More than 90 have topped their earnings and sales expectations which are ridiculous numbers. Shows how hard it is to try to predict these accurately. But the bar is also high for companies. They really have to beat by a lot. Investors are expecting it, and so if they dont, you can see pullbacks. Overall, earnings season is a great time for the market. Its averaged about a 4 gain over the last four quarters. During the five weeks when its really at its peak. I think its pretty important for us. Jack thank you, ben. One area where were seeing very little good news, jack, we heard Regal Cinemas were shutting more than 500 theaters, and worst of all, wonder woman put off, james bond, batman. Whats happening in the movie business . Well, if you take wonder woman as an example, we were supposed to get that in june, then pushed back to october. The latest i heard is december, but as you say, jack, if you see a wide theater release of that movie this year, i will dress as wonder woman on the last episode of this show this year. Its not going to happen based on sign es im seeing right now. And youve got theaters reclosing. For people who are thinking about bottom fishing this industry and buying some of these publiclytraded Theater Companies on the cheap, im talking about amc, cinemarx read our story in barrons first. One issue is if you go another six months with no big movies coming to theaters, you could gun to run into some liquidity problems. But you also have to consider that hollywood is evolving. Its not sitting still. And the longer that hollywood learns how to make money from movies going to streaming, you know, theaters and streaming, totally different business. Egg every studio executive says a big budget movie these days is a 200 million production budget. You cant take a movie like that and expect to turn a profit in streaming. As the buzz changes business changes, i just think it begins to slip further and further away, the idea were ever going to return to the heyday of movie theaters. Jack maybe the blockbuster days are over. Carlton, i want to go to you to talk about something in california that most people might not be aware of. Were all focused on the very top of the ballot come november 3rd, but an interesting question that california voters will decide is whether or not to overturn something called ad5 which essentially requires Companies Like uber and lyft would have to treat their gig workers like fulltime employees in some way. Yeah. So the Companies Like uber and lyft, theyre hoping prop 22 will pass, and that will maintain the status quo for them, and theyre spending big money to try to get this to go in their fair. About 185 million. Its too early to tell. Theres slight indication that uber and lyft will be successful, but theres still a lot of undecideds out there. If it does pass, the upside is pretty limited. Its going to be the status quo for them. Theyll be operating as normal and in a challenged environment right now where people arent commuting and going out as much. If it doesnt go in their favor though, thats going to be a real change for how these companies do business. For consumers, you know, that would mean possibly fewer drivers out there just was its unclear, you know because its unclear how many drivers uber and list would want to employ. Jack and real quick, this is an interesting dilemma we all face as Technology Becomes a more important part of our lives, what are we willing to give up for convenience . Exactly. You know, theres a lot of headlines about regulation and big tech, and, you know, you see a range of companies whether its the googles and amazons, issues of privacy and competitiveness, or uber and lyft on worker fairness, so how this goes in big techs a favor could have implications for other regulatory measures. Jack thanks a lot, carlton. St. Louis fed president James Bullard says the u. S. Could see a full economic recovery sooner than most people expect. He joins us to explain why. Thats next. Incomparable design makes it beautiful. State of the Art Technology makes it brilliant. The visionary lexus nx. Lease the 2021 nx 300 for 359 a month for 36 months. Experience amazing. At your lexus dealer. 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. Can it help keep me asleep . Rs fall sale on the sleep number 360 smart bed. I understand, lets get started absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. And now, the queen sleep number 360 c4 smart bed is only 1,399, save 300. Plus, free delivery when you add a base. Ends monday. You make my heart sing wild thing i. Think i. You know what i think . I think you owe us 48. 50. Wild thing. If you ride, you get it. Geico motorcycle. Fifteen minutes could save you fifteen percent or more. Jack this week Federal Reserve chairman Jerome Powell urged lawmakers to provide more covid19 stimulus. St. Louis fed president James Bullard doesnt necessarily agree. He joins me now. Thanks for having me. Jack of course, the market is not the same as the economy, but still fed chairman jay powell says stimulus help is needed. I want to play a quick clip of his comments right now. A long period of unnecessarily slow progress could continue to exacerbate existing disparities in our economy. That would be tragic, especially in height of our countrys progress on light of our countrys progress on these issues. Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses. By contrast, the risks of overdoing it seem for now to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste. Jack so, jim, youre a bit more on optimistic about the economy. You dont see as much need for stimulus. Yeah. The original cares act, you know, authorized government borrowing on the order of 10 of gdp plus other legislation in the spring which i thought was an excellent response, bipartisan response out of washington, good Monetary Policy coming with it. So the short that was designed for a shortfall in gdp of Something Like 1012 , but it looks like is the shortfall will only be 34 of gdp. So at an aggregate level, it seems like we have enough resource. I will say chair powells right to emphasize the potential downside and mitigating that risk. They might want to go ahead. But still, it seems like we did a good job in the spring and should be enough resources out there at least to get us through the end of the year. Jack as you look ahead to the end of the year, early next year, what economic metrics are your favorite . What are the leading Economic Indicators that you look to . You know, theres been Rapid Improvement in the labor market. Were certainly not all the way there yet, but one of the things thats been going on thats very different about this crisis as opposed to the financial crisis of 2009 is that a lot of the layoffs are temporary. Weve got workers identifying as being on furlough or on temporary layoff. At one point it was 85 of all those who were unemployed said they were on temporary layoff. Its still close to, a little bit under half say that theyre on temporary layoffs. What we know about those kinds of workers is that they tend to get recalled, so lets cross our fingers. I think a lot of them have been recalled already, but lets cross our fingers that more will continue to get called and the layoff category will go back to its normal level. If that all happens, data will come down rapidly in the last few months of the year here. Jack you also hear on main street a lot of Small Businesses struggling. Obviously, restaurants, hotels and so forth are having a tough time because travels knotts happening, but not happening, but other business as well. Do they need a lifeline to get us through . Yeah. Small businesses, especially those in travel and leisure, are really taking it on the chin here during this crisis. I think were all, you know, very sympathetic with those businesses. I think the ppp program was very successful, and thats something where you could do another round and probably have some success with that. Jack one question for you, i realize this could change with the next tweet, but earlier in the week the president seemed negative on stimulus, and then on friday he seem ad quite positive seemed quite positive. You mentioned the 1. 8 trillion number which is kind of close to Nancy Pelosis 2. 2 trillion. If mnuchin and pelosi can work out a deal, do you see less effective versus more effective fiscal stimulus . In other words, is the paycheck replacement better than infrastructure, vice versa . What gets money into the economy in the most efficient way . This is a pandemic shock. Youve asked workers to stay at home to invest in the national health. They deserve to be, get their incomes replaced while theyre trying to investigation in our national health. Thats where you want the money to go, thats who you want to be helped. I think congress did a good job in the spring of picking up the ppp program, the Unemployment Insurance program. When Congress Gets involved, they tend to add many other things to that, and i think thats where they get hung up and start to get into partisan battles. Thats why its hard to bring a deal, you know, and get it all done. But i think the general shape of fiscal response during the crisis have been very good, and you could probably do more in those targeted areas where youre actually getting dollars to the people and to the businesses that are actually disrupted. Jack James Bullard, thank you very much for your insights. I hope your optimism proves correct. Well see you again soon. Thank you. Thanks for having me. Jack coming up, tech stocks have dominated the market for the past ten years, crushing old economy industrial zones. The panel tackles that next. Are you frustrated with your weight and health . 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But historically, tech stocks and industrial stocks have actually moved in 10year cycles. Barrons Senior Writer al root took a deep dive and found evidence we may be due for an industrial resurgence. Al, its good to see you. You quote an analyst saying the software boom will finally start to benefit the consumers, not just the tech companies. What will drive that change . Good to see you, jack, and since im a guest, ive gone sans blazer. Three things, we had well, not sure about that. We had three trends and basically five stocks, right . So just like weve had this Software Tech boom all throughout the tens and teens, right, thats given way to having some of the Industrial Companies adopt some of these technologies for automation and to process big data, right . There is more factory automation, Companies Like rockwell make products to control processes, manufacturing processes. Now theyre collecting all that data, generating new business opportunities, and its an opportunity for them to improve margins. Even a company like caterpillar, adopting technology to automate some of its mining trucks and then also selling Services Based on the data thats collected. So thats one or two of those big trends that data and automation feed. The second theme that we really go deep into is electrification and renewable energy. We werent looking at necessarily solar panels or windmills, but really the companies that connect these things from, you know, the wind farm all the way to your home. And those are companies with electrical businesses like schneider, schneider electric, eaton and even qantas services, the company that builds transmission distribution infrastructure. So that electrification trend is really set to accelerate as we add vehicles, cars, heavy duty trucks to the grid, getting off fossil fuels and also as we add Renewable Generation to the nations and the worlds electrical generating capabilities. Jack its great to hear less or known companies that are going to be changing our lives. I think jack howe has a question about this. Yeah, al, when it comes to big tech, right, the u. S. Is googleicious. We are dominant. No one else comes close. But how competitive are we these days in industrial manufacturing versus our rivals overseas . Yeah, you know, its interesting, i often lament industrials dont get enough love, right . Google, trillion dollar market value, large, huge industrials are 100 billion. Theyre nowhere near. The u. S. Is very competitive. They have great companies, caterpillar, rockwell automation, eaton, honeywell. These are world class enterprises, and theres no reason that the basis of competition, like, were not behind other regions of the world in the adopting technology or utilizing technology. Other companies are doing it too, schneider electric, actually, is a french company. But, so the market share, you know, were not predicting sort of market share shift or anything like that. What we see is an acceleration of capital and industrial spending over the next decade. But to your point, you know, theres always sort of, you know, a u. S. And a foreign competitor. Theres like boeing and air bus or caterpillar. Thats how the industrial world seems to work. Jack and, of course, the big dynamic has been theres no facebook, no google overseas. Ben, thats going to be interesting in terms of indexing your investments should als prediction come true. Thats right. I mean, tech has been one of the big reasons that the United States stock market has outperformed all comers during the last decade. They just dont have the weighting in tech stocks that the u. S. Does. But if tech starts to underperform and other kinds of company like industrials start to outperform, you could see overseas stocks do better. Its Something Like we saw in the 2000s when the u. S. Market did okay, but it was really overseas where the action was. Jack and carlton has been looking at one of the companies that you picked out for a long time, al. I think she wants to ask about it. Yeah, al, im really curious to hear your thoughts on eaton and especially how its being looked at on wall street. Where is the growth . Is it just electrification or more . No, or i mean, i think its interesting you say that, carlton. I think that sometimes wall street, you know, its covered by analysts that cover a lot of heavy a machinery, cover heavy duty trucks to some ec e tent. About twothirds of its sales come from its electrical businesses, and with that set to accelerate, and wall street expects it to accelerate, i feel like a different people will start to see it a little bit of a different way, and it can trade not like necessarily a truck stock, but more like a high quality industrial stock. Thats a really good point. Jack al root, everyone can see your story on barrons. Com. Up next, round table members give their investment ideas for the coming week. Stay right there. I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. Economics . Algorithms . Magic . Turns out, its you. Doing your thing. Dreaming dreams. Building new worlds. Its why we built our workspace technology. To help you do your best work and to see what you can become. Youre made for bigger things. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. See yourself. Welcome back to the mirror. And know youre not alone. Because this is not just a mirror, its an unstoppable community. Come on jesse, one more its every workout. Come on you two, lets go for everyone. So join in now. And see your best self. In the mirror. Jack jack, for seven months you and i have been talking about different medical approaches to covid19, and this week you say you may have seen a bit of a breakthrough. Well, ben mentioned at the top of the show the president s treatment with regeneron. The president did a video, he does the accordion hands when he gets excited. He says some people call it a treatment, he calls it a cure, and i think his critics were maybe rolling their eyes because, lets be honest, there were things over the summer that the president oversold, right . The malaria pills, the zinc, he said weird things about bright lights and disinfectant. And i think theres a danger that investors might say this is another one of those things. This is not. People i speak with about these antibody cocktails, not just regeneron, but eli lilly, they say the Clinical Evidence is very strong, they look very promising. Its too much to call them cures, but they might be the most promising treatments so far, and regeneron has done this before and recently with an antibody cocktail for i bowl that really was a ebola that was a breakthrough medicine. Jack carlton, what do you have for viewers . Im looking at retail etf, its an investment for that cautious investor that wants to make a play on opening up. Youll still get exposure to amazon and best buy and target that have done well and continue are expected to continue to do el with, but youll also get exposure to names like urban outfitter and gap. Jack ben, whats your idea . Next weeks the start of earnings season, all the big banks reporting, but i like goldman sachs. I think the estimates there look low. And they had some regulatory issues with capital ratios last time around that are probably solved. Looks like its one that could beat or go higher. Jack goldman does well in volatility, and volatility is something we can expect. Jack, ben, carlton, great ideas, thank you. To read more, check out this weeks edition of barrons. Stay healthy, wear your masks. Well see you next week on barrons roundtable. Lou good evening, everybody. President Trumps Health continues to improve, and he is planning his first inperson event tomorrow, eight days after being admitted to Walter Reed Hospital with the china virus. President trump scheduling a law and order event on the white house south lawn. The president will speak, were told, from the balcony of the white house, and as the president s spirits are rising, so are his prospects for reelection. President trump is now polling much closer to joe biden in key swing states than he was, for example, at this point with hillary
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