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tv   Making Money With Charles Payne  FOX Business  December 28, 2022 2:00pm-3:00pm EST

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know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit edward: china covid worries weighing on the market but not on the box office. "avatar" the way of water, eclipsed one billion dollars at the box office, even with covid weighing on china's business there. i would be remiss, filling in for neil cavuto, happy birthday to my wife. lauren simonetti in for charles.
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lauren: by the way, charles, "avatar" is three hours long. who has that much time? looking to put a dismal 2022 in the rear view. perhaps none more dismal than tesla on track for its worst year ever. it is doing worse than bitcoin that puts it into perspective. apple having the worst year since 2008. is it time to rethink big tech leadership, we'll have phil blancato, gary kaltbaum all on deck. tracy shuchart breaks down what is ahead for energy stocks which have a blowout performance this year. tens of millions use it every day, usually under 20s, tiktok face as total ban in the united states after reports that it spied on americans. all that and much more on
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"making money." ♪. lauren: all right, markets reversing earlier gains today, falling to session lows on fears of surging covid cases in china, just as that country plans to end quarantine for inbound travelers. the dow is down by 209 points. joining me now, advisor group chief market strategist phil blancato. phil, good to see you. we'll get to china. >> how are you doing? lauren: i'm great. let's talk about the data right here in the u.s. some of it better than expected, not today, pending home sales falling 4% in november, down 6 months in a row. look, buyers are getting cold feet before their deal, their purchase of a home closes. but, you know, isn't this going to get worse next year, phil? because we've been promised from jay powell and co, rates are going up. so what you get now, wouldn't that be quote, unquote deal for a house and a rate? >> not yet. i think there is a lot more room
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to go on the prices unfortunately. you see prices come up depending on market. five to 8%, some market as much as 20. you're starting to see a real trend in interest rates they will come down long term. the housing market has two things it will deal with. prices up 9% year over year have to get back further. month over month down not enough. more importantly interest rates come back down. second quarter of the year, see 10-year fall back down to 3.25, 3.5 at that point the housing market will be a catalyst. what the fed is doing, hiking interest rates, lowering price of homes, creating a demand issue, ultimately bringing down inflation. lauren: creating a big demand issue. we'll not see mortgage rates sub 3% or are we? >> no. not for a while. it will take better part of 1820 months if we get back there anytime soon. the fed hiking rates helped a bit. labor market is too strong.
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change their narrative, getting back to 2%, inflation will be difficult. stuck three, 3 1/2. mortgage rates stay around four 1/2. lauren: u.s. is considering, so are other countries placing covid restrictions on travelers from china, leaving the country, coming to the united states and other places because of this lack of transparency from beijing as their covid cases surge. you see this great reopening in china. also in hong kong but the market is not rallying. why is that? >> it is interesting because the oil market is acting unusual where we see the trend higher for the potential covid reopening but china, demand story on oil yet the rest of the world is very cautious here. what does it mean for a slowdown in factories what does it mean in travel, huge revenue driver for the united states and europe? it is cautiously optimistic which i think is the right play. right now it is worth watching but long term think of what the chinese consumer brings to bear.
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think how much money they bring to the supply chain and getting fact fully reopen by spring post covid outbreak. it will not be a straight line, lumpy for sure. this is worth watching this is a moment there is another side to covid, strong chinese consumer but at that also china going full steam which is deflationary for the world, not inflationary. lauren: right. meantime if you're living in china you are quite frankly phil, likely infected by covid. so your behavior hasn't changed. you're still stuck at home as if all these policies were indeed continuing. your pick, your top stock pick heading into the new year, what is it? >> it is what i like to talk about, conservative, fire-sale, one is a risky bet. first i start with caterpillar. when you look at the projected earning, fabulous long-term earnings. 24% margins. the stock is not cheap. this is safe bet. 2% dividend. company with tremendous cash flow.
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reopening story, a great job during the pandemic that is number one. number two i like apple here. think about it, they have 900 million subscribers. they're getting pounded as of lay. every person on fv, get on here, say buy companies with great cash flow. i agree that which one has great cash flow in apple. last one is crowdstrike. this is a risky bet. 98% of their revenue is recurring. what do they need from home, environment at home, software to protect, that software is crowd strike as well as institutional. my three ideas rearrange your portfolio i think they work well throughout 2023. lauren: caterpillar, apple, crowdstrike. phil good to see you. >> thank you. lauren: bring in kaltbaum capital management president, gary kaltbaum. hello. pull up the nasdaq. worst december in history down about 11% but you say, gary, there is nothing stopping the nasdaq from taking another leg
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down. gary, can it bleed anymore? >> yeah, new yearly lows beget new yearly lows. add in apple which is 12% of nasdaq 100, worst possible list you can be on new yearly lows. combined with other names. you mentioned tesla. we can also talk about adobe, amazon, oracle, qualcomm, microsoft, netflix. they're all in pretty much bear markets and deep bear markets. so i think there is more to go. if we break the 10,000 nasdaq, i think institutions will recognize it. i think they're still overinvested in these areas. i think we can have a pretty interesting first quarter to the downside unfortunately. >> what about the second quarter? >> i wish i knew. lauren: trying to be optimistic, gary come on. is there one tech stock you do like? >> not right now but let me give you the optimistic part about
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bear markets, 100% of the time they always end and lead to new bull markets but you just have to be patient through them because you never know how far they're going to go, how long they last. we just came off of a nine trillion dollar bubble created by jay powell, nine trillion in europe, created by christine lagarde. that has to be worked off. i think we're in the midst of it right now. the greatest growth stocks in history will be technology and medical and medicine going forward. it is not the right time right now. i still think we're in the throes of big institutions selling stocks into the market. i think you have to be very wary near term. lauren: patience is a virtue. gary, senator elizabeth warren tweeting about chair powell's she calls it his extreme interest rate hikes. it feels extreme to a lot of people, pushing our economy into a recession that cost millions of americans their jobs. she continues, the fed needs to remember it has a dual mandate, fight inflation and protect
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jobs. do you agree with her? >> about 99% wrong and i say that because look, i've been one of jay powell's biggest critics as far as printing too much money but his job right now is to tighten the screws but let's not forget elizabeth warren and friends massive record deficits, massive record debts, massive record federal spending which crowds out the economy and causes weaker economies and they just gave the certain finger to the public in the last couple of weeks with that gargantuan spending bill which by the way including everything will be somewhere in the neighborhood of 5.5 to $6 trillion, the government spending which by the way is paid for by the taxpayer, by the economy. that doesn't produce anything except their little fun things and i give them the plain big
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time longer term, looks like they will never stop. every time they are reelected they do worst things going forward and i don't know where it ends. lauren: gary, that is the thing that spending is really over five trillion dollars, that is inflationary which means the fed's job is never going to be done. does that mean the housing market, equity market, big tech where yields are critical how they do business they will never catch a break because the fed keeps hiking, keep rates there to kill inflation? >> unfortunately they have created a vicious cycle. inflation created by too much spending, too much easy money, keep spending. you got to tighten. keep spending more you got to tighten more, to calm things down. so i think we're in the soup here by these people that keep getting reelected because of the machine of re-election and here
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we go. we're not going to be at 31 trillion of debt. we'll be at 33, 35, 40. every time interest rates go up to fund that debt, goes up much higher and we're already, the amount of money that just goes to interest and not the things that are important is gargantuan already and i'm worried going forward next couple years they don't seem to want to stop. lauren: gary, as you said we're in the soup. thank you. cameron dawson, hello, the market today ask me feels tired, maybe not as pessimistic as gary is but tired nonetheless. santa came and gone, christmas is over, is the santa claus rally as we see right now, is it still possible. >> it is running out of time. we have only a couple more days to have the traditional santa claus rally but if we think about the reason why we're seeing weaker markets over the past few days, it really lies at the feet of higher bond yields.
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one reaction to the china reopening has been upward pressure on global bond yields because there is risk that is as china reopens it will stimulate and could possibly exacerbate inflation pressures around the world. so you've seen global bond yields start to climb again. that is also boosted by some better data that we've gotten out recently which means that all these expectations for interest rate cuts into the back half of next year, maybe they're a little bit too ahead of themselves. as bond yields rise, that puts downward pressure on valuations. we still think valuations within the s&p 500 are just about average now. they're certainly not cheap. which means that if we continue to see interest rates move higher, there is still more downward pressure on valuations to be had. lauren: then downward pressure on stock prices as well? >> exactly. i do think, sorry. lauren: i was going to ask what you see the s&p 500 closing 2023
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at? >> i think it is possible we end up right where we started, where we have a flat irk year, flat to down but the path to get there could be very wide. meaning that we could see very weak markets to start the year and then clawing our way back. or we could see strong markets, then having weaker periods in the back half of the year. i think when we look at a fundamental perspective what we see is a market today that is still too expensive, meaning it is just about average valuation but we also have earnings estimates that are still too high. the street still has earnings growing about 5% next year. if there is recession, much more down side to earnings but even without one, we see pressure on margins and lower revenue growth which would mean flat at best. lauren: what sectors do you like next year? >> we're sticking with the favorite energy sector as and inflation hedge. in a world where you see oil
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prices rise again, we i think it could be bad for inflation, inflation expectations. so other parts of our portfolio might not do as well. energy is a great hedge and it is cheap. we like health care as defensive. cheapest of the defensives compared to utilities and staples. we started to sprinkle in a little bit of materials. this is to get exposure to china reopening as well as potential for a weaker dollar. and so it is combination of those three that we have overweights to today. lauren: you don't include tech on that list and cathie woods, famous arc etf, cameron erased all of its gains from the past five years, losing over $50 billion in assets from its peak in 2021. is there any recovery in sight for cathy or for big popular tech in general? >> well i think that the story of arc is the perfect tortoise and hear.
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compared to berkshire hathaway which is slow and steady is the race and boom up in ark and the big crash now annualized at negative .3%. it goes to show steady investing is important. our concern about the areas, speculative parts of market they're liquidity sensitive. meaning as the fed is in tightening posture, as long as you see money supply growth continuing to decelerate these kind of stocks will continue to struggle. you might see little relief rallies. they can be powerful on a percentage basis but they're not likely sustainable until we see that true pivot by the fed. lauren: they were names that could do well when rates were super low and investors were eager for any sort of return. the situation has changed. cameron, thank you for joining us. >> thank you. lauren: coming up the clock is running out for tiktok.
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the house banning the app from all staff devices because of security concerns. but first it has been a banner year for energy stocks. will that sector beat the market for a third-year in 2023? we'll get tracy shuchart's answer right after this. ♪. waiting.
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lauren: russian president vladmir putin is now panning russian oil exports to countries with that 60-dollar price cap. senior market analyst price futures group, fox business contributor phil flynn has the latest. phil? >> lauren, call it the russian vladmir putin basically threatened all countries that join in this price cap will not get oil from february to july. now the market is not taking it very seriously at this point because there is a lot of time before this price cap threat goes into play. we're not even sure what is really going to trigger it. involved in it just don't get russian oil or if they try to put together a contract that is over and above the price gap.
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the price of russian oil is below the price gap. some traders don't think this will come into play. people say others say don't underestimate vladmir putin when he made threats before he followed through. some traders are saying take this seriously. lauren: phil, thank you very much. you know, i'm afraid to call him, call it a bluff, the threat a bluff because you say, people tell you you're in the know with all these analysts, you are an analyst that he, don't underestimate him, he moved market before. phil, thank you. energy stocks posted a record this year, not just a record, energy is up 60%. every other sector is down 41%, yet energy up 60% in 2002 leading wall street to bet that the sector will outperform again in 2023 with that we buy hightower resource advisor ceo,
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strategist, tracy shuchart. good to see you. >> good to see you. >> tracy, dot gains continue this year for oil and energy? >> we think it continues. energy has the lowest price-to-earnings ratio than any sector in the index. one of only two sectors in the s&p 500 seen upward revisions to earnings expectations. wall street is busy slashing earnings across the board for every other sector. that really under scores the bullishness in this market, that they have the highest share of buy ratings. 63% according to fact set. energy companies have been very prudent this year, delivering on things investors want to see higher dividends, paying down debt, stock buybacks even against a backdrop of high oil prices they remained rather conservative. this is what stockholders want to see. lauren: what about the fact that the administration wants to put
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them out of business? >> well, actually, that is adds to the bullishness of this situation. i mean we're not going to see energy companies returning back to the drill crazy days, particularly in the shale patch with the current green energy backdrop of the west. they will start, you know, they will continue delivering to stockholders which is, which is working for them. lauren: we had plunging temperatures this past weekend. many americans in crisis. people died from the cold. is this preventable? we were talking about green energy and the administration pushing fossil fuel companies, quote, unquote, out of business. can the electric grid handle emergencies that we've seen? this past week and at other times because they're being pushed out to make room for renewables? >> yeah, absolutely. this is a problem. the majority of the problem we are seeing this particular
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winter is in the northeast, which is not really a new situation. that area is constricted because of a lack of pipelines which have been struck down over and over again by environmentalists and governments. the administration didn't help either. we knew this was coming. the administration could have issued jones act waivers to get more supplies to the northeast ahead of winter. but they refused to do that. and then finally, really we have aging grids that need to be overhauled. no one wants to pay money for that. lauren: it is even worse in california, they're flat-out making california an island when it comes to being able to meet their energy demand. you touched on this a bit but were utilities and the grid operators so unprepared for the big demand? we got the weather forecast. it is not always right but it is right sometimes. we knew peak demand was coming. how come they were so unprepared?
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>> i don't think that it is not necessarily they're unprepared is that again we really need to, we really need an overhaul in infrastructure and what, what we've been doing is trying to put new technology on top of old technology and it is just not working as oil, as energy demand grows in the country. so, really again all boils down to the fact that we need a complete overhaul and we just don't see anybody, any governments really trying to initiate that kind of a spending. lauren: what does an overhaul look like? what you say overhaul what do you mean? >> that trillions of dollars basically tear down the grid and start from ground zero all over. >> the likelihood of that happening? >> is slim to none. lauren: zero. tracy, thank you for your thoughts. >> thank you. >> coming up, the fed's first meeting of 2023 is just a few
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weeks away. could chair jay powell become even more hawkish in the new year? security concerns over ticktock continue to grow -- ticktock with the house banning the app on all employee devices. we'll break that down with lisa garber next. ♪.
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♪. lauren: the house of representatives is banning tiktok from government phones over security concerns, but some lawmakers say it just doesn't go far enough. hillary vaughn has the very latest for us. hillary? >> reporter: lauren if you're a member ever congress or a congressional staffer and you have tiktok on your work phone you have to delete it immediately. this tiktok ban applies to
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government devices so it is not stopping lawmakers, congressional staff from using tiktok on their personal devices. some lawmakers want to do more to get tiktok off of u.s. smartphones. >> this is just a first step. they're using all kinds of technology to follow and trace us. biomet tricks, everything they can see on our phone and where we search, everything. it is really important that we keep the chinese communist party in check. >> yeah. >> keep them, prevent them from continuing to do surveillance at the mass rate. >> reporter: a tiktok spokesperson is pushing back again the ban saying this, it is troubling rather than encouraging the administration to conclude its national security review of tiktok, some members of congress pushed for politically motivated bans, that will have nothing, do nothing to advance the national security of the united states. tiktok is still trying to convince government officials that they are not a national security risk, and get the green light to stay operational in the u.s. while still being under
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chinese ownership as part of beijing based parent company bytedance. even though tiktok insists the chinese commodity nist party will remain hands off the american user data not all lawmakers are convinced. >> i think any business that is in bed with the chinese communist party, we need to take a real long hard look at what they are trying to do. they have been doing this for decades, whether it is ip, they're stealing ip from american companies. whether they're using apps to spy on american citizens. >> reporter: there have been several states pushed to ban tiktok on their state devices but there is a movement here on capitol hill to try to get an all-out nationwide ban on tiktok for all-americans but lauren, with about a third of the country already on tiktok, using tiktok every day, something like that would get a lot of blowback. lauren? lauren: a lot of especially younger users, hillary, china whatever, has my information anyway. i don't care. that is the reaction to get if
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you have a teenager at home. hillary vaughn, great to see you, thank you. with that we bring in cybersecurity attorney leeza garber. welcome. in hillary's piece we heard from new york congresswoman claudia tenney we need to advance national security. we're concerned about national security. how do you advance those concerns? is it outright ban even though that is not likely? >> there are multiple security concerns with tiktok and to contextualize it. the u.s. government has been negotiating with tiktok, investigating its security practices for over two years. there is some frustration how long this process has taken. there are concerns where data is stored, who has access to it. what kind of security protocols are there. while tiktok claimed that the american version of the app stores all of its data in the u.s. and singapore and chinese nationals do not have access to it there are conflicting reports who is able to see it. under chinese law state
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officials do have right to access the data. there are some conflicts there. there is a process by which the u.s. could attempt to ban the app through legal channels going beyond government employees use the app on government dedicated devices. it is complicated. we have over 100 million americans using the app. there will be quite a bit of push back. the actual logistics banning the app, app stores on google, apple stop downloads, users already have it on their phones. lauren: should the department of justice regulate it? >> well it would be great to have better regulation in terms of citizens privacy in this country. there have been discussions of having a federal nationwide bill on consumer privacy. we still just have it at the state level. when we're talking about an app based in china which is collecting billions of data points on american citizens every day, we don't know exactly what they're doing with the data, how they could manipulate it in terms of influence and
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content moderation, regulation could look like a ban. it could look like better negotiation process with the app. so we have better insight into the security practices. lauren: we have kansas joining 19 other states. so essentially, almost half the country banning tiktok on state devices. i just, i don't know where we go from here? yes just their state, their local government devices but where do you go from here? >> it is tricky. as you said, even having about 19 states ban it on their state issued devices isn't, mostly symbolic gesture because as you mentioned you have millions of teenagers that use it every day that might be saying well my data is already out there, so what the serious problem here? but really we have to be concerned with how the data is being secured, who has their eyes on it. that is the thing we should be concerned about in this country for american based apps as well. lauren: what do we know that china has done with any data
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that they have assessed from the u.s.? do we know what they have or what they have done with it? >> much of this is based on allegations but what we do know is that we've heard reporters say and journalists say their data has been accessed so that the chinese government can see what sources are on tiktok. there are other conflicting reports like that. tiktok has said we're having all the servers managed in the united states and singapore as well. we can have a third party come in and moderate and make sure everything is done by u.s. standards. but that might not be enough. again, the negotiations with the u.s. government and tiktok have been going on for two years. lauren: yeah. i know. we're still, we've advanced a little bit but it feels like we're stuck in the same place for the most part. leeza, thank you. >> thank you. >> coming up, the biggest risks to the market in the new year. how to play them in the new year with david nicholas and luke lloyd. all that at 2:50. the dow struggling a little bit
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today. the broader market down 30 points, as the federal reserve pack as punch this year. can we expect more hawkishness from jerome powell in the new year. i will ask former fed insider danielle dimartino booth right after this. ♪. get powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to to get started. powered by innovation refunds.
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dimartino booth. it has been a while, danielle, good to see you. >> good to see you. >> fed meets end of january, their first meeting of the new year. do you think jay powell made any new year's resolution to change his message, or do you think he sticks to the script? >> well, the music was apropos when doves cry. jay powell will continue to push forward, not unusually large rate hikes, but nevertheless another 25 basis points a quarter of a percentage point hike on february the 1st. and more importantly, we're reading a lot more about this, as m-2, money if you will, money in circulation, it hit zero for the first time in the history of money growth in november. we have never seen that year-over-year and we're starting to feel the effects of the fed shrinking its balance sheet, what we call quantitative tightening. that is continuing on month after month after month the.
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lauren: all of these changes, this tightening it takes time to trickle down, for really for the economy and different sectors of the economy and industries to really feel the pinch. the job market, danielle has not felt the pinch yet, not if you ask me. do you expect the job market to get hit even a little bit in the new year? >> you know it is interesting you ask. there is a company called light cast. used to be called burning glass. every two weeks they publish job postings data benchmarked to 2020 before the pandemic hit this last posting we sue de27, all job postings nationwide are down 5%. lauren: okay. >> we have not seen a negative sign in front of that for a very long time but to your point about the lag effect, that the fed recently published a paper showed instead of an 18 month period over which time you start to feel the pinch of monetary policy, now it is down to 12 months that means the first quarter of 2023 that will round out the first 12 months since
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the fed began tightening march of this year. lauren: a lot of people we speak to say, first half of the year is going to be rough but then things are going to change. it will be better for equities in the back who have, because we'll be maybe through worst of the recession or what feels like recession and markets are forward-looking. would you be ascribe to that oar hold a different viewpoint. >> i am a bit skeptical. i will back away to politics. the p.i.n. much of recession is not necessarily going to be, to be relieved quickly by any, by gop led house of representatives. they know that jamming money into households bank accounts caused a lot of inflation. i don't think they will go there again. i think that will be a change agent in the new year is that we'll be seeing less in the way of handouts from uncle sam. lauren: right. just as the debt that you took on, just for the holidays,
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holiday debt is up 24% to an average of $1550. now rates have gone up. so if you have to pay off what you charged on your credit cards, paying off your balance, that has become incredibly more expensive? >> you bring up a great, great point. if you listen to tax experts, they're saying that unlike 2022, tax season when u.s. households saw huge increases in their income tax refunds, all of those unemployment benefits they were not taxable. the child tax credit and cash was forgiven. unlike last, last tax day, this tax day will not give a lot of households relief to pay the credit card bills you cited down. that is another change agent into the first quarter. lauren: a lot of change agents. danielle, thank you very much for the perspective. >> thank you. >> coming up, southwest canceling thousands more flights today and they're not done. it is only 2:45. they have canceled for tomorrow.
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the latest update coming right at you. first one of the biggest risks markets into next year, we'll ask luke lloyd and david nicholas. ♪.
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tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. ♪. lauren: hope you have plans. the new year is right around the corner. investors are bracing tore what could be another roller coaster kind of a year. not sure how much we can take, nicholas wealth management president, david nicholas, and luke lloyd. david, luke, thanks for joining us. david, you first, what advice are you giving your clients going into 2023? >> yeah, lauren, we're telling our clients to keep their watch lists ready. a lot of stocks, a lot of different sectors showing relative strength. we're not seeing a clear buying opportunity right now. if you look at major indexes from a technical standpoint, s&p, nasdaq trading below 200-day moving averages. that is not a very bullish
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signal for stocks. this is what we've done for our clients, remain defensive going into the first quarter, a much better buying opportunity around the officers quarter. lauren: buying what, david, or you don't know? >> you want to own sectors proven they could win. look at sectors like energy, like health care. we also like treasurys. lauren i know this is boring. we started our own etf. the ticker symbol is fiax. it owns treasurys yielding 4 1/2% now. we sell options on top of that to generate additional few percentage points. you can own things like energy, health care, treasurys, in a sideways market. i think the markets will be exactly where they are today this time next year. so investors lose time which is why we want to own things paying us dividends. lauren: fiax. luke, got it. what are you advising clients? >> so right now we're telling clients we're bracing for recession and maintaining
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defensive stands for something similar, right? patience is a virtue. investors forgot how to be patient. everyone wants instant gratification, especially those down money. people are down money. people forgot patience because patience got nowhere for a decade. buy the dip, let it rip for 10 years. that is cool when the rates are 0%, economy booms. when you enter stagflation, recessionary environment you need stocks to come to you, not buy things. there will come a time when you switch from defense to offense in your portfolio to make back up the losses. now is not the time. lauren: when is that time? you sound so depressing luke? >> i think time will come middle of next year. i hate to sound depressing. i'm an optimist at heart i really do. lauren: are you sure. >> a lot of economic pain. unemployment, ticking up 5%, 6% area. when you look to change the offensive stance. i'm not saying you can't buy any stocks right now. you can't go out there to chase
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everything right now. lauren: everybody is trying to read the fed tea leaves right now, play the interest rate timing clock. what is truly the next catalyst to the stock market? you first, david? >> yeah. i do think a lot of investors think we'll have this big economic decline next year. i just don't see it. i think we'll have a blah year for earnings. that is a technical term, lauren. lauren: blah. >> what we'll see a market that is okay and earnings okay and investors will be confused. catalyst for next year when the fed starts to stablize rates. we're creating 150,000 to 200,000 jobs a month, lauren. this is not economy declining anytime soon. we think we're inside ways market. i like energy. i'm a big energy bull. we think the names do well next year. lauren: energy sector is up 60% this year. do you like energy david, luke, switch it up. >> i do think energy will be good for the foreseeable future especially as we're in the winter here in america and china just reopened their economy that
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will increase demand. i think energy is a good spot to be. the problem everybody owns it. it is a crowded trade. so i wouldn't be there too long because especially we do enter more detailed recession we think coming nexter. >> lauren: fine. everybody did or still does own tech. david, what about big tech in the new year? is it cheap enough now with tesla down 70%, meta down 75%? i have my list here. google down 39%. microsoft down 29%. amazon down 50%. meta is down 65. apple down 26. i mean is it cheap enough now. >> that seems like the best shopping list ever at those prices but we're still saying wait on that, lauren. we took profits on tesla last week. it was painful to do it. we i think could see tesla under 100 bucks a share. there is a time coming. we're getting close. we're not continuing to pay multiples in a year where earnings are not growing much. i still don't think it is right time to buy.
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i like health care, energy in this environment. lauren: david, you buy tesla at sub 100? >> i would. sold it at mid 100s. 85, all day every day. putting money back to work in tesla. lauren: luke? >> no, i would stay away from lot of big tech names. i don't i this you will see true can patlation in the market until tesla get hammered. when valuations get attractive enough compared to future growth, i just don't think we're there yet in a lot of big names. we picked up as pen aerogel. this is stock is up 80%. i don't know if tesla are or any ev makers will be top dog. most ev makers are too expensive for dollar standpoint but evs are pushes on us whether we like it or not. we'll buy the arms dealer for evs, that is aspen aerogels. lauren: thank you, we appreciate it.
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no way home for many passengers, booked flights with southwest. they canceled 2500 today, 250000 plus. now shut west is facing federal scrutiny. >> this is unacceptable situation. you look at number of passengers who are stranded. how hard it is to get somebody on the phone to address it. from what i can tell southwest is unable to locate even where their own crews are, let alone their own passengers, let alone baggage. i made clear our department will be holding them accountable. lauren: transportation secretary pete buttigieg vowing to hold the airline accountable. we'll tell you what exactly happens when they decide to do that. ♪. final check on the markets when we come back. ♪.
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-hey there. -hey. -hi. hey there. how are you? i'm with disabled american veterans. i was wondering if you had a quick minute to thank america's veterans for their service and sacrifices -of course, why not? -oh, sure. -absolutely. -sure. all right. well, come on in here. i'm just going to hit record on this. i would like to thank you from the bottom of my heart. i can't even think of the words of how grateful i am. i want to tell you guys how much, how much we appreciate. but most importantly, i want to thank you for your courage and bravery. wow. thank you.
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someone here who'd like to say something to you? oh god, you guys are awesome! someone has something they want to say to you. oh my goodness! how's it going? awe! so i will let you know how much appreciate it. how much we appreciate it! just feel honored, for everything you've done. thank you for myself, thank you for everybody. i get to live every day, you know, in peace because of yo a lot of people thank us, but we want to take the time to thank you honestly, for giving back. and when you gave to dav, you are supporting veterans like dave and myself. so thank you so much. thank you, you guys are amazing. thank you. thank you. you can say thank you to our nation's heroes, by calling the number on your screen right now, and giving your monthly support of only $19. say thank you by going to right now,
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and give just $19 a month. when you do, we will give you this dav blanket as a thank you and a reminder that you support those who served please call or go online to right now. your support says thank you to our nation's disabled american veterans ♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated
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my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, and book your free hearing evaluation. lauren: the traditional santa claus rally feels far away with the dow down 203 points and the nasdaq down 110. let's quickly show you generac and so it's soaring and stocks e up 150, 75% from here. that's what it's lost as the worst performer in the s&p 500 this year. kelly o'grady in for liz claman. kelly, good to see you. kelly: you took into consideration lauren. i'm putting out the milk and cookies. i don't know where santa is. lauren: keep pouring


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