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tv   Making Money With Charles Payne  FOX Business  July 25, 2022 2:00pm-3:01pm EDT

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eing... a gold-owner. visit to see why gold is everyone's asset. neil: all right. so still so much we're waiting on all the technology earnings this is big week for them including microsoft, amazon, apple, google. some big tests for the market coming up. charles payne to guide you through it. charles: neil, i'm on pins and need dells. can't wait,. neil: you got it. charles: this i'm charles payne this is "making money." we should have a consequential week. amazing earnings, fed, gdp. can the strong july start find a second gear or is it too much too soon? janet yellen says no recession in sight but the middle class getting squeezed from all sides, down to a diaper tax.
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brian wesbury and hadley heath manning weighing in. joe biden is making a full-court press to to get the chip acts through but. don luskin ask here with his thoughts. want you, wall street wants retail investor to be a loser but why blink now? are you committed to the market? i want to get your house on that. i will give you my takeaway later on why you should stay strong. all that and so much more on "making money". ♪. charles: man, you talk about a narrow trading range, right? you can feel the serves. everyone is on pins and needles. what we'll see 65% of the s&p market cap, those are the names that are reporting this week. thus far it has been a real intriguing earnings season. blended returns, i tell you this is very interesting, up 10.9%. the street was looking for 10%. earnings themselves 4.8% on
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consensus 4%. the reaction to earnings is what i suggest is intriguing. that the market came into the month oversold. you should notice stocks that beat the streit have rallied, this is pretty interesting, they rallied 2.2%. that is not unusual, right? they usually rally less than 1% so that's cool but companies that missed street this is really fascinating folks, these stocks are up 2.0%, 2.0% coming two days before and two days after. normally down 2.4%. that tells me, yeah, we were way, way oversold. i'm also surprised to be honest with you the way this market reacted with some of the names that do business outside of this country. companies that do more than 50% of their business outside of america up 14% on revenue. big, big number. up more than 10% on earnings. both of those significantly above what wall street, the rest of the street but here's what's
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interesting the dollar has been powerful. this should have been the exact opposite. i wonder what the heck is going on? meanwhile this year has seen the fewest this is really, really compelling, folks, we've seen the fewest sessions where more stocks are up than down. that is called market breadth. no one even close. last 20 something years over here, us here in 2022 here. with the most sessions up or down 1%. only 2008 even comes close. a lot of confusion. this is why we brought if two of the best. they're always here to help us out but i think more than ever we need them. joining us kaltbaum capital management chief strategist, gary kaltbaum. money map press chief shah galani. start off with earnings, except for unmitigated disasters like snap, negative earnings are up 2% so far. how surprised are you. >> i'm very surprised. i thought the market would have solven ad little here, charles,
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softened a little bit here. there not near the five-year average in terms of aggregate growth and earnings. i think the market is giving a lost companies a pass because they expect this week to be more positive. i think they're hanging their hats on something that is not going to happen. negative surprises could be devastating for the market. it surprised me the optimism out there with all those stats, tremendous amount of optimism out there, still. charles: gary to that point, numbers are down vis-a-vis in recent years. everyone expected them to be down. this maybe points to the fact that the market overshot a little bit on the downside? >> the last leg down stocks were smashed. the average stock is much worse than the indexes, indices and that's why we rallied off it. goldman sachs numbers were terrible, stocks rallied. a semiconductor name i follow,as
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the ml holdings guidance was horrendous. the stock rallied. it doesn't mean we're back in a bull market, you're right, we were very oversold. that last leg down was vicious. for me i want to see what happens over the next four weeks. we have a massive amount of earnings. charles: right. >> i think 40 some odd% percent of nasdaq 100 report this week. that will tell the tale. we rallied up a little bit here. we're not so oversold anymore. i can promise you if earnings continue to come in great i think the market will stay down, with oil prices putting in a near term low after getting trashed for two or three months that won't be helpful. careful on all three fronts. charles: let me stick with that, gary. your thoughts for 24 week, with all the heavy hitters are there any names or names that standing out to you that have to perform really well? >> apple, every dollar is
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16 billion of market cap. i'm amazed i can say that. i think amazon is 11 or 12 billion. these are head honchos. they are very much influencers of the nasdaq 100 as well as the s&p. they will drive a little bit but really it's about everything. i watch everything and just because maybe they will act okay doesn't mean other things will. i will tell you when i do my scans i still have 90% of all stocks in downtrends of differing levels that will have to change before we get a major bottom n i don't think we're there yet but leave no doubt, these biggies are front and center as well as mr. powell on wednesday. charles: yeah. hey, shah, i want your thoughts on that as well. i will point to one thing folks should know, the bull & bear indicator, right? this is from bank of america, it is flashing extreme bearishness. last two times it was here october 2008, i'm sorry, may of 2020 the pandemic.
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october 2008. extremely oh sold. everyone's bearish. you know, i know sometimes you can be sometime a contrarian. should we look into that? we know the market bounced last week but to gary's point the bar is still pretty low? >> only reason i'm somewhat bullish here is because of my contrarian view what's happened. everybody is so overly bearish. you brought up the fact we're oversold. the bank of america global investor management survey had the lowest expectations for global growth and profitability i have ever seen, so tremendous negativity. at the same time you have four or five trillion dollars on the sidelines in cash, plenty of ammunition if investors want to come in here to buy this bottom which is what they have done so far. we're up eight, 10% in some indices. nasdaq is up 11% off its bottom but i don't think that's enough. that's the pop that we've seen. earnings this week will be really important. i think thursday it will be a big day because the in morning
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we have advanced gdp. if we get that second quarter of negative growth we're in a recession. then in the afternoon after the close we get apple's earnings. i think a lot of eyes on those earnings which i don't think are going to be that good. charles: wow, like we said, everyone on pins and needles. guys always appreciate starting the show with you. much has been made by the economy hanging by a thread. maybe the thread happens to be credit. i'm talking about credit cards, issuance of them has gone through the roof. a lot of folks are wondering all that money supposedly socked away, but does this time maybe, the credit card use point to something else? maybe it points to main street confidence. i will bring in from moffitt nathan lisa ellison. i have to give you props, your call on american express was phenomenal. i thought about you the next morning t was top tier firm i forgot which one, a upgrade on american express. the stock was down two bucks.
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it closed higher for the session. last week they posted a amazing number. now what, do you still like the stock? >> i still do like american express. they beat, here we are questioning the macro environment and worrying about the economy and they beat on card billings, so volumes, they beat on revenue and they beat on eps by seven or eight points, i mean by a mile. some of their key categories like their travel and entertainment spending, that is a big discretionary category it was up 20 points sequentially from q1. we're still seeing a very healthy consumer and a surge in consumer spending as people are getting back out there and traveling and doing things coming out of pandemic. we haven't seen it slow down yet. charles: congratulations. a lot of the folks on the street were on the other side of that trade. what about visa and mastercard? >> yeah, i like visa and mastercard even more than
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american express because they're very tied to international travel which is lacking domestic travel a bit, travel and entertainment. we internationalvell sllcoming . v ery veryxcxc abo abobo vis vis v an repor rtihingtingting ek.ek oer of ootfff tsf s well.. out oou thef t morororree forforisa, they tave a a a l exp mastercard will be more of a currency headwinds, because they have almost 2/3 of their revenue is outside of the u.s. charles: year ago you and i were talking about maybe buy now pay later space revolutionizing everything. no one talks about that anymore. one of the darlings was affirm holdings this used to be 168-dollar stock. it is making a realize move. it looks like it would be breaking out soon. i don't know what the action is on some beaten-down names that were darlings a year ago, do you look at them, this is overvalued
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at 16but -- 168 but certainly down here it might be a buy? >> definitely a lot of names have come way in. they are good businesses over the long term. it's a matter of when given fed moves, et cetera, economic environment we're going to sigh them recover. the reality is consumer credit remains very, very healthy. again to quote an amex number, their write off rates are still under 1%. that is unbelievable number. prepandemic they were well over 2 1/2, 3%. consumer credit what people were concerned about like a company like affirmed, does lending to middle income consumers the consumer credit environment remains very healthy. on that one we're neutral on the name. we remain cautious on it because mainly of pricing pressure. the buy now pay later market has become very competitive in the
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united states. charles: less than a minute to go. the consumer obviously doing a lot better, right? going through a gauntlet. first it would be inflation, runaway inflation and then recession. is there enough dry powder for the consumer to carry this economy through what will be a turbulent 2022? >> look as long as job, jobs remain healthy, as long as the unemployment remains muted and we see the continued demand for labor, as long as the labor market hangs in there, we believe the consumer will be just fine. we are not seeing really any cracks yet in their spending, in their credit, in any of these major metrics. they're really powering the economy right now. they're very, very healthy. we're really not seeing any signs of it. so you know, we're really monitoring is the job market, the unemployment market. if that starts to weaken we might get a little bit more concerned but right now we feel very comfortable about the consumer's ability to sustain
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throughout the rest of the second half of the year. charles: so far so good. lisa, again, great call. thanks a lot. talk to you real soon. >> terrific. thanks, charles. charles: we want to go to chart school next to find out if growth is really retaking the lead. remember growth? also it is finally hire, almost, right? town hall "inflation in america," the hangover edition. email me, invested in right now. we'll be right back. ♪
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♪. charles: all right, so as we know the whims of the market change so quickly. investors, they're trying to move quick to, weather storm here, that meant in the last year, going out of growth into value, then of course this year out of value into defense. all of sudden take a look at this, growth is looking compelling again. i want to bring in adaptive market technician, ian mcmillan. ew growth acting good against the value names. crushing through the 50-day moving average.
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right through a resistance point that used to be support and there is a gap it might fill. can we be optimistic this can keep going? >> yes, so you're absolutely right, kind of on the backs of this weakness in energy industrials and these recent rallies in semiconductors and software we have seen growth names outperform their value counterparts over the last few weeks. unfortunately i don't see that continuing. you mentioned the resistance that we're running into and i kind see that coming into play and value outperforming over the intermediate term. charles: i want your thoughts on the 10-year yield. it gapped up today. this is my theory it goes, fill the gap that was created. we don't break out, come back down to the 270 area. if we don't hold it could change
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everything dramatically. how do you see this play out because everyone is watching the 10-year yield ault all day long. >> i agree with you, hard to say rates have peaked on this cycle. we haven't gone anywhere on the 10-year for three, 3 1/2 months but i agree with you below 2.7 i think you could see 2.5 before the end of the year. charles: ian, everyone that comes on the show, not everyone, but 85% upset the vix hasn't gone to 40! calls on the vix are at a record high but i'm looking at seasonal chart, seasonally you wouldn't expect it to go up because it always goes down into july and then in late july we start to make this huge move up. of course not coincidentally the market itself starts to go lower. is there still a chance for the vix to break out, actually go to 40 where a lot of folks say has to happen before capitulation? >> so you know data -- coming in on these contracts at the vix 40
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strike obviously lots of hedging going on out there. we see record numbers, that also kind of a product they're just being more money in the system and thus it needs to be hedged maybe but all of the adamant it has to happen leads me to believe it might not happen, charles. maybe we see the vix stay here and the market melts lower. >> you know, that is obviously possible. ii want to give you a shoutout n the homebuilders, pointed them out. great breakout here. the itb chart is here. it has gone almost straight up since you talked about it. do you still like the stocks because they reacted pretty good so far during earnings season? >> i do like them although i think itb, xhp, the two larger etfs are running into resistance here. it is hard these moves don't last too long in this environment. charles: got to be nimble. >> what do you like now?
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>> i like staying above 3900, go back to chemicals, mosaic type names f we drop below i look into tech again. >> u you have been spot on. have a good one. >> you too. charles: more evidence the middle class is being squeezed. not just talking about inflation. we get reaction from hadley heath manning. also janet yellen says a recession is not even in sight. what do you think about that? i can't wait to ask brian wesbury. i think he has a few ideas as well. we'll talk to him in a few moments. ♪ meet leon the third... leon the second... and leon... the first of them all. three generations, who all bank differently with chase.
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♪. charles: well the economic hits keep coming. after the open today we had the dallas fed manufacturing report, they saw general business activity decline 22.6 percentage points this month just from june. by the way the lowest level since may 2020. the third consecutive monthly decline. we also learned the chicago fed national activity 0.19. that is for the second straight quarter. 44 out of 45 indicators are negative. consumption spending weighed that index lower. i'm wondering throughout all of this is janet yellen is reading any of these reports. joining me the chief economist for first trust advisors, brian wesbury. janet yellen and the white house are splitting hairs, hoping mbr will hold off calling recession even if second quarter gdp is negative. they seem to put public relations before ideas and solutions to help the american public. your thoughts? >> yeah. well, i totally agree with that,
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charles. i call public relations is pure politics. so we keep playing games with words. we're not really doing what we need. but let me step back for just a second. we did unprecedented things. we have never locked down the economy before. we have never spent five 1/2 trillion dollars like we did in such a short period of time. we have never printed 4 trillion more dollars in just a short period of time. when you look at, what we did, the economy, when you look it down, it is like getting in a car accident. we broke our leg. then we gave everybody morphine. and when you're coming down off of morphine and you feel your broken leg it doesn't feel good. that is where we are today. so gdp is a weird number. it includes inventories. it includes trades. if we look just jobs, just industrial production, if we look at those things that are
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all up so far this year. so, we might call this a recession. it certainly feels like one. but technically two quarters in a row doesn't really mean a recession. charles: sure. >> although it is jobs, industrial production. charles: every time it has happened we have had a recession. >> yes. totally agree. charles: here's the thing, and i'm glad you brought up methodology to a degree because the federal reserve is going to have to act this week. many folks are frustrated with them. they say they're using outdated methodology, outdated data. >> right. charles: overreacting to things like the michigan sentiment report a couple weeks ago, couple months ago, that changed the whole tenor of their positioning. >> right. charles: can they handle the truth? can they deal with what is going on? does everyone have to soften it up, to borrow the morphine analogy, does everyone need the morphine? >> that's where we've gotten. we have addicted the economy to the spending because of the
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lockdowns. the lockdowns also destroyed the supply chains. now we have services starting to open up, right? because covid is kind of officially over now. we got rid of vaccine mandates to fly back into the country, that kind of stuff but the goods spending, i mean, charles, at the peak we had 25% year-over-year growth in goods spending, retail sales. in a normal year before covid we were going up four, 4 1/2%. that is how crazy, that's the morphine we gave everybody. and all that has to correct. we're in the middle of all of that. then on top of it the federal reserve completely changed the way it manages monetary policy in 2008. so interest rates, yeah, they're moving them up and down but they have nothing to do with the amount of m2 in the economy. we have m2 is the only way to fix inflation.
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raising interest rates, you might throw us into recession but if you don't stop the money growth, we will truly at that point, be back in the stagflation of the '70s. charles: right. >> then i don't know if you're going to ask me about this but now larry summers wants to raise tax rates. charles: yeah. >> this we learned the exact opposite in the 70s and the '80s, you cut taxes, you cut spending, you cut regulation and you tighten money. do that, you get a lot better after economy. charles: under sos like you want the fed to do more of the quantitative tightening ironically they have done very little despite all the fanfare. >> right. charles: even when they did it to the first time it was limited, doesn't go as far as everyone thought it would, as far as they advertised. >> right. charles: do you think they ever, seems like, they will mess around with interest rates all day long but it seems like they love to take the money out of the economy. what are they afraid of? >> yeah.
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well, here's what the federal reserve has done, since 2007, in 2007, the fed's balance sheet was $850 billion. now that is a lot of money i know, but today, here we are, 15 years later and their balance sheet is $9 trillion. everything in government, everything in government, it only foes one way it grows, it grows, it grows and the fed took the opportunity of the financial crisis and then the pandemic and they have grown their balance sheet by more than 10 times. charles: yeah. >> and i think, i think they don't want to give up that power. if you talk to financial advisors or money management firms, what do they want undermanagement? they want more money. >> aum. >> why would the fed be any different? charles: aum, assets under management. everybody wants it, fed got it. they ain't giving it up. brian, appreciate it my friend.
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>> thank you, charles. charles: for all the hand-wringing about official inflation as seen through the lenses of eight academics using government data, many are saying, you know what? the recession debate is moot. on main street where people are really struggling it doesn't matter. i want to bring in iwf senior director hadley heath manning. inflation is dominating polls, if you talk about what people will vote on. so how should policy or should policymakers including the fed take that into consideration, how the main street is reacting instead of strictly looking at numbers themselves? >> absolutely. main street is where it is at. if you look at people across different income levels in the united states, they have been looking at economy. you're already in a recession, when you poll americans, they feel people are in a recession. ronald reagan said a recession is when a neighbor loose as job. depression is when you lose your
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job. ronald reagan said recovery is when jimmy carter loses his job. this is real issue for american families tightening their belts, we're seeing a trickle effect across the economy. >> all the talk about extra money sloshing around out there. seen a record surge in credit card use. what does that say to you? to me, people are concerned or don't have the cash maybe the experts think they have? >> well, that is right, back in 2013. the fed did a study that got cited, talked about a lot showed that 47% of americans couldn't get $400 cash together in case of an emergency okay? that is a pretty big problem when many people in the american middle class don't have $400 around in case of an emergency. but what that says to me is that regardless of income level, there are a lot of people in this country who are living with very tight cash flow. they have committed their income, whether it is through a mortgage payment, to child care, to car payment, money coming in every month it is going right now.
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that is a difficult way to live, you're facing record high inflation, suddenly the grocery bill you're used to every week is a lot higher than the past month, the month before. what are people doing? racking up credit card debt. we hear a lot about student loans but i think credit card debt is next. charles: upper middle class is taking the biggest brunt, taking face value the excess savings that they keep talking about. households between 75,000, 127,000, take a look at chart, folks, they are saving less. they have less money saved than two lower income brackets. seems like they're trying to put kids in certain activities, save up for college, doing certain things not only they live the american dream hadley, but somehow they're invested in their children living it, and they're taking the biggest squeeze here? >> they're hitting inflation at groceries and at the gas pump. maybe not the families facing specter of having their electricity turned off if they
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don't pay their bill. they're also getting hit on the stock market side. these families might have enough money for investments here. they're looking at retirement account. they're feeling pessimistic. consumer sentiment is done with this group as i mentioned the ripple, trickle effect of this economy, they might patronize restaurants if they decide to cut back eating out. that affects servers, affects busboys, and affect industries that typically get consumer spending from the upper middle class. >> it has been a long time for me since i changed diapers. i read this morning 31 states charged a diaper tax. i didn't know that some are starting to lower them. all of these sort of nitpicky kind of taxes, regulations, burdens, they add up particularly for young families, aren't they? >> i have got one in diapers at home, charles. so i'm avery aware of this issue. i don't like terms like diaper tax or tampon tax. typically we talk about sales
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tax on these necessity items is a regular sales tax. some states are looking into exempting dip percent. some are already excepted diapers for children. some are excepting diapers for adults or both. these of course they are necessity items. people are not buying these things for fun. you can cut back on the cost of diapering if you do cloth diapering which is labor intensive. you have to weigh the pros and cons if you're a state lawmaker. you will lose revenue more items you except from sales tax. on other hand difficult time as you mentioned charles for people trying to get by. sales taxes are regressive and lower income families are trying to buy things they need. carve out sales tax for diapers, other necessities but they have to weigh the other side of the coin once you start exempting certain items will you except cribs, car seats, baby clothes and pacifiers too? it is an interesting question. charles: really is. but there is so many things like
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this though that we don't talk about maybe enough that regular folks deal with. maybe janet yellen and jay powell and rest of them don't even understand it exists, not anymore maybe. hadley, been too long, thank you very much appreciate it. >> thank you, charles. >> coming up a huge week for earnings. we want to get you settled in and get your pens and paper ready. maybe names you want to be long. maybe names you want to avoid, jay powell the pinata, everyone is taking a whack at the fed chairman. i don't think he is in a win-win position at all. elizabeth warren the latest to talk about how bad he is doing. we have don luskin here though. he will straighten it all out for us. he is next. ♪
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♪. charles: you know there is an old saying i need this job like i need a hole in the head? one has to wonder if jay powell sometimes mutters that to himself, particularly of late. this man is a sitting duck right now. by the end of the summer he will be known as powell the pinata, only a soft landing might help him guest away otherwise, someone will be upset with him. there will be general disdain for the chairman of the federal reserve. joining me trend macro -- >> macro. charles: i don't understand why they spelled it differently. i feel like the guy from the movie who reads whatever the hell is in the prompter. >> you mean the president? charles: [laughter]. i wasn't ready for that. i say you look better and better. you're also sharper and sharper every time i see you. you saw the thing from elizabeth warren in the journal, essentially jay powell's fed pursue as painful and ineffective inflation cure.
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now she is noting that more aggressive interest rate hikes will cost millions of jobs and won't address the cost of high prices. she added, bloodless language economists refer to this thing as dampening demand. she says it's a lot worse than that, crushes a lot of people, particularly poor americans. does she have any kind of a point in your mind there? >> look, you will have to forgive me in advance, you will hear something you never heard from me before, i agree with elizabeth warren whole-heartedly, she is on to this there is nothing powell can do to cause a recession and it is not clear at all if you cause a recession it will make gasoline prices any cheaper or food prices any cheaper. he testified before her in the senate banking committee couple weeks ago, she asked him will the rate hikes make gasoline any cheaper? she he said no, senators. she asked will the rate hikes make food prices cheaper?
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no, senator. you realize the rate hikes will put a million people out of work? don't you realize if you admitted inflation not have a fix, isn't it better to have a job with inflation rather than being fired with inflation? warren is a lawyer, powell is a lawyerhe did you know he is not an economist. charles: i always like when a government economist look at spreadsheets. they feel like they never step out to the supermarket. i fed like someone outside of that system would be more attached to the real world. >> yeah. charles: you by feel like he is kind of winging it from the seat of his pants. so maybe -- >> look, so let's be careful what you wish for, right? if you want a real economist, how about larry summers who just said a couple days ago, oh, well, we just need 10% unemployment rate that will fix inflation.
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oh, my god! what is that? this is like, saidism. >> see if you agree with another person in washington you normally don't. so-called chips act president biden pushing news on it. we'll get news today. it will be as little as 79 billion, as much as 250 billion. bernie sanders said this is this giveaway too industry that don't need it. thoughts? >> the planets are aligning. there will be a big earthquake. i'm agreeing with bernie sanders. with warren and sanders, both of them are saying the right things right now policy wise but their hearts are not in the right place. they just hate corporations. they hate the rich. charles: right. >> but you know the reality is, if you're going to be rich in a capitalist civilization like ours then be a good capitalist and don't go taking handouts from the taxpayers through the government. that's not successful capitalism.
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that is crony capitalism. if it is bernie sanders who has to call them out on it then fine. charles: you know what? there is a lot to be said about corporate welfare, right? listen, we don't want anyone abusing the system. especially corporate welfare. i think they should change make the rules, make tax system, make regulatory system. make local regulations easier for us to bring the factories back home. if you look at earnings reports, reshoring, onshoring is the number one term being used outside of recession. seems like companies want to do it. we shouldn't pay for it. not when they have the money. agree with you, don. i agree with the progressives on this one. thanks very much, my friend. don luskin from macro [laughter]. >> there you go. >> investors of course waiting on the biggest earnings reports of the year. they're coming right up. we'll get you prepared for them. the only way i beat the heat this weekend hanging out with "fox & friends" yesterday, including the dunk machine. that was me coming down the slide. that was a lot of fun.
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serious allergic reactions may occur. watch me. charles: there is a lot of reasons to be anxious this earnings season. one, they simply become more volatile stocks of late. the reaction to earnings. in fact, in the week after posting financials, the last time out the big five megacap names, three of them were down. that is a big switch if you check it out from the september quarter where most were much higher. joining me now henion and walsh chief investment officer, kevin magh. kevin, they have fancy acronyms, they sound cute, they roll off the tongue, they have all their own individual i issues at this point. >> absolutely. charles: we look at them a little differently. they have in common, obviously they're large, they have large influence over the markets. we get google, microsoft, meta,
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amazon, reporting this week. what are you looking for? >> take a step back, thus far it is 20% of the s&p 500 having reported q2 earnings. 2% have beaten earnings estimates and 56% have beaten revenue estimates. that is in line with historical averages of 70% beat rate that is pretty impressive what i think will be technical recession i believe declared later this week. sobering growth, 4.%, growing but slowest growth rate since 2020. charles: we've had blistering growth rates and blistering profit margins. at some point that is anticipated all that changes. isn't the operative still earnings? >> 100% it is still earnings. they're growing but slowing in the face of these inflationary pressures. the consumer continues to spend. the personal savings rate is
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4.4%, the lowest since 2008. the number of credit card transactions on a record pace during the second quarter. americans are still spending in the face of these inflated prices but how much longer can that last? it will trickle through into earnings. charles: we have key reports beyond the megacaps. ups will be important obviously. they will give us an idea of the supply chain here and abroad. >> sure. charles: you mentioned credit cards, visa, mastercard, they report this week. we get chip names. any moment we could hear news on the chip side. you're not really into chip because of this bill, right, this 79 to 250 billion-dollar chips act? >> yes. whether we agree with the chips act or not, intel will be one of the primary benefactors. nvidia will certainly not be a benefactor because of all their offshore processing. i like ups, visa, credit card, because they're part of the e-commerce ecosystem which is starting to pick up space with the back to school shopping season and holiday shopping season. i know we touched on this before i love the health care sector.
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charles: we have less than a minute to go so let's talk about it. health care. you're in merck. do you like them from a valuation point of view or defensive point of view other both? >> we've done the research at henion and walsh, we found health care is one of best performing sectors during previous recessions. how do you access health care? big cap pharmaceutical companies like a merck or bristol-myers squibb. dividends above 3% or smaller cap biotech names. charles: i love the way you lit up on that. i used to light up like that until i started getting lit up on it because it is so hard for me to find a great small cap biotech name. every day i wake up, one is up 80% because taken over. no dilling deal for the large drug companies to buy them. how you do you find ones that are prime targets. >> look for ones with fda level two or level three status, designation from the fdda or
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break through or fast track. that will get the process. axe some therapeutics, corona therapeutics we believe they will be acquired by large cap drug companies with -- charles: i'm glad you shared that knowledge. folks we'll be right back we hit the bike trails every weekend shinges doesn't care. i grow all my own vegetables shingles doesn't care. we've still got the best moves you've ever seen good for you, but shingles doesn't care. because 1 in 3 people will get shingles, you need protection. but, no matter how healthy you feel, your immune system declines as you age increasing your risk for getting shingles. so, what can protect you? shingrix protects.
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up. i got to tell you, it's one thie overreacting and take trades ont it's an all-out campaign to pusd sell everything and mover to th. they love to see you go sold fod market comes back and gets a neh andment to see you come back ine low. here's the thing, some of the rs happened already. in fact, when it comes to margi, wall street saying they want to. had if it's about 50% for the ct it's not throws. meanwhile jp morgan retail justw the heaviest selling since septs me some people are taking a los. some people are getting frustrag to try and break even a bit. here's the problem folks, be ca. if you're going to be in this fn it for a lifetime. wall street is banking on you t,
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learn your lesson, much like prn it shared fire with mankind andd buy passive funds. stay focused and stay in the mao learn, continue to adapt. also make sure you keep lookoutn self-and on the trades for buye. &%c1 thank you. charles. beginning with a fox market ale. how did this happen. last trading line. should be jam packed and the fes up two day interest rate setting


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