tv Making Money With Charles Payne FOX Business March 4, 2019 2:00pm-3:01pm EST
them who else knows about what they're interested in. david: judge andrew napolitano, all the details. terrific to see you. and i understand charles payne is waiting in the wings. you deserve a better market. in fact that is what is happening, charles. it is coming off the lows. charles: that is the precp effect, david. i'm not sure if they told you about it. david: you're too much. charles: i'm charles payne. this is "making money." markets are in the red. reports we're getting closer to a trade deal with china. i shouldn't be surprised actions should not be surprised to viewers of the show. we talked about this is built into the market. the question how much profit-taking can we expect? ultimately what is the catalyst to reignite the rally? my market watchers weigh in what it means for the u.s. economy. we're asking the question did ben bernanke quantitative easing spark a knew version of socialists like alexandria ocasio-cortez? it is not farfetched.
speaking of aoc. she and i had an interesting exchange over twitter. wait until we tell you all about that. all that and whole lot more on "making money". charles: signs are pointing to the united states and china finally getting closer and closer to an actual trade deal. i've been waiting for the session. the signs have been there. think about it last week. severally attempts faded intraday. we were up 200 and then kind of flat that kind of thing happened over and over again. the market struggle abouted as of late, that the so-called china news is getting baked into the rally as far as the headlines of the deal. the new arrangement could achieve things that we could have never gotten done through the world trade organization, including chinas tracking new foreign investment laws to replace existing laws. i applaud these tough sessions.
these are the kind of tests rallies must face. today is no exception. on that note the rally has been amazing. there is a lot of downside before we get into the territory what has got to hold, right? dow jones industrial average, for instance, think about this, your key support points, technically 25,439. two one day moving average, 25,111. in other words, there is a long way down before we start to really panic. once this china trade deal is done the bigger worry could be china's economy. this as the country gears up to lower economic growth targets. here to weigh in s&p advisement portfolio manager, ehren gibbs, point view david dietze and heritage capital cap paul schatz. let me start with you. this is the old kind of story,
sell the news. this happens again and again. >> china deal will it get done, won't it get done, how will it look? we're almost suffering from china deal fatigue exhaustion. the deal may get done. we may love the deal. it will get done. stocks were due for a pause. they have been due for a couple weeks. there is nothing wrong with two to 3% pullback, even with multiweek or month trading range. digest some gains. then we shoot higher back to all-time highs but there is nothing wrong with the action. every major stock index in sync. every major sector in sync. higher bonds in sync. it is hard to pour coals on this rally. charles: erin, to his point all the sectors are down today but they're all up for the year which we discussed a lot. i think the broader buying that we didn't see in the tail end of the rally going into last year. but from here, how do we, once this china news is done, people
will of course examine the deal. there will be a lot of opinions on it. most have already been set. make them official. hit them with the send button, will it change the dynamics of our economy enough to really ultimately matter? >> i don't see any of this being so, so far any of it the details come out being so impactful on really changing the day-to-day, certainly for investment will help but definitely affecting those large stock market companies. it takes a lot to really shift for them. i think it is a matter of the threat of your cough escalating with tariffs that is great, but now it is back to doing business like you normally did i, hopefully, eventually being able to grow more because a lot of corporate growth is coming from the chinese economy doing well and us selling to them more. charles: right. does that mean, erin, and david, we should now maybe be focused on the fact this week china will
probably lower their gdp number, that might matter than tariffs ultimately because we want the big market to be growing? >> yeah. >> i think that is absolutely right, charles. china is just 15% of the global economy. china with weakening there is reflecting weakness across the developed world. germany is close to recess. europe is down for the count with "brexit" and weakness in italy and that is ultimately most important. u.s. dollar sup 7% year-over-year, and to the extent our interest rates are higher, our economy grows even more, our dollar could go up and that could put a bit of a headwind into multinational results. >> you think china's economy we should be focused on? >> that is a big concern. china is still a small part what we're actually selling. it is only 1 1/2% -- charles: critical for certain stocks like in the dow, those
multinationals. >> the growth, incremental growth, what is impressive. we want to double that, take it from 1 1/2 to 3%. that is what turns the profits for companies. any slowdown own their side could have meaningful impact on the earnings growth here in the united states. charles: we know also it has a huge impact on emerging markets where people have been worried. paul, of all the headlines i saw, this is from the nikkei asian review, at the last conference xi xinping cemented his place as most powerful leader since mao tse-tung. he has to convince his party and his country that he has everything under his control. the bravado is gone. the hubris is it gone and this is why i think while obviously we'll never get the so-called perfect deal we're going to get a deal it will be substantially better than we could have gotten through the wto. >> i think that is largely correct. look, for years and years and years republicans, democrats we
could not get a deal with china. they would not their head, shake it, still manipulate the currency. we know they manipulate their economic data. i don't want to say any deal is a good deal, but i think we will make some progress and hopefully that leads to next set of deals or agreements way down the road. look it, we're firing on all cylinders and as erin mentioned and david mentioned you have germany borderline recession. china will never declare recession but they're slowing down. we continue to be the best house in a shaky neighborhood. there is a lot of good things for investors to latch on to. to me now is not the time to grab all the momo, high-flyers. look for things that maybe have been a little out of favor, like a cutie brands, mohawk carpet and patterner son dental it it is so cheap, into dental and
veterinarian, you're almost getting dental for free. ripe for takeover. there is a lot of good stuff out there. people should ignore headlines to more extent because they paralyze you. charles: mohawk, the construction number was a major miss today, i think it helped accelerate the selling although the irony is one of the strongest sectors of the homebuilders are names like mohawks. i also want to talk about the fed, guys, president trump gave a long, long speech at cpac over the weekend. he called out federal reserve chair jerome powell in his cpac seat. let's take a listen. >> we have a gentleman that likes raising interest rates in the fed. we have a gentleman that loves quantitative tightening in the fed. we have a gentleman that like as very strong dollar in the fed. so with all of those things, and we want a strong dollar but
let's be reasonable. i want a strong dollar but i want a dollar that is going to be great for our country. charles: paul? your thoughts on that? >> so, charles, i think that, you know, the irony here is one of the reasons we have the strong rally is because the fed has gotten patient, the hikes are kind of off the table. on other hand i think mr. trump is right the markets are up 20% since christmas eve. a few percentage points off the high. we may ultimately put a bow on the chinese trade agreement. that could cause the fed to take another look where interest rate policy is. charles: he is being preemptive? >> i think so. charles: the economy getting better and fed itching going back to the old rule book and he may be trying to preempt that. what about this, erin, about strong dollar. i said the dollar is too strong. not that we want quote-unquote weak dollar but we want a competitive economy. that is what the whole china trade deal is about but if the
dollar is too strong it makes all this a moot point? >> there is only so much we can do internally with strong dollar when the rest of the world -- charles: what is the biggest concern for the dollar right now do you think? >> obviously interest rates but also the strength of our economy. we just are the safe haven. we're not on press sy pest of a recession like most of the developed world is. so for the dollar to be weakened we would have to fundamentally weaken our economy which i think is much more detrimental overall for sales. so i would say that, it's a fine line but i definitely don't think you want a weak dollar. charles: high class problem. >> high class problem. charles: thank you, appreciate it. markets are looking for new leadership. many are saying economy will provide that leadership and also the "fang" stocks. yes, someone says they're back. look at recent op-ed in the financial times, says quantity kwan was the father of millenial socialism. so is ben bernanke the father of alexandria ocasio-cortez?
david dietze is laughing, not in literal sense obviously but philosophical and political sense? has the fed spawn ad new generation of socialists as a result? my panel will weigh in on that next. ♪ as the one who is always trapped beneath the duvet i'm begging you... take gas-x. your tossing and turning isn't restlessness, it's gas! gas-x relieves pressure, bloating and discomfort... fast! so we can all sleep easier tonight.
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under leadership of the former fed chairman, quantitative easing, essentially printing of trillions of dollars to drive up asset prices to bail out rich baby boomers and banks. the millenial generation seems to got short end of the stick. is it any wonder some are calling for the federal government or federal reserve to pay for their economic proposals? we have mattie duppler, and university of maryland professor emeritus, peter morici. they printed up $4 trillion there was a million programs that the federal government designed all to save the banks. >> right. charles: why wouldn't a millenial think to all right to spend all that kind of money to safety planet? >> here is the problem i have with the argument that quantitative easing spurned millenial socialists. to me this is much more after political communications argument. the notion that millenials are not well off belies the actual data. look at someone like me who is
millenial, looking for their first job in 2018. i wasn't worried about the fed's balance sheet. i was worried about whether or not i could find employment. similarly 10 years later, i bought my first house, and i don't feel that the economy hasn't supported me in all of these things that i tried to accomplish as a young person who is moving through the ranks of this economy. i look back at my parent as generation, the baby boomers, the argument made they had easier time with asset accumulation doesn't ring true to me. when my parents bought the first house mortgage rates were above 10%. we were looking 4% for the first home. the economy expanded in a way to help my generation to find a foothold much easier i think of the this is despite the fact we were coming out of recession, much easier than other generations at this point in time. charles: professor, bernie or bernanke, who helped get the socialist thing off the ground then? despite what mattie said, millenials are saying hey, this is not just about us, we want
the federal government and perhaps the federal reserve clean the climate and do other things? >> first of all, it is bernie, not, bernie sanders not ben bernanke. basically ben bernanke printed a lot of money when the economy had 10% or more unemployment. these folks are saying full employment we can print a lot of money to pay for things and we'll not get much inflation and they have a lot of hocus-pocus going on at second rate universities ginning up arguments during the obama years saying we can raise the minimum wage, we'll actually create employment. if the laws of gravity and economics were completely repealed. look what is going on in new york city right now. we had the biggest drop in restaurant employment quite sometime because of 15-dollar minimum wage. charles: professor, let me jump in and ask you, in his recent letter warren buffett said he no longer, he doesn't lose sleep over deficits anymore. you had some other relatively
well-known economists out there who are saying they don't matter. maybe we can print forever? >> there is difference between not losing sleep over deficits because the world is adopting the dollar as essentially the single currency in ways that it hasn't in the past. so we need to print more money to get it out there, so on, so forth. that is one level of deficit that is a trillion dollars a year. quite another thing to say we'll replace airplanes with high-speed rail in 10 years. we're going to replace every single furnace and oil burner in the united states with a heat pump in 10 years. we're going to tada. forgive all college debt. we're not talking about printing a trillion dollars worth of bond as year but a hundred trillion dollars worth of bonds. they seem to forget history and the weimar republic, what happened there. millenials doing great, they're a barbell generation. i'm glad the other panelist is
doing very, very well, my son who is 28%, who is doing very well. 40% of graduates are in starbucks jobs. my recent driver going to las vegas going to a speech, was a unlv graduate. you don't need to go to unlv to be a limousine driver. 40% are doing other jobs. they feel some pain. charles: i give you a few seconds to rebut. >> we have economy that can absorb people we have right now, not skills they need. this is product of an economy, we need to stop overeducating people and underdeliverring when it comes to jobs. that is a long-term problem not unique to just this generation. i have faith we'll be able to fix it given 7 million open pieces of employment right now. every business is looking foreemployees. they need to find jobs. charles: also some people have to realize that you don't get a gold watch on the first day of work. >> that is exactly right. >> where's mine? charles: mattie, peter, thank
charles: well the democratic party, they like to stir the pot, right? stoking fear, anger, victimization in order to get-out-the-vote. at a commemoration of the 54th anniversary of bloody sunday in selma, alabama yesterday, hillary clinton told the crowd that the country is quote in a full-fledged crisis. when jesse jackson was asked what he thought that trump would have been doing if he were at selma, at that time, he said,
quote, probably with the stormtroopers. i want to say there are real crises out there, very cruel areas, suicide rates, democrats are ignoring those, where are the solutions for all of this? joining me progressive commentator rashad ritchie and republican pollster chris wilson. i let me start with you. i tried to follow all the events and speeches yesterday at selma, yesterday. i found many of them were sort, divisive, fear-mongering and a lot sounded as if they had gone through a time machines and it was 54 years ago with respect to the urgency of what the problems are in america today. is that always going to be the case with the democratic party? >> i think it is the case with both the democratic party and republican party. understand that the term crisis is subjective word. it is really comes down to the eye of the beholder. for example, president trump says there's a crisis at the border.
his military commanders disagree. they say there is no crisis at the border. so i would suggest this is expression of political times rather than anything else. both sides are hypocritical in this sense. charles: what about, rashad, before i go to chris, idea of politicians either side to your point presenting solutions? they're really great at pointing outcries seasoned injustices labeling everyone a victim. when will we have people say okay, i have got solutions, is that even what american public voters want? >> charles, i think solutions are being presented. people will not always agree with the solution. as i said before on your program, the green new deal is a solution, though many would disagree with that solution, so there are solutions within that solution. solutions are being presented. when people throw around terms like crisis is trying to typically land a political point, rather than a pragmatic point. if we stop landing pragmatic
points we already lost the the game of politics. to your point i think it is relevant to we are forcing and coercing our leaders to come up with solutions than propaganda. charles: chris, you have finger on pulse what is going on, you're a pollster. "nbc/wall street journal poll" out i was pretty surprised to see how strong president trump's numbers were last couple months, as headlines got more worrisome, his numbers have gone up. what is going on here? what is that telling us about the public and all of these crises rather real or manufactured? >> well, i think first of all about hillary clinton's comments calling it a crisis, pretty clear you read between the lines of her selma speech, what hillary clinton sees as crisis a world which she is not in charge. anytimes the clinton are in world not running things that in itself leads to crisis. to your point, president's numbers come up, where they have
come up, they started to increase with hispanics. we've seen them increase in swing audiences where public had problems in the 2018 election. the democratic party moves so far to exist. they don't recognize the crisis exist, opioid crisis education crisis, crisis at border illegal immigrants coming across the border, crime driven up, black tar heroin and opioids coming across the border. that is situation where they see the president dressing them. that is helping increase numbers. if there is crisis, it behooves both parties point that out together and look for solutions together. >> economy has played a role with respect to some of these things the opioid crisis and suicides, that with education let's fix it. i appreciate you taking the time. >> thanks, charles.
charles: stocks in the red. the dow off the lows of the session. it is hard to believe there was once a market before china trade talks that took all of the oxygen out of the area. coming up we'll look what is next for the markets post-china trade saga. yes, there is something else we have to look at. we'll be right back. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions.
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what to expect? things got a little testy between me and freshman congresswoman alexandria ocasio-cortez. i will tell you what sparked the battle coming up. but first, markets existed before the china trade deal saga. that's right. while the negotiations are a factor, many other components driving the markets all along, even today. as far as going forward, first-quarter earnings have been dramatically lowered than initially anticipated. we're getting close to testing all-time highs. there is always sense of anxiety comes with that. but there are tailwinds, right. the jump in cap-ex for the fourth quarter with gdp was amazing. greater share buyback programs. you cannot overlook that. what is the next catalyst for this market? donald luskin and jeff saut. jeff, let me start with you. we're finally pulling back after really a mind-boggling remarkable start to this year,
but the question now as you start to see the market pull back a little bit, what could be the catalyst going forward? >> i still think it will be earnings, charles. i think lowered earnings expectations weigh too much. i think the economy reaccelerates the back half of the year. earnings come in better than most people expect. i think there is way too much cash on the sidelines and people are underinvested. charles: donald, i agree with that. this recent report, bank of america, merrill lynch survey of all the money managers, they manage three quarters of a trillion dollars. 44% in cash. i thought that was mind-boggling. i thought they were supposed to make money, not watch big rallies like this. in your mind could those things be the catalyst? >> sure they could. this is what, no pun intended on your name, sir, but you heard this expression the pain trade, either? right now the upside is the pain trade. there are way too many people
who got way too pessimistic, even you kind of fall into it sometimes a little bit charles, actually i think maybe jeff who said this, talking about the economy reaccelerating. why are we talking about that? the economy didn't decelerate, right? everybody got this illusion in the fourth quarter everything started going to hell. it didn't in fact. everything is looking fantastic, which is why u.s. stocks already within two or 3% of all-time highs. everybody get with the program. this isn't that difficult. charles: jeff, your thoughts? >> yeah. i don't disagree with that. investing is not all that complicated. they try to make it complicated in business school. that said i did not see this decline coming. i went into a meeting at 10:00. went into another meeting at 11:00. markets looked okay at 10:00. i came out of the meeting at 12:30. the dow was down over 400 points. i made calls to my washington friends, a few trade desks it is
a trifecta. low earnings -- >> jeff, jeff, i have to interrupt you. we made new highs for the year. we've had, kind of a baddish half day. get a grip. nothing is going wrong here. this is find, right. >> 400 points, 400 points in a day for people that are traders which i am not. is not particularly good market action. charles: you look into it, right. we have all been around the block a few times. we try to be cool, have ice water in our veins. jeff to your point, i guess you get spoiled. this market foes straight up or straight down. there is not a lot of sideways to this market. jeff i was surprised you were surprised we would be up in couple sessions up 200 points and evaporate in a second. you could sense the breadth was starting to change also, having said that what are you concerned
about? all three of us are relatively bullish. what should the audience be somewhat concerned about, jeff? >> i don't think the trade talks will be all that big of a deal. i think there will be a trade deal. rumors was in d.c. president trump would give away the kitchen sink because he needs a deal with north korea by 2020. i don't think the earnings are going to decline nearly as much as people are worried about. some of this i was told, again by my d.c. friends, i used to live there, the mueller report is coming out and it is not going to look particularly good. charles: really? wow, the way that the democrats are setting this up, it feels like mueller's drilled a dry hole and now you have nadler and everyone else coming at this. don, a moment ago you put out a tweet, you said i so wish i had been in the last panel about ben bernanke, the federal reserve, the road to millennial socialism, great discussion.
okay, give us your thoughts on that? >> i just want to say i'm not going to blame ben bernanke. he inherited a 100-year-old institution that was created a century ago just to step in every once in a while in case there was banking panic. in the history, there is banking panic every 20 years. charles: 3, 4, trillion dollars to safety banks, when someone with a nickel and dime store -- >> man, that is the least of our problems. what is really wrong with the fed that the congress has given them this mandate for full employment as though a committee of seven presidential appointees can somehow, some kind of a magic wand, can live up to a mandate, wave the wand and have full employment. that is a socialist agenda. that is ridiculous. that is the root of the evil. and once you put, once congress gives the fed that mandate, now you're saving banks, printing money, doing everything else. charles: jeff? >> i think things are going
along just fine. i think we're, i think we're in the secular bull market. i think it has years left to run. charles: i am with you. i agree. i think magic wand is magic printing press. you can sway a lot of things when you can print up $4 trillion out of thin air. thank you very much. >> thank you, charles. charles: cp versus aoc on twitter this weekend. coming up our exchange, dangers of dissing black hires based on their employer. that's wrong. we'll be right back. great news, liberty mutual customizes- uh uh - i deliver the news around here. ♪ sources say liberty mutual customizes your car insurance, so you only pay for what you need. over to you, logo. ♪ liberty. liberty. liberty. liberty. ♪
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charles: congresswoman alexandria ocasio-cortez facing a backlash on social media over racially-charged remarks. i was right in the middle of it. it all start last week when aoc defended congresswoman rashid talib's insinuation at the house committee hearing that congressman mark meadows is racist bringing in a black trump official to a hearing. tweeting total bravery at rashad talib, she remains, reminds the nation that token system racism. i tweeted at at aoc how many
people are on her staff. we have black staff. we don't parade them around and show the world how diverse our team is and show them as absence of racism, that is what is token system. i replied, back, thanks for getting back. that hiring of black people tokenism and your problems are more problematic. by the way you get that. by the way some of the black folks on your staff may want to be visible. we're in this weird catch 22, you hire a black person, that is racism. want to bring in fox news contributor deneen borelli on this. it's a no-win situation i think there is so much overreach and it hurts authentic causes. there is racism in this country. people are pushing back on that. many people in their own personal private battles. this doesn't help when, these
sort of things that we saw at that mark meadows hearing. >> no, you're absolutely right. this does not help. if anything, it's a way to divide americans. that is one of the mos of democrats and this was all over lynne patton, this back and forth between you and cortez. thank you for challenging cortez, great job. but when you look at lynne patton who happens to be a female black conservative that works in the trump administration, she is an example of america's exceptionalism. democrats hate that because she blows away their lies and their narrative of systemic racism, that blacks are victims and can't get ahead. so she is democrats worst nightmare, just like you and myself are the democrats worst nightmare. i am called everything but a child of god, charles, because i have independent thought and i believe in personal responsibility and smaller government.
the democrats worst nightmare. charles: but, i agree with that but, how dangerous is it though when you start to question people's qualifycations because, i was shocked. her tweet back to me got 200,000 likes. that is mind-boggling number. some of the folks who chimed in, you know, said, you know, lynne patton wasn't qualified. i find that to be disturbing considering how many people out there of all races and nationalities will go for jobs today, tomorrow, year from now, that may be on the resume' doesn't quite get them to fit but they can get the job if given a chance? this is what we've been asking america forever since martin luther king, jr., even before that to be quite frank, we've been asking for a chance and they're belittling her accomplishments? >> well, it is about content of character, charles, and actually what the person, their skills, what skills they're bringing to the table has nothing to do with a person's race or color and
clearly, these are very divisive tactics coming from democrats. and again, they are desperate right now, if you look at the trump economy, and accomplishments with record low unemployment, manufacturing jobs are back, the economy is doing really well, this is what they're up against because their policies are failing hard-working americans. charles: right. >> so, we're going to see the more race card politics as we approach the 2020 presidential election. charles: meantime, congresswoman tlaib has other issues within her own party, based i think from the same sort of, just sort of identity and racial politics. i think it will burn out that party. deneen, thank you very much. always appreciate it. >> thanks, charles. charles: of course we're following these markets as we head into the final hour of trading. so after the bell, you have salesforce.com, they report. it's a big influencal name. in the morning we have a bunch of retailers including target.
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charles: markets are extending their losses, in fact, all 11 s&p sectors are down for the count right now. initially this morning it was all about fang. that's right, that name reemerged and industrials sort of taking this market higher in part because there were monster share price target increases on amazon and boeing. the question now is how worried should we be about today's action, also what should we look forward to tomorrow? erin and david are back with us. right now, almost everyone is saying they are not too concerned about today's session. long overdue, not a big deal in
the grand scheme of things. we look forward. after the bell, salesforce.com and tomorrow, a litany of retailers. what do you think happens with these names? >> well, i'm a lot more optimistic about salesforce's reports than some of the retailers, especially when we look at the recent retail numbers but it's stories about margins. we know revenues are expected to pretty much grow at about 20% for the next three years but their profits are all over the place. we want to see that continued leadership, diversifying through products and them being able to increase the margins because they have been declining over the past few years. charles: interesting, mark marc beniof is a wall street darling, always gets the benefit of the doubt. that's why it's so erratic. i don't know that the stock ever pays a long term price for misses but it's a good proxy for the health of that space, right? >> absolutely. they are right at the intersection of the transformation of the business
world into a digital format. of course, what i like now is only one-third of their revenues are coming from overseas. they have some key partnerships with amazon, with alphabet. i think that's a whole other growth runway. the problem of course, this is a stock that's already surpassed last year's highs. there's great expectations built in so any kind of disappointment from even the whisper earnings there could be a pullback. >> i wouldn't recommend getting in before the report. charles: okay. okay. wait for the reports, let it shake out. you say the whisper -- >> could be as high as 60 cents a share. charles: target, kohl's, ross stores, urban outfitters, any of them get you excited here? you take a shot at any of them? i guess that retail sales number does haunt us and it was sort of corroborated with the gdp number, we finally found out about it on friday when we saw savings go from 6.1% to 7.6% in one month. people were really afraid, they really were retrenching as far
as consumers are concerned. >> yeah, and we know that we are probably going to hear a lot of government shutdown excuses, that's going to be the dog ate my homework excuse for the quarter as well as potentially guidance. i would definitely hold off until we really see a change in how consumers are spending again, being more confident. >> i think it will give us a great read in terms of the domestic economy by getting the reports from this cohort of retailers, particularly target, one of the big three along with walmart, costco and amazon. we will have a good sense as to what consumers were actually doing in q4, particularly december, because there's been cross-currents in terms of the metrics. charles: obviously all eyes on target, and i think they have done well. i think the responses to their numbers over the last year have been sort of eclectic. sometimes wall street likes them, sometimes they don't. i know when it comes to walmart, wall street wants to see more than 40% e-commerce growth.
that seems to be the magic number. not sure for target. let's talk about some names you guys like. i know there are a few names you like. caterpillar -- >> united technologies. american airlines. i give you my smattering of industrials. industrials have been one of my favorites. we talked about that. charles: you have been killing it with these industrials. >> yeah, i have. charles: you're not ready to start bailing out? >> not just yet. american airlines actually is one of the cheaper ones. we liked air flierlines for a l time. we recently started to like them. caterpillar, again, another one we recently started liking. these are again, solid companies, good valuations, you know, they are able to deliver consistency. these are our picks for the industrials. >> with the market up 20% since christmas eve, approaching those all-time high, we are looking for franchise stocks with reasonable valuations, leaders in their field. the two i would cite would be intel and jpmorgan. obviously, intel, chips are going into everything and of course, we have the internet of
things. you can't lose with intel over the next five years. you could see -- charles: for a long time they were too pc-centric. are they out of that now? >> exactly. i think the valuation reflects that kind of legacy but they are moving forward. now we have the c.o.o. involved. things look up for intel. on jpmorgan, of course, who is the dean of financial services other than jamie dimon. of course, he got another vote of confidence in terms of warren buffett backing up the truck to buy more jpmorgan shares. they are down 15%, 20% from their all-time highs. charles: i'm looking at resistance of 26,191. once we close above there we will automatically hit a new all-time high. should we still be looking fourth the potential of the market hitting a new all-time high? >> i would like to see us consolidate and go sideways for awhile. we have been hitting top valuations, first quarter earnings expectations are definitely concerning. i would like to really see how this year starts playing out once we get the trade wars
behind us. i don't see any big gains just yet. charles: we have had big gains but you are saying we need to consolidate. >> that would be healthy right now. charles: that's what we will call today's session. liz, down 250 points to the dow. we will call that consolidation. liz: that's a fancy word. i'll take it. it works much better than total pain. charles: erin taught me that word. liz: thanks, charles. yeah. breaking news, the ides of march taking a slice off markets as investors take profits in a broad-based selloff at this hour. at least the dow is sliced just under 200 points off the 414-point loss earlier we saw but we still have health care and technology getting absolutely creamed. the dow down 249, the s&p down 17. our floor show traders are amassing in front of their trading floor cameras to help you dodge the daggers. markets had spiked this morning at the open, floating up on reports that the u.s. and china are closing in on completion of