Us, charles payne. Charles ill grab that baton. Thank you very much. Good afternoon, everyone, im charles payne. This is making money. Stocksal i thinking on a weaker than expected jobs report. Investors can sort of ignore the earnings season which, in my mind, has been something of a bust. But heres the thing, the buy on dips crowd can has been licking their chops. Were starting to make the move, but people are looking beyond just the normal suspects. Well investigate opportunities outside of tech. Also again with that big jobs number coming in below consensus, where does this put the Federal Reserve . Jay powell hinted over and over again that the rate cut could come when we get a jobs report, and what does this mean for main street . This is not great news for main street. Yet tim cook, i said i thought he needed more than just a buyback program. Little did i know he was going to unleash a historic buyback program, 110 billion. Ill ask dan flacks, what about the rest are of the report . If does apple need a. I. Now . If you cant miss our ode to Small Business in the tradition of pulling ones self up by the boot strap. All that and so much more on making money. Charles all right. Were back to bad news being great news for the stock market. You can see it on your screen right now. Listen, wall street desperately wants jay powell and company to that money printing machine. In addition to the jobs report that im sure youve heard about, the ism Services Number snapped it 15th month of expansion. It careened into contraction for the First Time Since december of 2022. The problem though really, its a tough one, because as that goes into contraction, prices which have been on the move for 83 months are are increasing even at a faster speed. So is while the stock market is cheering the bad with news, the bond market also breathing a sigh of relief. In fact, a big sigh. It looks like a december rate cut back now p at least at the c me, fed watch tool. Thats 100 more than we thought coming into todays session. Right now the s p 500, you can see this, folks, weve talked a lot about the 50day moving average being critical. Were sort of above it right now. Im i happen to love what im seeing right now, my next guest says despite five major policy errors by jay powell, he deserves an, a for his e statement this week, lets bring in kip her ridge. You really are one of these what have you done for me lately kind of guys, right . [laughter] hes had five mistakes, hes messed up bigtime. What does this new affection for powell mean for the markets . Well, you know, as i watched the press conference, the fomc statements have typically, you know, pretty much what we expect. Powells press or or that you never know whats going to happen because he goes off script so often. So as we were watching it, i was, like, okay, cut his mic because hes doing perfect. Cut his mic. End it now. But he never made that the, that flub, that mistake that typically sends the markets lower. And as i watched the press conference, it looked to me very much like jay powell knew what this number was going to be today. We actually kind of wrote that up. He was a very confident guy, very relaxed. When people talked about are you going to hike rates or do we have stagflation, you know, he just, he just pushed them aside. Ing so i think this is, paul is very confident. I think that now were back to where we said wed be at the beginning of the year, charles, 23 rate cuts this year. Probably both of those rate cuts before the election. Charles you know, its interesting, i did ask someone the same question. You always get the feeling, to your point. Powell seemed i called him a combination of paul newman and steve mcqueen. He was cool, calm and collected, right in im told the president got the report yesterday and it moved town the food chain and powell got it somewhere late yesterday. Winkwink. All right, so with that in mind, you were aggressive late last year, and youve been aa depress weve all year long even though weve had this little bit of a swoon. Are you still aggressively long this market right now . Even more so than the last time e was on the show. We actually added to our positions last week in the semiconductors in tech. We think thats a group thats going to continue to lead. The berth of quantitative easing, the semiconductors have been the market tale. If you just follow the semiconductors, you know what the market direction is. And last week they hit the most oversold level since the bear market bottom of october 2022 when we started buying them. We doubled up on our position last week. Charles, we think this markets going to rocket ship higher into the with election, and i dont think its a mistake that thats going to happen. Charles all right. Time to give you some props, my man. Fourth quarter of last year you gave us a lot of stocks and positions, ideas. Now nail up 43, soxl up 63 , erx up 18 . You Still Holding those . We are. We dont hold nail. We took profits in nail. Matter of fact, if we hadnt bought the semiconductors more aggressively, we would have added nail, the threetime leverage to housing etf. We want to buy that again, but we do own the others, semiconductors and energy and and small caps. Charles k webb is coming on stronger, you still buying . Yes. We are buying, chinese stocks have bottomed. Its been a 2year bear market thats been brutal. We avoided that group request. We think specifically chinese internet stocks are the place to be, 2030 year multiples based on earnings, and now that the u. S. Economys slowing, here comes can chinas economy. Its almost like its a coordinated system we have here, and we think the chinese stocks are going food very, very well good are doing very, very well. Charles speak of good news out of china, sort of made everyone forget what they were saying about musk. Maybe he comes back. And bitcoin. You know, is this consolidation of bitcoin, this late move down . Yeah, i think so. You know, this is really trading par for the course. After the halvings, the month if after is typically week and then weak and then it starts to accelerate. Bitcoin has been more than 3,000 over the next 12 months. We dont think were going to get that kind of a move here. We are aggressively long bitcoin looking for 100,000 by year end. Charles all right. Buy the rumor, sell the news, underpromise and overdeliver, we hope. Hey, kip, great having you on. Talk to you again. Have a great weekend. Appreciate you, charles. Charles my next guest says that the april employment report is, quote, the beginning of the end of the catchup effect. I want to bring in bank of americas head of u. S. Economics, michael your headline had a question mark at the end of it, so im glad youre here. [laughter] whats the answer . Well, the answer is probably, but, you know, one month doesnt make a trend. Weve been waiting for this which is a lot of whats been proif pelling the economy in the labor market is this catchup effect meaning still in 20 this, reopening effects from the pandemic are supporting the labor market. But at some point the Services Side of the economy will have caught up, and then you would expect employment growth to slow. We think were seeing the early signs of that today. Well see if we get more validation in the coming months. Charles leisure was, wasnt that really as high as a some thats right. Charles so retails starting to pick pup from, im not sure what thats all about. But what about the other parts of this report . It was a big miss. It missed consensus, and the whisper number was higher than the overall number. So what parts of it really came up short . The main one, you mentioned, leisure and hospitality. Charles right. So that had been average aing maybe 5075,000 jobs per month on average over the last year. It was only 5,000 today. I dont take a negative if signal from that. Again, at some point the sector will likely have caught up in terms of where employment should be, but that was where the big miss was. Secondarily, it was employment at the state and local level. So the other sector thats been adding jobs a lot is education and health. Some of that hiring takes place at the state and local level. That was also soft this month. So those were the two big misses in the report. Charles where do you think we go from here . Youre saying its too early to know if weve caught up, you know . If you look at the jolts report or, there still seemed to be a fair amount of jobs open in those particular areas. Thats right. I think its right to expect employment growth will slow, but whats happening is its slowing to rates of growth that we would consider normally solid or or normally strong. Charles are you happy with the wages in because were still in a relatively higher than normal inflation their period thats right. Charles wages still people are struggling out there. Yeah. At least from the perspective of is demand too strong, will wages fuel inflationary pressures to can. Charles powell said hes not worried about wages fueling inflation. I thought that was interesting. He was itching to get that out there. From an economist perspective, its actually hard to prove the link between wages and services inflation. Youd think it would be easy, but its not straightforward. So, yes, some moderation in wage growth is helpful for the economy right now. Overall, wage growth is still in line if not slightly ahead of inflation. Is so, yeah, theres a balance there. But the signal from this report, i think, is the risk of overheating is reduced. It should leave the door open for fed rate cuts later this year. We can debate on when the, but i think thats still the likely course of action. Charles what if the ship goes too far . And im going to point to ism numbers. Sure. Charles manufacturing went into contraction, which has been in contraction, but theres certain parts of it that are really starting to struggle a lot, even more. But Services Today overshadowed by this jobs report, i thought it was somewhat of a shocking number, contracted for the first time after 15 months in a row. And the part where both of them are linked, manufacturing and services, prices keep going up. That thats a heck of a combination. So the headline is coming down, but the prices are going up. Thats the exact opposite of what we want. Thats not a soft landing, is it . Right. At least to the fest part of your question, when to get concerned, some slowing in employment growth is fine and healthy and goldilocks. I would say look at two things. When employment growth slows further and we get indications that layoffs are picking up, right . Charles right. Thats the bad combination. On the other side of it, you know, i would just say its hard to have every data point aligned to sell a consistent signal every month. Charles i think prices have been going up four or five months for both of them, and no ones really talking that mirrors what weve been seeing in inflation if. Inflation did outperform in the fourth in the First Quarter. Im not here to say were out of the woods on that. I think the risk still is that inflations too sticky and maybe the fed just gets delayed. But we have, say, three to four months of kind of bad price data, ask we had one ununemployment report today that throws a little cold water on that. Netnet, i still think the fed needs to be cautious, wait, take their time. And when they ease, and this is still key, ease slowly. Charles all right. Great stuff. Thank you. Charles appreciate it, thank you. All right, folks, of course you know by now apple beat the earnings. I mean, bailey. They beat barely. They beat earnings and revenue by the chair of their chinny chin chin. The real reason the stock is surging is because what a tim Congress Cook has gone out and done. We do have dan flax here to explain why he thinks apples making a good move with a 110 million pieback. Well be right back. You can go your own way with, to your own way did i read this . Did i get eggs . Where are my keys . Memory and thinking issues keep piling up . It may be due to a buildup of amyloid plaques in the brain. Visit morethannormalaging. Com the stock market does. In fact, most people dont find them all that exciting. 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You can get two unlimited lines for just 30 each a month. All on the most reliable 5g mobile network nationwide. Wireless that works for you. For a limited time, ask how to save up to 830 off an eligible 5g phone when you switch to comcast business mobile. Dont wait call, click or visit an xfinity store today. Charles all right. Chalk up yet another milestone to apple. This ones going in the record books, and im not saying everyone is cheering although investors are. Were talking 110 billion buyback announcement, certainly took the spotlight off the quarter where we saw it barely beat consensus, and the numbers were down from a year e ago. Apple, of course, has been the magnificent seven laggard this year. And many are wondering if its lack of growth means maybe its just mischaracterized and should be considered a value stock these days. My next guest was pleasantly surprised with the results tim cook and company posted, joining me now, dan blacks. Dan, so you liked the quarter, huh . I thought the quarter was decent, charles, given the circumstances. The environment remains difficult, but the install base is growing for iphone. Services is healthy, and as we look out over the next several months and into next year, i think growth will be better by more a. I. Capabilities. Charles didnt iphone sales come up to decline . Iphone sales were down, and i think the headwinds that youre seeing global hi in many markets is going to reremain a challenge for apple and others. The intall base growth is the key. If you have that,s it sets the foundation for the next iphone cycle. Charles right. What about competition . Just how long are they going to be able to hold on to this enviable spot thats obviously one of the greatest money making machines ever. Competition is fierce. Part of what apple has done well and i think they can do over the next 23 years is this constant reinvention. Its taking the hardware, the software and if services and coming up with a great experience that users value. Its fun, its secure. And so if theyre able to do that as we move ahead into the a. I. Era, continue to grow services, i think growth can get better. And the market will like that. Charles speak of growth. Is it still a growth stock . Speaking of growth request. I think it is. Right now growth is difficult. I do expect that the business will see better, better results. Ipad, youll have a new cycle. Mac, i think that is healthy with the install base. Wearables is an area where i think theres a lot of optional the city. Charles going into break i mentioned elizabeth warren, and the prior guest didnt make the connection, you know . When a Company Makes tens, hundreds of billions of dollars, keeps those profits offshore and pays zero taxes on it and then the buys 1110 billion back of their own stock 110, issuing bonds and never having to pay taxes on it, it invites a plot of regulatory scrutiny, doesnt it . The regulatory scrutiny on apple and really all of these big companies, i think, is going to e main if fierce. I would expect when we think about the Free Cash Flow for apple and the buyback, its positive. But at the heart of it, it needs to innovate, it needs to grow, and if you can generate about 100 billion of free cash per year and invest tens of billions into r d charles the 110 billion from what i read is the cumulative amount theyve spent on r d since 202013, so it seems scooped, to you skewed, to your point. All the money that meta, google, amazon, microsoft, 42 billion they announced in a. I. , are you worried about apples a. I. Strategy or lack thereof . I think youve seen Artificial Intelligence and Machine Learning in the products for a long time, the iphone, the watch and other devices. The key with the generative a. I charles yeah. Is really transforming the user experience. I think youll see improvements in camera, video, siri should, hopefully, get a lot better. If youre able to do that and deliver this experience to customers, then i think youll see more users upgrade. I think youll see continued consumption of services, and that will help propel better growth. Charles before i let you go, there was a love affair that was sparked between mark sube or berg and wall street after wall street had left the stock for dead. That one session had the largest loss inestly of a single history of a single session. They made a big move back on the efficiency idea of the maturation of zuckerberg. All of a sudden, you know what . Hes spending too much money again. Charles, i think theyre executing well. The comments are on the investments. I appreciate probably caused the stock to pause a little bit in the near term charles you think its a buy . Well wait and see. We con to own it. We prefer google for money at new levels. Charles which is amazing, because at one point the story was a. I. Would make Google Search irrelevant. Wow. It changes all the time. Were glad you keep us updated. Have a great weekend, my friend. Consumer confidence dipping to its lowest devil since 2022, and thats got a lot of folks worried. Well ask dana peterson, pause she wrote the profit about report about that. The april jobs report, what does it mean if about isntment in this country . Well be right back. 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