Were at the lows of the day thats where we are. About a 600 point loss for the dow. Nasdaq a bit more than that. The russell which has been a real outperformer giving back 5 now. S p coming off its best month since 1987 we have come a long way off the lows april was an incredible month. We said best since 87. Are we primed to go higher in may . Are we poised to go lower because of how far we have come . You know my answer is i can make the case for either way but what im going to tell you is the weekly closing candle is disgusting now we had a huge comeback but even at its peak which i guess was some time yesterday or the day before, only 0 of s p 500 names had gotten back above their 200 day. So you had almost a third of the market back in some semblance of an up trend and we rolled hard look whats rolling. All of those beaten up names that rally this week, the airlines, the oils, the stuff we said okay, thankfully those shareholders got a breather trashed again today. Rollovers and high quality starbucks getting hit. Nike, some of the bester rebound stories and i think thats what makes bear markets so difficult because there are mass ifr rallies in the midst of these bear markets there are cyclical moves but the secular trend hasnt changed im just looking here, amazon down 7 . This is a stock that over the last five years is up 450 and even despite that major move higher, it had two distinct 30 draw downs in the five year period which tells you that sentiment can turn on a dime thats, i think, the watch word going into next week be thankful when you get a bear market rally but remember, how fast sentiment can turn on you couple things to discuss out of that. The market seems to have lost a little bit of steam after the Governor Cuomo comment that schools will remain closed for the rest of the year we have been partly trading on this reopen trade. Thats carried us the last couple of weeks as the news has gotten incrementally better. Cuomo says they wont open schools for the rest of the year josh raises another interesting their reopenings are a failure. You could go back to the lows. Im not in that camp here is what we have we have a tug of war right now, in my mind, between really, really horrific Economic Data coupled with massive global stimulus fiscal and Monetary Policy stimulus around the world is 22 of gdp i think a lot of the reason why we bounced 28 in the s p 500 from the lows is because of that backstop from the stimulus i also do think its because we have been getting more encouraged about reopenings. I think they are legitimate. Well have to see if they are successful or not. The other reason why we rallied a lot is we have more tests out there. We have different treatments that are making progress all of this is the reason why i think we had bounce. Could we see some backing and filling in may of course we could especially as earnings start to end and well really hostage to the macro data points that are ugly i believe may is the peak of bad in terms of Economic Data and will get better. If do yyou look out six mondthsu can get more encouraged. While the s p 500 is not cheap if you use 150 in earnings for next year, i still have a lot of stock that are a lot cheaper than 19 times. I can give you three u. P. S. Is trading at 14 times. Intel is trading at 12 times with a 2. 2 yield and chevron is trading with a 5. 7 yield. I can nibble at some of these. Its hard to use at anything and use the word cheap in this kind of market i think you can legitimately make the case that given where earnings expectations are that nothing at all is cheap. This market is way too expensive. Totally ahead of itself. You want to have a couple of different basket, youve got one basket of the fed and science. Thats the kind of things youre talking about therapeutics and optimism about a vaccine and you have the other basket of a crappy economy, a horrific experience for main street and the good portion of what america is going through real people right now. You have to decide which carries more weight moving forward maybe it is i also have to figure out as an investor as an investor i have to figure out what normalized earnings are. I cant look at 2020 and earnings i cant look entirely at 2021. In some cases i have to look at 2022 as a long Term Investor, thats what i have to do. Im looking at quality franchises that are getting sold off with those companies that are really not doing that well there are sectors and pockets of this market that i wouldnt even touch. I think this is giving you a Good Opportunity even in spite of the fact were up 28 from the lows there are still some Wonderful Companies you can invest in for the long term. Im trying to give you a couple of examples in terms of where i see the opportunity. I hear you. Jim, let me ask you this why why wouldnt we go back down well, you know i think we are going back down. I dont think to the lows let me thats the point. Im not necessarily talking about going all the way back down to the march 23rd lows. We just were 30 off the lows on the s p. Weve had a v bounce in the stock market exactly exactly, scott use the word v here for a second and put that in the context of analyst estimates for s p 500 earnings for next year, 2021, above 170 a share, which would be a record. The Analyst Community is saying that profits will come back in a v shape and will be the at the record next year i strongly doubt that. Its a simple macro economics. I hate to say this but we have lost 30 million jobs those jobs will come back but its not going to come back anywhere near as fast as they went down. Some may say these workers are getting Unemployment Benefits so they can continue to consume i strongly disagree with that. Some severing Unemployment Insurance will not consume the same way they would if they had a steady paycheck. Pick up nip retailing type of company like a any key or star buck, their earnings or profit will still be under pressure for quite some time. That flows through the entire economy. Those will not be companies that will want to go out and spend on new i. T. Capex its not entirely surprising that youre seeing some weakness in tech this week. I just think we have gone a little too far, too fast doesnt mean well retest the lows because the fed has basically taken the bankruptcy concerns out of huge swaths of the economy. Go down 10, 11 , sure, but not retest the lows. Its power, no doubt, what the fed has done we wouldnt be here without that we wouldnt have had a 30 jump off the low without that sort of intervention its awfully difficult to sort of quantify what its truly meant because you still cant put a number on earnings you know theyve put reenforcements on the floor. Theyve built up the floor so high its going to be hard even if something hits it to breakthrough it. Thats the point were talk about. Shannon, how do you see it great april. Here we are in may what do you think happens . I do think were going to see stall here and a bit of a sputter. I think your comments and the d rest of the groups comments are well taken even if we see a reemergence of cases, i think theres very little appetite to go back to a shelter at home or severe social distancing guidelines once youve been released from those. I do think it will be a behavioral response from the consumer i think that will be the most challenging thing over the course of the next few quarters is modelling in a behavior response we have no certainty on i agree with steph you cant look at 2020 in the Consumer Sectors this fed insulation of hitting the floor with the pillow instead of a block of concrete, i think its worth noting. If we look over the course och the next several quarters, youll be rewarded for some of the risks that you shouldnt be rewarded for were staying away from the trade but there going to be pockets of the stock market and the bond market that should be doing worse than they are, but are going to be supported by that fed intervention. Finally, to jims point on enterprise spend, i dont think well see the decline in enterprise spend until a couple of quarters from now its going to be difficult to halt its really how do we look in two to three quarters and do Companies Want to keep more of that cash on their Balance Sheet rather than put new projects forth in the i. T. Space. Thats when well see the decline enterprise spend lets bring in the chief Investment Officer there of Charles Schwab you heard the commentary give us your own you had a number of different comments on valuation and i think thats maybe the more interesting one these days it brings in a lot of facets first of all, the moving target that is the e and what is still a pretty yawning gap between bottom up estimates and admittedly analysts are flying mind here. It comes down about a dollar day just in teearning season were close to 180 for 2020 calendar year. Dollar amount of s p earnings. Now were down to 130. The problem is they are flying mind the top down estimates by economist strategists are as low as 90 youre at 22, still not cheap or is 90 accurate youre at 31 or 31, still not cheap. Here is where level matters more than percentage change 25 up from what 90 is very different from 130. I think when you look at whats happened with the rally, where sentiment had gone from dispairing to a bit stretched youre now technically overbought and you dont have the anchor of ability to look at valuation. I think thats why were seeing what were seeing. Not to mention some of the news. Youre talking about what cuomo said with regards to the school but i saw a headline flash that de blasio said clearly new york isnt going to reopen for several months i think that may have been a factor as well i wonder if theres a heightened level and overly so level of optimism about this reopening. We didnt discuss the possible prospects of whatever retaliation against china, if there is any, that the administration is considering. Kudlow didnt go there all that much this morning. You have to think, if the president s on the defensive about his handling of the virus and were getting closer and closer towards the election, the noise will get louder and louder looking to deflect flame on oth blame on others or have some retaliatory impact on china. I dont know to what degree the market is thinking about that. Do you think well go you dont think well go back to the lows, do you i have no idea. Maybe more important than whether i know or not, ill never know, is that you dont necessarily need to know that to be a successful, long Term Investor i think theres too much of a focus on the perceived necessity of timing tops an bottoms. If its a retest, do we breakthrough the lows. As long as youre not making all or nothing, get in, get out decisions. Its often when rebalancing kicks in people might do it on a quarterly basis or annual basis. We have been sayfg ying if you n tolerate the additional turnover, let your portfolio tell youwhen its time to do something by vir chtue of the sd of which were getting these unbelievable moves, near record breaking decline in march and record breaking increase in april. If you have that disciplined approach around rebalancing it would have had you adding a bit at the lows trimming now you dont have to have that pinpoint decision to be right in order to be successful long term i think thats what gets missed in discussions about tops and bottom steph, you want to weigh on some of the commentary that liz had about trying to look ahead to earnings. Its kind of a fools game, right . Were all in the same level of o p opacity. Nobody knows what will happen on the other side you say a million times to the hilt that the economy will reopen and governors will say our economy is reopen for business and if nobody shows up, doesnt make a darn bit of difference well, im not betting against the consume er over the long tem maybe the short term there will be air pockets for a while. Theres a big difference between the top down strategist and economists and what they are projecting for the s p 500 earnings versus the analysts the analysts are struggling. Theyre kind of struggling the way im struggle in terms of ill have to ignore this year and look at next year as a recovery year and really look at 2022 to see where the whole normalized earnings come in at in the meantime im looking at Balance Sheets im looking at cash flows. Im looking at dividends where they are well covered. I will say this, while the cyclicals are very cyclical, they are certain pockets that are interesting. Thats why ive also said own a basket of defensive and High Quality Companies because thats where you have more predictability consumer staple, for sure. You ti you ti utilities and the reit industry. I think there are places that you can feel a little more comfortable on the earnings front and then those where youll have to take a little bit of, of a wish list and put together where you think the Balance Sheets can hold up better when youre talk about defensive name, i thought you were going to talk about mic microsoft and amazon and facebook and some of those names that have carried the water over the last bit of time to get us where we are the stocks that are seemingly, as some have used the words, built for these kind of moments. Working at home, dance leaistan learning and things like that. What do you make of the way those big tech stock s have don so well. Its such a overweight and relative to everything else. It could possibly continue. Is it a good thing its a good thing while it lasts if youre in those names but it can also turn on a dime. There are obvious risks associated with that when you have so much concentration as the recent highs you have the top five names by market cap at 21 which the last time we had a number similar was not in 2000 it was in the late 1970s obviously a totally different basket of five names than versus now. Those types of environments can persi persist, but when you go into corrective phase and another bear market, the risk is that theres so much money that is piled into those names that the weakness on the downside could extend well beyond maybe what the fundamentals of the companies suggest is appropriate. I think concentration is a risk. Its hard the time when you top that out liz ann have a good weekend well talk to you soon its been good having you. Thanks so much. Lets bring in jonathan i hope youre well i am. You too. Thanks thank you take a look at the technicals for me are we technically vulnerable or are we strengthened because of this big retracement that we had and the levels we were able to reach . We think were a bit vulnerable here. I think what liz ann said was very on point as far as do we need to know that the market is going to retest the lows at this point. We dont need to know. Weve seen similar type of retracements after big declines. We had a 35 draw down and 35 rally. Thats symmetry we have seen before almost exactly the same proportions in september of 2000 and we did all over the bear market i dont think we need know whether the final low is in. I think we need to know after a 35 rally, were a bit vulnerable here. Really what happened off the lows the initial move was carried higher by the high quality, high momentum names that we have talked about. You had this massive dispersion where its called the real economy stocks didnt participate. Now we had the high stocks and low stocks rally maybe giving back about 50 of the rally gives you around 25, 50, 2600 in the s p. That seems the play book at this point. Thats a pretty big pull back from where we are. Thats going to feel unsettling to a lot of people given many we come to. Its funny h nny how sentimet changes. At the lows it felt awful. I think probably a lot of bad news is priced in and as of a couple of days ago the retest of the low scenario was pretty clearly in the minority. I think were not calling for that at this point but i do think a 50 retracement is perfectly normal, well within the confines whats going to get us there, you talked about it is, is the megacap stocks if you look at the last three days, the equal weight nasdaq 100 relative to the cap weight its the same just looking at the waitings differently its equal weight relative to cap weight since october of 2008 you can see how things are wouldnt take much of a full back in those big cap fang stocks to get that 2550 on the s p. We talked about this. You danced with who brung you and then who brung you levaves, you may have a problem you may be sitting on the wall watching everybody else dance. If they falter and nothing else to pick up the slack, you got a problem. Thats a good point you have to hide somewhere you do think theres the potential for a 50 retracement. What do you tell that person yeah, i think you probably do still want to be tech and Health Care Bio tech went nowhere for five years. We would much rather be in something thats consolidated for five years we thinking coming out of this, its an area that should lead. It wednesday sideways for five years. The allocation that is really entirely depen dent on your time frame. If were making the call, its going back to 2550, i think the risk is a massive underline in some of these large cap tech names. You can see how quickly thats down i think around 4 today. I hear you. We discussed this yesterday. You can lean on the technicals to say we have got to go somewhere you factor in fed and science. Fed will always be there government will do whatever it takes and youve had some breakthroughs in more positive news from the science perspective and you continue to get that, that could blunt the technicals that tell you you have to perhaps go back. Clearly theres some things we havent seen in this generation. Wo were trying to take it one step at a time. I hear you. Lets talk about amazon now. Stephanie, talk to me about these earnings you sold a lot of amazon im wondering how youre feeling about that today theres so many target raises, its unbelievable. Im looking at ten in front of me right now i dont think there was much to push back on on the top line the revenues were good i think a lot of the excitement was over the top line and people forgot this company does have a tendency to spend and spend a lot. While i think that some of this spend, this 4 billion spend they will occur, a lot of that is one time. They are still spending overall and the operating leverage is so much less this year. Usually, when amazon is in an investment spend mode, the stock is an underperformer im inclined to trend more how do we look at apple after its own earnings if dwruk about us all looking through 2020, theres no stock youre looking through more to the next phase than apple. The real lack of concern around production and this was more of a demand concern it doesnt make pe change my view on apple but provides more color and how they may not have the is up explasupply chain iss anticipating tony, its been a while i hope youre well, healthy and safe i am. Thank you. Nice to be back, scott good having you on. What do you make of these earnings they seem better than expected, for the most part, by everybody. They were better than expected folks believe there would be more supply Chain Disruption and apple said that was very limited in the kwaequarter. Add a result, results br diwere dictated by demand trends. My numbers went up a bit for the year eps stayed about similar it was certainly better than people expected in the quarter and it was also encouraging that apple said in the second half of april they had seen some improvement in their demand trends as well you didnt raid yose your ded on the stock if apple can pull this off and you dont raise a price target then even though you take your numbers up, when would you our eps was largely the same for this year and importantly for next year which is the driver we adjust our price targets based on two things. One if our estimate change and if the market has changed. The market is changing a lot every day up and down. We do that periodically. We did that a few weeks ago. The market bounced off the lows. Those are really the two reasons. To your broader point, look, i think the encouraging thing, if you step back about apple is, for this fiscal year we now think that revenue and eps will be largely flat during what is Major Economic shock that is encouraging. They have created a lot more profit and refr knew stablts than they would have had a decade ago and thats encouraging. Then there is this hope that if the economy sort of gets back to normal starting at the end of this year that we could have a strong g, 5g cycle for apple going forward. How this is stock not a must own name i think the investor is focused on two things. One is the multiple. Every one knows it apple has traded at a discount to the market. Its trading at a 40 premium to the market on fiscal earnings and 17 premium earnings on fiscal 2021 earnings even fp you believe a strong cycle for next year, youre still paying relative to history a dramatically higher multiple for the stock. What do you really pay for this . I know youve been talking about this on the show for the last 15 minutes or so about broader tech what is the right multiple and when do you reach limits on that i think the second question is, are we back to a normal economic environment next year because the iphone, you know, theres some diskreecretion to when peoe can upgrade. They can hang onto their phones for longer or choose a lower price model. Both of which will impact next years results there is economic sensitivity, clearly, in apple. They are more resilient than before iphones were still down 7 this quarter. We thought they were going to be up 13 to start the quarter those are the two key factors. Whats the price do you pay for this stock and do we feel confident that the economy will be close to normal next year such that we wont have discretionary pull back in iphone spending. Even if you have discreti discretionary pull back, its likely going to be in names like this youll still have some level of Remote Working there is a possibility of having Remote Learning in fall if the virus coming back. All of that is beneficial toward a company like apple. Especially on the consumer side, the wallet side is only so big, scott if im a consumer at home and my wallet is x and im working at home more so ive upgraded my monitors or bought a new home pc, that could come at the expense of my iphone and keeping my iphone a yearlonger this is exactly what we saw in the 2007 and 2010 time frame folks had been replacing their pcs regularly. Then the iphone came out and folks started spending their tis cession nar keknology or consumer b consumer budgets on iphone and we saw a decline in pcs going forward. Part of that was a usage and wallet shift working at home with larger monitor on a pc is probably more important than upgrading your iphone on one hand apple will benefit from some of these trends. On the other it may come at the expense of itself. Let me pivot real quick before i let you go. I wasnt intending to have this conversation today elon musk changed that for us. Are you on twitter i am not on twitter because we have to be careful about analyst but im waaware of the tweets today what do you make of them . To preface this wasnt hacked. This is exactly musk doing this. Im selling almost all physical possessions. Will own no house. Stock price too high in my opinion and the stock price gave a heck of a lot back after that how do you respond to this as an analyst . Look, theres still is an open question about whether these were sourced from him and the company hasnt confirmed it one way or another assuming it is, look, there was a lot of frustration on elons behalf on the Earnings Call wednesday night about lockdowns. Hes been in a battle with the state of california about the ability to operate their manufacturing facility there or not. My guess is part of this is continued frustration at a different belief he has about how the economy should be opened up in the face of coronavirus. If we step back from the comments, i would say that elon musk has been on quote, better behavior over the last 6 or 12 months investors have appreciated that. To the degree this represents elon musk defuating from that which has gotten him in trouble in the past, thats probably what investors are most worried about. All of a sudden hes putting himself and the company in a compromising situation that happened in the past. Many investors deem the stock uninvestable because of how predictable some of his actions were when you see tweets like this, that isnt great and youre seeing that reflected in the stock. Are you asking yourself the same questions that you just suggested that investors may be asking themselves whether this is investable right now . Look, i think ive always believed that elon musk is uniquely brilliant and unique brilliance brings other trade offs brilliant people arent the best managers brilliant people are eccentric we would argue thats the case with elon musk and collectively he brings tremendous value to tesla. For many shareholders, any transgression, making comments on the stock, talking about potential buyouts make it too difficult to invest. You get the whole package. You get the brilliance and associated with that you get some eccentricities and thats what were seeing today. This one tweet of tesla stock price, too high, in my opinion, is that material in your mind and would that violate the agreement that he had and could that be problematic . Look, i dont know if its material because hes voicing an opinion and we have heard people in the past, i think, Reed Hastings at netflix has commented on the stock market in the past other ceos have commented. Usually favorably they think their stock price is expensive its difficult there is some precedent for ceos commenting. Sure but not one whose had issues regarding tweeting and the material nature of certain things, right . Absolutely. Absolutely he does have some guidelines that he is agreed to and whether this violates them or not. I dont have a strong opinion at this point you dont what happens if he did violate that wouldnt you have to have an opinion on that, toni . Wouldnt it factor into the way you it has to have some sort of bearing on how you would think about modelling the company, wouldnt it look, it would to some degree theres shades of gray to everything there would likely be a he said, she said phenomenon that would take time to play out. The likelihood there being a serious consequence that he would have to change his role and tesla would have to pay an enormous fine, i think is low. I appreciate you coming on. Well talk do you soon be well s you as well okay josh brown, wont you give me a comment on this. I dont think anybody owns tesla on the show. Raise your hand if im wrong about that, but what do you make of that . I think ton circumstances right. There arent consequences for billionaires in the environment. He pays another fine or changes his title and maybe that happens like six months from now i dont think the share price moves on people being worried about elon musk. It might be in response to something david tweeted yesterday which was a rehashing of questions about accounts receivable and when will i get a tour of the facility like i was promised we have seen certain politicians do things like this where they distract attention from one concern to look what im doing over here. Im not long im not short. I have no position in the stock. I think toni made the bigger point is shareholders will be there because they believe in the company or not theyre not going to buy or sell bauds of anything elon says on a social network jim i rook look at the positives weigh it against elon musk, it keeps me out i think josh makes a good point. The die hard investors will stay in no matter what he does. The problem is the incremental investors who will say wow, what a company. We got to stay away. Its too risky for us with what he does. Yeah. The investors dont stay away, steph. They dont they never do. Ive always said that tesla is a cult stock. Youll have that core group of people come back and buying on weakness a lot of them have made bold, long term days on owning this stock. Some of it is interesting. I had a problem with the leadership and the valuation no problem with it itself. Its just not my cup of tea. The senior associate professor at yale says there is a decree to it saying in any form whether its twitter or a call or any other appearance that their stock is over our under valued may be different in this case because of what exists between mr. Musk. Whats the consequence . I dont have it right in front of me. I dont know if the sec takes a look, for example, at Something Like this, i guess as an investor youd have to factor it in assuming this is from musk itself twitter isnt in stone theres i cant say as were having this conversation that i know for a fact that he elon musk is the one who tweeted this its happened before where accounts have been hacked. Who knows. Its quite a tweet stream. Thats for sure. He made the comments about the lock downs i dont know shannon. I think this is a new world that investors buy the stock and look at it and its hopeful for them to be investing in company that they think is moving the world forward and whether its this isnt a question of us Institutional Investors like the stock or not theres a combination of people looking for Innovative Growth and those that see this as a reflection of their values and those people will still buy the stock. Thats not going to be me. We have a number of moves you guys are taking. Lets take a quick break well talk about your latest buys and sells as we head to break check out the s p sectors. Well be back in a couple of p minutes. Were red across the board thats 3 . Ise half is back right aft er th since 1926, nationwide has been on your side. Weve been there in person, during trying times. Today, being on your side means staying home. Nationwide office of customer advocacy. But we can still support you and the heroes who are with you. Were giving refunds on Auto Insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid19 relief. Keeping our promise to be on your side. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. A partner who makes sure every step is clear, there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Were back josh brown, i do have the language in front of me now and because i didnt have it before, i couldnt tell you and the viewers to answer to your question im going to read the text from the sec. Just so were all on the same page here as were still reacting to these tweets from elon musk. Quote, as a result of the settlement, elon musk will no longer be chairman of tesla. The board will adopt important reforms including an obligation to oversee his communication with investors and both will pay financial penalties. Thats from the codirector of the Sec Enforcement Division its to prevent further harm to teslas shares theres the answer to your question you can give me a Quick Response i have no comment it seems pretty strongly worded. Be the tweets did come from elon musk, thats something shareholders will have to ask themselves do they want to sit and watch it play out. Yeah. Well just have to wait and see. Its interesting thanks for the exact language in realtime i appreciate that. I said you are making moves and lets discuss these. Shannon youve made a bunch. You have trimmed visa and fidelity national. You trimmed netflix, which is interesting and you added ibm. You have some good stuff going on tell us about it ill talk about visa first. This was in aour portfolio. We think the next 6 to 12 months well see impairment on the payment side this was taking exposure off the table to a heavily over weighted name in the portfolio. Adding to ibm 11 times with a 5. 1 yield theres been a lot of talk on your show on this stock over the course of the last couple of months we think theres opportunities in a. I we think this is an execution story on the management side we think we can get some upside here i trimmed netflix. I talked a lot about netflix my cost basis is around 300, 305. And this was really just from my perspective a portfolio construction move. I own disney and comcast but i felt like given that we were trading around 420 is a time to take the money off the table and look at the cyclical opportunities that steph was talking about earlier in this environment. You said 420. I started thinking of tesla again. I couldnt help myself it happens. It is going to be there for a while i think. Stephanie link, you sold merck you sold chewy i did i know i know i will wind up regretting chewy. It is a powerful story with initiative of what theyre doing and i think that up 46 in a year where the market is struggling, i have to take gains. So thats what i did i know i will regret it but i have Animal Health the exposure is in zowetis. The quarter was not great for merck. Lowered earnings and revenue and my thought process is, im owning this as defense and this is not defense this stock will be dead money because a lot of exposure is doctor administrative in the hospitals so theyll see a decline in volumes and i think persist so i much prefer bristol myers, johnson johnson, baxter i own a slew of health care names that are actually delivering. Okay. Jim, so youre making some interesting moves in the energy space. You sold Royal Dutch Shell and bought chevron and exxon you got some splaining to do, buddy. Whats going on . Yeah, well, look. I didnt think that royal dutch had to cut the dividend but i was wrong and they cut it yesterday. Bp and chevron didnt cut and regardless when a stock cut it is dividend is not something to hold i still want to retain the Energy Exposure and be in the big, Big Companies yielding much more than royal dutch. I took the money out an put it equally in exxonmobil and Chevron Texaco i have egg on my face. It happens in the business. Its all good you said a statement i thought was interesting. You want to maintain a position in energy . Why . Yeah. Just had a huge move, didnt they yeah. I didnt think i was going to slip that one by you by the way. No. You know me better than that, jim. Pay attention to everything you say. I wasnt really trying to slip it by you i was giving you a chance to come back at me. Hoping i was distracted by sonnenfeld emails or Something Like that. Look. Obviously this is a more speculative trade and in any port foal you want to have your workhorses like your apples and googles but ill take a little speculative play in the energy space but my conditions are it has to be the biggest names in there. I dont want to play any of these small or mid cap ex plor ration and production companies. I think theyre dangerous as heck offshore drillers are already going bankrupt but getting through this there will be an Energy Sector and biggest of the big boys will survive. Ill put my money with chevron and exxon for the long term. Steph, my gosh, its been a long week. Sorry. Long week. You you own chevron, too you always talk about capx. Right . Chevron is cutting capx they want to maintain the dividend how does their cut of capx factor into your thoughts . Im glad they did because we talked about this. For them to be Free Cash Flow positive they have to see 40 oil. Theyre preserving their liquidity and have been buying that on dividend it got as high as 7 or so back in february march. I just think that they have much better assets, better positioned than chevron and many of the european counterparts. Great management team, too i want that dividend to be dave and why i own it. All right lits do q a before we go. Well start with you, josh brown. Pete in austin, texas the wwe. Is it a good longterm play . I think it could be this is we were talking about tesla and the fan base wrestling has a fan base never going anywhere doesnt matter what you do you can air the awkward segments with no audience and basically ballet in the ring an people still love it. They rabidly love it i think theres longterm value here unfortunately. Sometimes the mcmahons take a risk on something that doesnt work out and that is like part of what you have to deal with if youre investing in the company. Synonymous of him and his creativity im not personally invested but i can understand why theres a core Shareholder Base here. Stephanie link to you from chuck in hattiesburg, mississippi, abbvie, whatever pronunciation . I like abbvie. Got me on that, right with me on that . Yes im on that with you, yes, i am. I like this story a lot. Because this companys very dependent on one drug and with the deal it does diversify their pipeline and they also working on their pipeline so this is a company with a very good quarter and at 5. 5 dividend yield, i like it and own it, as well. Okay. Jim, to you from chris in colorado, what about winnebago look. The stock has done relatively well for a small cap i think their most recent results february 28th were good. Restarting production. The demand is still there. Particularly from the millennials so i dont see a need to sell this stock. I own it i hold it. If you dont i think you can buy it. Okay. Shannon, to you from greg in florida, i bought accenture at 16. There could be near term pressure on accenture. This is one of our highest conviction names and think the long term is well situated and an end market to grow. We have a new minutes left for earnings we have 139 s p 500 Companies Reporting next week. Two dow components in. Disney is set to report on tuesday. Wow. This is going to be interesting given the current environment. Yeah. I got out of disney. I think its one of the greatest companies in the world but they are incredibly challenged. They have been i think that that continues. You dont have anyone in the parks, no sports on tv to monetize and they have had to furlough 100,000 workers which is very expensive. I think doing the right thing but it is not great as a shareholder to sit through a period like that and we dont know how long before it ends so i really am paying attention just because like to get some kind of a gage of what they think the Recovery Time might be but whatever it is for the economy disney will be slower than that because of the acutely feeling the stuff so im not in the name. Take the other side of that, jim . You are in the name. So is shannon. But, jim, you want to take joshs point of view on . Yeah. Look i mean, basically this is a question of whats priced into the stock. We know that nobodys surprised by the fact that the theme parks are closed nobodys surprised by the fact that production of movies is at a stand still and whether thats priced into the stock or not disney plus is what youre owning this for and have a potential catalyst in the coming weeks an months of potentially opening the parks months down the line bottom line is theres positive catalyst and the bad news is priced in. You open up the parks and they do a third of their typical volume of guests, its a disaster, right . I think its going to be josh hold, hold on, hold on. Jim, real quick. Answer that question real quick. Yeah. So look. Bottom line is open the parks, thats a positive announcement, a positive catalyst. We are looking at people talk about closed until the second half of 2021 i dont think that will happen theres room for surprise to the positive. Not as quick as i was hoping for. Shannon, real quick. No. I agree with jim i think the park catalyst is there and by the end of the year and i think a loft pains priced in. Okay. Stephanie, quek, final trade from you, please et estee lauder. I think the consumer comes back here in the states as well. Josh brown . Keep it simple, if you know theres pain avoid it. Jim same as josh. Shannon you said quick. Anthem, all health care all the time. Going to send you a dictionary guys, have a great weekend quick is different to some people kelly . Im quickly going to send it over to you now. Scott, thanks so much have a great weekend, everybody. Welcome to the exchange. First day of may look at the action, stocks are starting sharply lower maybe not a big surprise we also have fears of potential new tariffs of china, nervousness of the reopening of the economy and worries of travel and hospitality i