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Tech Stocks Tumble as Tesla's Growth Stalls and Investors Shift Away From AI · The Financial Exchange Show

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  Speaker 1: with Chuck Zotta and Mike Armstrong.
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  Speaker 2: Chuck, Mike, and Tucker with you, and we've got kind of.
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  Speaker 3: An ugly risk-off day.
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  Speaker 2: Happening here uh in in markets and it's uh it's
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  Speaker 2: concentrated in tech which has been weak for i gotta
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  Speaker 2: say mike like you look just at the uh the
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  Speaker 2: nasdaq uh nasdaq's been weak for call it the last
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  Speaker 2: two basically since the start of october like it's basically
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  Speaker 2: since the start of october maybe like the the third
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  Speaker 2: or fourth trading day uh it looks like we peaked
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  Speaker 2: on october 6th so It's been weak for about the
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  Speaker 2: last two and a half weeks. If you look at
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  Speaker 2: some of the worst performing names out there over that time,
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  Speaker 2: companies like CoreWeave. CoreWeave was at $ 93 a share. Then
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  Speaker 2: it's at $ 56 today.
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  Speaker 3: Do you remember?
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  Speaker 2: I still don't know the exact right way to say
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  Speaker 2: this one. Is it Cerebras or Cerebras?
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  Speaker 3: I think it was Cerebras. Cerebras. They're the chipmaker that
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  Speaker 3: went public. I say chipmaker.
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  Speaker 2: They don't make many chips right now, but they're hoping
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  Speaker 2: to make a lot more. They went public on May
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  Speaker 2: 14th and were touching $ 386 a share during that day.
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  Speaker 2: They're at $ 109. 24 now. Almost 75% off since then and
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  Speaker 2: since the start of October down 50%. So this is
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  Speaker 2: all concentrated in tech and really in the chipmaker's. If
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  Speaker 2: you look at the Philly Semiconductor Index, that is off almost, actually,
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  Speaker 2: that's off about 20% since the start of October, since
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  Speaker 2: October 5th and 6th as well. So it's really concentrated there.
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  Speaker 2: If you look at the S & P 500 on
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  Speaker 2: an equal-weighted basis, the interesting thing that you get to
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  Speaker 2: is one where, hey, the S & P on an
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  Speaker 2: equal-weight basis, Mike, is actually up 4% this month.
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  Speaker 4: So the majority of companies are moving up, but the
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  Speaker 4: weighting changes that quite a bit.
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  Speaker 3: So this is.
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  Speaker 2: The interesting thing, is the S & P 500, month
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  Speaker 2: to date, it opened at, let's see.
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  Speaker 3: Hold on just a second. I've got to get it
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  Speaker 3: pulled up here.
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  Speaker 2: The S & P 500 opened this month at 76.66%.
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  Speaker 2: As of right now, it's at 76.55. So S &
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  Speaker 2: P basically has gone nowhere. Like you're not up, you're
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  Speaker 2: not really down. Like you're down like a tenth of
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  Speaker 2: a percent or 15 bps. The equal weighted S &
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  Speaker 2: P 500 is up 4% month to date. So what
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  Speaker 2: it's telling you is those big heavy names in the
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  Speaker 2: market are weighing it down while the average stock is
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  Speaker 2: actually starting to stage a little bit of a reversal.
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  Speaker 2: And that's kind of interesting to me. you look again,
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  Speaker 2: month to date, just like what we've seen, it matches this.
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  Speaker 2: NVIDIA's down 6.5%, Broadcom's down 7%, Micron's down 18%, AMD
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  Speaker 2: down 17%, Intel down 27%, Meta down 10%, Google down 5%,
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  Speaker 2: like a lot of other chip makers down 25% this month.
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  Speaker 2: But then you poke around and you're like, Well, Walmart's
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  Speaker 2: up 15%, Coke's up 9%, Lilly's up 13%, Exxon's up 8%,
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  Speaker 2: United Health's up 15%, Visa and MasterCard are up 13%
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  Speaker 2: and 14%, Berkshire's up 10%. And so you get this
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  Speaker 2: balance where the S & P hasn't really gone anywhere.
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  Speaker 2: But if you've been tech heavy, you feel like you're
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  Speaker 2: getting bludgeoned like everyone else felt in August and September.
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  Speaker 2: And if you own all the other stuff, you're like, hey,
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  Speaker 2: my portfolio is pretty good right now. So just this
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  Speaker 2: interesting reversal that we're seeing this month.
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  Speaker 3: 10-year treasury.
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  Speaker 2: Remember when we had too much debt, Michael, and it
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  Speaker 2: was causing yields to go up?
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  Speaker 4: Yes.
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  Speaker 3: Have we reduced the debt in the last week? Must have.
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  Speaker 2: Because the 10-year treasury today alone is down 13 basis
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  Speaker 2: points to 5.009%.
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  Speaker 3: No.
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  Speaker 4: This is what happens when people get concerned about growth,
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  Speaker 4: get concerned about potential bubbles and all sorts of issues
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  Speaker 4: as they flock to safety, which is usually government debt,
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  Speaker 4: and that's driving yields lower today.
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  Speaker 2: And we do have this flock to safety happening because
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  Speaker 2: even with yields coming in, the dollar index is getting
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  Speaker 2: bid up to 101,665, so 0.06%. Gold getting hit on
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  Speaker 2: this as well. Part of the reason you've got the
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  Speaker 2: dollar strength, but also you've got oil up. Oil's up
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  Speaker 2: about 1.5% on West Texas Intermediate.
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  Speaker 3: And so gold down $ 74.
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  Speaker 2: 70 an ounce to $ 4, 075.
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  Speaker 3: 30.
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  Speaker 4: Chuck, we were talking about Social Security during the last
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  Speaker 4: segment and the funding mechanisms. And sometimes when you do
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  Speaker 4: live radio, you say things that aren't fully thought through
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  Speaker 4: like I just did. If you were to increase the
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  Speaker 4: tax on income through payroll taxes and cut the benefits
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  Speaker 4: on Social Security and fix those issues, you would, in fact,
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  Speaker 4: fix deficit problems because both of those, the spending on
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  Speaker 4: Social Security plus the revenue that comes in, are accounted
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  Speaker 4: for when we talk about all of the deficits that
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  Speaker 4: we run as a nation. And so that's effectively, it
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  Speaker 4: is not this cordoned off piece of the overall U.S.
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  Speaker 3: Budget pie.
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  Speaker 4: It's not that the Social Security trust funding and the
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  Speaker 4: expenses on it are not counted in all of that.
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  Speaker 3: So of course, if you were to raise taxes or.
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  Speaker 4: Cut benefits, you are contributing to reducing the overall cost U.S.
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  Speaker 4: government deficit situation and borrowing situation, because the trust fund
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  Speaker 4: itself is more of a hypothetical type thing than a
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  Speaker 4: pooled bucket that nobody can access.
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  Speaker 2: Let's talk a little bit about Tesla earnings here. They
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  Speaker 2: reported after the bell yesterday, and the earnings as a
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  Speaker 2: whole were fine. They beat on earnings per share, 48
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  Speaker 2: versus 43 expected.
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  Speaker 3: Revenue was a.
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  Speaker 2: But the auto business is basically flatlining. And, again, I
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  Speaker 2: don't know that that's necessarily... Well.
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  Speaker 3: No, it's not good. Right. It's not good. No, it's
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  Speaker 3: not good.
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  Speaker 2: So, like, you look at their auto business, and automotive
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  Speaker 2: revenue fell 3% from a year earlier. So the auto
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  Speaker 2: business is basically no longer growing.
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  Speaker 3: And I got to tell you, like, this really feels like...
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  Speaker 3: I mentioned this on.
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  Speaker 2: Monday or whatever day it was that we were talking
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  Speaker 2: about the potential for a Tesla-SpaceX tie-up, Elon's got a
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  Speaker 2: history of, hey, when a company that I own starts
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  Speaker 2: to not do well, maybe I pull it under a
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  Speaker 2: different umbrella. He did it at Tesla buying SolarCity. And
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  Speaker 2: part of me wonders, hey, is this what you're doing
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  Speaker 2: with SpaceX trying to buy Tesla? I know there's potentially
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  Speaker 2: some synergies between, hey, they're both building a bunch of
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  Speaker 2: data centers for Tesla. It's to scale up, you know,
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  Speaker 2: computing power for full self-driving research and stuff like that.
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  Speaker 2: But again, like the company's not going out of business.
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  Speaker 2: I'm not saying that, but they're not, you know, really
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  Speaker 2: growing their core product anymore. And that is notable to me.
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  Speaker 4: One thing I will just, you know, mention that I
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  Speaker 4: noted between Meta and Tesla, just looking at a very
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  Speaker 4: narrow piece of both of the announcements, Meta announced a,
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  Speaker 4: you know, funding mechanism by which they could issue a
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  Speaker 4: whole bunch of new stock up to $ 700 billion worth.
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  Speaker 4: They increased their CapEx estimates for the year, though not substantially. Tesla,
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  Speaker 4: on the other hand, actually reduced their CapEx plans for
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  Speaker 4: the year.
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  Speaker 3: Yes.
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  Speaker 4: Meta stock down six, Tesla stock down one. On the surface,
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  Speaker 4: by the way, Meta's earnings way better than Tesla's, right?
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  Speaker 4: You Just interesting dynamic there to me. Okay, yeah, Tesla
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  Speaker 4: reduced their capex, not being punished nearly as much as Meta,
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  Speaker 4: who is pretty dramatically opening the door to increase their capex.
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  Speaker 3: Yep, I think that's a fair one. Let's take a
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  Speaker 3: quick break.
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  Speaker 2: When we come back, Gallup conducts a poll every year
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  Speaker 2: about high-quality jobs and which Americans have them. It's called
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  Speaker 2: the American Job Quality Study. We will discuss that next.
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  Speaker 2: Mike, every year Gallup conducts what they call the American
• 10:14
  Speaker 2: Job Quality Study, and it basically analyzes Americans' jobs on
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  Speaker 2: five different axes. Does it provide financial well-being? Does it
• 10:25
  Speaker 2: have a good workplace culture and safety atmosphere? Does it
• 10:29
  Speaker 2: allow for growth and development opportunities? Does it allow for
• 10:31
  Speaker 2: someone to express their agency and voice? And is there
• 10:35
  Speaker 2: a stable schedule with control over how and when work
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  Speaker 2: gets done? What it finds is that about 41% of
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  Speaker 2: workers have, of all workers, are in a quality job.
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  Speaker 2: 40% of employees and 45% of self-employed people. And the
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  Speaker 2: interesting thing, I think that when you look at some
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  Speaker 2: of the breakdowns are Hey, there's a clear correlation between
• 11:04
  Speaker 2: education and job quality with high school or less graduates.
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  Speaker 2: Someone with a high school or lower degree, only 29%
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  Speaker 2: of those workers in jobs that are high quality, whereas
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  Speaker 2: by the time you get to a graduate degree, it's
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  Speaker 2: about 53%. The other items that I think are interesting here,
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  Speaker 2: when you look at the one of these that's toughest
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  Speaker 2: for people to get in a quality job, It's work
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  Speaker 2: structure and autonomy, whereas the easiest is often growth and
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  Speaker 2: development opportunities.
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  Speaker 3: Yeah.
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  Speaker 4: I was wondering, like, what are these jobs that are
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  Speaker 4: so low quality?
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  Speaker 3: We know. I mean, retail comes to mind, right?
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  Speaker 4: Like the scheduling one, when I mentioned that, like, okay,
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  Speaker 4: so I'm getting low predictability in terms of my schedule
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  Speaker 4: and low pay. And retail trade, yeah, only 23% of
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  Speaker 4: employees work. in retail trade considered high quality jobs, warehousing
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  Speaker 4: right below that, uh, leisure and hospitality, social services, um,
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  Speaker 4: health slash medical.
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  Speaker 3: I was wondering, right?
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  Speaker 4: Like, you know, safety and job safety and things like
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  Speaker 4: that are on the list here. I know plenty of
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  Speaker 4: nurses who say, you know, I quit because I kept
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  Speaker 4: getting injured, uh.
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  Speaker 3: Or, or, you know, uh, the big one, there's also scheduling.
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  Speaker 5: Yeah.
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  Speaker 4: Scheduling is not predictable either, or I'm working overnight. Uh, Transportation, right?
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  Speaker 4: I don't think most people would describe Uber drivers as
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  Speaker 4: a quality job. Unfortunately, education is right there at the
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  Speaker 4: bottom of the list as well.
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  Speaker 5: Yep.
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  Speaker 2: If you look at the ones that tend to have
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  Speaker 2: the highest percentage of quality jobs, professional and business services, construction, utilities,
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  Speaker 2: financial services, information, those are all above 50% of those
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  Speaker 2: jobs are high quality. The other part of this that
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  Speaker 2: was interesting, again, I glanced through, it's like a 40-page
• 13:02
  Speaker 2: report overall. They do have a section on artificial intelligence,
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  Speaker 2: which I glanced through. And here's the interesting thing. I'm
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  Speaker 2: stripping out managers, at least for this first one. 12%
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  Speaker 2: of individuals use AI on a daily basis. 13% use
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  Speaker 2: it weekly, so only about a quarter of people use
• 13:22
  Speaker 2: it weekly or more. And only an additional 7% use
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  Speaker 2: it monthly, so only about a third of Americans use
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  Speaker 2: AI at their job on a monthly basis or more frequently.
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  Speaker 2: It does have a strong educational component attached to it,
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  Speaker 2: in that if you look at folks with graduate degrees,
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  Speaker 2: that number moves to north of 50%. Bachelor degrees, you
• 13:43
  Speaker 2: get to almost 50%. And when you get down to
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  Speaker 2: high school or less, you only have about 20%. of
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  Speaker 2: Americans that are using AI on a monthly or more
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  Speaker 2: frequent basis. So I found that kind of interesting. The
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  Speaker 2: piece on, hey, how's AI affecting your work experience? 63%
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  Speaker 2: of users, again, just people who have used AI, so
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  Speaker 2: it's stripping out those who haven't, say it allows them
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  Speaker 2: to do their job faster. 56% say that they're finding
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  Speaker 2: more creative solutions. 47% say they're able to focus time
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  Speaker 2: on the more interesting parts of their jobs. 46% say
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  Speaker 2: they're producing higher quality work. So it's 50-50 as to, like,
• 14:24
  Speaker 2: is the work actually better? And 31%, though, say that
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  Speaker 2: their employer is asking them to take on more responsibilities
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  Speaker 2: as a result.
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  Speaker 3: So kind of interesting.
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  Speaker 4: I keep going back to, you know, differentiating these roles, right?
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  Speaker 4: Because I think you could make So let's talk about
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  Speaker 4: like workplace safety, right? I mean, construction here is the
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  Speaker 4: top of the list in terms of quality jobs. And
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  Speaker 4: I think really what that comes down to is having
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  Speaker 4: skills that allow you to work in that specific trade. But,
• 14:54
  Speaker 4: you know, arguably, you know, safety concerns that rival plenty
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  Speaker 4: of the ones that are on the bottom of that list.
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  Speaker 4: And so, you know, how you differentiate this to me
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  Speaker 4: in part just comes down to supply and demand of.
• 15:05
  Speaker 3: The labor, right?
• 15:07
  Speaker 6: Totally.
• 15:07
  Speaker 3: Skilled construction workers.
• 15:09
  Speaker 4: Are demanding a higher pay right now. especially in this
• 15:13
  Speaker 4: exact moment. And so that offsets a lot of the
• 15:15
  Speaker 4: risks to working in the construction trade.
• 15:17
  Speaker 3: Of health issues.
• 15:19
  Speaker 4: I don't know a lot of 66-year-old framers, for example.
• 15:24
  Speaker 3: Yeah, that's fair.
• 15:25
  Speaker 2: So I think this is interesting just to get a
• 15:27
  Speaker 2: look at, especially because they do this study on a
• 15:30
  Speaker 2: regular basis. And so we often are like, hey, what
• 15:33
  Speaker 2: did this used to be? We get some information on
• 15:35
  Speaker 2: how this evolves as well. And I think that's useful there.
• 15:40
  Speaker 5: Giving assets to your children can be part of an
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• 16:51
  Speaker 2: Mike, we got a piece here in the Wall Street
• 16:52
  Speaker 2: Journal confirming what we have seen ourselves. Health insurance premiums
• 16:57
  Speaker 2: going up meaningfully.
• 16:59
  Speaker 3: Yeah.
• 17:00
  Speaker 4: Internally here at our own company, this is the second
• 17:02
  Speaker 4: year in a row of double-digit price increases.
• 17:05
  Speaker 3: Percentage-wise.
• 17:07
  Speaker 2: Hey.
• 17:07
  Speaker 3: Yeah.
• 17:08
  Speaker 4: I don't know what else to say about it. I
• 17:11
  Speaker 4: know some big companies are coming up with new solutions.
• 17:14
  Speaker 4: One company I'm familiar with has already a high deductible plan,
• 17:20
  Speaker 4: and they're rolling out a super high deductible plan in
• 17:22
  Speaker 4: order to try and keep premiums lower for their employees.
• 17:26
  Speaker 4: But I mean, there's no creative solution to make this better.
• 17:32
  Speaker 4: The best creative solution that one company had was, all right,
• 17:34
  Speaker 4: we'll just make it an even higher deductible to try
• 17:38
  Speaker 4: and keep those premium costs down because this stuff can't
• 17:42
  Speaker 4: get cheaper.
• 17:43
  Speaker 2: Yeah, we really just have not seen any convincing bend
• 17:49
  Speaker 2: on the cost curve. And I think you will at
• 17:54
  Speaker 2: some point just because, again, you look at where a
• 17:58
  Speaker 2: lot of the spending goes to. And again, there are
• 18:01
  Speaker 2: some things like you look at like, spending on health care,
• 18:05
  Speaker 2: and it's generally like the vast majority of it is
• 18:08
  Speaker 2: related to two things, when you're born.
• 18:10
  Speaker 3: And when you are close to death. That's where it
• 18:13
  Speaker 3: tends to be.
• 18:15
  Speaker 2: At some point, the hope with all of the people
• 18:17
  Speaker 2: starting to take up GLP-1s is one of the biggest
• 18:20
  Speaker 2: risks for health problems that cause high expenses, heart attacks, strokes,
• 18:25
  Speaker 2: things along those lines, is being overweight. And so you
• 18:30
  Speaker 2: would hope that at some point you can see this
• 18:32
  Speaker 2: start to bend the cost curve for overall health expenditures
• 18:35
  Speaker 2: on those. But right now what we're seeing is, okay,
• 18:39
  Speaker 2: the spending that's happening is more on that preventive work
• 18:42
  Speaker 2: at the moment. And so as more people take these up,
• 18:45
  Speaker 2: and they're still relatively expensive, you're seeing that coming through
• 18:48
  Speaker 2: in terms of higher costs. There's all kinds of other
• 18:50
  Speaker 2: new developments that are higher cost. And so you're seeing
• 18:54
  Speaker 2: this coming through in terms of just huge increases in
• 18:58
  Speaker 2: in health insurance premiums the last couple of years in particular.
• 19:03
  Speaker 4: Yeah, and remember, no small part of health care costs
• 19:05
  Speaker 4: goes into labor, and the available supply of people that
• 19:09
  Speaker 4: work in the health care industry is and has been
• 19:14
  Speaker 4: in trouble.
• 19:14
  Speaker 3: And by the way, global story here, right?
• 19:16
  Speaker 4: This is not just the United States that's having a
• 19:19
  Speaker 4: tough time finding the labor to care for aging people
• 19:23
  Speaker 4: in their society.
• 19:24
  Speaker 3: Let's take a quick break. When we come back, we've
• 19:26
  Speaker 3: got Wall Street Watch.
• 19:27
  Speaker 2: We're also joined by Garrett Barton from Circle K Worldwide next.
• 19:39
  Speaker 1: Bringing the latest financial news straight to your radio every day.
• 19:43
  Speaker 1: It's the Financial Exchange on the Financial Exchange Radio Network.
• 19:49
  Speaker 3: Time now.
• 19:50
  Speaker 1: Now for Wall Street Watch. Tracking the stocks, the data,
• 19:53
  Speaker 1: and the headlines driving markets so far today. Right here
• 19:56
  Speaker 1: on the Financial Exchange Radio Network.
• 19:58
  Speaker 5: Well, we're seeing another sell-off in tech today with oil
• 20:01
  Speaker 5: on the rise. Right now, the Dow is down about
• 20:04
  Speaker 5: a quarter percent. S & P 500 down one and
• 20:06
  Speaker 5: a quarter percent or 98 points lower. Tech-heavy NASDAQ now
• 20:10
  Speaker 5: down 2.2 percent or 589 points lower. Russell 2000 is
• 20:14
  Speaker 5: down a third of a percent. 10-year treasury yield down
• 20:17
  Speaker 5: 13 basis points at 5%. Crude oil up 1% at $ 98,
• 20:23
  Speaker 5: while Brent is at $ 111 a barrel. Meta down nearly
• 20:28
  Speaker 5: 6% despite the social media giant beating third-quarter revenue expectations.
• 20:32
  Speaker 5: The company also said it would create a new class
• 20:34
  Speaker 5: of non-voting stock to raise capital for its substantial AI bets.
• 20:39
  Speaker 5: Tesla shares flat after the EV maker said it will
• 20:42
  Speaker 5: spend about $ 20 billion in capital expenditures this year. Elsewhere,
• 20:47
  Speaker 5: railroad operators Union Pacific and Norfolk Southern both reported higher
• 20:51
  Speaker 5: profit and revenue in the recent quarter as more shippers
• 20:53
  Speaker 5: continue to move their cargo from truck to rail. Both
• 20:56
  Speaker 5: stocks are up by 2%, and Lamb Research is selling
• 21:00
  Speaker 5: off nearly 10% after its guidance was only in line
• 21:03
  Speaker 5: with expectations, leading to increased AI spending concerns. I'm Tucker Silva,
• 21:09
  Speaker 5: and that is Wall Street Watch.
• 21:11
  Speaker 4: As we close in on Veterans Day and the DAV
• 21:14
  Speaker 4: 5K Boston, which is, as Tucker's mentioned, completely sold out
• 21:19
  Speaker 4: in South Boston, but you can still learn more, donate,
• 21:23
  Speaker 4: and join to cheer folks on on Saturday, November 7th
• 21:26
  Speaker 4: in South Boston at Castle Island. I'm excited to welcome
• 21:29
  Speaker 4: in studio Garrett Barton. who's the franchise business consultant for
• 21:32
  Speaker 4: Circle K Worldwide and a Navy veteran, and talk about
• 21:37
  Speaker 4: their partnership with the.
• 21:38
  Speaker 3: DAV of Massachusetts. So Garrett, thank you for joining me.
• 21:41
  Speaker 3: I appreciate it.
• 21:41
  Speaker 6: Thank you very much. It's my honor and pleasure to
• 21:43
  Speaker 6: be here.
• 21:43
  Speaker 4: So talk to me a bit about Circle K's partnership
• 21:46
  Speaker 4: with the Disabled American Veterans Department of Massachusetts and the
• 21:51
  Speaker 4: DAV generally. You're continuing now as the official convenience store
• 21:56
  Speaker 4: for the DAV of Massachusetts.
• 21:57
  Speaker 3: So How did this partnership come about? And talk to
• 22:02
  Speaker 3: us about it.
• 22:03
  Speaker 6: Well, about 10 years ago, Isaiah, who's one of the
• 22:06
  Speaker 6: big marketing geniuses behind all of this, got up with
• 22:09
  Speaker 6: Circle K. And he knows my boss, Pete Radulitz, that
• 22:14
  Speaker 6: actually got involved with all this and got our director
• 22:17
  Speaker 6: of operations in, got our director of international marketing, Greg Dean, involved.
• 22:23
  Speaker 6: And it's been 10 years. In the last two years,
• 22:25
  Speaker 6: we've been the official convenience store of the DAV Massachusetts,
• 22:29
  Speaker 6: donating thousands of dollars. And this year, we donated $ 35, 000
• 22:34
  Speaker 6: to the organization. We actually have people running in the
• 22:36
  Speaker 6: race this year representing Circle K as well. I'm not
• 22:39
  Speaker 6: one of them.
• 22:42
  Speaker 4: I'm not either, but we do have our representation in
• 22:45
  Speaker 4: there as well. My co-host is always trying to push
• 22:48
  Speaker 4: the limits there and get in there. But it's an
• 22:50
  Speaker 4: exciting event. We're happy that you're able to continue to
• 22:54
  Speaker 4: support them on that front. Garrett, as I mentioned at
• 22:56
  Speaker 4: the beginning, you're a Navy veteran. If you wouldn't mind,
• 22:58
  Speaker 4: would you mind talking to us a little bit about
• 23:00
  Speaker 4: your service within the Navy and your military experience generally?
• 23:05
  Speaker 6: Yeah, I went in in 1983. I was 21 at
• 23:08
  Speaker 6: the time, and I was on a guided missile destroyer,
• 23:11
  Speaker 6: USS Barney DDG-6. And unfortunately, my whole body twitched around
• 23:16
  Speaker 6: my knee and snapped my knee when I was in
• 23:19
  Speaker 6: So I went through a year of physical therapy, spent
• 23:22
  Speaker 6: a year on shore duty in Norfolk, Virginia. I worked
• 23:25
  Speaker 6: with the admiral on the base, driving him around as
• 23:27
  Speaker 6: a chauffeur since there wasn't much I could do. And
• 23:30
  Speaker 6: after a year of physical therapy, my knee just would
• 23:32
  Speaker 6: not support being able to be on a steel deck ship.
• 23:36
  Speaker 6: So as the saying goes, if you're not fit for
• 23:38
  Speaker 6: the fleet, you're not fit for the Navy. So I
• 23:40
  Speaker 6: got out as a DAV. They did pay for all
• 23:42
  Speaker 6: my college, so I am thankful for that. And they've
• 23:46
  Speaker 6: taken care of all my medical expenses ever since.
• 23:49
  Speaker 4: Can you tell me then, was your experience with the
• 23:52
  Speaker 4: DAV prior to Circle K working.
• 23:56
  Speaker 3: With the DAV? Do you have experience with the DAV
• 23:58
  Speaker 3: well before all of this?
• 24:00
  Speaker 6: Oh, absolutely. I've lived in 16 different states throughout my
• 24:03
  Speaker 6: life since the military, and I've been involved with the
• 24:07
  Speaker 6: DAV everywhere I went, whether or not it was Chicago, Dallas, Missouri, Florida.
• 24:13
  Speaker 6: Everywhere I go, I try to get involved some way,
• 24:15
  Speaker 6: somehow with the DAV, because to me, it's very important
• 24:19
  Speaker 6: to try to give back to the people that have
• 24:21
  Speaker 6: it a lot worse than I do. I mean, I'm disabled,
• 24:23
  Speaker 6: but I'm not handicapped, so I can still get around decently.
• 24:26
  Speaker 6: I have a lot of my own issues. However, to
• 24:30
  Speaker 6: do something for the people that really gave the most
• 24:33
  Speaker 6: and went through the worst, to me, is the best
• 24:37
  Speaker 6: thing you can do for somebody.
• 24:39
  Speaker 4: The majority of Americans today have not served in the military,
• 24:42
  Speaker 4: do not have immediate family that served in the military.
• 24:44
  Speaker 3: I do not.
• 24:45
  Speaker 4: You know, the closest relative I had was my grandfather
• 24:48
  Speaker 4: on my mother's side who served. And I think finding
• 24:53
  Speaker 4: ways to get involved on that front as a non-military
• 24:57
  Speaker 4: family is of interest to me. Can you talk to
• 24:59
  Speaker 4: me about, you know, your experience there and the mix
• 25:03
  Speaker 4: of veterans and non-veterans within the organization that you have
• 25:06
  Speaker 4: seen firsthand?
• 25:07
  Speaker 6: Well, the biggest thing that especially veterans give back, all
• 25:11
  Speaker 6: veterans give back in some way, some fashion. Hence why
• 25:14
  Speaker 6: you have the American Legion as well. But even the non-veterans,
• 25:18
  Speaker 6: it's amazing the support that they do for you. They
• 25:22
  Speaker 6: go ahead and they'll give people rides to their appointments,
• 25:25
  Speaker 6: the vets that ride to their appointments, which a lot
• 25:27
  Speaker 6: of them need because they can't get around on their own.
• 25:29
  Speaker 6: They'll donate their time at the hospitals. I used to
• 25:32
  Speaker 6: go to the West Roxbury Hospital here. And, you know,
• 25:35
  Speaker 6: seeing the people that would just– be there to volunteer,
• 25:38
  Speaker 6: to push the people around, even in the hospital to
• 25:40
  Speaker 6: their appointments and everything. You know, there's so much you
• 25:42
  Speaker 6: can do to give back. You can donate, you can
• 25:44
  Speaker 6: give your time, you can give your money, give your efforts. Um,
• 25:47
  Speaker 6: but you know what? One of one other thing that
• 25:50
  Speaker 6: goes unspoken too, is all the people that work in
• 25:52
  Speaker 6: the VA system at the hospitals, at the outpatient clinics
• 25:56
  Speaker 6: and everything else.
• 25:57
  Speaker 4: Um, Garrett, talk to me, if you don't mind, about
• 26:02
  Speaker 4: Circle K, the veterans that work for Circle K and
• 26:05
  Speaker 4: this National Brave organization. It's not something that I'm terribly
• 26:08
  Speaker 4: familiar with. What's your involvement in that program and how
• 26:10
  Speaker 4: does that work?
• 26:11
  Speaker 6: So I'm one of the reps for the franchise side
• 26:13
  Speaker 6: of Circle K for the Brave organization, which is for
• 26:16
  Speaker 6: all veterans within the organization. We get together, we do
• 26:19
  Speaker 6: things together, we have conference calls, and we discuss Decide
• 26:24
  Speaker 6: what and where we're going to do things. Like, for instance,
• 26:26
  Speaker 6: the DAV 5K in Castle Island coming up in two
• 26:28
  Speaker 6: weeks from Saturday. You know, things like this are things
• 26:30
  Speaker 6: that we get involved in nationally. And we try to
• 26:33
  Speaker 6: do anything we can to give back to veterans. On
• 26:35
  Speaker 6: Veterans Day, we donate, we give time, we give efforts.
• 26:38
  Speaker 6: And all of us on the BRAVE organization do things
• 26:40
  Speaker 6: of that nature, like me. You know, I'm highly involved
• 26:43
  Speaker 6: at DAV Massachusetts. You know, it's near and dear to me,
• 26:46
  Speaker 6: especially as a representative of Circle K. You know, it's
• 26:49
  Speaker 6: a win-win situation and a personal thing for me on
• 26:52
  Speaker 6: both sides of the fence.
• 26:53
  Speaker 3: Garrett, it's been a real pleasure.
• 26:55
  Speaker 4: Again, Garrett Barton is the franchise business consultant for Circle
• 26:59
  Speaker 4: K Worldwide Franchise Group and a Navy veteran. And talking
• 27:02
  Speaker 4: today about his support for the DAV nationally, the DAV
• 27:07
  Speaker 4: of Massachusetts specifically, their sponsorship this weekend of the DAV.
• 27:13
  Speaker 4: 5K Massachusetts on Castle Island in South Boston. Again, Saturday,
• 27:17
  Speaker 4: November 7th is the date of that event. You can
• 27:20
  Speaker 4: learn more online and support in many different ways other
• 27:24
  Speaker 4: than registering to run because This one sold out in
• 27:27
  Speaker 4: record time this year.
• 27:29
  Speaker 3: Garrett, thank you again for joining us. Really appreciate it.
• 27:32
  Speaker 4: Thank you for the support that Circle K has been
• 27:34
  Speaker 4: able to do, and we will see you.
• 27:36
  Speaker 3: At the race.
• 27:37
  Speaker 6: Well, thank you for all of your support, and to
• 27:39
  Speaker 6: all the veterans out there and all the people that
• 27:41
  Speaker 6: help the veterans and support the veterans, we thank you personally.
• 27:44
  Speaker 3: Thanks so much. We're going to take a quick break.
• 27:46
  Speaker 3: When we return, Stack Roulette is coming up next.
• 27:49
  Speaker 1: Wall Street, the economy, and the business stories making headlines.
• 27:53
  Speaker 1: Find it all on the Financial Exchange YouTube channel with
• 27:56
  Speaker 1: live shows, video highlights, and shorts. Watch at youtube.com slash
• 28:01
  Speaker 1: the Financial Exchange. This is the Financial Exchange Media Network.
• 28:06
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• 28:10
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• 28:14
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• 28:17
  Speaker 1: This is the Financial Exchange Media Network.
• 28:27
  Speaker 5: This segment of the Financial Exchange is brought to you
• 28:29
  Speaker 5: by Circle K, a proud partner of the Disabled American
• 28:32
  Speaker 5: Veterans Department of Massachusetts's and the official convenience store of
• 28:37
  Speaker 5: the DAV 5K.
• 28:40
  Speaker 3: Mike, what do you got for me for Stack Roulette?
• 28:42
  Speaker 4: Congestion pricing. Maybe coming to Boston? Going to be tricky
• 28:48
  Speaker 4: here to do it, but apparently they are taking a
• 28:51
  Speaker 4: look at the model in New York on the island
• 28:54
  Speaker 4: of Manhattan, where if you're not familiar, they have congestion
• 28:59
  Speaker 4: pricing with toll cameras on every street that enters the
• 29:04
  Speaker 4: lower end of Manhattan. I'm not sure exactly where they
• 29:06
  Speaker 4: are placed, but there was a whole fiasco to get
• 29:09
  Speaker 4: it in place and done. It got national attention, but
• 29:16
  Speaker 4: eventually it was in place and got done. And frankly,
• 29:21
  Speaker 4: I'd be in favor of congestion pricing, even if it
• 29:23
  Speaker 4: weren't to just shore up the MBTA, but that's what
• 29:26
  Speaker 4: the position is here is, hey, We need funds for
• 29:31
  Speaker 4: the MBTA, the commuter rail, and so we want to
• 29:33
  Speaker 4: raise them via congestion toll pricing. And I've harped on
• 29:37
  Speaker 4: this for a while, that it's just never made a
• 29:39
  Speaker 4: ton of sense for me that if you live west
• 29:41
  Speaker 4: of the city of Boston, you pay massive tolls to
• 29:43
  Speaker 4: get in there, but if you live north and south
• 29:45
  Speaker 4: of the city of Boston, depending on which road you take,
• 29:48
  Speaker 4: you may or may.
• 29:49
  Speaker 3: Not be told. And so, yeah, I'm in favor, but
• 29:51
  Speaker 3: looking at the map, you would need tolls. I don't
• 29:53
  Speaker 3: know how you do it. So here's what I think
• 29:55
  Speaker 3: you do.
• 29:55
  Speaker 4: I think you put tolls on Route 1, 93, 28,
• 29:56
  Speaker 4: Route 3, Route 2... 2016, 99, 138.
• 30:02
  Speaker 1: And 3A.
• 30:03
  Speaker 3: And let me tell you what you're going to get.
• 30:05
  Speaker 3: Congestion on all the back roads. Yes.
• 30:07
  Speaker 4: Yes.
• 30:07
  Speaker 3: You will.
• 30:09
  Speaker 5: People call it 45 in a 25 neighborhood or something.
• 30:14
  Speaker 2: The only place I think you can do it as
• 30:16
  Speaker 2: cleanly as New York is New York. At least when
• 30:20
  Speaker 2: you're talking about major metro areas.
• 30:22
  Speaker 3: It's an island. It's an island.
• 30:25
  Speaker 2: It's literally an island. It's got this natural boundary there.
• 30:30
  Speaker 2: You go to San Francisco, you're like, okay, we got
• 30:36
  Speaker 2: all these roads coming from San Jose up.
• 30:40
  Speaker 3: You can do the north easily. You're like, okay, great.
• 30:42
  Speaker 2: Golden Gate Bridge, fine. You've got that all set. Whatever
• 30:45
  Speaker 2: the bridge is, is it the Bay Bridge that goes
• 30:48
  Speaker 2: to Oakland?
• 30:49
  Speaker 3: I don't know, Chuck. Whichever one that is. And then
• 30:51
  Speaker 3: you got the San Mateo Howard one. Great. Like you can,
• 30:55
  Speaker 3: that's easy.
• 30:56
  Speaker 2: The problem is like coming up from San Jose, it's
• 30:59
  Speaker 2: just surface sprawl. And you're like, well, this is going
• 31:03
  Speaker 2: to be a problem.
• 31:05
  Speaker 4: So the other way that I could think of doing
• 31:07
  Speaker 4: this again, I'm not sure that you should do this,
• 31:10
  Speaker 4: but You could just dramatically increase parking prices during weekdays.
• 31:14
  Speaker 3: And that's where I was going to land. That's where
• 31:17
  Speaker 3: I was going to land. You put a tax on
• 31:18
  Speaker 3: parking and use that way to fund it. Yes.
• 31:22
  Speaker 2: That's the way that you do it if you want
• 31:24
  Speaker 2: to do it. I would be shocked if we see that. Again,
• 31:30
  Speaker 2: I'm someone who... I drive my car into and around Boston,
• 31:35
  Speaker 2: not all the time, but I would say once every
• 31:37
  Speaker 2: couple weeks I'm heading in.
• 31:39
  Speaker 3: And.
• 31:40
  Speaker 2: Again, I'm never going in at the busy times. I'm
• 31:45
  Speaker 2: heading in when everyone else is heading out, so I
• 31:47
  Speaker 2: wouldn't care personally. But it's... The part that's going to
• 31:53
  Speaker 2: be tough now... When did New York approve its congestion pricing?
• 31:55
  Speaker 2: It was in like 21 or 22?
• 31:57
  Speaker 3: Something like that, yeah.
• 32:00
  Speaker 2: It was at a time before affordability was the big
• 32:03
  Speaker 2: concern everyone had.
• 32:05
  Speaker 3: And so I.
• 32:06
  Speaker 2: I'm not saying congestion pricing is good or bad when
• 32:09
  Speaker 2: I say this. I'm just saying I think it's going
• 32:12
  Speaker 2: to be a tough putt to be like, hey, we're
• 32:14
  Speaker 2: going to add this additional cost to your commute right now.
• 32:18
  Speaker 4: Yeah, you might have to pair it with a slight
• 32:22
  Speaker 4: cut in the commuter rail pricing, in which case you're not.
• 32:25
  Speaker 3: You're not funding what you want to fund.
• 32:27
  Speaker 2: Or here, like, again, there's ways that you can manipulate
• 32:30
  Speaker 2: the revenue. You can be like, hey, we're going to
• 32:32
  Speaker 2: increase congestion pricing but reduce the gas tax by two cents. Like,
• 32:36
  Speaker 2: there are ways that you can make the numbers work,
• 32:39
  Speaker 2: I'm sure.
• 32:39
  Speaker 3: Yeah.
• 32:40
  Speaker 2: But you, I feel like this one's got to be
• 32:42
  Speaker 2: some give and take in order to get there.
• 32:46
  Speaker 3: Here's what I know.
• 32:47
  Speaker 4: In spite of all the time we spend complaining about
• 32:50
  Speaker 4: the greater Boston public transit, we have one of the
• 32:54
  Speaker 4: top probably three or four public transit systems in the country.
• 32:58
  Speaker 2: That just speaks to how bad most of them are
• 33:00
  Speaker 2: or the places that don't have them at all.
• 33:02
  Speaker 3: Agreed.
• 33:03
  Speaker 4: But that's the state. We have the infrastructure built. We
• 33:07
  Speaker 4: don't have to go grab the land from anybody to
• 33:09
  Speaker 4: do it. So we should make sure it actually.
• 33:11
  Speaker 3: Runs on time without crashing into stuff.
• 33:13
  Speaker 2: And to be fair, Philip Eng, who runs the MBTA now,
• 33:17
  Speaker 2: came in.
• 33:18
  Speaker 3: When was it? It was back in... Two to three
• 33:21
  Speaker 3: years ago. 2023, I think. Gotta be honest... The trains
• 33:25
  Speaker 3: aren't catching on fire anymore.
• 33:26
  Speaker 1: Yeah.
• 33:27
  Speaker 2: Like the the overall ridership experience has gotten a lot better.
• 33:30
  Speaker 2: And again, this is what happens when you hire like
• 33:32
  Speaker 2: a competent, solid executive with a history of, you know,
• 33:35
  Speaker 2: successful transit projects and things like that. Like he's done
• 33:38
  Speaker 2: a really good job. So it it has gotten a
• 33:40
  Speaker 2: lot better. Phil was 2023, by the way. And New
• 33:44
  Speaker 2: York City congestion was the launch year was back in
• 33:47
  Speaker 2: actually twenty twenty five.
• 33:49
  Speaker 4: Yeah, it passed way earlier, but then it got bogged
• 33:52
  Speaker 4: down by legislation, the governor, and national attention for a
• 33:56
  Speaker 4: good four years. I remember they spent all the money
• 33:58
  Speaker 4: on the cameras and then had to turn them off.
• 34:01
  Speaker 2: And the big thing, like, it has resulted in quicker
• 34:03
  Speaker 2: transit times, higher average speed, less travel.
• 34:06
  Speaker 3: Like, it's done exactly what you want.
• 34:08
  Speaker 6: Yeah, yeah.
• 34:10
  Speaker 3: And you know what?
• 34:11
  Speaker 4: I'm not sure that just putting it on the major
• 34:13
  Speaker 4: roadways doesn't solve the problem, Chuck, because... You might think
• 34:18
  Speaker 4: that everybody's going to go on those back roads, and
• 34:20
  Speaker 4: some people will, but that's going to be so much worse.
• 34:24
  Speaker 2: Yeah, when the traffic gets bad enough, people just be like, okay,
• 34:27
  Speaker 2: I'll pay the extra couple of bucks.
• 34:28
  Speaker 3: Yeah. That's fair. That's fair.
• 34:30
  Speaker 2: I want to talk about this piece from Fox Business.
• 34:33
  Speaker 2: Airbnb cracks down on checkout chore lists as hosts face
• 34:36
  Speaker 2: new limits. So as someone who, again, when I travel,
• 34:40
  Speaker 2: I would say 70% of the time I hotel, 30%
• 34:43
  Speaker 2: I Airbnb.
• 34:43
  Speaker 1: Hmm.
• 34:46
  Speaker 2: The Airbnbs in some cases have gotten ridiculous in recent years.
• 34:49
  Speaker 2: You know, it used to be like, you would just
• 34:51
  Speaker 2: get like a handwritten note like, Hey, do you mind
• 34:52
  Speaker 2: taking out the trash when you finish up just so
• 34:55
  Speaker 2: that I don't have to?
• 34:57
  Speaker 5: Can you water my plants while you're at it?
• 34:59
  Speaker 2: It's not quite that bad, but it's literally like... The
• 35:02
  Speaker 2: trash on the first floor goes to this place. You
• 35:04
  Speaker 2: need to strip the beds and then remake the beds.
• 35:06
  Speaker 2: You need to put the remote controls back in this spot.
• 35:10
  Speaker 3: You need to... It just gets ridiculous to a certain extent.
• 35:15
  Speaker 2: And... I think that this is something that makes sense, but...
• 35:19
  Speaker 2: The other thing I'll say, the Airbnb experience, I think,
• 35:22
  Speaker 2: has worsened in the last five or six years as well.
• 35:25
  Speaker 2: Have either of you guys experienced this just in general?
• 35:28
  Speaker 2: I almost never use them anymore.
• 35:30
  Speaker 3: Because it's worsened?
• 35:32
  Speaker 4: No, because with my family dynamics, hotels often just make
• 35:36
  Speaker 4: a lot more sense than an Airbnb does these days.
• 35:41
  Speaker 4: When I had very little kids and we weren't going anywhere... Yeah,
• 35:45
  Speaker 4: an Airbnb so that if they wake up screaming in
• 35:47
  Speaker 4: the middle of the night wasn't a problem, was kind
• 35:49
  Speaker 4: of a priority. These days, yeah, just the convenience of
• 35:53
  Speaker 4: a hotel and knowing that everything's taken care of is
• 35:57
  Speaker 4: what I'm more looking for. But yeah, prices have gotten
• 36:00
  Speaker 4: a lot higher, I think, and fees as well.
• 36:03
  Speaker 5: I just don't like the grocery store element to it.
• 36:05
  Speaker 5: It's like you have to make multiple, like a huge
• 36:08
  Speaker 5: grocery shop, number one, especially if you're staying for a week,
• 36:11
  Speaker 5: but then You just got to keep going back and
• 36:13
  Speaker 5: forth and back and forth. It's just like you got
• 36:15
  Speaker 5: to bring your whole house and your life with you
• 36:18
  Speaker 5: for a week.
• 36:19
  Speaker 6: For an Airbnb.
• 36:19
  Speaker 5: Whereas at a hotel, I can just go down to
• 36:21
  Speaker 5: the lobby and get whatever I need.
• 36:23
  Speaker 3: Yeah, that's fair.
• 36:24
  Speaker 2: So I think that Airbnb is trying to address one
• 36:27
  Speaker 2: of the problems in doing this.
• 36:31
  Speaker 3: But I got to tell you, I've.
• 36:32
  Speaker 2: Heard anecdotally about an awful lot of people that bought
• 36:35
  Speaker 2: properties that they were trying to rent out back in
• 36:37
  Speaker 2: like 21 and 22. And in a lot of vacation towns,
• 36:40
  Speaker 2: you're starting to see more inventory coming on market because
• 36:44
  Speaker 2: they're not able to get the short-term rents that they
• 36:48
  Speaker 2: need in order to make these make sense now.
• 36:50
  Speaker 5: Yeah.
• 36:51
  Speaker 2: It's just like it's a saturated market. It's supply and demand. Like,
• 36:54
  Speaker 2: too many people trying to rent them out, and so
• 36:56
  Speaker 2: the rents aren't high enough in those cases. The rent
• 36:59
  Speaker 2: is too damn low. Yeah, which is, I mean, kind
• 37:03
  Speaker 2: of great.
• 37:04
  Speaker 3: Right? That's kind of how economics should work. Right, it is.
• 37:07
  Speaker 4: When too much supply comes online. Prices drop and that
• 37:10
  Speaker 4: doesn't work anymore. And so, yeah, those same people.
• 37:13
  Speaker 2: Right.
• 37:13
  Speaker 4: The idea that this needs to be some heavily regulated
• 37:16
  Speaker 4: thing in those markets is proving out to not be
• 37:19
  Speaker 4: the case. And it's kind of just fixing itself all
• 37:24
  Speaker 4: on its own. I recognize that there are other markets
• 37:26
  Speaker 4: where that's not the case. But yeah, rather than saying, hey,
• 37:29
  Speaker 4: this is completely banned in the market. Hey, this this
• 37:34
  Speaker 4: solution seems to be providing an economic solution to the problem.
• 37:38
  Speaker 2: Taking a look at markets today. S & P now
• 37:40
  Speaker 2: about a quarter percent off its lows. Still down 87 points.
• 37:43
  Speaker 2: Dow is off 56. NASDAQ composite off 554. So tech's
• 37:47
  Speaker 2: still really feeling it. Ten-year treasury now down 15 basis
• 37:50
  Speaker 2: points to 4.994%. First time under five in a while.
• 37:54
  Speaker 2: Got to tell you, it feels like some of this
• 37:56
  Speaker 2: is just fixed income money trying to get away from France,
• 38:00
  Speaker 2: given what we're seeing in terms of relative yields there.
• 38:02
  Speaker 2: So we'll see how sustainable this move is.
• 38:06
  Speaker 3: And so... Again, that's what's.
• 38:08
  Speaker 2: Going on in equity and fixed income markets as we
• 38:11
  Speaker 2: head towards midday today. We're done for the day, but
• 38:14
  Speaker 2: we'll be back tomorrow to finish up the week.
• 38:17
  Speaker 3: We'll see you then.