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tv   Making Money With Charles Payne  FOX Business  December 16, 2014 6:00pm-7:01pm EST

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♪ ♪ gerri: that was 80% no. that's it for tonight's willis report. thanks for joining us. don't forget to dvr the show if you can't catch us live. good night. charles: i'm charles pavin, and you're watching "making money." stocks moving 350 dow points off the lows of the session. unfortunately, though, we ended down 111 points. a roller coaster day of sorts, it all goes back to the russian ruin. it absolutely crashed -- ruble. it absolutely crashed. so what's next for a desperate putin and what's next for desperate investors? buckle up and stay tuned, we've got the answers. right now let's go to nicole petallides on the floor of the new york stock exchange. nicole? >> reporter: charles, was there a ticket for this ride? wall street's ride today was wild. we were up over 200 points, down -- the whole, by the way, top to bottom about 350 points.
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so that really shows a volatile day. we haven't seen something like that since the middle of october. so much correlation to oil itself, it broke below that $54 range. we saw some of the energy names hit lows, and enthis they moved -- and then they moved higher. and then there were winners by the end of the day, right? then we saw them gaining. so it was, in fact, a wild day on wall street. some winners for boeing and 3m as they had their dividends raise, gopro, monster beverage, crocs, the new ceo. but you know what? google, new low. analyst comments on that one, we saw it hit a new low, so that came under pressure. tech really got hit, the nasdaq was down 1.2%, the dow down almost 112 pointings. the s&p down 16 points. charles? charles: all right. thanks a lot, nicole. dow off 112 points and that was the good news, guys. so let's go to our investment pros. first up, my man, tom sullivan's
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back to bring some of that, you know, calmness to the set, if you will. also the president of -- [inaudible] capital, jim, nice to have you back. scotty nell hughes, heath that herzog, our retail director, and matt mccall, founder and president of penn financial group. let's do it guys, the first real, real deal. you know, listen, watching these wild gyrations in the market, it couldn't help but think of shakespeare's macbeth. it's a tale told by an idiot. full sound of fury and signifying nothing. well, the dow was down 99 points, then up 250 points, then it fell into an abyss, and enthen it was down 100 points. matt, what is it signifying? >> i feel like an idiot because the market keeps dropping. you know, i looked at the charts, over the last seven days, six of those days it closed at or close to the lows
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of the session. the 30-day rally we had from the bottom in october, all but one of those days closed near the highest of the session. we broke some support levels today on the s&p 500, but i do think we're going to find that bottom in the next couple of days because i think the panic right now is too high. the vixx is at a level only seen a few times meaning that fear is are high. charles: were you screaming at your screen today? you sound like you're hoarse. >> it didn't work though. [laughter] charles: jim, i like that point. it never matters how the market opens, it matters how it closes. and to matt's point, it has been a disaster on these closes. what's going on? >> i think it has a lot to do with russia which is, obviously, being impacted dramatically by oil. stories about russian 1998 contagion and then the u.s. market, absolute safe haven, good retail numbers as expected. slow but better manufacturing numbers, new home -- construction starts, housing, so
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u.s. safe haven -- charles: all of that stuff was out, though, when we were up 250 points. all that stuff was the known stuff, but we gave it up. and nicole brought it up, i mean, guys, i'm getting waxed on some of these tech plays, i mean, the bottom completely falling out. the airlines got hit, retailers got hit. aren't those the safe plays when oil -- >> i mean, there's an article that came out this afternoon in "the wall street journal" about the fed potentially raising interest rates sooner rather than later. i don't buy into that stuff personally, but it did spook the market. charles: he writes those articles every other week. >> it is. it's all oil -- you talk about the ruble's infected the oil, but it is all oil. i just have never seen, i mean, i've been through a lot of up and down oil markets, but i've never seen it move this fast, and that's the question that i have. if it spikes down, are we going to have a u or a spike back up again? charles: it's got to be some sort of a v shape.
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there's got to be a point where we hit something -- >> bank of america said it's going to be down for the first half of '15 which makes it kind of a small u. charles: i think, though, that the investment world can deal with it being flat. wherever you find the bottom, fine, whether it's 50, 60, whatever it is, as long as it stops getting hammered every single night. every time we wake up, it's in desperate straits. that's the problem. >> it's a perfect storm for oil right now. they're not going to raise gas prices, vennty's going to have some social unrest, so i really do believe you've got the issue of oversupply and now the issue of the slowdown, so it's still a perfect storm for oil. i don't think we found the bottom, and today proved it. >> the problem is we're just one disaster away from those oil prices having to go up. that's the thing, the current events effect. how would that effect if we had another disaster to actually be forced to skyrocket? >> isn't this just a poker game? and the people with the cards are the saudis? and the question is, when are the saudis going to blink?
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charles: yeah, but we don't know what their hand is. that's just it, it may be a poker game, but they may have a dead man's hand because, ultimately, this is going to destroy opec. they're going to be the last man standing within that organization with the gulf states and, to me, they're holding cards and looking straight at american drillers, and they're daring us to put more chips into the game, they're daring us to do it. >> yeah. but here's the problem -- charles: all right. we gotta blow the whistle because they're yelling at me. >> all right. [laughter] charles: let's open up the first page of payne's investment playbook. yesterday we did talk about the growing optimism among small businesses and while not quite on the same level as their larger counterpart, it does speak to a lot of positive anticipation for a big 2015. well, not to be outdone, wall street is feeling very bullish also. in fact, according to barron's, there's not a single wall street strategist that's not bullish. talk about herd memberralty, guys -- mentality, guys. gdp growth, the s&p 500, and i've got the tell you, the eye
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of most needles have a wider space. almost everybody's on the same page. these guys and gals all saying the same thing. for the record, i think the federal rate is probably closest. i've been looking at 2380 for s&p. higher wages, i think, are in the pipeline, and we will benefit even industrially from lower fuel prices. so it brings us back to our next real, real deal. okay, tom, wall street -- everyone's so bullish and, you know what they say, for a lot of people that would be a red flag. >> herd mentality usually is, and you should run the other way. i think it still goes back to we're waiting for the fed, and the fed doesn't know what they want to do, and they keep talking about the fact they want to wait for conditions. they'll probably drop some of their language, book the market a few times, but i'm with these analysts -- charles: it is so hard to argue that this market shouldn't be higher next year. i know that it was case shiller,
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shiller's got some weird mechanism where the market's the most overvalued it's ever been, but everybody else, hitha, say the market's got a lot to the upside. >> i totally agree. the consumer's feeling that way too. some of these managers were saying consumer discretionary's where to go, the other was saying consumer staples. it's actually both. i feel like when the consumer feels better, everything benefits, and they're all right, all across the board. charles: although there's a distinct difference between discretionary and staples. staples are things you need day-to-day. exactly. charles: discretionary or is when you have that extra cash in your pocket, and you even like those. >> i do. year to date, for example, retail's involved. it's up 5%. consumer durables, it's around 3%. so these are a lot of these companies like disney, for example, media, that's discretionary. we talked about the elsa doll, they go out and buy toy, they're spending more money -- charles: two more sessions like
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this, scotty, and i'll be playing with an elsa doll. [laughter] what do you think of the group think? a legitimate worry when everyone on wall street is bullish. i sort of become contrarian, although i'm more bullish than any of those guys. >> like you, charles, i'm cautionary bullish. this is the same mentality we had going into '07-'08. these companies need to step back, reassess what they're doing going forward. look at what happened today in the ruble, look at japan's economy receding quicker than we thought it would be, and they need to reassess and adjust so we can feel more confident. charles: i've got a feeling that the corporate world's got its act together. outside of the fed, though, what do you see? everyone's saying maybe oil is the black swan, but what could derail the positive 2015? >> um, i mean, failure to meet corporate earnings, which i don't think is going to happen, but if u.s. companies can't deliver on the forward-looking expectations, that could cool it. look, fed moving rates sooner, matt mentioned it, that is a concern of everybody. and when the fed does move
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rates, the last three times it happened -- '94, '99 and 2004 -- the equity market loses 40% in the -- 4% in the first three months. unserbty and, i dare say, weakness in europe, japan and china. charles: now, we should say wall street is an expectations game, so after the bell today darden had a better than expected loss or whatever, you know? it's really great when your expectations are low, but we're going into 2015, most people, matt, thinking it's going to be great. that puts extra pressure on these companies to deliver. >> it really does. i'm looking at about 10% for the s&p 500 as a whole which i think is reasonable, and if that's true, we can get a pe ratio of 18. that's not even close to bubble levels. so that's a little bit below where you're at, charles, but that's very, very attainable. we could see upwards of 24, 2500 -- charles: and i think we all agree, it doesn't mean he -- we won't have a few bumps and bruises. all right, gotta open up another
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page from the investment playbook. oil down 50%, 50% in a flash. i gotta tell you, in hindsight you can argue this was a bubble the whole time, but then when you say that, how can any bubble burst and not have any kind of implications throughout the investing world? what if there are good bubbles and bad bubbles? i want you to take a look at this. thinking about how bubbles have been financed in the past whether from the capital markets or banks and productive assets, when they have imploded, there's actually an argument that, yeah, they were good bubbles. for instance, the ones that remain productive after the collapse. an example could be tech. intel, microsoft, oracle, all of those stocks have come back and are at all-time highs. it wasn't bad for the capital markets. of course it was bad for the banks buzz even though they were -- because even though they were still productive, the banks got destroyed with their capital, which we're still debating. right now these banks have the greatest exposure to these energy loans at least as a percentage of their total assets.
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wow. since november 10th these guys are taking it on the chin. these are the top six, and the best performer coming into today's session was down 7%, the worst down 19 president. so -- 19%. so that brings us to our next real, real deal, guys. well, first of all, does anyone have a problem with the notion that there can be good asset bubbles? anyone think that that's a -- >> i think there are good asset bubbles. >> yeah. >> yeah. charles: well, i think when my bank account is nice and fat -- [laughter] >> but there's a two-edged sword here with these energy stocks. because of the fact that all of the stimulus by the fed, keeping interest rates extremely low which leads to bubble, right? led to the housing bubble, now we're leading to, a lot of people, getting into a very capital-intense business called oil drilling, oil searching, digging, whatever you want to do, fracking, it's all going to cost a lot of money. they had to borrow a lot of money, and there were a lot of
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people that were given loans that otherwise wouldn't have if it hadn't been for the cheap money that was available. it lured them in just like it lured in homeowners back in the early 2000s. charles: but those -- now -- but so this bubble imploding, some people may take issue, but down 50% in two months, just call it a bubble, it's not a bad thing because we now have the infrastructure to be energy efficient at some point and to control our own destiny, even if it -- >> got people into the business. >> when barriers to entry are low, a lot of companies go in. a lot of companies go in, there are a lot of companies that people are investing in. bubbles just mean shakeout. that's how i read it. this actually makes business better because the business -- charles: i think i may trip off this ledge. when i hear bubble bursting, i may fall out that window. >> and you shouldn't. you absolutely shouldn't. i think this is just a good thing. this is how it keeps -- this is how markets -- >> survival of the fittest. >> exactly. >> coming out of that even stronger, i believe.
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grab up some assets at a cheap price, and it'll be great for america long term. charles: but there will be blood in the streets. >> to tom's point, this is what makes stocks different from gambling. this is where it takes intelligence, studying the markets, knowing a good adviser who can watch these bubbles and predict them to the best of their -- this is not -- charles: the hard part, no, because when they first implode, everyone goes down. microsoft went down, intel went down. it's knowing which ones to hold and being able to bite the bullet. i mentioned yesterday, i sent out alerts on self-things, people were up-- on several things. in a way, i don't blame them, but when you have to bite the bullet, it does hurt. >> i mean, look, there are certain states whose own gdp are so dependent on oil, they're not going to enjoy this bubble. they're going to feel it in their local -- >> halo effect. >> yes. we may be able to pick up some cheap paper. the folks in texas, for example, this is a bloodbath. >> you mentioned the states,
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hancock, frost, whitney, those are all in oil-producing states. they're going to be affected. when these energy stocks call in their loans with the banks, that is going to -- charles: all right, guys. i mentioned in the last real, real deal, jim, let's talk about this action in general. is it an overreaction, i mean, every day it's easy to come on tv and almost everyone says the same thing, i wouldn't be surprised if we had a four handle. it's a pretty easy call when they drop $3, $4 every day. >> i do think we are in the overreaction category. tom mentioned all the debt on books and the leverage loan market. you have to look at each of these companies under their own merit. ccc junk companies don't have maturities on their debt for years or the maturities are manageable. so if you believe oil is never going to go up again, yes, that's going to be an issue. but if they're going to rebound, they have time to manage. so, again, i think will it be default? yes. will it be massive capitulation?
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>> no. >> but nobody knows how -- the uncertainty is why people sell first and ask is questions later. look at the oil volatility, and it's just like vixx. they measure the volatility in oil. we're seeing extreme panic in the oil market. i think we're very close to a bottom. could it be 50? i don't know, but we're very close, charles. >> truly a trickle-down effect as your sitting at the -- as you're sitting at the gas pump, realize the fact that we're having these issues is the trickle-down -- >> it's not going to be good for the market. >> and thend johnny come lately into the oil fields is now going to the bank, and the bank won't give him the loan. they would have given him six months ago. so what's he do? he calls up one of the early ones like marathon and says you want to buy my lease? because they're in there cheap, and they can last through this. charles: there's a deal with a canadian oil company, talisman, today. you're seeing some of the majors
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looking around, the guys who are flush, and trying to take advantage of this opportunity. but i've got the tell you, it's one of these things where it's just the uncertainty factor of it. and with everyone saying it can go and get a four handle, it feels now as a self-fulfilling policy because two months ago not one single expert in the oil patch would have said a six handle or maybe even a seven handle. now everyone's saying, yeah, four handle's probably going to happen. >> but this isn't economics. and again, i'm going back to the poker game. the saudis have the cards right now. and if you look at the supply and demand of oil, it's actually pretty close. the supply's about 1.5% above demand. that shouldn't distort prices. so what it is, this is not economics, this is political. and the saudis are going to sit there and hold their cards because they want to either do in the small producer here, or they want to do in iran, or they want to do do in russia. charles: or all of the above. >> yeah. >> don't underestimate these oil companies. many of them have diversifiesed
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businesses -- charles: can anyone explain why the airlines were down today? >> i looked at that and thought it was interesting. oil was trying to find a bottom today, i think people were forced to sell winners, and airlines have been one of the strongest sectors out there -- >> yeah. but they're got hedge contracts, and they're going to be paying $80 oil inthe stead of market oil -- instead of market oil. charles: you would also argue that the consumer probably will fly more with that dispose able cash burning a hole in their pockets. >> i had a horrible experience with delta today, you know, if i had to -- >> who? who? >> not dealing with them. [laughter] charles: that's a whole different show and a whole different segment. all right, guys. by the way, i'm putting a list together of the oil companies with the best management, the best cash flow to manage that debt can. hopefully i'll have it ready for the show tomorrow, maybe friday. in the meantime, me and the gang are going to go over some of your questions including cvs and
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rite aid, among others. don't panic, we'll be back in the three minutes. ♪ ♪ it's more than the driver. it's more than the car. for lotus f1 team, the competitive edge is the cloud. powered by microsoft dynamics, azure, and office 365, the team can gain real time insights and instantly share information around the globe. when every millisecond counts, staying competitive begins with the cloud. this is the microsoft cloud. thanks. ♪ [ male announcer ] fedex® has solutions to
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♪ ♪ charles: all right, guys, now time to address your questions on the market. curious about an individual stock, the overall market, you can always ask ask me. now, getting a whole lot of great tweets and e-mails recently. william says cvs, still strong. anyone see anything good on rite aid? let's just talk about cvs for right now. matt, that's a stock you like, in fact, you just mentioned it, i think, yesterday or recently. looking fantastic. you still like it? >> i do.
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they bumped up their dividend by 27%, updated their earnings per share guidance, looking at growth 13-16%, and a $10 billion repurchase program. all-time new high today. charles: all right. that speaks for itself. michael also sent in a question, he said what future do you see for first solar? hit that, this is a name you've liked in the past more than once. these solar names are getting hammered along with oil which in some cases might sound counterintuitive. except for the northeast, we don't really use fossil fuels in -- >> i say the future's bright for solar? i like it. [laughter] here's the reason why. first solar has now done this initiative where they're trying to make a huge push into residential, especially in arizona and brighter states. they want to make it more accessible and, yes, when you see oil goes down, you might think it's going to start hitting these solar stocks, but i don't think it's going to have
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a major effect -- charles: what about the valuation point of view? these are still highly valued stocks. it trades a lot with tesla. elon musk's cousin runs this. anything when someone says, well, the valuation is still not there to match the demand. >> right. and i understand that. some could argue this is an overvalued stock, but i do think the demand is going to be there, especially with these community initiatives. charles: all right. you let us know when it's time to the add to that also, okay? brian says rite aid, store experience is much improved. i expect a nice surprise on third quarter earnings release. i got that tell you, i like what i'm seeing from same-store sales trends right now. i've been in it a lot of times over the last several years, we got back into it, up about 10% holding for a breakout through six. what do you think of rite aid? >> i don't mind the stock personally, but about three times the average volume to a new multimonth high, i'd definitely hold on to it here.
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charles: the store experience. i tell people all the time, remember when walmart was going to put all the grocers out of business? you started going to the kroger's of the world, what did they do? they widened the aisles, brightened it up, next thing you know, these were a better investment than walmart. what do you make of the evidence that rite aid might be a play here? >> they did well with margin expansion, and i think it's the customer experience. i also find it a little bit interesting, the tobacco issue. i think cvs, it's amazing how they're winning having given up the billions of revenue, and the only one that's in its class doing it. they stand alone -- charles: those health clinics. >> speaking of taking away market share from walmart, rite aid is trying to get into the grocery department. not as big as walmart, but they're trying to be that place where you not only get your drug items, beauty items -- charles: they're all selling crackers and bottled water. hey, fewer americans are hitting the mall, so will these
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end up being mausoleums to capitalism from yesteryear or will there be new uses for them? we're talking about real estate investment trusts. you always ask me about it. or how about just living in an old jcpenneys store? think about it. we'll be right back. ♪ ♪
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charles: got a news alert. more obama immigration drama. a federal court in pennsylvania declares aspects of president obama's immigration policy unconstitutional. the white house dismissing this decision. peter barnes in washington, dc, with the latest. peter. >> charles, this is the first ruling on the legality of the president's plan to limit the threat of deportation for millions of undocumented immigrants. a judge addressed the issue of an illegal honduran person. and separately the take care clause, which requires the president to faithfully execute laws passed by congress. the judge said he ruled on the issue because he concluded the immigrant could be eligible for help under the president's plan.
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but government lawyers said, no. that the honduran who has pleaded guilty to reentering the country illegally was not eligible because the president's order does not affect criminal proceedings. the justice department repeated that position and added the ruling was, quote, unfounded and the court had no basis to issue such an order. no party in the case challenged the constitutionality of the immigration related executive actions. charles: it seems to me if you're illegal, all the proceedings will be criminal. i don't want to start trouble. yesterday, the hostage situation in australia brought up the case that all malls are vulnerable. cbl, general growth properties, all those stocks held up very, very nicely. they've all held up pretty nice. the one thing that's been helping these guys. now they're talking about a whole new use of
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malls making them part of housing development. probably what's holding these things up, most of them in real estate investment trusts which make them extraordinarily attractive investments. a security sells and trades like a stock. major exchanges, invests through property or management. typically they offer investors ohio yields as part ohigh, highyields. if you can't buy the buildings, buy the rates. we talk about these things being an empty months leem when people actually went out and shopped. would you live over a mall -- if i put a house over a mall would you live in it? >> live over it or in it. my mother thinks i do all the thing. the idea of eat, work,
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and play, that is what is happening with these malls. you don't have necessarily main street, don't have a town center, these places are becoming the places where you host the event. last year, there were only two malls in the country. there were six of the lifestyle centers. like anything else, like the library, anything else is changing to adapt. >> it's old people that live there. all one story. young people want to travel do things. >> not necessarily. >> the baby boomers want to move there so they don't have to do anything. >> if you look at the grove in los angeles, that's a perfect example of this lifestyle center. a lot of these malls, to scottie's point are going towards that. we're seeing it. a lot of stores like sears, for example -- charles: what do you think? tom. >> los angeles, one of the things they have there is the grove, but they have the benefit of it's outdoors, nice
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weather. at the same time, scottie's point, i had a great theory. why don't we go over to go christmas shopping around six, 6:30. she said people stay there and have dinner. they were full this whole weekend. i know it's anecdotal, but it's a lifestyle. charles: we have a lot of people asking about these life investment trusts. it's hard to argue these aren't the best investments out there. >> the been. you kind of commented. what made them so attractive and it's the yields. these are highly sensitive to rates. if we believe the us economy is getting better, which i do, there will be volatility there. there will be some pressure. these are highly leveraged vehicles. a lot of investors are looking for coupon. that's what they'll get. charles: do you guys remember, there was a store called alexander's they filed for bankruptcy and went to 400 bucks.
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hitha, all these shaky retailers are saying, me too. recently sears. they came out and there was either speculation or a hint they would change their structure. the stock went straight up. it's come down. >> people have been expecting this for a while. eddie acquired kmart. we were expecting he would do this with the properties. when he started -- when they started to talk about his tragedy of getting rid of 300 stores and possibly -- that's when we saw the stock pop. is it going to save the stock? will it raise the money they need with $630 million last quarter? not necessarily, but it could -- what they really need to do is start rejig rating those sales. >> there was a real estate, prime real estate in manhattan and other places, they close the store, that real estate itself became extraordinarily valuable. do you like any of them? >> we own a couple of
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etfs. i like kim co. realty. not the big ones. the neighborhood ones. they've been dumping properties where the income levels below $72,000. and above ones $92,000. they're going into places where people have money. i'll back that. charles: i went to that grove. i was bicoastal a little while. that place was always jammed. i can see why someone would invest it. this mall always packed and crowded. >> the problem with reids they're expensive. there's an investor who is looked for that coupon. they want the income. they kind of look like this. they just want that, what are you sending this month for a check? charles: for three or four years, master limited partnership had gigantic yields. unis to bible. everybody out there bought them.
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in the last two years, absolutely decimated. there is risk. you cannot say these are riskless. >> absolutely. again, when the rates increase, they'll have a hard time refinancing. that's a maybe. by the way, alexander's, you want to know where their space was look at the bloomberg building. >> i didn't want to give bloomberg a shout-out. >> all right. you know what they say, what goes around comes around. what's happening in russia, maybe you could call it karma. they bud their neighbors. they're getting pushed around. what will a wounded vladimir putin do next. we'll talk about it. be afraid. ♪
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charles: uncharacteristically vladimir putin blinked on interest rates. it didn't help. he overplays his military cards even at the expense of his own economy. is that his next play? find out.
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charles: we've got a quick news alert. sony hackers threatening 9/11 attacks at the opening of their movie "the interview." the hackers are threatening, a, quote, 9/11 style attack on movie theaters showing an upcoming film that pokes fun at kim
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jong-un. stay for the latest on the sony hacks as the story develops. so what's happening in russia, speaking of development. some people say it's some form of karma. these guys have bullied themselves around. that said, a wounded vladimir putin probably more dangerous than one barking about old borders in the west. on that note, some are wondering if it's like the old russian crisis of 1998. that saw a series of political issues. global economic woes that pushed that country into a debt default, even after they received a huge financial package. right now, russia's debt is relatively low. they have large foreign holdings including us treasuries. should we be worried about military retaliation? that may be the only thing up his sleeve. putin has begun an aggressive campaign to modernize the military. the move, think about
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this, 44% of russians say they're okay with this, even if it hurts their economy. only 41% say draw the line at maybe economic pain to build this military. we're talking about building it up. by 2020 we'll have 1 million active soldiers. 1200 new helicopters and fighter jets. fifty new surface ships. 400 intercontinental ballistic missiles. it doesn't seem vladimir putin, i think he blinked with the central bank thing. i don't think he'll overplay his hand when it comes to the military cards. you used the card analogy. vladimir putin is getting pushed into a corner. is he the guy we want in a corner? >> it doesn't matter. he has a problem. that is that -- the country -- the age-old rule, he's got all his eggs in one basket. they got oil.
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farm, fishing. mostly an oil economy. with all its eggs in one basket, he's painted himself into a corner. it would be like, i don't have much money. i've lost my job. but let's remodel the family room, honey. this is not a good time to remodel the military. he doesn't have the money. it looks very similar. yes, the debt isn't as bad. the ruble is way out of shape. what they did in 1988, they devalued the ruble. defaulted on their debt. i see that as a possibility in russia. >> jim talking about shaking up his cabinet. they shook up the cabinet. a who will lot of other whole l. they got the bailout. it didn't matter. they had the russian flu which was a scary period. >> i was trying not to catch falling knives. he's in the corner. military action is not the play at this point.
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reneging on debt is a possibility. they spent a lot of money -- charles: real quick, if they default on their debt, what does it do to our stock market? >> the initial move, an absolute 10% pullback at least. >> banks would be -- that have exposure would be hit. >> initial pullback at least 10%. >> pullback, at the same time why is the american military pulling back when he's building up? charles: all right. ponder that. in the meantime, i'll go back to the well. this stock had a monster day despite everything else. it's my stock idea. my recommendation. you know what it is. but we'll be back. i think i'll make you money with it. ♪
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charles: all right, guys. time now for the stock recommendation. i'll go back to monster. this will be at least three times i've had. here's the thing. a whole lot of great companies that are getting beaten down to death. this one the smoke doesn't want to clear. while there's a tier two firm put a strong recommendation, the chart speaks for it all. i just don't see how this won't go up another 25% or maybe even a lot more. i still like this. if you've missed it, i think you can chase it. >> can't argue with the chart. i can't jump on the bandwagon because i said i didn't like it the first two times. the valuation is too hard. this action tells me it will be taken over. i won't bet on that.
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charles: it act like it. i think there are 33 non-soda companies out there that do billion dollars a year. i mean, these large beverage companies are looking for something to bolster them up. monster has to be in someone's crosshairs. >> i was going to be put it in the gopro category. i think there's a lot of momentum in this stock. i think the pe is exceptionally high. the coca-cola issue is cooling off. the stock could be on the wrong side. a lot of momentum. great company. >> i want to take back matt's hanukkah present. i bought you monster. >> there's a ghand for store delivery. obviously demand for these drinks. i'm on this side. don't drink this stuff. makes me queasy. the rest of the world is out there drinking it. charles: red bull is an amazing company. i don't know how monster
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does it. they have great management. >> what happened though? i don't understand the chart. the chart looked fairly flat. slightly up until about last summer. then it took off after that. so it seems like there was some spark -- charles: they got an investment. >> well, you need a spark, otherwise i don't know if it keeps that momentum up. charles: sorry about that. but it's the word of the year. culture. our culture's foundation is what made us the united states of america. but these days, there's debate on what our culture is anymore. for me, it hasn't changed that much from day one. we'll talk about it and you don't want to miss it. ♪
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>> you know one of my very first shows i talked about the word culture and how it defines organizations and our country. my example was a san antonio spurs who went to win the nba championship. turns out i wasn't the only one who thought culture was an important word as merriam webster chose it as word of the year. pointing to celebrity culture, rape culture, gamer culture, it kept coming up all year long. identify and isolate an idea issue or group with seriousness and makes it easier to talk of a group and habits, attitudes
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and behaviors. unfortunately, though, in my mind the word is used to generalize and misinform these days. on "cavuto" over this past weekend, my friend adam of fortune said it wasn't america's culture to use or embrace enhanced interrogation techniques, calling it more of an issue more than the failures of obamacare. word culture should not be up for debate. is it to question who we are as a people, to debate where we are, what we've been and where we want to go. when a president says that this was never a nation of people who pulled itself up by the bootstraps or fire brand claims they didn't build their own success, it makes any claim of a unified culture up for don't. it's too bad since the culture is what made us the united states of america. real quick, let's talk about that for a moment. listen, i know that was a big
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topic last week and still lingering a little bit. polls are interesting. most say people have agreed with the cia in terms of the use on occasion of enhanced interrogation techniques, but the idea that we have such distinct different ideas what culture is, it's bothersome to me, tom? >> if you travel around the country, you know we're the united states, we're four or five different countries. a southern culture, northeast culture, a california culture. >> like the couple threads beneath that unite us. >> it showed up after 9/11. we were waving the flag. look, my grandmother used to shake her head because i had a beatles record they bought. your culture is going to -- every generation says, that every generation our culture does shift. >> which is funny, the runner-up word was nostalgia, which gives you an idea what happened in the past.
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culture, there is negative connotations to, it and the second runner-up something of the past we had positives about. >> i don't know about negative, if i was in another country and asked what is the culture of the united states, i couldn't answer. that there's so much going on now. >> people call us the cowboy culture, the arrogant culture, the baby huey with all this power and doesn't know what to do with it and clumsily beat up everybody else around the world. >> the belief that you can have better days, i do think is paramount. words get misused all the time and culture does evolve to tom's point. family gets misused, partner is misused. >> time for the marching ordering. it was a crazy day, while wall street is fredding about the phrase tomorrow, considerable time. today on social media, a fresh face actively exploring.
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jeb bush's tweet about possibly running for the white house. people went crazy about it. as more candidates throw their hat into the ring. what they mean for the economy. we should know the tweet was treated with a fair amount of ridicule but wasn't about that, right? there are a lot of people against the political family dynasties. and let's face it, it played out the last election cycle. mary landrieu, her father moon was mayor of new orleans from 1970-78. mark baggic failed to get re-elected. scottie, talk about dick cheney's daughter, nunn's daughter. maybe there's a rejection. the mighty political empires. >> there is. we just sat here and worshipped princess kate and her husband will came over here.
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we see that, woo might admire, that we want to believe that every man has an -- >> we are obsessed with dynasties. started way before the kennedys, kennedys come to mind. >> the roosevelts are good. >> the clintons, the bushes, this county is obsessed with it. that's why we obsess with the prince and princess over here. >> what the fed does tomorrow, what will they do and how the market reacts? >> i think the economy is absolutely stabilizing, and considerable time, you can take it out, that's not going to intimidate us. >> there's no way, the market is going to react with oil. >> they're not taking it out. >> not taking it out. >> i don't care, but i wish they would take it out. please take it out. raise rates. please go away. please, please, please! it's irrelevant with oil crashing. appreciate it. great show, thank you for watching every night 6:00 p.m. tell your friends about it.
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dvr it, you don't want to miss a moment of "making money." up next, lou dobbs, a lot of things went on, the market all over the place, the world is also on fire. one guy ties it altogether. lou dobbs. lou: good evening, everybody. breaking news tonight. president obama's illegal immigration fiat ruled unconstitutional by a federal district court judge in pennsylvania. the president's unilateral action that will effectively legalize up to 5 million people who unlawfully crossed our borders was deemed in the judge's opinion to go beyond prosecutorial discretion. according to the judge, arthur saab, the fiat's rigid framework does not allow for meaningful case-by-case determination as to where prosecutorial discretion would be used and more importantly where it should not be used. the obama departm


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