Sweet week for the market, up nicely, but if you look a little bit farther back, were actually right where we ended up in may. We went nowhere in june. What would move the market up or down Going Forward . Yeah, thats right. The market had a great week. The s p 500 finished up 4 . Only up 2 from a month ago, its gone nowhere. Theres been this push and pull between good news, we had a lot this week, both the payrolls numbers close to 5 million new jobs added, better manufacturing surveys, and that caused investors to overlook a lot of the bad coronavirus news. But thats just making back what we lost last week when the coronavirus news was the focus of the market, and were really going nowhere right now. Jack so what could change that . Youre looking ahead to earnings, i assume. Yeah. Thats going to be the big one. The earnings reports are coming. Were going to get banks in a couple weeks. Were also getting a few trickling out. Theres companies that have these weird reporting schedules. This week we god fed fedex, andy had a monster day on thursday after it beat earnings. It wasnt really expected its been doing a lot of business, we know that, but this is supposed to be their low margin business, but they did very well. And this is something we could see from other companies, that theyre actually doing a lot better than the market thinks they are, and that could push the market higher. But we really need to see that kind of message. Otherwise it could be a tough ride for stocks. So really Pay Attention to those Bank Earnings when they start the reporting in the middle of the month. Jack carlton has been digging into Bank Earnings. The key here is not whether theyll be good or bad, but whether they beat or miss expectations. Thats what the markets looking for. What do you think theyre going to do . Does mr. Market have it right on the high side or not . You know, a lot of the Big Bank Ceos have already telegraphed that they expect margins larger in the Second Quarter than in the first, so i think a lot of the Analyst Community has had a chance to work that into their estimates. So i think it will be kind of neutral, but expect a little bit of noise with some of the names there. I think a lot will beat expectations, but there may be some oneoffs that will diverge from that. Jack on the upside . Some potentially on the downside. Some banks may not be able to pay the same dividend level as before so, and, you know, banks wont be able to raise their dividends, certainly. Jack sure. Speaking of dividends and yields, utilities have long been an investor favorite for their nice, steady ride. And that changed a little bit this spring. It was kind of rough. Youre look at a few with the help of an activist investor that you think could do pretty well. Exactly. And to the point that you made, you know, during the week people do look to utilities, so it has been a tricky sector. We found Elliott Management has made several utility investments, two currently active. They initiated those positions this year. Theyre pushing for either a full or partial sale in either or both, i should say, in the third or forty fourth quarter. Some potential upside. Jack and barrons has a story looking at what they call the uglies [laughter] a couple of stocks that have just been doing badly but we think maybe have a Brighter Future in front of them. Yeah. So one of those was sally buy ifty. Sally beauty, basically, gets about half of its revenue from salons or salon professionals. When you have salons closed, you cant rely on people like me trying to keep the brand going. But now salons are open again, so we see potential for there to be some acceleration there. The company has gotten a little bit better with its online offerings as well. Jack gotcha. Hey, carlton, its jack howe. Ive got a question on sally beauty. I saw a picture on twitter of these big, giant hair curlers that some of the tv celebrities have been wearing [laughter] jack oh i think weve got a picture on screen. Do they sell those kinds of things at sally beauty . [laughter] they do sell those kinds of things, and i have been relying on them so much to get through this work from home jack do you realize jack and i are just jealous that you have enough hair to do that with . [laughter] theres nothing we could ever do. So, jack, because of this concern in the markets, theres a lot of money sitting on the sidelines. People park it in money market funds. They figure thats safe. Its not 100 safe. You can explain that for us, right . Yeah. I mean, try to contain your excitement. Im not talking about money markets for a moment. They are supposed to be boring sweep accounts, right . But we had a situation in the first few weeks of march where people pulled some money out of the type of money markets that own corporate securities, about 120 billion. There were a few funds that flirted with breaking the buck or slipping below a dollar per share. The Federal Reserve set up this facility, its called the money market mutual fundly quitty facility. Liquidity facility. Our writer in barrons writes that now is a good time if you want to shift to something safer. Getting out of those looking at government securities or treasuries, you could even look at money market accounts. Those sound like money market funds, but those are are bank savings accounts, puts you under the umbrella of fdic insurance. Its not going to take your breath away, but yields respect great all around right now. Jack thats true. But even boring old cds can be good. Please join neil cavuto on thursday, july 9th, at 1 p. M. Eastern for a virtual town hall, america together open house. Among his guests, real estate icon Barbara Corcoran who will be answering your questions. Sends your questions to fox business, facebook or instagram or email investing in you foxbusiness. Com. Coming up, one uniform food companys ceo says his company will be in a better position coming out of the so covid19 crisis e than it was before. Hell join us on the future of dining, next. If you have postmenopausal osteoporosis and a high risk for fracture, now might not be the best time to ask yourself, are my bones strong . Life is full of make or break moments. Thats why its so important to help reduce your risk of fracture with prolia®. Only prolia® is proven to help strengthen and protect bones from fracture with 1 shot every 6 months. Do not take prolia® if you have low blood calcium, are pregnant, are allergic to it, or take xgeva®. Serious allergic reactions like low blood pressure, trouble breathing, throat tightness, face, lip or tongue swelling, rash, itching or hives have happened. 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Jack the Restaurant Business is one of the hardest hit by the Coronavirus Crisis with many struggling to adapt to social distancing restrictions. But our next guest has transformed his company to bring fast food dining into the future. Jonathan nieman, thanks a lot for joining us. When this pandemic hit, it looked like you were in the worst possible position. You run a restaurant. People werent going to restaurants. Most of your restaurants are in cities. Those were the worst hit locations. Most of your clients were office workers. None of us are going to the office anymore. So how did you pivot to save the business . So, you know, for many years now our, one of our core philosophies at sweet green has been to meet customers wherever they are. So weve been investing in technology to enhance the ordering and eating experience for a very long time. Our business has been run off of five channels which is our instore, our digital order and pickup, our native delivery and our outpost business as well as our marketplace delivery business. We had a lot of flexibility how we could meet our customers. So while when covid hit, our instore business went completely away, we had to pivot to 100 digital orders, because of the investments we had made in our technical infrastructure and in our ordering experience, we were able to adapt and pivot very quickly. So we pivoted to delivery and pickup only, and we were also able to move part of our business, our outpost business and flex that to support hospitals most in need. So we were able, we were able to spin up outposts at 400 different hospitals serving over 300,000 meals during this time. We also learned that during this time people were looking to eat more hot, hot food, a little bit more homey food and dinner food but still wanted to eat healthy. And so we also rushed to introduce a new food category which we called hot plate which is our first foray into dinner. So the combination of these moves from the technology pivot as well as the new menu addition have a allowed us to weather this storm really well. Jack and you told my colleague at the barrons tech conference that you actually had 50 adoption of your app even before the pandemic hit, which is amazing. But its not just technology. You actually had to make the store, the restaurants work with the apps. That means changing the physical chant, and you created something you call ghost kitchens. What are those . Yeah. So i think a lot of people think that innovating on technology for a restaurant has only something to do with the frontend side, the consumer app. But really the magic is in how you build the physical infrastructure as well as the Backend Technology to enable this sort of experience. So ever since 2012 weve been investing in ghost or virtual kitchens within every single restaurant. So call them secondary or kitchens within each restaurant as well as customer journeys, courier journeys to create a really nice, frictionless ec experience whether youre ordering instore, coming to pick up or ordering for delivery. So theres a lot that goes into understanding, to building a digital experience not just on the consumer end, but on the back end. And i think we were very fortunate to have been making a lot of those investments ever since 2012. Which, again, enabled us for this pivot and acceleration that the whole world has seen to digital, you know, over the past few months. Jack i want to ask you about a very lowtech thing you do but nonetheless interesting, which is you sourced almost all of your food through local farms. Why do you think thats important . Yeah, jack with. We believe that the choices we make about food, where it comes from and how its produced has really, really huge implications on our health, our community and on our environment. And so those direct consequences of those food decisions are one of the reasons in which we believe buying local is important. One, food tastes better when you buy local. Were buying food seasonally, and for anyone whos been to a Farmers Market or eaten, you know, fresh fruit or vegetables when theyre at their peak, you know that burst of flavor that you get. Secondly, we love to support local economies in that way. And, third, we find it to be more sustainable. Also if a business perspective, it gives us a very resilient supply chain, so we have a diversified and resilient supply chain that crosses, that encompasses over 350 small and mediumsized farmers. And we believe that this is just the way that food should be served. So its a core part of the sweet green experience and our mission to bring to life this incredible food that these local growers are producing in every region that were in. Finish. Jack thanks a hot, jonathan. We dont have time to talk about it, but i want to point out that you had to furlough 2,000 people, but youve hired 70 of them back, and youve given all the ppp money that you borrowed. Thanks for joining us today. Thanks again for having me. Jack coming up, more on what to expect from the market in the second half of this year. The panel tackles that one n n n vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. Today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. 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Ends monday. Cc jack as we head into the second half of 020, covid19 cases in the u. S. Are approaching the three million mark. The market has had a great run, but hope for a vshaped economic recovery are fading. The barrons cover story this week attempts to answer the question, what should we expect in the second half of 2020. Jack, there are an awful lot of variables at work here. Were not going to give people a crystal ball, but lay out the base case that we heard from economists and pundits as we researched the story. I thought you said you were going to ask a tough question. Ive got all the answers here, jack with. Ive got the base case from the separated gists we talked to. Strategists we talked to. The Federal Reserve will do whatever it takes to support, you know, Financial Markets and the economy. Congress likely to pass more assistance for households and businesses, at least a trillion dollars is the thinking right now. Company earnings will probably look better by the end of this year, so the base case is that stocks go up a smidgen from here. And i know that might not sound great, but the 10year treasury yield last i saw was about half a smidgen, so that compares pretty well right now. Jack if you told minute at the beginning of the somebody at the year that wed lose 20 million jobs, its not bad at all. You dont have a crystal ball in terms of the near term, but you have been sharing your thoughts about the long term based on current stock valuations. Share that wisdom with everybody. [laughter] well, stocks are pricey relative to their history, right . I mean, so that doesnt really tell you anything about what happens in the near term. Theres a very poor correlation between stock val weighs and what happens in the next six months. Theres an excellent correlation between valuations and what happens over the next, lets say, ten years. Over a long time period, stocks tend to go up, right . But you can pretty much, you know, bank right now on the stock market returning hess than you have seen less than you have seen over the past couple of decades. I dont think youre going to have those riproaring stock market returns like weve seen because your starting point is more expensive than it used to be. But still pretty good. Stick with stocks. Jack of course, its time to cue carlton, because she loves to play debbie downer. Give us the bear case. What could go wrong here . I dont know debbie downer, maybe realist. The economy hasnt fully reopened, and weve seen economists have projections for gdp to decline in the range of 10 or more. And while we have seen some positive economic data, of course we would see some sort of snapback in activity as, you know, the economy reopens. Were now in that kind of prolonged phase. Whats that going to look like. Thats where you hear about that reverse square root shape where not everyone is going to come back to work right away. You know, we hear that the economy is about 60, 70 percent of the consumer. Most of us are home, so were buying things to make staying at home more bearable, but that kind of daily activity of picking up the coffee on the way to work or taking the subway, thats not happening. Thats the type of activity that we need to see to really accelerate the economy. Jack sure. And all the travel stuff, certainly. Which brings up the mask issue. A lot of mask news this week. Goldman sachs had a fascinating report that said if there were a mask mandate, that that could essentially replace 5 of gdp, thats how important it is. Then the Vice President declined to really strongly endorse masks but then the governor of texas actually is mandating masks. And, jack with, you found a goldman report that you also found interesting. Goldman tries this recovery index, its been doing this since the spring. They track a range of things, streaming, flights, restaurants, things like that. Weve seen it getting better. This past week was the first week where it backtracked a little bit. Its not a dooms day sign to me, but it is a reminder that you would expect this recovery to be uneven, lumpy in different regions around the country and also may be halting at some moments. You just have to be realistic as an investor. Jack ben, were almost out of time, but send us off on the happiest note possible. Whats the bull case . Look, the economy keeps accelerating. The cases that are rising dont rise too much, hospitalizations and deaths today lower and government stimulus gets pass. All those things happen, the market can go perhaps as high as 3800 for the s p. Jack that would be pretty good im going to break into song, my goodness [laughter] jack up next, round table [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Jack jack, earlier in the show we heard from a restaurant guy who feeds very healthy food to his clients, but theres more to life than kale. Tell us about your experience. Why are you coming to me for the unhealthy stuff, jack . [laughter] i take offense. Look, i dont mind telling you, i had a milestone doughnut this past week. It was pumpkiny, glazed, and i ate it on premises at a restaurant near me. Its the first time ive done that since the shutdown in march because restaurants around me have started to reopen their tables for diners. But its an uneven recovery. I saw a report from bank of america, and i looked at data from, you know, open table reservations, can theyre saying during the end of march, you know, they were recovering nicely, slow to a crawl at the end of june, and theyve slipped into reverse for a handful of states. The situation is nircht at different places across america. The restaurant industry, when you hook at 25 stocks, you know, Big Companies and small, a lot of them are getting clobbered. But theres four that are just killing it right now. The two pizza heavyweights, dominos and papa johns, theres chipotle, and then one word for you, jack, unless wingstop happens to be two words, but think its one. Its up more than 60 year to date. Mostly takeaway. I dont know i know carltons a big fan. Ive got to check into what else is going right over at wingstop, but theyre doing very well. Jack that stock has actually done better than amazon in 2020, which is a pretty neat trick. Im going to go to ben first, what do you have this week . Take a look at gold with. Its been going sideways just like the market has, but where the market im not comfortable calling which way its going to go, gold really does look set up to head higher. Its been moribund for so long, and its finally starting to move. And with the feds buying bonds, rates so low, everything so uncertain, gold is starting to look very interesting again. Jack and, carlton, a very important reminder. Finish us off. Yeah. Before im debbie downer, i do love wingstop. My reminder is pay your taxes. We had that extension to july 15th. Be tour sure to pay and file your taxes. If you dont, you face severe penalties. Jack thanks very much. Jack, ben, carlton, all good ideas. Check out this weeks edition at barrons. Com. Dont forget to follow us on twitter. That is all for us. Wear your masks, see you next week on barrons round lou good evening, everybody. We begin tonight with a Major NationalSecurity Development and the rising tensions between the United States and communist china. The federal Communications Commission today designated Chinese TelecomCompanies Huawei and zte as National Security threats. The fcc also barring u. S. Telecom companies from using federal subsidies to buy equipment and services from those chinese companies. Fcc chair ajit pai today saying that both huawei and zte have close connections to the Chinese Communist party and the Peoples Liberation army