Transcripts For FBC Making Money With Charles Payne 20240712

Fox friends he is considering delivering his Convention Speech from the white house, an unprecedented move. Joe biden is not even going to his own convention. Well get reaction from Deneen Borelli. All that and more on making money. Charles folks, major indices are marching higher, despite a early report from adp on jobs. That was a big disappointment. Stocks are climbing focused on the Stellar Service data and drop in crude inventories. I want to bring in spotlight assets shana disel, and phil blancato, mike lee, of mike lee strategies. Phil, let me start with you. I like what im seeing from Economic Data. We sort of wrote it off as a lot of states started to stall or pull back reopenings. Going back to the ism manufacturing data. All the Regional Manufacturing date, service data today, maybe the v is getting stronger, not weaker. What does it mean if it is for the economy and the market . Ebb tide becoming high tied. We were in the ebb tide last few weeks. Manufacturing numbers told us that. Supplies and inventory went you. Manufacturing is a small part of our economy. That is sign strength is there we bent that curve. There is chance we begin to grind higher here. This is critical moment to see if we turn higher. This weeks job data, tomorrows number will be extremely important number. Charles mike, what is your thoughts . I think inside of the Services Index number, the new orders portion of the survey data hit the highest level ever. When you look under the hood of some of the survey data i like to look to that new orders portion of it as the best part of the leading indicator for the service index. So i think were off to the races. Were clearly in vshaped recovery. At some point that data. This vshape, the rate of change will slow. We may see that in the labor market. However the adp data with the massive revisions. Almost two million jobs higher from last month. Makes it too noisy to look out. What im looking at in the labor market is continuing claims on weekly basis which we will get tomorrow. That is your best indicator where we are in real time data. Charles that has sort of been stuck, right . I think congress should be focused on that. To your point, folks this,adp came in 160,000. Shana, your thoughts overall on that market, rally, break out in stocks. It feels good despite the fact that people keep saying it is not going to last . Certainly does. And i actually dont see a reason why it is not going to last. Tech stocks have been driving returns for the market and again as you already pointed out. The Economic Data continues to improve, even the adp data today, it is still positive job growth and adp does tend to under shoot the broader nonfarm payrolls. I expect that to be strong as well. Again it is positive. That is what we should be focused on. Charles speaking of tech stocks, phil, even the most bullish tech investor has got to acknowledge, hey, this rally has been amazing, it is due to stall at some point f that is the case, when and how should portfolios be positioned . You can sense people over last couple weeks buying other areas besides tech. Its time. You have to think to yourself, yes, secular low rotation in our society. Tech led the well. When you buy disney inexpensively and value names that will really do welcoming out of the recession, you have to look for the rotation in the portfolio. You want to be larger cap. Look for chance for names to do well because of Banking Sector doing well, coming out of a recession. What im getting negative on are stocks doing well in the shutdown period. Charles covid stocks . Covid stocks. Time to think about opening up again, what that will do for portfolio. Charles shana, i have a note, intel, car vanna and nvidia eclectic mix. There are other semiconductor names, like nvidia who are taking the lead. Do you think there could still be value even within the tech sector . Absolutely. Intel is trading nine pe, 10 pe. Which is significantly discount to Semiconductor Industry so there is real opportunity there. This is not a company that is going to decline in market share. It has tremendous Growth Opportunities in cloud base and data centers and those are things that continue to grow and i actually disagree. Some of these work from home, stocks, covid stocks i think can continue to do well. Weve seen the trend towards Remote Working and would think that is going to change. I think more and more employers will see the benefits of allowing that flexibility for their employees. These are new markets. These are companies that are going to continue to take share because there is not a lot of competition. I actually think there is still more upside. Again why i like a stock like nvidia. Charles okay. Hey, mike, today on the s p 500 the number one mover material names. Listen we know there is a value aspect to it but theyre being led by gold. Gold breaking out. There is a lot of debate how far it is going to go. Where do you see this . Is this still a place for opportunity for investors . Charles, gold moves in fits and starts and there are some parallels as we discussed a couple weeks ago to the 2009, 10, 11 areas of the market. One of those parallels is the movement in gold. Were seeing stocks rip higher despite a ton of Economic Uncertainty and the driving factor behind that in my mind is the money supply. The money supply has increased 25 since march. That is not going to stop. Were about to get a trillion plus in new stimulus so gold is going to keep moving higher. I think you could see a move from 2,000, to 3,000, maybe even higher over the next year or two. What i like to play that for levered trade is gold miners, gdp index. These miners gives you more of a levered play if gold moves from 2,000 to 2300, 2400, you will see the price participation plus some ideally in that gold miner index. That is the way i see playing it. I dont see this gold trend anytime soon. Charles 2000 to 3,000, possibly higher. I love it when someone comes on the show with a bold prediction. Let me go back here, phil and sort of talk about the setup we have here. It feels like were getting sort of momentum. Already now the s p is positive. It joined the nasdaq. The dow is not that far behind f you get boeing going, disney rocking, if we get all the major indices break out, wont that trigger some sort of avalanche of a rush for all the cash on the sidelines into this market . It will, but you have to careful where you make your bet. I contra gold. Economy opens up and i wont be in gold. Home is where tell value. Tech sector valuations are just not there you have to rotate those name underloved and do well as we open up. If were right, economy opens, you do well in underloved value names. That is the opportunity here. Build your portfolio partly with growth and tech because that is a secular shift but dont leave behind the value side of the portfolio as money floods back into the marketplace. It wants to get paid to wait around in dividends and buying cheaper stocks and value side of the value sheet. Charles congress is still messing around here. Fridays session was crazy. We opened big on a lot of great news. We gave it all back because congress was walking away. We heard they coming back to the table over the weekend. We saw a huge run with huge volume. Shana, your thoughts with a minute to go. How important is it that Congress Come up with something this week for this rally and economy to sustain itself . Its critical because the biggest part of our gdp and economy is consumer consumption and we need consumers feel they need the support if you cant go back to work, if you want them to comply to deal with the virus you need to give them support. We need Financial Support for those folks who cant go back to work so we can keep the con psalmer alive and well. That is the key to driving any rebound in our economy long term. I agree 1000 . Shana, you made a great debut on the fox business debut. We appreciate it. Phil, mike, theyre old pros. Theyre fantastic. We learned a lot and i think people will make money off those ideas. Later in the idea President Trump blasting president ial debates for joe biden too late in the game. Is biden trying to get out of them as trump claims . Deneen borelli weighs in. Were another hour away from the white house leaders and democratic officials. The clock is ticking, folks. Will we get anything done . The market needs it. 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He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Charles were about an hour away from another round of stimulus tax on capitol hill. Nancy pelosi set to meet with Chuck Schumer, mark meadows, Steve Mnuchin to hammer out a deal. Everyone hopes it happens by friday. Blake burman with the latest at white house. Reporter charles, im told the meeting between the top four negotiators seen as big inflection point. Here is one of the reasons why. Ive been told at that meeting yesterday, among the same four the White House Team conveyed to the top democratic negotiators if there isnt any sort of significant progress made in the upcoming days, then that could potentially push President Trump closer to use the executive authorities. One of those talked about to instruct the irs not to collect payroll taxes. Larry kudlow said yesterday, he doesnt think there would be, that this would essentially be a good thing politically. He thinks there would be political pushback to the idea from both sides of the aisle. However President Trump this morning talked up that idea. Listen. Well i may do it myself. Were negotiating right now. I have the right to suspend it. I may do it myself. I have absolute right to suspend, to do the payroll tax. We call it a payroll tax suspension. That is an incentive to beef up people and Small Businesses generally to hire back workers. Reporter so the talks resumed this afternoon, charles. Joining thousand discussions in 45 minutes or so will be newly installed postmaster general luis dejoy. Why is that important . Democrats want money for the u. S. Postal system for the relief package going forward. President trump as you know expressed his skepticism regarding mailin voting this is big issue for the democrats but this issue is a hard no for the president. Charles im joined by Young Americans for liberty analyst kristin tate. Kristin, i know youre not a big fan of all the government money printing but something is going to be printed. It will be a trillion and three trillion dollars. So that being said being said where should it go . A smart relief package would provide temporary assistance to suggest link americans and also providing strong incentives for families and businesses to get back to woke especially covid hospitalizations appear to be down in many parts of the country. This looks like another trillion dollar spending bill that tries to prop up the economy with endless government money. Republicans, democrats agreed to extend ppp payments and direct payments to american family. They disagree to extend federal unemployment and to bail out debt ridden states and cities, a lot of these places were in trouble long before covid. But, charles, a lot of americans are just asking themselves, where does this all end . I mean when do we get back to some version of normal . It seems like a lot of people in d. C. Have no interest in getting us back to normal. I mean the left wants to keep schools shut down for months on end. The left wants to keep churches and businesses shut down. I mean they want to keep paying americans 600 a week not to work until april . These are the people were putting in charge of the country back up and running i dont have a lot of hope. Charles it does feel a lot of these states and municipalities are okay, you know, listen, its a delicate situation. We know that. You know, there were so many articles just yesterday about new york city and how many Small Businesses are permanently out of business. Were talking 520,000 people out of jobs. Businesses gone forever. And, you know, and theyre talked up as hey, they handled this smartly. I dont think so. Governor cuomo made it more difficult for businesses to do business. This is what bothers me. They deliberately hurting businesses and, asking for federal help at the same time to keep that going. Its a vicious negative cycle. So the longer they keep this going and fed money to do it, the more permanent damage were seeing economically. It is so sad what is happening to our nations great cities. When this is all over, new york city will have lost permanently so many of its beloved local businesses and restaurants. Why would anybody start a business in new york city today . Bill de blasio is saying earlier this week that Indoor Dining probably wont be allowed to next summer. It is ridiculous. What is really insidious, there are politics at play here where democrats want to seem to continue to keep everything shut down because they want the economy to stay in a state of recession until the election. That is what a lot of this is about. It is not about the health of americans. If republicans dont stand up and start fighting back and start promoting policies that will allow the country to reopen, we could be looking at a situation where nancy pelosi controls the house, Chuck Schumer controls the senate, and biden controls the white house. If they get rid of the filibuster, the left could remake the country a lot of ways many people in the public probably cant comprehend. Neil i hate the notion anybody would deliberately want what you say but harder and harder for me to disagree with that statement as well. Kristin, thank you very much. Thank you, charles. Charles carmakers are expecting a boom in electric demand. Investors, well, they want to get in front of that boom obviously. If you ever wish you bought tesla stock two years ago instead of laughing at the company and the ceo, you may have a second chance. We have the next big ev companies you may want to put on the buy list. Florida Governor Ron Desantis telling unemployed floridians his predecessor is at fault for troubles getting benefits. The predecessor, current senator, rick scott, he is here. He will respond later customizes your Car Insurance so you only pay for what you need . Given my unique lifestyle, thatd be perfect let me grab a pen and some paper. Know what . Im gonna switch now. Just need my desk. My chair. And my phone. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Charles when i was a kid i had one of the electric slot car games, it was a lot of fun. My car never stayed on the track because i took turns around corners too fast. It was really cool. If you told me we were on the verge of electric vehicles everywhere i would not have believed you and i was only 10 years old. Entire wave of impending electric cars is not new. The auto market is going back to the future. Consider this, back in 1900 had much larger market share than gasoline. Only slightly less than steam. I heard about electric trucks driven by 14yearold boys in the 1900s. The it is all rushing back, the vehicles not 14yearold boys. I want to bring in the car coach, lauren fix. You and i had this conversation. I resisted government would make us buy these cars one way or another. But it is happening. I dont know, when, how, well be buying electric vehicles, driving electric trucks. It will happen. I dont know globally. Looking for the uk, is only 9 plugn it sounds exciting everyone talks about it, the take rate is still not that big in the u. S. China is bigger but there is a huge incentive behind it. Charles but were adding those incentives here. Every time i see a automaker say they are going to, put money into electric, all of them have said in fact, ford got rid of their ceo because they didnt do electric fast enough. So everyones planning on selling us electric cars. I say well end up having to buy them. Maybe well be incentivized. Maybe we do something else. Who is the most intriguing right now . As an auto expert, which ones do you like right now . Theres a lot of them. I like the brands, for example. Porsche has the brand that is spectacular. Mercedes, bmw, has an electric. Everyone is doing it, hyundai, kia, everyone has them. As far as exciting vehicles i am fan of jaguar ipace. Not selling as well as it should. I love the audi etron. Outselling tesla in some countries. What i like with the manufacturers, you got a problem, you go to the dealer. They give you a loaner car. Youre good. Some of the independent brands the problem if you have a problem, you are on your own. Well send someone out. No one wants to wait. Were impatient society but some independent brands doing very well. Charles i want to ask you about the truck sector because that is where wall street seems to get excited about. We had a Company Become public through a spac. There is nikola. There are several others. Excitement, is that warranted in your mind for electric trucks, work trucks . There are a freight trucks. Bollinger mothers has done very well. They moved from michigan to new york. Theyre getting orders. Rivian has a ton of money coming in. Theyre partnering with car manufacturers. That is a smart way to go. One of ones i like nick cola, i like it because he is thinking about people using the vehicles. Now haw big the plugin has backup of hydrogen. That is smart using blue gas technology. That is kind of a tonguetwister. This is not regular hydrogen. This is processed differently. That is great. You can go the long haul and do short distances the Something Like that may be the smarter choice. Charles lauren, always appreciate your expertise and passion. I havent had that passion for cars since the electric one i told you about. I never won either. Well put you in a good car then. Charles listen, ive been following this space for years, folks. Long term subscribers of my newsletter have been fascinated with plug power, capstone, ballard power. More recently this electric watch list has gotten bigger and bigger. A lot of people are trading. What i dislike again is the idea of global governments forcing consumers to buy electric but i think well see a hockey stick. And the longterm buy and hold investors will make a whole lot of money if theyre in the right names. On that note i want to bring in roth capital Senior Analyst craig irwin. Thanks for joining us. I saw you had the highest rating on workhorse which a name i like a lot. I love the story. I want to pick your brain about this because a lot of investors are now circling this space. Workhorse is really reramming their production. They have six million miles after previous generation that informed the redesign of their vehicles. By the fourth calendar quarter of this year they will produce 100 a month. Then they will step up to 200 a month next year. Theyre at the front end of a big ramp. What is really exciting i think theyre highly competitive for the post office procurement. That is 165,000 vehicle procurement going on right now. It is about a 8 billiondollar contract. I think this could have transformational impact on the company and get them going long term with a different cost structure than what youre seeing from a number of others really going for a cold start right now. Charles lets talk about some of the others. Lauren fix likes in part nikola, in part to the blue gas part of it. Every time they raise money that kind of disturbs investors. You raise money because you see demand. Are there going to be other winners here . Because you have a price target on workhorse for 27. That would be a huge gain for investors if it goes there. Are there other names that have that potential in your mind . Absolutely. We like a Little Company called green power bus. It trades in vancouver but moving over to the nasdaq. They have a purpose built chassis similar to workhorse. Theyre going after the shuttle bus market. They picking up big orders. 100 unit order the other day. They are profitable with just five Million Dollars in revenue. Which is amazing in this space. The ceo is frugal, how he spends money. Working well with customers. Since you mentioned nikola, fuel cells are selling 20 years. Plug power will announce an electric fuel cell truck with amazon. Charles with amazon . Whoa. Hold on one second. I have to put my order in. Listen, ive been following plug for 20 years. The stock has come to life. It has been acting great f this thing breaks out, who knows where it can go. These are ideal names millenial investors want to own. Hot industries that can grow with them. It is amazing theyre not getting more coverage. Good for you in a way i think but i think it is amazing overall that wall street doesnt seem to be paying enough attention. Give you the last word, craig. A lot of names have been left and unfollowed for many years. Many people are shocked when i tell them these days plug power has 24,000 electric forklifts in the field. They move 40 of the groceries in the first half of the year in the United States. That is amazing company. Charles that is amazing. Ive been telling you, ive been following the stock, i lost a lot of money for a long time. Appreciate it, craig. Not just electric vehicles everybody it talking about. Sales of e bikes as people suffering there you the pandemic. Grady trimble in chicago where a new bike is rolled out. Reporter charles a little bit type of electric vehicle, a smaller one. Im on one now. I will waiting for people to pass on the lakefront path in chicago. This ebike, that is owned by lyft. They just unveiled brand new ebikes all over the city. Waiting for people to pass i will get going. It is a pretty smooth ride. You get one of these to take it around the city for just a few bucks. If you want to buy one you could buy one for around 1000 from various companies, up to around 7,000, even [inaudible]. In 2019 alone [inaudible]. Take a look at the netherlands. That country, only 5 [inaudible]. Charles all right. We lost grady as he was riding along the beach. I didnt see where the Electric Park kicked in. For a guy like me i need to know more about that. Speaking of which, stimulus talks finally accelerating. What concessions are lawmakers willing to make for American Families and Small Businesses . I will ask florida senator rick scott next. What does he make the current governor, desantis, laying the blame on him for the unemployment failures . You do not want to miss it when you walk into an amazon fulfillment center, its like walking into the Chocolate Factory and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. 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No. What weve done weve sent money agencies, to state governments, sent money to local government. If we want to help people, get the money going, if were going to spend money, give it back to the people. Give them payroll tax cut. Give them reductions to their capitalgains tax. If you, if were going to spend money, do it in a manner that goes to be somebody, doesnt get lawn dered through all the different groups that want to waste money. It is inefficient. Charles that was argument for draining the swamp. Republicans have been talking a long time to downsize the government, remove layers of bureaucracy where every layer takes a little bit of the action, a piece of the action. Some would argue on the other side of that, you know, if you, capitalgains tax may not be good enough for some people who are unemployed, dont have any money in the market. That not really focuses on how well their Capital Gains are doing because they dont have any. The other part some folks are saying businesses would benefit more from payroll tax cuts if they actually had bigger payrolls. So what about directly sending money, directly to individuals, just directly i think youre right. Look, charles, i grew up in a very poor family. We lived in Public Housing. I watched my parents car get repossessed. I want to take care of those who loves their jobs. Direct money to people lost their jobs. Direct the money to the Small Businesses that are struggling to either stay open or to open. And lets dont have all these liberal ideas that Pelosi Schumer have. Charles, they cant just keep spending money like this. We have 27 trillion worth of debt. Gold at record prices, what that is telling us that market thinks that congress is wasting money. Lets spend the money to help people we need to help. Those that lost their jobs or Small Businesses get the economy going again. But dont waste our money sending it through state and try to get it to the people that need. Senator i want to ask you about, you were trending this morning when i woke up. It seems like apparently Governor Ron Desantis rather blaming you for making it very difficult for folks in that state to receive unemployment benefits. What are your thoughts . Im sure have seen this, you must want to speak about it . Well, you know, growing up in Public Housing you know it is pretty important to help people and, one if theyre on unemployment you want to help them. Two, you want to get them a job. My focus was to make sure people got a job. We added 1. 7 million jobs. Look, it is a tough time to be a governor. Some people are leaders. Some people take responsibility. Some people solve problems. Some people blame others. My focus every day how we get people back to work. How we take care of unemployed. How we help our Small Businesses prosper again. Charles do you feel like Governor Desantis is blaming you instead of taking responsibility . You know what, my experience, im a business guy. My experience is what you appreciate is people say you know what . I came in here. I fix problems. I work hard to solve the problems i committed to do. That is what i did as governor. That is what i think all americans expect out of elected leaders. Go solve problems. Quit blaming others. Charles senator, thank you, as usual, we always appreciate you taking the time. We thank you very much. Thanks, charles. Charles a tale of two parties really. Another aocbacked blog aggressive takes down a democratic heavyweight, the republican establishment boxes out, they boxed out some people would call a firebrand. President trump sends the left into a tizzy by considering giving his Convention Speech at white house. Joe biden, says no, he aint going to his own convention. Fox news contributor Deneen Borelli, i cant wait for her take. Well get it next thats 15 percent on top of what geico could already save you. So what are you waiting for . Dj khaled to be your motivational coach . Yo devin remember to brush in a circle motion. Thank you. Dj. Khaled. Tiny circles, devin. Do another one. Another one. Is this good . Put in that work, devin. Dont give up. Geico. Save an extra 15 when you switch by october 7th. Charles well, folks, joe biden is not going to milwaukee to accept the democratic nomination. The former Vice President scrapping travel plans citing coronavirus concerns. The announcement coming hours after President Trump floated the idea of delivering his republican Convention Speech from the white house t would be unprecedented move. What is your take . I want to bring in Fox News Contributor Deneen Borelli to get hers. President trump, where else would he go to take it . Everyone is saying it has never been done before but we are talking about President Trump . This is true. He is not your average politician. I think its a great idea to host this at the white house because he has the excitement and the momentum behind him, charles. This will only add to it. With joe biden i am not surprised. The words lying dogfaced pony comes to mind. His handlers have no idea what he will do or say when he is in public. That is why he has been bubble wrapped and in the basement because they dont know. He is so unpredictable. Just last night he challenged the guy because he was asked about his mental capacity and, he asked the guy, well, are you tested for cocaine . Are you a junkie . I mean that is just one much many examples of what you just dont know what is going to come from joe biden. Charles that was cringeworthy. And also a black reporter. Golly it is biden doesnt like being challenged. Weve seen that over and over again. I think, even, without any of this, even without the questions about maybe where his state of mind is, he is always historically pushed back hard with anyone questioning him. He would have to hold that in and those answering the questions. Im not sure he could do it. I dont think so either. He is challenging folks who want to support him. When he gets mad he tells them, go vote for someone else. He is pointing his finger at some guys chest. He told some man, no wonder your wife left you have. There is a list of thing joe biden said on the campaign trail. No wonder his handlers dont want him to leave the basement. Im not surprised. Charles the day after joe biden said her husband will debate President Trump, the president is warning these debates are just too late. Take a listen. The one problem i have, the debates are very late. At the end of september, a lot of ballots will already be cast by that time. They want to make the debate as late as possible. What is important first debate, people moved up, people putting in the first ballot they got to know. Charles deneen, less than 100 days to go. I wish debates why now. Im ready. Yesterday, how about that . There is going to be at least 16 states will already be voting before the debates begin, but clearly, i dont think the democrats want joe biden on stage with President Trump because he will be challenged on the a number of things. Where he stands. His support for segregationists early on in his political career. There is a long list of things that joe biden will be unable to support and stand up for. That is what the democrats dont want. Charles another issue for joe biden is his party. The power within that party from progressives. Liberal challenger, cori bush, defeated long time congressman lacy clay. She became known for her black lives matter activism. That gained traction. It got endorsements from bernie sanders, justice democrat. Those are the folks who helped elect alexandria ocasiocortez. There is kansas the establishment scored a big win. Republican marshall, edging out chris kobach. Replacing retiring senator pat roberts. On the left, you have these progressives. Theyre winning races across the country and theyre flexing their muscle. They have never been ashamed to flex their muscle. By the same token feels like the establishment in the Republican Party is starting to gain some traction. I dont like either development, deneen. Well, with the radical democrats, it is stark dynamic what they stand for, and what President Trump stands for. They want to punish americans, raise taxes, implement the Green New Deal which is a job killer and which raise energy prices. They are demonizing our law enforcement, pitting them against citizens. President trump is for law and order. He is supporting our police officers. He is gained the support of some union, police unions. We are energy secure, energy dependent, energy independent. So its a stark dynamic with what the democrats are pushing, progressive versus President Trump. Charles people come on tv, financial media, say biden is only going to raise taxes 28 , business taxes. I dont believe it. I believe he will go a lot further if elected. I believe he will be pushed there by progressives. Deneen, thank you very much. Thanks, charles. Charles markets extending the rallies into the final hour of trading. I want to see the cp effect particularly as nasdaq. Well get all the markets back there. We have great guests. Well be right back. In your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. To listen, is to hear more than whats being said. And offer the answers that make someone feel truly heard. I understand, lets get started call a Dell Technologies advisor today. I understand, lets get started robinwithout the commission fees. So, you can start investing today wherever you are even hanging with your dog. So, what are you waiting for . Download now and get your first stock on us. Robinhood. Charles breaking right now, secretary of defense mark esper saying a short time ago, most believe the beirut explosion was a tragic accident and that the United States is ready to provide whatever assistance to lebanon is needed. At least 135 people were killed and 5,000 others, injured in yesterdays massive, just dramatic blast. All the major indices look like they are finally breaking out and if you look at the s p, materials and energy are a top performer today. Tech mostly stagnant. It feels like reluctant investors are finally getting in on the market and are focused on things that havent moved. They call it Value Investing although that could be a misnomer sometimes. The fact is its a tacit admission they have been very late to the game. The man who is not late to the party, bmo Capital Markets chief strategist brian belski. You were bullish when most of the street was bearish, you took a lot of hits for it. It feels like reluctant buyers are beginning to show up but they are buying underperformers. You think thats the right strategy . No. Thanks for the kudos. We really appreciate it. We were humbled by that. Its a great way to think about it. You dont buy value because its cheap and just because its cheap, its not value. I think the problem with making the value calls more like dating versus a commitment. They date the value stocks for a couple days, then go back to tech. You go back and what happened in july, tech was mostly flat, so we are starting to see some signs of some broadening out, charles, but i think the value trade is going to be dominated on a stockbystock basis, meaning not just industrials, not just energy, not just materials, and most importantly, not just financials. Its going to be very very select financials like the Big Money Center banks and brokers, or with industrials, the more domestic players like the Waste Companies and Freight Companies and within materials, maybe some base metals at some point. I think the gold move has gone way too far. That would be a momentum move that we would be very leery of. So its not going to be just value, not going to be cyclicals. Its going to be much more stockbystock basis. Charles the bottom line is even as the market expands a little here, its still going to be a quote unquote, stock pickers market . Very much so. I think especially heading into the election and then i think we could have a massive meltup post the election. The majority of clients we talk to around the world, they just cant get out of the fact that they believe biden is going to win and the polls are so wide, we continue to comment that the silent majority is a powerful majority, and i think the same thing could happen as what happened in 2016. I think people are discounting that a little bit too much. The economy, the stock market is telling you that trump is going to win. I would focus on that and i think thats the major point that Everybody Needs to kind of step away from and then position a portfolio accordingly. Charles i got a note here you are looking for the s p to go to 3400 by the end of the First Quarter of 2021. Thats not really a lot from here. Does this suggest then mostly we meander, consolidate gains and to your point, perhaps a Trump Victory reignites the rally after the election, then . Thats what you mean . I think that, yeah, i think that could be. I hate to market time, as you know. Our 3400 quite frankly could be a little too low. Once we start to see Third Quarter earnings really start cranking up, people will start feeling a little bit better about that first half recovery in 2021 in terms of fundamentals and from a valuation perspective, stocks actually look quite well, going well into 2021. Charles to that point, weve got a screen up now, these earnings beats, i know the numbers are low, i know expectations are low and they were beaten down but when you have 83 of Companies Beating and the average comes in more than ten Percentage Points better than anticipated, i think its moving the needle here on this market. It really is. I think people forget that. All bear markets and all recessions, you go from despair to hope and we will have new leadership and we are seeing new leadership within industries across the board, and the level of beats is fantastic, especially considering, remember, charles, majority of companies in the s p 500 pulled their year end guidance. As Companies Start to provide guidance for the end of the year and into 2021, i think we will see further better numbers and acceleration of earnings growth. Charles less than a minute to go. Whats your greatest concern . You are bullish, you have been absolutely right, you made people a lot of money. Well, i will tell you, we dont know still how we are going to come out of this covid thing, if we will have another second wave in the fall. I happen to believe we are not going to but im not an epidemiologi epidemiologist. People are so fearful of covid and of the election, i think stocks go higher. Charles thank you very much. We always get so much out of these interviews from you. You have been absolutely spoton. Thank you, my friend. All right, the Dow Jones Industrial average is up 300 points as i hand it over to my friend and colleague liz claman. Liz, over to you. Liz its good to see you, charles. You know, we will start with the breaking news. It is a meeting that begins imminently between washingtons power players with trillions of dollars on coronavirus stimulus at stake and it has the markets juiced. As charles just said, we have a triple digit gain for the Dow Jones Industrials. Moments ago, our fox business cameras captured Senate Minority leader Chuck Schumer arriving at House Speaker Nancy Pelosis office for the meeting with treasury secretary Steven Mnuchin whom i am told just arrived as well, white house chief of staff mark meadows and the postmaster general. Is the Coronavirus Relief deal inching closer or is it as we said, imminent . We will bring you all the