Transcripts For FBC Making Money With Charles Payne 20240712

I want to be careful to say that if im confirmed you would not be getting justice scalia, you would be getting justice barrett. Charles well have reaction from the white house on that and more. All of it coming up on making money. Charles a day after a monster session own the market today feels like the dreary weather in new york. I think the technical term for it is blah. Strange anticipation. You have two major events that could provide catalysts not only for the companies themselves but for the broder market. Amazon beginning the twoday prime day. Apple unveiling highly anticipated iphones and some other products. Speaking of which technology is sizzling still after a pause, part of the reason i think goes beyond the hot products and services. What happened to all of the breakup risk . You remember that last week . Congress released a 451page report. Democrats leaning heavily towards breaking up the gatekeepers of the digital economy. According to a report from mit congress flopped big time and failed to make the case. While the behemoths are enjoying enormous growth, but they are not Meeting Department of justice standard of two thirds market share that could constitute a monopoly. Google 29 digital ad share. Facebook 23 . Amazon just 10 of digital ad share. With new products, services, no government breakup is the sky the limit for these companies . I want to ask courtney dominguez, payne Wealth Capital management, a group im not affiliated. Some block, securities analyst, dani hughes and belpointe chief Market Strategist david nelson. David i know you own some of these companies. I do. Neil charles here is the thing i think they have tremendous up side almost unlimited but you still think they could be called monopolies, right . I think they can. Look at it this way, charles, when companies become more powerful than government and the elected officials that watch over them, you can bet they will find a way. To that point the sherman antitrust act you were talking about earlier, that was formed in 1890. It took out standard oil 21 years later. Monopolistic power is not just about price but choice. Anybody look on the program look at Google Search and not call it monopoly. Not just price. Facebook Mark Zuckerberg has dictatorial control over content. Freedom of speech. They will find a way to make these companies smaller. Charles courtney say there are alternatives to those, to davids point from an investor if im in the stocks i kind of dig they do have so much power. As a citizen maybe not so much but youre in the investment industry. Where do you come out on this . Yeah, i mean, i do want to look at these also from a price standpoint. Were seeing these things are trading at really high valuations they will have to continue to do things to make sure theyre keeping up with the earnings expectations of these companies and can they keep going up to your point . Probably. I think if you look at the late 90s, early 2000 we saw the tech bubble we saw companies at lofty valuations we thought they cant last but it did for a while longer. You want to look could it still go up . Yes. There are a lot of other places in the market that are a lot cheaper right now and could be food values as longer term investor. Im not bearish on these things but i do think there are a lot of opportunities to take a look at. Charles i know, dani, youre more specifically concerned about google here. Yeah. I mean with google there is a large integrated ad Tech Service Provider and they have amazon, facebook, at t running right behind them and about last year 71 of revenue was actually from ad tech it, uses the web browser chrome, which is the most popular in the United States as well as android to drive that growth. The reason this gives me pause as an investor because in january google and and agreed they would phase out their cookies they use on chrome which would drive a lot of revenue. They also recently said if theyre required to eliminate these cookies immediately because of any kind of governmental intervention, that could impact revenues by about 62 . You know ad tech is very complex. The way they do business, that is the way they do business and i think congress of the United States and many other places could actually tell them to do things differently. So that is where i see some risk. Charles all right. Well you know, the incident we do know has had a huge advantage during the covid19 crisis. Consumer spending is better than expected overall. Retail sales coming out on friday. Courtney, i want your thoughts particularly as we watch two of the big names, right . Apple which is starting to sink here, so far, people just not impressed i guess so far with the presentation but that is certainly one of the big names that we key off. What are you expecting . Can the consumer keep this going . Im actually very optimistic we could see good numbers come in. I think when you look at a couple of pieces of data, we just did get the cpi numbers come in. They are leading to showing that consumers are still spending. They are kind of moving beyond covid and starting to spend, for example, if you look out ever home spending on food, increased increased going down. People are spending on Different Things and still spending money. What is also kind of interesting, if you look at europe, for example, we saw the eurozone retail numbers came in. They hit and all time high. As were seeing kind of spending across the globe, not even just the u. S. Has been beating expectations i would not be surprised if we continue to see that when you look for those numbers earlier this week. Charles right. Speaking of which, dani, after the close, yesterday, big news out of disney. An attempt to reach more customers. Sort of direct to customer theme, wall street loves the news. Theyre restructuring. The priority again, is the consumer but how much of a gamechanger is this . I mean weve talked about this disney plus channel being a game changer when they were still showing on netflix, right . It is amazing the growth that they have had just since november of last year. 60. 5 million subscribers. Compare that to netflix had a big huge head start on them, they have about almost 200 million subscribers. This is something that disney said they have been, we were anticipating but the covid crisis really pushed this forward. I think it just shows us that the experiential disney is going to be waiting for a little while and it is really just direct to the home. They will focus all their efforts on that. Charles we had a big institutional investor, i think it was van lobe, actually called out disney. Get rid of the entire dividend and focus it all on content. So theyre not going to win this thing just because theyre disney. Netflix has a pretty big lead. Circle back with you, david. I know your concerns about these companies being monopolies. By the same token though, i know you own a lot of them, you also have apple and amazon what do you make of the action so far considering how big the day is supposed to be for both of those companies . I started checking past couple days we started to moving back to the large cap secular growth. That actually had me concerned because i view that as more of a defensive move. So that point, they are great companies. They have fabulous products. I think they will be regulated down the road. Some may be smaller. I think the most likely to be broken up to danis point is google. Their dominance in search. The fact that i think the ceo of this company kind of lost control. It is actually the worst performer of the large group. Charles lets go to earnings, guys. Earnings season beginning now. It is starting to pick up, specifically banks. Dani, jpmorgan, citi beat on the top and bottom lines. I thought it was amazing, the Loan Loss Provisions down dramatically and yet these stocks are getting hammered yet again. What gives with these stocks . Well, preopen they were actually up. When the news actually broke they were postively trading. Since then they have actually both traded down. Citi down 4 last i looked. Jpmorgan by almost two. Charles right. You know i think that financial activity and the market activity are still going to boost these banks over the long haul especially through corona, through really low Interest Rates. I think theyre going to make up for it in the activity in the marketplace. That means ipos, asset management, mortgages and any kind of activity on the financial side that is really driving the consumer. I think that even though these beats were really great, yearoveryear, some of these numbers were phenomenal. From jpmorgan, Consumer Banking was down but trading and Investment Banking commercial banking all much higher. Same thing with citi . Charles but that always feels gimmicky, right . A bank is a bank. All the other stuff theyre doing, maybe they have lost their way. Certainly the market thinks so. I want to pick up on that with you, courtney. Talking about Interest Rates. These yields have been creeping up. The 10year yield i think could be on its way to maybe much higher from here. I think it benefits stocks. What happens if we do see buying yields continue to green up like this, courtney. Im glad you bring that up. I dont think it is getting enough attention that people assume Interest Rates are low. We are starting to see the 10year treasury rise. Were just talking about the banks which are still a good valuations. Theyre not still performing as well as some other sectors. But the increase in the 10year treasury is really good thing for the banks. That will help their net interest margin. Charles all right. Were seeing them come out beating expectation. Charles okay. Specifically a few years like the banks are a Good Opportunity right now, given information and theyre cheaper than rest of the market. Charles im glad you guys like the banks because at some point they will have to react to good news without going down. Courtney, david, dani, always a pleasure. Thank you very much the coronavirus is changing how we live and work we know that but it is also changing where we live. For the most part a massive exodus out of big cities. We have some more on that coming up President Trump on the campaign trail, shaking his tail feathers having a grand ol time 11 days after his coronavirus diagnosis. We have White House Deputy Communications Director Brian Morgenstern next. Charles President Trump set to hold a rally in a battleground state of pennsylvania tonight. It comes just 24 hours after he held his first rally since being diagnosed with coronavirus. Joining me now White House Deputy Communications Director Brian Morgenstern. How is he feeling . Some people said he is too early to be back on the campaign trail. Sounds like he is having a lot of fun. Charles he is doing great. He is well above of the time the cdc recommends. His doctors cleared him. He is not at risk of virus. He tested negative. The doctors put that out as well. He is raring to go. He wants to visit the American People as much as possible. Theyre ramping up to do multiple rally as day as you saw from last night. He has his dance moves ready to go in every swing state from now to the election. The American People are so happy to see him out there. Charles there is two things. The crowds, the crowds are absolutely amazing. You know the media gets to complain about no masks as a way of not really reporting on the magnitude of the love out there for President Trump. Also, this schedule. Can he keep up the grueling schedule . There is no doubt it pulled him over the finish line four years ago but can he keep this up . Charles, the president is significantly older than i am. He has got about 10 times as much energy as i do. He is unstoppable. And he is competitive guy. He knows it is important to win this race. He knows the future of the country is at stake. The radical left is still trying to remove him from office. There is rioting in certain places. Theyre tying to pack the supreme court. Theyre trying to take away fundamental rights, free speech, religion, the second amendment. This is a critical, critical time. And the president knows that. He will not let anything stop him from taking his message to the American People. Charles brian, get your thoughts what President Trump is saying about judge Amy Coney Barretts confirmation hearing. From everything ive seen today, she is absolutely crushing it. Yeah. She is a terrific judge. A terrific person. A working mom from the midwest. A wonderful symbol for our country, for young women. Someone to look up to. A fairminded judge who will interpret the constitution as written which is really what all americans should want in a justice. The president has made a superb choice. She is demonstrating just how great of a choice she is through other conduct in these hearings and it is really a testament how far off the deep end the left has gone, this position we should uphold our fundamental rights and interpret the constitution as written, the fact that has become controversial for the left is really a critical fact here. Charles yeah. So interesting, that some one who is reading a teleprompter for a living to watch all the lawmakers try to do it. She has a notepad with with a little note at the top and Everything Else is straight off the top of the head. I have to ask you about this before i let you go. Two big losses for democrats challenging voting rules. One in georgia. One in texas. One ruling preproposal to relocate Voting Machines in texas. Reinstating order of dropoff sites. The governor made it limited, fewer. We see a surge in early voting. How critical is this outcome, will it add to any controversy . Look, charles, as the president has been very outspoken on this, it is very important one person, one vote, that the votes are cast by citizens legally permitted to vote. Not people who passed away. Not people ballot harvesting in a way that is collecting ballots. We saw some investigation in minnesota about ballots being purchased . I mean, goodness. Charles right. This is scary stuff. The president s been trying to shine a light on these things and encourage poll watchers to go out there to make sure were having a fair election. It is really critical whoever wins the race is dulyelected president. That is an important thing. The president will keep speaking up on that. Charles amen. Brian, great seeing you. Thank you very much. Well talk to you again very soon. Folks, do not forget, im hosting a virtual town hall. It is called America Votes together. October 27th, 2 00 p. M. Eastern. Well be days away from the election. Our Economic Future definitely on the line. Send us your questions about the economy, investing the Housing Market everything. Message fox business on facebook or instagram or email us at investedinyou foxbusiness. Com. It is apples big virtual launch. It is underway right now. Were monitoring events and bring you the headlines. Looking at stock people are not thrilled yet. They are thrilled with the biotech industry. Biotech and ipos are through the roof. What names should you be looking for . People keep moving during the coronavirus pandemic leaving the big cities. Here is the big thing. Where are they going . Tweet me your thoughts, where would you go if you had to abandon new york city . Cvpayne. Well be right back. In your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Charles no secret americans are moving during this pandemic but now were getting an idea of just how many. This year has seen 4 total increase in the amount of people moving. 2 being permanent but it is not only about how many are moving but where theyre headed. Liberal invasion of red state america author kristin state state joins us right now. Americans are flocking to small texas towns at the top of the list. Kristin, you called this, you talked about the exodus even before the coronavirus came but youve been worried too what these folks bring with them, right . They bring sort of the blue state mentality in the red states even though they couldnt afford to live in the blue states. Thats right, charles, i had no idea that the trends i was following were about to blow up on a unprecedented level. A perfect storm of covid, Economic Uncertainty and increasing urban crime prompting waves of americans to leave big cities to rural areas. This is accelerated by work place attitudes that are open to remorning work. There are no hard data for this year but preliminary real estate data suggest a lot of these moves are permanent. New york city alone is expected to lose a quarter of a Million People to up state for good, with two million moving to places like florida, texas, rural new england. Most of the people are leaving [inaudible] new york city was also phasing a massive hole in its budget. Charles so, heres thing i find really interesting. We had a list of rich new yorkers fleeing the covid virus and riots can about tote hamptons. The rest of americans are heading down to texas. I find it so interesting people leaving these areas, before this year, could no longer afford to live in the cities, cant compete where you have income equality is through the roof. Ironically they will go to places like georgia, texas and they turn these red states into purple states. What is it about them not getting the complete epiphany . Imagine pulling up your roots, the main reason you have to leave you bring that with you . It is very frustrating, a lot of people are going to where the jobs are. Were seeing not just people leave blue states for red states but also corporations. When the corporations leave, they br