tv Making Money With Charles Payne FOX Business March 1, 2019 2:00pm-3:00pm EST
point? >> 118 of the dow. neil: are you sure about that. >> more or less. neil: is our encyclopedia. the next one is rival each other, charles payne. charles: tell the gang i said hello. neil: they're too drunk to respond. >> hello, old man. charles: good afternoon, everyone, i'm charles payne this is "making money." this is a great session we have going on. talk about stocks surging out of the gate. they began to meander this is the perfect test for this rally. we've been on a tear for 2019. we'll be talking risk, reward, where investors want to be with veteran investor bob doll in just a minute. apple wrapping up the annual meeting with ceo tim cook trying to reassure shareholders. services was a key word as the company tries to prove it is more than just about smartphones. we'll have a live report. did the media almost talk
america into recession in december? i say yes. i will bo in depth to prove it. all that and more on "making money." ♪ charles: markets in the midst of a pretty odd session, right? we saw the dow up more than 200 points. then it came back. it was holding on for dear life, up four points. this action suggest as catalyst could spark next leg up. how long can the market keep spinning its wheels before they head for exits. today's manufacturing consensus was below. p mi5 4.2 in february down from 56.6 in january. what gets the market over the hump? what are the biggest risks?
nuveen senior portfolio manager bob doll. bob, there is array of issues people are concerned about. this rally is very impressive. how do you account for the way we snapped back after that december swoon? >> well we got too negative with 20/20 hindsight. remember back in december the thought was fed would raise every meeting for the rest of our lifetime. china and the u.s. were never going to sit down and if you looked out the window you saw recession clouds. they were all too negative and the debate now has to be, okay is the fed never going to raise rates again? we'll get a perfect trade deal in a few days time? and it's a blue sky, where is the recession. that is probably too extreme as well. so we're going to need some earnings. earnings expectations awe know, charles, keep coming down here for the first quarter and for the full year. that has got to stop if we will punch through higher from here in my view. charles: what about the notion these make for easier hurdles?
fourth quarter earnings, we have seen them absolutely blown away with what wall street was expecting and what we got. doesn't mean that they were great overall we we cleared the hurdle. are we just creating lower hurdles for the market to clear? >> i would love that to be the case. last september 30th, consensus numbers first-quarter earnings up seven, new year's day up four, now nine us two. if we get plus two. hurdles are a little lower, hope we could exceed it that would be good news. charles: one of the distinctions stands out with this rally, rebound, whatever you want to call it versus last year when we were making all-time highs at the peak there were more losers on the s&p 500 than winners. right now you have 470 stocks or more that are up for the year. it is mind-boggling. every sector in the s&p is higher. could we actually have a rally
that is this broad much longer? >> the health is amazing inside the market and i'm glad you pointed that out. the average stock made its high last january and the market made a new high in october and that was technical divergence a lot of technicians worry but as you point out it is more in gear if you will. that is sectors are moving, stocks are moving, small stocks are moving. if we can keep that going this rally has further legs to go and i come back to the fundamental, it's got to be earnings. the swing in sentiment on all these geopolitical issues can make you dizzy but let's see how the earnings start coming through and what companies talk about. are they finding workers, not having to pay up? are their costs contained in terms of transportation costs raw materials, enough good things? those are things they will watch carefully. charles: how important is the global economy in your work? >> big-time important. at the margin the rest of the globe makes a lot of difference.
we know it impacts 38% of the revenues of the u.s. stock market. that's a big number. we also know from the fed's recent statements that it affects how they think. so what happens overseas is important and there again, you're having mixed signs. occasionally, germany's retail sales today, a little better than expected. china pmi number is a little weak. how do you put that all together? it's a confusing period. that is why we get this volatility, charles. charles: bob, we got lyft filed their s-1 today. we know they will go public. there perhaps will be avalanche of new accounts, new ipos. is that a sign, some people think that is quasi-late-stage sign? >> when a whole bunch of them show up and the ones you mentioned, some are big, yeah, that is a bit of a supply issue. where does the money come from? there is a lot of cash on the sideline. do people sell "fang" stocks to
buy it? do they sell a broad list of stocks? we'll see when the deals come. what kind of pricing is there, can the market make its way through or we see higher highs after? more supply is never a good sign but we'll see how the market digests it. charles: before you go, i know you like united airlines and biogen. sort of eclectic two stocks. what are the reasons for that? >> what a portfolio, right? we like airlines in general. i don't know how much you travel, every time i do the flight's full and that is a good sign for the airlines. united in particular is doing better job with efficiency. revenue average seat per mile big numbers for them compared to history. very cheap stock, selling seven, eight times earning. in the biotech space we like a collection of those names. we had some takeovers recently big and small since the first of the year. biogen has a lot of irons in the fire around non-hodgkins
lymphoma. they're working on alzheimer's among other things and we think that stock is worth paying attention to. charles: i love biotech. it is just so hard to understand all the prefixes and who's what. >> got that right. charles: you're right, takeovers in them have been phenomenal. bob, have a great weekend of the we always appreciate you sharing your expertise. >> you bet, thanks, charles. charles: here to discuss, sure vest's rob luna, bull tech head of research catherine rooney vera. let me start with you, had a good conversation with bob doll. we talked about the trade and he talked about the fed. i love the idea wall street may come back to what matters more than anything else, the bottom line. how do you feel about this market with respect to the bottom line going forward? >> i think it is a great market. in december of last year i came on your program or january said this market is a buy and the reason it was a buy because the media and every talking head was
breathlessly talking about the recession. u.s. recession. that was aggravating the combination of negative variables which was uncertainty on the trade front. i recall everyone telling me the u.s. is going to recession, global recession because of trade apocalypse. this was the tale that was spun. we don't we said at bulltick we don't believe the tale. that is fed is on hold, we got some improvement of economic data. the u.s. economy is doing very well and i expect it to continue. bob is absolutely right. so earnings growth, everyone was talking about earnings recession. we haven't seen that. earnings have been softer, really charles, we have to expect that because earnings growth was 20% year-over-year. of course this year will be softer. >> they were definitely phenomenal, rob, and i think wall street is bracing for tough comparisons. i suggested to bob, more they come down, maybe the easier the
hurdle to cross but you will then get into conversations about valuations as well. >> that's true. valuations, charles, are not stretched that is why i think there is an underpinning with the market. you look at at 16 tiles -- times earnings, look at stock yields earning almost 3% i think valuations will continue to keep a lid on this market. look at run we've had year-to-date. we're up exponentially higher than where weigh were talking about in december, telling investors to get back in. we absolutely could get a pullback here but if you're investor this year, valuations will still keep you in the market. charles: kathryn, you mentioned china. mxci will raise ratings of chinese equities in global benchmarks. going from five to 20% later on
in the year. that means billions of dollars fresh foreign capital coming into china, buying those stocks. obviously a signal of good faith. these folks must believe that beijing intends to make good on promises even ones they haven't made yet to become a fair trading partner. is that something you believe, and if so what stocks should we be looking at in china? >> index inclusion is a boon for any emerging market. so china was given the green light, a year ago, now they're already being quadrupled in the msci in the emerging market index. that is is sponsored flow money. big money buying the index and by default buying into china. where do you have to be positioned in china? consumer discretionary. a-shares have a lot of exposure to consumer discretionary and that is the booming market here in china, charles. consumer discretionary is where it's at. the chinese authorities are making a cone certificated
effort of motors of growth from propped up state government spending and propped up exports to one based on domestic demand so i think that is where the growth lies. >> rob? >> i absolutely agree with that. i think i'm talking my own book a little bit here, charles, i personally own alibaba and so do my clients. alibaba fits that bill and that is a stock investors here in the u.s. can play through the adr look at the size of that, that company is a juggernaut. it did 900 billion in gross volume sales, compares to 400 billion in amazon. that is great way to play the economy. >> i agree. i like alibaba and jd as well. they're doing a lot of traveling. i'm looking into some of those names. katherine, rob, thank you both very much. >> thank you, charles. charles: canada will allow a extradition case against the cfo of huawei after she pled not guilty to u.s. trade theft charges. as part of a u.s. charm offensive ran a full full-page n
major newspapers urging americans not to believe everything they hear about the chinese company. huawei chief security officer andy purdy told maria bartiromo this morning that the company is not a security threat. >> we've been trusted for last 30 years 170 countries. there have been no major cybersecurity incidents involving huawei in the world. we're not saying that because of that record there should not be strict scrutiny of the kind of products and technologies we sell. we think there needs to be greater effort to address risk from all technologies and all products. that is what is necessary to make us all safer so we confidentially use the new technologies. charles: you know how we are, we report, you decide. after the break, we'll go live to cupertino, california, where apple just wrapped up its annual meeting. many say tim cook is in the hot seat. what is his plan to reignite the company and the stock price? we know apple is interested in streaming and for good reasons. the services are the future and
the shares of netflix and roku are skyrocketing this year. should you be there? where should you be invested in this hot space? all that and more. we'll be right back. ♪ this is decision tech. it's screening technology that helps you find a stock based on what's trending or an investing goal. it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions. and it's only from fidelity. open an account with no minimums today.
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all of which helps you do more than your customers thought possible. comcast business. beyond fast. charles: apple just wrapping up their annual shareholders meeting where they lay out the objectives for the rest of the year. susan li is outside the headquarters in cupertino, california. susan. >> they wrapped up 100 minutes on stage.
as expected all eight members of the board were reelected, that includes bob iger, tim cook, al gore amongst the names. we had tim cook taking question and answer period at end of it, really laying out the objectives for the year, wearables, apple say, services still the focus. when it comes to services he is still committed to doubling revenue, currently $10 billion by 2020. apple pay he says increased by 50% last year. same thing with wearables as well at a 50% growth rate. he is talking about health and growth and fitness with the ekg capabilities of apple watch 4. he also said dividend, we're committed to returning money to shareholders up 16% last year. they will continue to up that each and every year which shareholders like to hear as well. what i didn't hear, charles, which is important, more about the streaming services, ott, what they will do with apple tv.
that is something we anticipated, people hopefully trying to get something from and subscription as well to the apple news service people hyped a lot, about $10 a month. something like that. no mention of it. charles: susan lee, thank you very, very much. we appreciate it. we'll talk to you when you get back. meantime, it is interesting, susan talked about apple and streaming a lot of rumors have been circulating that apple will not only announce a new streaming service later on in the month but maybe they will just jump right into the business by taking over one of the names in the industry. let's go to my favorite guy in the business, otherwise known as sarge, stephen gilfoyle to pick up where susan was talking about here. apple, do you like the stock? >> obviously it got punched in the mouth and we all got punched in the mouth in december and beyond that. charles: what happened to wall street saying if you liked
it at 10 you have to love it at five. >> that is not always true. i am long 50% original i was long with i'm sticking with that. they're in services sector. that is where the profits come from going forward. you can't bet on hardware anymore. that game is over. the semiconductors told us that. i think it belongs in every portfolio at least to some degree. charles: streaming is hot. we saw the articles where music side is all-time high. tv video side is on fire. people will be shocked. roku is up 116% this year. netflix is well up 30% this year alone. many people think apple should take over netflix. what should the strategy be there? i don't think they will be able to do it organically? >> no, i don't believe they will either. i think netflix is a short here. i have said that in the past, don't want the folks to get hurt
copying what i do i think netflix is overpriced. i think competition is coming in. disney i think is the investment in the space. i think at&t is also a good play. i think comcast is a play. there will be so muching a agressive competition here, i don't think netflix has the ball and can run with it by themselves. charles: how do you take them down? you talked about one side content but the other side the pipes? doesn't matter the pipes as much, does it as content providers, who has the content? >> it will be very expensive for netflix to keep doing what they're doing. we saw that with the hit show "friend." the cost of that show went from 30 million to 100 million in just one year. disney will eventually pull all their content home completing directly against netflix. netflix will have to create their own shows which they're doing but the margin is not -- charles: disney, i'm not sure people realize how many acquisition they made. this is not the disney it was a decade ago. they have made a series of major
acquisition. ceo suggested they're willing to make more. i think a gaming play would be good for them. electronic arts, get the brands out there, millenials are playing, turn them into series of movies like "star wars" movies. is that sort of farfetched? >> that makes a lot of sense actually. they don't have that in the wheelhouse. they have everything else. what a lot of folks at home invested in disney, what i would tell the folks at home to do, sell a series of puts with further out expirations down into the 90s. this if necessary did i were to come in you would be forced, you're going to be forced to dollar-cost-average. that is not a stock i think comes in a whole lot. charles: been pretty firm to your point. great seeing you sarge. >> thank you. charles: hbo ceo is stepping down after a year, a year after, rather at&t acquired hbo's parent company time warner. during his 28 year tenure the premium channel produced some of tv's biggest shows, "the
sopranos," "game of thrones," the, "band of brothers." he was at platform of hbo go and hbo now. recession, recession, all you heard in the media at the end of the 2018. guess what? people were listening and they were panicking. i have the numbers to prove it coming right up. is the powell fed measuring society's disenfranchisement and if you listen to jay powell, maybe monetary policy will too. what does that mean for you and your money? i will let you know right after the break. ♪ i switched to liberty mutual
pressures and the cross currents i mentioned the federal open market committee is going to be patient as we determine what future adjustments to the target rate for the federal funds rate may be appropriate to support our objectives. this common sense risk management approach has served the committee well often in the past. charles: fed chair jay powell speaking in new york last night, using that magic fed word, call it the word of the year, patience, he iced it again but the phrase common sense risk management approach i picked up on. seems under powell is fed is not so married to the numbers or to tradition. powell also repeating a common theme in his speeches of late acknowledging not everyone shared in the benefits of this economy, a statement you would expect to hear more from a presidential candidate. joining me still chief economist lindsey piegza. lindsey's let's talk about the fed, every time powell speaks he makes sure everyone knows they're not going anywhere anytime soon even though they
data dependent? >> well that is exactly right. he has been very clear that the fed will be maintaining this patient pace as they continue to assess the evolution of the data. now for the market this has been a bit confusing, seen as an about-face. if you remember at the end of last year the fed was taking a noticeably more aggressive tone towards policy, talking upwards of two additional rate increases at this current year. at the start of the year they immediately pushed themselves to the sidelines. a little bit of confusion as the fed tries to be increasingly transparent about no future rate hikes going forward. charles: lindsey, let me ask you, on this notion he made this shift, massive shift. a lot of purists are upset. i think jay powell is taking notice. the line that he used yesterday, this common sense risk management approach, i think he is taking a shot back at his critics saying hey, maybe you guys are using a playbook from yesteryear that doesn't apply
anymore? >> i don't know if the fed is necessarily taking a more common-sense approach but we know they're increasingly being more transparent. trying to give the market a heads up in terms of giving them details and additional information, trying to give the market and market participants ample time to digest to absorb any change in monetary policy directives, particularly as it comes to the balance sheets. we're seeing fed take a different role or approach to press conferences which will occur after every fomc meeting which will give the fed better able to articulate the meshage. i think it gives them also to add additional volatility and uncertainty if we see parsing of words or foot in the mouth situation. charles: like october 3rd. i got less than a minute, lindsey, when the fed keeps talking about everyone has not shared in the benefits of the
expansion, i think about this modern monetary theory the idea maybe the fed should allow wages to grow faster for a long time as it seeps into the heartland of this country, do you think that is what he is saying? i'm starting to read that maybe the fed is more accommodative not because of wall street but because of main street? >> i think actually what the fed was referring to some of the unevenness in the labor market. wages have begun to back up more recently but we're seeing pockets of wage pressure in specific areas of economy where skills are in high demand and low supply. we heard the fed talk about in several beige books, talking about i.t., accounting, engineering. these individuals have benefited disproportionately from improvement in the labor market leaving many other americans behind. charles: lindsey, always great seeing you. >> thank you. >> here is a question for you. did the media almost take america into recession in december? i'm saying absolutely it did.
i have the numbers to back me up. with income surging and spending plunging how do you figure that and some other things? you know what i will go in depth when we come back. ♪ obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪
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a lot own the markets still to come. every day i toggle channels, listen to different news broadcast, no doubt decide iedly more negative opinion than journalism. the media took to warning america that recession was imminent. there was a time by the way a notion anyone was rooting for recession would have been farfetched but just last noon comedian bill march shared out loud sentiments many others were harboring. i feel like the bottom has to fall at at some point. by the way i'm hoping for it, one of the ways you get rid of trump is crashing economy. sorry if that hurts people, either root for recession or lose your democracy. maybe it wasn't everyone's intention but the media jumped on the recession bandwagon in late november and december. think i they almost made it a self-fulfilling prophecy. check out the headlines. this is from "the new york times." from the american economy, storm
clouds on the horizon. stock market dangers are easy to see now. american capitalism isn't working. what is a recession and why are people talking about the next one? and by the way, it wasn't just "the new york times" of course. "the washington post," trump's big 2020 problem, the economy could be in recession. "usa today," many factors will impact 2020 race for both parties. the mueller investigation, house investigations, a recession? and a growing deficit. all these headlines were blaring away the month of december was actually enjoying amazing economic growth. there were 312,000 new jobs, 7.3 million job openings, a 3.3% increase in wages, by the way, for non-supervisory workers 3.5% increase. yet today we learned that personal income surged in december by 1%. that was 150% better than wall street expected. guess what, spending plunged .5. savings rocketed up 7.6% from
6.1%. think about that for a moment, folks. i cannot remember the last time there was such dramatic shift in savings, especially as wages were erupting higher. it was december. now initially i thought, you know, maybe it was just all about wall street, you know, being down and stock market being down. remember the dow jones industrial average was off 7 1/2% for the month. but not enough americans are in the market to have that kind of knee-jerk reaction. i'm not sure how close we were to recession but i am now convinced that the market swoon and retreat of consumer was a mini panic and it was triggered by america's press. joining me to discuss, chief strategist for bubbatrading.com, todd horowitz, the author of the book, "how do i tax thee? ". kristin, let me start with you. it was chatter, chatter recession. i think people got scared.
>> it seemed like the media was hoping for a recession, because many of them hate trump and they wanted to look like the tax cuts weren't working. they were in stark contrast to the forecast from the the federal reserve. meanwhile employment was on the rise and inflation was relatively tame. i have got to say, december was kind of like deja vu back to november 2016, back in 2016, the smart money was telling us that the market was going to crash because of trump's election. these predictions signal ad bottom in the stock market. the same thing happened in december. the stock market started to correct and the media three fully -- gleefully predicted recession and bear market. charles: todd, you're looking at this from a stock market point of view. my thinking initially when the retail sales came out, the stock market that perhaps spooked consumers. when you see savings spike to that degree, people were really
afraid. >> charles, i think you have to be worried. first you have idiots that are reporting nonsense news or trump likes to call it fake news. they want to create something. they would rather see the markets collapse because they want to get -- the at the end of the day markets themselves people might be finally starting to realize they have got way too much debt of the you might see some saving because they know this debt is going to come due. their own personal debt. we have credit card debt at record highs. margin debt is at record highs. again at some point this has to come -- i think that is the problem. charles: a general epiphany takes savings from 7.1 from 6.1% in one month? i don't know that ever happened while wages go up. >> charles, you ever see markets move as fast as they do today. remember we're at much bigger multiple. i've been doing this since dow was 800. now the dow is 25,000, 26,000.
numbers change. they work a lot faster but at end. day i think a lot has to do with impending debt. people are certainly concerned about possible recession. i believe there will be a recession at some point in the next 12 months. i think there are some big issues. that doesn't almost every time i'm on with you, year over year they go up 8% on average, should not be concerned and not watch the market day-to-day or listen to the news. do your own research. charles: todd, you have been around so long you have the initials in the buttonwood tree down on wall street. let me ask you, kristin, one thing we're not doing in the media we're not celebrating homeownership at the highest point it has been since 2004. millenial homeownership at five-year high. black homeownership starting to surge. we don't celebrate those or the wage gains. this is what bothers me. the great news we share as americans rarely gets talked about?
>> yeah, there is so much to be optimistic about right now. the trump economy is still surging. consumer confidence shot up last month. unemployment is still at record lows. you know the one threat to the booming economy i see right now many industry can't find enough workers to fill all the jobs. that is especially true for tradesmen jobs like metal workers. i think the few people that are having trouble finding jobs are liberal bloggers that used to work for buzzfeed and "hufpo." charles: todd, kristin, thank you very much. both i appreciate it. i'm seeing what we're calling the "cp effect." we're getting a little traction since the show began. there is a lot for investor to digest. we'll have our pick of the day. alexandria ocasio-cortez, with her seems like there is something every day but now she is threatening to put moderate democrats on a list to shame them into voting with her. that's right. you can't make this stuff up.
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charles: alexandria ocasio-cortez is now taking on the moderate members of her own party, threatening to put any democrat willing to compromise with republicans on quote, a list. and then share that list with activists searching for primary targets. joining to us discuss, nationally syndicated columnist adriana cohen. great to see you. been too long. >> absolutely. great to be with you, charles. charles: my goodness, she is drunk on power but now taking on her own party. what's going to happen? will anyone in that party push back? >> they really need to because she has literally hijacked the party and has pushed the democratic party so far to the left. she is extremist. and this is hurting the democrat party. basically at this point, every time she opens her mouth, pushes donald trump one step closer to, you know, getting reelected in 2020. i think nancy pelosi is smart.
she is watching from the wings. if they don't sort of, they should primary her. she is making this list, she wants to go after moderate democrats. you know, they could do the same to her, take her out and make her a one-term congresswoman from new york. charles: that would be full-on civil war, right? to your point, nancy pelosi is going to be more subtle than that she is changing her tune a little bit. i was reading when they did the "rolling stone" cover, she was asked about the green new deal, nancy pelosi says, quote, that goes beyond our charge, not what we hope to achieve. of course she is suggesting that the charge in this case is saving the planet, that america is not going to save the planet. >> i'm glad she seems more tempered on this. because look, it is just ridiculous the green new deal. america doesn't have $93 trillion to blow. we'll not destroy the airplane industry. we'll not stop eating beef or drinking milk by getting rid of cows. just shows you how far and
radical and extremist the democrat party has become. and again this all helps the gop. alexandria ocasio-cortez is the biggest christmas gift to the gop. every time she opens her mouth pushes all republicans across the country towards re-election. as democrats fail to realize that, they will get the message in the next election cycle. neil: charles: do you feel though we're at the edge, not wee, but the democratic party has crossed the rubicon and cannot turn back at this point? they have lurched so far to the left and the momentum is so far into that direction, hard to imagine them turning back? >> for republicans sake let's hope they swung so far to the left they're not turning back. the problem even goes deeper than aoc, with the green new deal. she says radical crazy things like questioning whether or not americans should even continue to have children. i mean this is outrageous
extremism. i think this will help trump. he will pick up voters from independents. he will pick up even moderate democrats are going to vote for him. they're not giving up their airplane travel anytime soon. they like capitalism. they like jobs. charles: they like cheeseburgers. >> that's right. absolutely. charles: great seeing you. by the way i did tweet at alexandria ocasio-cortez last night. still hoping to hear back from her on my question. thank you, we'll see you again soon. markets starting to grapple for direction. some are wondering about 2019, some are saying have we come too far too fast, but if we stay in rally mode, the question you should ask where should i be invested? after all the show is "making money." we'll delve into the stock picks of the day when we come back. ♪ did you know with vanishing deductible,
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charles: well, stocks are up, the dow's up triple digits as we head into the final hour of trading. this as tesla says it will begin online sales of its new cheaper model 3 vehicle, priced at $35,000. the automaker also having to pay off a $920 million bond that comes due today. back with me, rob, i want to start with tesla. all the pieces were in place for a potential short squeeze yesterday. they might have still gotten it if it wasn't for the earnings warnings from elon musk. it's a very expensive stock by any metric. where do you see it going from here? >> lower. you know, we have been, you know, out of this stock for a long time, charles. whether it's the 440, whatever, i'm not too privy to what the lingo was, whether it was that, you know, and quite honestly,
charles, i think the novelty of these vehicles are starting to wear off. if you look at bmw, some of these other electric vehicles that are coming off, tesla is not the only show in town any longer. i think to your point, when you look at the valuations of this stock, we just can't think on any metrics why you would want to step in and try to catch a -- charles: for awhile, people were saying this is really a technology play, it's a battery play, a solar play. do any of those come in at all with respect to your modeling? >> i mean, potentially, but it's so hard. it's all speculation. until we can start to see something more concrete coming out of their core business, it's really just kind of a hope and prayer strategy here. charles: well, i will say one thing. the stock does have a knack for hanging in there. i always get interested in it when it dips down to the 250, 260 range. i want to move on here. we talked china earlier. i know you like baba but you like jd.com.
i like it as well. >> yeah, they just reported earnings yesterday, beat expectations. they've got some good backing from walmart and google, and if you look, they just reported over 303 million consumers now so this is a company that is really starting to hit on all cylinders. i really like the chart pattern. this is sold off and we are getting one of my favorite patterns on a valuation stock like this where you get the head and shoulders reversal pattern. there's a long way to go, maybe 15% to 20% in the next six months for investors. charles: reverse head and shoulders one of my favorite patterns, too. is that why i'm looking at polaris' stock? the company's in trouble, you know, they have had inconsistent earnings, motorcycle sales are down, and the earnings estimates have been tumbling but is this another stock idea based on the chart? >> that's exactly it. i mean, the chart is one thing. one thing we look at and kind of our overall strategy is looking
at long-term valuation. we don't try to catch a falling knife. we look for fundamentally sound companies. when we start to see these type of chart patterns is where we enter. they definitely have some head winds but we believe they are all priced in. when you look at what's going on with china, 25% tariffs on steel, 10% on aluminum, that really hit the company hard. but this is a company that's 13 times forward earnings. they are yielding about 3% on their dividend. they actually just came out and increased that dividend for the 23rd consecutive year. this is still a fundamentally strong company. they have expanded their product line, was trading at about 130 last august. i think this is a great opportunity for longer term investors to dip their toe into the stock. charles: i will put it on my watch list. honestly, if i'm looking strictly at the chart i would be more inclined when it closes above $89.50. real quick, next month, next week, rather, you know what, we got the jobs report at the end of the week. how do you see the market going? it needs some kind of catalyst. >> yeah.
i think the jobs number probably won't get it there. i think really what we're waiting on right now is something out of trade. i think we will see some back and forth trading right here. charles: rob, have a great weekend. thank you very much. >> you, too. charles: dow up 110 points. we have about a 50-point rally, the c.p. effect, since we started the show. liz: the c.p. and the l.c. we love it. have a good weekend. thank you very much. breaking news, is the ink now drying on a 100 plus page u.s./china deal to end that trade war? the administration's top economist confirming the detailed agreement that could be completed with chinese leader xi jinping at a u.s. signing ceremony. this might be at mar-a-lago later this month in florida. rumors of a written deal in progress stoked the early rally, pushing wall street to come in like a lion on this first trading day of march. but will investors go out a little bit like a lamb? up 227 points at its highs, now as we head into the final hour of trade, the