, software, they look great. itv is up. those are the areas that seem to do well even as the overall market continues to sort of move sideways? >> well, my take on the tech they have had a big run and probably a little bit of resting here. i tell you what i am seeing which i'm starting to love, broaden out of the market. housing and housing related. home depot, lowe's, sherwin williams moving to new high ground. lithium motors in new cars. market is broadening out quietly. that is fine by me. that augers well going forward. we will get pullbacks and scare days but so far all pullbacks
have been nominal, short-lived. until that changes i think you go along with what you're seeing. charles: kathryn on september, june 8th, june 9th, the s&p had 191 winners. they pulled back. we have yet to get back there. to gary's point, stealth broadening of rally is 2018 great. doesn't look, is that sort of what you think is going on here? what does it mean for the rally going forward? >> yeah, broadening out of the market is a positive sign. face facts, there are five stocks, big five tech stocks that have taken the markets higher exclusively because of those five names since 2017 and my concern, charles, something we haven't discussed yet, july 27th, some ceos from some of the top big tech names appearing on capitol hill. we're in an election year with a very possible chance of a change in power to the democratic side.
so what will that mean for antitrust and regulatory issues for these big names, five of which comprise 25% of the s&p 500? so yeah, let's hope and let's bringing for that broadening out of the markets, charles, but the fact is, there are five big-name tech stocks that comprise a quarter of the s&p 500 market cap. if those drop, whether it be because of regulatory issues, political issues, government pouncing on these giants, then markets take a swoon. charles: markets could take a swoon. we always look beneath into what is names that are up and down. paul, i think this is a sort of a coiled spring. the first six months we set all kinds of records for volatility. it feels odd and but feels ominous for others? >> look, the vix is 25 right now, down from above 80. so clearly volatility is coming in so much.
the more volatility drops, the more the vix goes down, the higher stocks can go. in the short term i think we have the biggest chance for a pullback as we've seen since the bull market launched on march 23rd. i would not be surprised to see the dow sub 25,000 in the next six weeks or so. so i think, it is certainly time to prune here, find things you really love to own. charles: really? >> fed will take care of that. charles: the market in the meantime, if you looked all morning, it was really indecisive. we got news operation warp speed. largest deal yet. pfizer, $2 billion, 100 million doses of their experimental covid-19 vaccine. these announcements have given market a boost last couple weeks. could it be a double-edged sword if the vaccine doesn't appear in two or three months? katherine, some of these names
look very attractive as investments. your thoughts, are we putting too much open to this? >> i think we are, charles. i think this comes down to the fed. the fed is widening out its asset purchases and increasing them in size. if the market take as swoon, the fed will not allow it to make new lows. you can expect the fed to broaden out its purchases of high-yield bonds, maybe move in even to equities to preclude new lows in the s&p 500. i think the vaccine is in the offing. i don't think it will move too much. if we get, if we do not get the stimuli the markets currently priced in 100%, which means additional fed purchases, which means an extension of the 600-dollar by the end of this month in unemployment benefits, which means additional trillions of dollars in the fiscal deficits, then i think the
market could drop but he it is really all about the stimuli both from the federal government and from the all powerful federal reserve. charles: now speaking of covid, in the meantime things have changed, right? we saw thermofisher come out with pretty strong earnings. we saw u.s. home sales increase, in fact the largest monthly increase with the june number. it would be higher if it wasn't for the short supply. here is the thing, paul, gary talked about some of these stocks earlier. stocks associated with home building. home builders are through the roof. carpet makers are through the roof. lumber is through the roof. home depot had a great number. coronavirus changed the way we're investing. what are some investments that you made? >> well, first i have, gary laid out some very popular names. just like with the vaccine stocks, a lot of new era stocks, if you will, pandemic stocks have gone almost vertical.
depends what lens you will wear to buy them. if you're a shorter term person, you can't buy a stock that appreciated 75 to 100% in couple months. but to your question about how we pivoted, i continue to make my list of haves and have-nots. i don't want to overload any of the portfolios with haves or have-nots. i think in the strength, you can pare back the have-nots. charles: any names you're buying though, paul? have you made any changes? have you made any changeses? okay. things have changed. used car sales are through the roof? do you own any of those? what do you own or have you bought or have you sold? >> we recently trimmed apple. we recently trimmed amazon and we recently trimmed alibaba. on the back side of that and we recently trimmed wpx i with is in the shale space in texas. i bought deck ard outdoors, i bought wendy's, if i am wrong, i
can will be, i will not be hurt too much. i cannot jump on board. we own a couple of homebuilders. but i didn't buy them yesterday. we bought berkshire hathaway as a more contrarian play. charles: that is a contrarian play. whoever thought we would say that. gary, i want to give you a shoutout. two weeks you said buy gold. gold is looking phenomenal. i think silver is looking better, silver breaking out. gold is right near the all-time highs. silver could double to get all-time high. people are asking more and more should these be places to be? we talk about fed. we talk about money printing. we talk about debt all the time. what do you think? >> shorter term they can pull back but i think they are going higher. unfortunately our currency is heading south because this man running the central bank, i will be careful about what i say is just too easy with the money and i think having said it best, if the market drops 5% he will start buying stocks. i think that is good for gold and silver has gone en fuego
here. i think this is a move that is going for a while. i do have to mention, yesterday, for the first time in eons, i bought a little bit of the oil patch in that it looks like they're trying to put in some sort of a low. it is underowned, underloved, underleveraged. if oil prices start to tick up, it will do well. i keep close stops in face. 15% of my assets are in gold stocks right now. quite happy. not adding just yet. but on pullbacks i will add. i think they have a ways to go based on what central banks are doing around the globe. charles: you know, i gave a silver name yesterday on the show. that is up 8% today. kathryn, i have less than a minute to go. gary and paul expressing looking at value, looking at things that are oversold in part because it helps your risk/reward, right? limited downside. are you looking at any opportunities like that? because these unloved names look
attractive to a lot of people. >> yeah, sure, and i will add financials to it. i love the gold trade. i think inflation will become a pernicious issue over the course of the next two or three years. we need to protect our portfolios against that eventuality. bying tips, gold, uncorrelated assets. i will ad one thing in the conversation. fallen angel bonds. ford i recommended a month ago. charles: you did. >> fed will continue to expand in the high yield space. there are fallen angel bonds that lost their investment grade rating over the past two months. those names will be in the mix. that is one of my firm convictions. look at fallen angel bonds, they just lot their investment grade rating. the fed will start buying. nice juicy yield, between 7 1/2 to 8%. charles: you had me at nice juicy yield. gary, paul, great stuff. very much appreciate it.
folks, still to come, a lot we go on the show, including my message to joe biden, who just released the third pillar of his economic plan. why self-reliance engenders more dignity than any government hashed out on any day of the week. governments are waking up to china but u.s. corporations play nice to beijing to boost the bottom line. what will it take for big american companies to join this fight? we'll be right back. i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars of credit card debt. they helped me consolidate all of that into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪
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liberty. liberty. liberty. liberty. ♪ charles: new cold war between the united states and china heating up. communist regime is threatening to retaliate over closure of their consulate in houston. they said did nothing wrong. the state department says china was having spying operations there. the question that is looming large, will corporate america step in to help? joining me on that fred fleitz. fred, it has been too long. this latest move this, latest incident, it feels like china continues to test this administration and this administration keeps showing china they're serious and everyone is watching for the next shoe to drop. what will that be? >> charles, great to be back on your show. you know the closing of this
consulate in houston is very significant. we all know major countries spy out of embassies and consulates but the chinese government had to burn so many documents out of that consulate that the houston fire department came because of the huge size of the flame and smoke. what was going on there? we know that china is bringing students into this country with fake visas who are really working for chinese intelligence and for the chinese military. there is massive theft of intellectual property. i think probably is going on in houston but the trump administration hasn't said that just yet. this is a country whose activities are knot consistent with modern society. it wants to destroy modern society. i think it is time for corporate america to take action. charles: and the state department put out a statement saying that the decision was made in line with the vienna convention which says diplomats must respect the laws and regulations of the receiving
state and have a duty not to interfere in the internal affairs of that state. there we have it on the screen. now china, what do you think their response will be? you know they put out the typical statement, we will retaliate. i haven't felt like, even going back to the war, the trade war that they have necessarily done anything provocative per se in terms of retaliation. i really feel like they want this to go away? >> well, it is interesting because the consulate in houston has some kind of reciprocal relationship with the u.s. consulate in wuhan is closed. if we're closing consulate in houston, we're evening the score between us and the other country. wouldn't surprise me if chinese didn't use this as a excuse to close the u.s. consulate in hong kong. charles: we both mentioned
corporate america. i just don't get it. fred, when will corporate america stand up? i'm hearing corporate america about climate change plans. helping out stakeholders. i hear a lot of things from corporate america. i never hear they care about the one million uyghurs essentially in the retraining camps. that we care about the theft of american intellectual property. we care we invited china into the world community of nations and all they have done is cheated and scammed us. here is the thing, fred. china gets cover from the financial media, the mainstream media and corporate america just doesn't say anything. it is all about the extra pennies. i think at some point they have got to decide who do they want to support, china or america? >> that's right. let's start with the nba. darrell morey was trying to make a statement about hong kong. he was battered down by the nba.
plays will have statements on their jerseys black lives matter. i think black lives matter. so do hong kong lives, charles. so do uyghurs lives. if we're sear us we have it stand up for the uyghurs who are not being ethnically cleansed, they are subject to genocide. the photos of uyghurs kneeling in a train station in china, with hands tied behind their backs, with hoods on before they got on a train. we know what this looks like. this looks like nazi germany. [inaudible] charles: that was, those images were so frightening, so eerie, you know, fred. you're right, it should shock the world into taking swifter action. fred, thank you very much. great seeing you. >> good to be here, thank you. charles: all right, folks,
coming up why joe biden and the democrats will never realize that self-reliance will have more dignity than government handouts ex, you might panic. ex, you might panic. and in the midst of that panic, you might sell and run to cash. at the very moment, you shouldn't. at the very moment, prices are at their low. that's my fear. i'm not worried about the country. i'm not worried about the financial markets, because in the long run, i know they'll be fine. i'm worried about you. i'm worried about how you will personally respond to this crisis. and even if you don't panic, you may...
charles: joe biden spent over three decade in the senate before moving over to the white house to serve as barack obama's vice president. so what legacy did he leave on capitol hill? hillary vaughn joins us for a look at biden's congressional career as well as what's next. hillary. reporter: charles, what is interesting, if you look at then senator joe biden, all the way back in 1995 he sounded a lot like fiscal conservatives in congress sound today. because decades ago in washington biden kept pushing for a balanced budget and said he would be making tough cuts to do it. including touching things like social security an entitlements that democrats today to expand and spend more money on. so we dug up from the archives biden on the senate floor in
19945, making the case for -- 1995 making the case for cuts to hess colleagues. >> when i introduced the budget freeze years ago, the liberals in my party said it is an awful thing you're doing, joe. when i argued we should freeze federal spending. i meant social security as well. i meant medicare, medicaid, veterans benefits. i meant every single solitary thing in the government. i not only tried it once, twice, i tried it a third time and fourth time. reporter: biden views own debt have evolved. in 1995 national debt was 4.5 trillion. 65% of the gdp then. today it is 26.5 trillion. over 123% of the gdp. debt crisis is more critical now than it was then. biden is not seen scolding big spenders in washington like senator bernie sanders. he embracing them, promising to be the most progressive
president in american history. the programs biden rolled out so far, already total $6 trillion in new government spending. >> these are not pie-in-the-sky dreams. we can take these steps now and public's ready. reporter: charles, what is interesting, i spent a lot of time with senator bernie sanders back in 2016 on the campaign trail. that is the same rhetoric he used to rallies his progressive supporters saying ideas he is proposing are not pie-in-the-sky. it is interesting see joe biden sounding a lot more like bernie sanders than joe biden back in 1995. charles. charles: they call that evolution in d.c., hillary, thank you very much. yesterday former vp joe biden unveiled his third bill lar of his economic plan t was focused on child care, early education. in presenting his case he talked more about the motion strains of these things and these issues than he did about the actual plan and how it would create up to five million jobs.
joe biden obviously mentioned dignity. he talked about increasing the labor force. you know this always brings me back to the idea of what allows for greater dignity, right? self-reliance and achievement or government assistance? you know before coronavirus struck, blue-collar wages in this country were doing something not seen in more than a decade, growing 3% year-over-year. in fact those blue-collar wages have grown faster than overall wages 19 of the last 21 months. i would love to see a reassumption of that particular trend but i don't think it can happen with higher taxes, more regulations, plans that would discourage investment. of course child care, care giving assistance, early education, these are issues growing in importance. in fact even urgency. the question is there better way to address them? i would like to bring in iwf policy director hadley heath manning. biden keeps giving us the same poll at this prescriptions.
essentially democratic playbook on growth side and spending side. that doesn't grow the economy where i think real dignity can be found by the average worker. >> that's right. we want families not only the opportunity to earn more money and take home more resources for their families but have the choice how to spend those resources. some of the proposals we're seeing most recently from the biden campaign that deal with early childhood education and proposal to have universal pre-k for 3 and 4-year-old students across the nation is more restrictive approach to child care, than one would put money in hands of families, you have a choice. let's let market competition and variety of offerings be on the table. you decide what is best for your child. what could be more personal than deciding what is best for your child. charles: i agree there but you know the debate, if you will, always goes down to particularly lower middle class, lower income folks and just, those who live in cities. we know it costs so much to get
child care. what's the alternative than taxing real estate developers or taxing the wealthy or taxing businesses? is there an alternative to funding these kind of things and making it achievable? >> one thing we should all find encouraging regardless where we sit on the political spectrum, these issues are bipartisan. i don't think biden will score with child care or paid medical leave plan, because the trump administration has been zeroed in on the policies much in part thanks to the work of ivanka trump and others to make the issues to the forefront. even in early 2018 president signed the raise family care giving act. that is focus for elderly care giving. we're seeing both parties focus on issues. the difference is in the approach. do we want the federal government imposing a one size fit all solution for families or want some solutions trump administration is considering, to allow families to use the
money government spending on their behalf to make their own decisions about child care and paid family medical leave. speaking the time before the pandemic, part of robust economic growth is huge explosion in number of private sector employers voluntarily offering family friendly work place policies f we get back to the place where economy is growing, those are benefits highly in demand for today's workforce, specifically women in the workforce. we'll see more of that in the future if we get back on our economic feet. charles: i agree. 100%. best buy, went to $15 an hour. best buy this morning. businesses though, if they could afford it, they will put it out there, they want people particularly well-trained, great workers to come to work not to have to worry about it. i think too much government will make the problem worse. hadley, always appreciate your sensible and smart approach to all of these complex issues. we'll see you soon. >> thank you. thanks, charles. charles: drum roll, folks. tesla, microsoft. they have been on a tear with
historic earnings reactions. that is what we talk about next. because when they report. it will impact the entire market, including your portfolio. we'll have a preview. then stocks right now, they're trading quietly. we're entering the heart of earnings season. one of my favorite market watchers will talk about what adjustments he is making and what stocks he is looking to pounce on. get your pens out. we'll be right back. turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim.
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valuable company in the world and the most valuable car company in the world. both report this afternoon. let's start with microsoft it has to proffer to investors that azure cloud unit is not slowing down as companies work to work from home in the future. that is making microsoft pandemic and recession-proof. it has noticed a slowdown in licensing among smaller businesses and reduction in ad spending on linked in. here are the expectations. $1.34 a share. microsoft has beaten the street past 16 quarters straight. revenue rises to 36 1/2 billion dollars. stock up 32% this year. that is helping to power the broader market overall. tesla, charles, knocking on the s&p 500's door. it may be included in the widely tracked index if it posts another profitable quarter. they are expected to report a profit of three cents a share on revenue of $5.36 billion.
three things here. tesla is buzzy. its market cap is bigger than toyota which sells 10 million cars a year. tesla may crack 500,000 cars a year. elon musk, he is worth more than warren buffett. tesla cut car prices in the quarter. that could hurt its bottom line. not to mention the california factory was off-line. the stock is up over 500% in 2020. some other names real fast reporting after the bell. las vegas sands. revenue, expected to drop 83% from last year as people stay away from vegas and macao where it operates big hotels and casinos. whirlpool expected to have ugly spring with sales down 31%. but look the housing market is recovering. what whirlpool says about demand for its appliances going forward will be key. finally chipotle. it is about chipotle, the new pickup leans the chain opens to satisfy digital demand.
online is 2/3 of overall sales. the stock is up 40% this year. charles. charles: chipotle a winner. whirlpool up 3%. to your point. maybe things are changing. thank you, lauren. the overall market is going sideways as we await pins and needles for results after the bell. ii want to bring in phil blancato. everyone knows for instance, brick-and-mortar retail hit hard over all. but this morning we saw ollie's, best buy, they're up huge. there are other brick-and-mortar winners out there. we know there will be winners as the dust settles. i think this is how we find opportunities as investors during these periods. >> i think you got opportunity to rotate. for the first time in a long time you've to the opportunity to say where do i want to make my bet. microsoft is a name i love but it has come so far. to continue to grind higher.
it will need new sources of revenue. i don't know that they're there. tesla is the coca-cola of car. you think electric car, think about tesla. think about ollie's, what they have done. average person makes less than $50,000 a year spending week over week, month over month is and year-over-year. they're taking money and going to only's and spending it. the names that are not been part of this rally you still have a chance to make some money. charles: what about other blue chip names? mcdonald's is moving. they got an upgrade this morning, names we talked about alot versus chipotle. i tip my hat to management. when the guy came over from taco bell i knew he would be a winner. they have overcome several problems with good poisoning. do you go to slow and steady of mcdonald's who used to be parent company of chip pole or
names that are ripping and roaring? >> you want a slow and steady approach. the reason why, there is still a bunch of unknowns. there are still things we haven't locked down. it is great to have pfizer vaccine but it hasn't been proved. but mcdonald's is still relatively cheap. i rather see you own, nothing wrong with a slice of chipotle. the bulk should go to mcdonald's, home depot, caterpillar. rotation names that will do really well as we come out of the recession. chipotle is a great idea now, if you made already up a bunch. i want to bet money where i have room to run, not a name that is high flyer. >> right. by the way those names you mentioned, caterpillar slowly coming on. catching a few upgrades here and there i'm watching flames come on slowly. fedex has had a big move in a short period of time. we got less than a minute, phil. one thing i like, your broad analysis. so, we broke out. feels like we're consolidating
s&p above what was former resistance. how should we be in terms of invests with this market? should we be fully invested? how much cash should people have ready. >> should have 8 to 10% of cash on sidelines. we're in the tide of economic data. we're going through the worst economic data of our lifetime. we're not sure the third quarter will look like because of a second wave or still to be one. will the death rates go higher? will the economy fully reopen. keep some cash. rotated balance account, 50, 55% in equity. participate and protect. i don't want you out of the market but i want you to be prepared for what's to come. the summer slows down. come mid-august, come early sent, when the real trading volumes kick in, be prepared for at tumultuous election, can we navigate this thing through the fall? we don't know that yet. no reason to go full risk on yet. doesn't make sense. charles: gave as you lot to think about. we appreciate it. thank you very much.
we'll see you again soon. devastating scenes coming out of chicago where 15 people were shot at a funeral home. a 3-year-old girl is in serious condition in a different shooting. is it time for president trump to send in reinforcements? trump campaign legal advisor jenna ellis, fox news contributor, deneen borelli. i have a heck of a one-two punch. this is a heck of a problem. they will weigh in next and in the midst of that panic, you might sell and run to cash. at the very moment, you shouldn't. at the very moment prices... in a highly capable lexus suv. at the golden opportunity sales event. get zero percent financing on all 2020 lexus models. experience amazing at your lexus dealer.
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♪. >> need more cops and federal troops pause there is literally like we're in iraq or something. >> yes. like we're in a war. charles: people of chicago pleading for federal help to end violence in the windy city. video showing terrifying moments yesterday, when 15 people shot outside of a funeral home. this morning a 3-year-old girl was shot in the head in a separate shooting. president trump is expected to direct federal cops to the city. there are legal questions. joining me to sort it out, senior legal advisor jenna ellis and fox news contributor deneen borelli. jenna, start with you, i saw something from jonathan turley constitutionally president trump has room here particularly when
it comes to protecting federal buildings and property but maybe it is an unwise decision. where do you come down on this? >> it's a completely settled question, charles, that absolutely president trump has the constitutional authority to send in federal troops, even when the state is unwilling to protect the rights of their own citizens like in the instance, the mayor inexplicably and unconscionably is not enforcing the laws in her own city. not only does article ii give that ex-mix it power but insurrection act with presidents thomas jefferson, to george h.w. bush, used to support the law on these types of riots. what is ridiculous and unprecedented about this, mayors like lori lightfoot are not inviting president trump to help them. that is what is unprecedented. that is what is unconscionable.
but the constitution and the law absolutely give the president this authority. charles: we've seen everything politicized in recent years, including this. and, deneen, i want to ask you, talk to but the human toll, the emotional toll of living in neighborhoods where gunfire is ubiquitous, where deaths are ubiquitous, you walk outside of the projects you may see the body after dead young person. 60 shell casings left at the funeral home, at this shooting incident. mayor lori lightfoot is saying she will go after of the perpetrators but keeps bringing up gun violence. i think that is a cop out. a cop out not to blame people pulling the trigger and the mentality driving them to do this. >> it's a very tragic situation, charles. just seeing these images and videos constantly on a daily basis. to know, that young lives are lost, young lives are harmed,
innocent people are being targeted basically because of lawlessness going on in chicago and other cities as well. lori lightfoot, my goodness, i don't know what this woman is thinking. she doesn't want the president's help. what exactly is she planning on doing? this didn't just start yesterday. the violence and crime going on in chicago has been on going for many, many years and especially since she came into office. but the common denominator here, charles, is president trump. he has offered to help and these radical democrats don't want to give president trump a win on anything, even if it involves collateral damage with their own constituents. it is beyond outrageous. charles: all right. jenna, you know, there are some libertarians who say that president trump is overplaying his hand. that he should not be involved in this. there is some conservatives who are saying why should the american taxpayer foot the bill for these federal agents to help
when it's a problem that chicago has allowed to fester. so you do have people on both sides of the aisle who are pushing back for different reasons. what do you say to conservatives and libertarians who think this is a bad move? >> you know, there are two sides of the coin here, charles. i think that is what the president is con prem tating. again while he absolutely has the legal authority, should he go in? you have this inexplicable decision by the mayor not to provide her own resources to protect her own citizens. we're talking about constitutionally protected rights. this is what the government is all about, making sure rights of all citizens to be safe and secure in their own homes and on streets, to be protected. that is why we have law enforcement. joe biden falling eight points in two weeks because of this ridiculous defund the police. i think american people are seeing this they are on the side of action if the president does decide to use this. at the same time why should we have to use federal resources when the city of chicago isn't
protecting their own citizens. this is ridiculous democrat policy. deneen said it really well. this is because they hate president trump than the care about the lives and safety of their own citizens that is horrendous and reprehensible. >> it is heartbreaking indeed. ladies, thank you both very much. >> thank you, charles. charles: folks, technology adding fuel to the markets. investors eyeing two big names. two megabig names. the next break out starting you should know about because there is lot of winners in tech besides a lot of household names. you will find out when we come back when you walk into an amazon fulfillment center, it's like walking into the chocolate factory and you won a golden ticket.
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charles: the ceos of the four biggest tech companies will appear in front of the house judiciary committee on monday. tech titans jeff bezos, tim cook, sandar pichai and mark zuckerberg will face tough questions on a range of topics from antitrust issues and others. their responses are expected to be hey, don't punish us because we're successful. moments ago, the house announcing they have also invited twitter ceo jack dorsey, founder of disruptive tech research. lou, give us a preview of monday. the first time mark zuckerberg went there, he was accused of being an android. presumably we are hearing from
these companies that they shouldn't be targeted because they have achieved success in america. >> it's deja vu all over again. we have heard testimony three years running, congress threatening to regulate big tech, and they just haven't come up with any practical ways. i think you will see each ceo like you said give a rundown why you cannot practically regulate and break them up. facebook's going to say that look, you should control the privacy with laws. you know, how do you break up a social network? from amston aazon and apple's perspective -- go ahead. charles: what if they were broken up? what would that mean for investors? >> i don't see a practical way to do that. the users drive those networks, right. are we going to break them up into geographic segments like cliques in high school. i don't think there's a practical way to break facebook up. one practical thing that could be done is prevent them from acquiring any other large social networks but they haven't made
an acquisition since 2014 so that's not really even driving their scale. you look at google, i mean, they will argue they are the king of search and that's the glue that brings the advertisers to them. charles: i hope they don't break it up like high school cafeteria because i was always sitting by myself. just joking. all right. you are the tech guy. what's your favorite name right now? we hear about the same four or five names but there's a lot of good names out there. >> listen, we talked about this before. i love semiconductors. there's a lot of big names in semiconductor. with this market runup you have to go down in market cap. my favorite name is a semiconductor technology company, adamera. i believe it could be the next arm holdings which was taken out for nearly $30 billion. they have come up with a disruptive technology to improve performance for all types of chips. it's a very royalty-based business model, lots of scale, lots of leverage. they are on the cusp of commercialization. full disclaimer, it's one of my personal holdings but it is one of my favorites out there. charles: i like the way advanced
microis trading today. semis have been making all new highs. let's talk about the big news after the bell. i want you to help me handicap two names that are obviously influential to the entire market. first, microsoft. they have had a string of earnings beats going back a couple years. your thoughts, go to microsoft first. they report, they beat, the stock goes up. it's been a wonderful thing, but there is more competition in cloud. in fact, we heard from ibm saying they are now a legitimate cloud player. what do you see? >> don't get against mr. softy. they have proven in quarter in, quarter out they will beat expectations. this pandemic is driving more cloud business. that migration is happening out of necessity. you will see strength in the gaming unit, strength in the cloud segment and you said it, for eight quarters in a row the stock has risen after each earnings announcement. the well-known -- charles: only got 20 seconds. tesla, will it meet or beat? will it go up or down? >> listen, break out the
popcorn. the tesla circus will begin. i think there are bold promises from elon musk and not backed by much reality. i would bet on the decline. charles: tell you what, all right, you bet on the decline. $20 billion says this stock is short. liz claman, it's going to make -- options are saying it will move 20% up or down after these earnings come out. liz: thanks for the direction. it's like i love when they say that. 20% either up or down. thanks. thanks for the clarification. charles, love it. thank you so very much. we do have to say that we might have seen higher moves here but investors are feeling the heat of new claims of u.s./china tension. on your screen, the smoky scene at the chinese consulate in houston last night, coming as diplomats reportedly took to burning documents just hours after the state department ordered the diplomatic outpost closed. as we hea