Latest / The Financial Exchange Show / Can the grid handle the upcoming winter storm?

Transcript

Can the grid handle the upcoming winter storm? · The Financial Exchange Show

0:00
Speaker 1: The Financial Exchange is produced by Money Matters Radio and
0:03
Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
0:05
Speaker 1: registered investment advisor. All opinions expressed are solely those of
0:09
Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
0:11
Speaker 1: or anyone else. Investments can lose money. This program does
0:14
Speaker 1: not offer any specific financial or investment advice. Please consult
0:17
Speaker 1: your own financial, tax, and estate planning advisors before making
0:20
Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
0:23
Speaker 1: this program do not endorse each other or their services.
0:26
Speaker 1: Armstrong and Money Matters Radio do not compensate each other
0:28
Speaker 1: for referrals and are not affiliated. This is the Financial
0:34
Speaker 1: Exchange with Chuck Zada and Mike Armstrong, Your exclusive look
0:39
Speaker 1: at business and financial news affecting your day, your city,
0:43
Speaker 1: your world. Stay informed and up to date about economic
0:46
Speaker 1: and market trends, plus breaking business news every day. The
0:50
Speaker 1: Financial Exchange is a proud partner of the Disabled American
0:53
Speaker 1: Veterans Department of Massachusetts. Help us support our great American
0:57
Speaker 1: heroes by visiting DAV five dot Boston and making a
1:01
Speaker 1: donation today. This is the Financial Exchange with Chuck Zada,
1:06
Speaker 1: and Mike Armstrong.
1:11
Speaker 2: Chuck, Mike and Tucker with you here on a Friday,
1:15
Speaker 2: and we've got markets kind of mixed, you know, a
1:19
Speaker 2: little bit of this, little bit of that. It's kind
1:21
Speaker 2: of what the action is today. The Dow is off
1:24
Speaker 2: two hundred and thirteen points, down a little less than
1:26
Speaker 2: a half percent, Banks in particular being bopped on the
1:30
Speaker 2: head today by mister Market. We've got the S and
1:33
Speaker 2: P five hundred up thirteen points day about a quarter percent,
1:36
Speaker 2: and the Nasdaq can posite up about two thirds of
1:39
Speaker 2: a percent, or one hundred and forty five points. This
1:42
Speaker 2: on the back largely of Nvidia and Microsoft rallying today,
1:48
Speaker 2: and so the gang's back together with the mag seven
1:52
Speaker 2: names kind of leading the way in what is kind
1:54
Speaker 2: of a first for this year that has otherwise seen,
1:57
Speaker 2: you know, kind of more rotation going on in markets.
2:01
Speaker 2: Otherwise taking a look throughout other markets, the ten year
2:04
Speaker 2: US Treasury is down one point two basis points to
2:07
Speaker 2: four point two three nine percent. Mortgage News Daily currently
2:11
Speaker 2: has the national average four to thirty year fixed rate
2:14
Speaker 2: mortgages at six point one to nine percent. So back
2:17
Speaker 2: up a little bit over the last week or so
2:20
Speaker 2: after dipping down around six percent earlier in the month.
2:24
Speaker 2: We've also got the dollar index down zero point two
2:27
Speaker 2: percent today to ninety seven to ninety eight. Gold continuing
2:31
Speaker 2: its rally to new record highs within sniffing distance now
2:36
Speaker 2: five thousand for the first time everage at forty nine
2:38
Speaker 2: to fifty eight and twenty cents an ounce, and silver. Look,
2:41
Speaker 2: we don't normally talk about it, but you kind of
2:43
Speaker 2: gotta right now because silver, for the first time ever
2:46
Speaker 2: just crossed one hundred dollars an ounce. A year ago
2:49
Speaker 2: it was around thirty dollars. So uh, golly g Willikers.
2:53
Speaker 2: It's been quite a run for silver, in particular in
2:55
Speaker 2: the last month or so, but the entire last year.
2:59
Speaker 2: Crudell I opened to forty five a barrel on West
3:01
Speaker 2: Texas Intermediate to sixty dollars and eighty one cents triple
3:05
Speaker 2: a national AVERAGUR gas price is up one point two
3:07
Speaker 2: cents overnight to two eighty six and two tenths. I
3:10
Speaker 2: would anticipate those numbers. We'll be moving higher in the
3:14
Speaker 2: coming days because we're probably gonna have some refinery outages
3:17
Speaker 2: throughout the Midwest because of the cold that is coming
3:20
Speaker 2: through this then brings us to our top story for
3:24
Speaker 2: the day, which is this massive winter storm that is
3:29
Speaker 2: set to cause all kinds of problems basically from Texas
3:35
Speaker 2: through the southeast, up into the Midwest, and then finally
3:38
Speaker 2: exits New England after dumping you know, anywhere from an
3:43
Speaker 2: inch or so of ice across the southern regions all
3:46
Speaker 2: the way to you know, pretty much it looks like
3:48
Speaker 2: everyone from DC through Boston getting eighteen to twenty four
3:52
Speaker 2: inches of snow. If this thing is accurate, and it's
3:57
Speaker 2: gonna be messy and there's gonna be power outages disrupttions,
4:01
Speaker 2: it really could snarl things up for a few days here.
4:04
Speaker 3: I don't mean to make light of what will certainly
4:07
Speaker 3: be really difficult for parts of the country that aren't
4:10
Speaker 3: prepared for this, But does anybody else get as excited
4:12
Speaker 3: about a giant snowstorm as I do? No, No, Tucker,
4:15
Speaker 3: doesn't I.
4:16
Speaker 2: Get excited about like snow at my house and everything? Yeah, yeah,
4:20
Speaker 2: I still enjoy that. Like, you know, you get those
4:23
Speaker 2: couple feet of snow and it's it's, you know, pretty
4:25
Speaker 2: easy to be like, Okay, I'm like, you know, ten
4:27
Speaker 2: years old again, and you just want to go outside
4:29
Speaker 2: and throw snowballs at each other and stuff like that.
4:32
Speaker 2: I get that precisely.
4:34
Speaker 3: Yeah, And plus I get to see it through my
4:36
Speaker 3: kid's eyes, who are just itching for a snow day
4:39
Speaker 3: on Monday, and I think you might get it. So yeah,
4:42
Speaker 3: I'm pretty excited about it. Heading to the store to
4:45
Speaker 3: make sure that snowblowers all gassed up.
4:47
Speaker 2: And ready to go.
4:48
Speaker 3: So yeah, pretty pumped and sore.
4:50
Speaker 2: Here's what we're looking at in terms of ice throughout
4:54
Speaker 2: the southern part of the country. There is a high
4:59
Speaker 2: probability of it least a quarter inch of ice in
5:02
Speaker 2: these areas Dallas, Shreveport, Nashville. Atlanta's borderline, which again like
5:09
Speaker 2: Atlanta right now is you could get like a tenth
5:10
Speaker 2: of an inch all the way up to three quarters
5:12
Speaker 2: of an inch. Charlotte is right in the middle of it.
5:14
Speaker 2: They're gonna get hit Washington, DC. Probably not that much ice,
5:17
Speaker 2: but a ton of snow. So that's kind of what
5:19
Speaker 2: you're looking at. There's just these bands that basically stretch
5:22
Speaker 2: from like Dallas to Nashville and then Atlanta through kind
5:26
Speaker 2: of Richmond, Virginia. In terms of you know this heavy ice,
5:30
Speaker 2: and that's the stuff that look, here's the deal. If
5:34
Speaker 2: Atlanta and Charlotte actually end up getting you know, half
5:37
Speaker 2: an inch or so of ice, you will have travel
5:40
Speaker 2: snarled throughout the United States for probably the better part
5:43
Speaker 2: of next week. Atlanta is the biggest Delta hub. Charlotte
5:47
Speaker 2: is I think the biggest American hub, maybe the second biggest.
5:52
Speaker 2: But either way, you're talking about major ones there. If
5:55
Speaker 2: Dallas ends up getting it as well, you've basically got
5:58
Speaker 2: you know, the trifect there. You're talking now about, you
6:03
Speaker 2: know again another major hub that is going to be
6:07
Speaker 2: you know, really hit hard there. So that's what you're
6:11
Speaker 2: looking at from a travel perspective. When it comes to
6:13
Speaker 2: the heavy snow. Oklahoma City is projected to get eighteen
6:18
Speaker 2: inches of snow right now, Does Oklahoma City ever get
6:23
Speaker 2: any snow?
6:25
Speaker 3: I'm not familiar enough to tell you, Chuck, I don't
6:27
Speaker 3: think they did.
6:28
Speaker 2: See that.
6:28
Speaker 3: Minneapolis was negative twenty one this morning though.
6:31
Speaker 2: Yes, Minneapolis is negative twenty one. So it's it's just
6:34
Speaker 2: really cold basically anywhere you know, down to Nashville at
6:38
Speaker 2: this point. And then this this path of eighteen inches
6:42
Speaker 2: of snow basically goes from Oklahoma City through you know,
6:47
Speaker 2: kinda just north of Nashville, Cincinnati area, all the way
6:52
Speaker 2: through like d C, Philadelphia, Pittsburgh. You know, obviously Buffalo
6:57
Speaker 2: is gonna get like forty six feet of snow somehow,
7:00
Speaker 2: and then you know, finishing up in New York and
7:02
Speaker 2: Boston with potentially getting eighteen to twenty four inches of
7:04
Speaker 2: snow there as well. So in looking at this, the
7:09
Speaker 2: big things that I'm I'm watching are look like does
7:13
Speaker 2: this actually happen because a lot of these areas like
7:15
Speaker 2: Nashville does not have plows to deal with eighteen inches
7:19
Speaker 2: of snow. New No, you know, Rowan Oak does not
7:22
Speaker 2: have plows to deal with eighteen inches of snow. Roley
7:26
Speaker 2: Durham does not have plows to deal with five inches
7:28
Speaker 2: of snow. It's this is the kind of stuff when
7:31
Speaker 2: you talk about, you know, snow days. Oklahoma City might
7:33
Speaker 2: not have school for a week.
7:37
Speaker 3: Sorry, it's not funny. I know it's not funny because
7:39
Speaker 3: people are not well equipped to handle it down there.
7:42
Speaker 3: But yeah, it's it's it is going to be ugly.
7:47
Speaker 3: Gnat gas prices, which were as low as three dollars
7:51
Speaker 3: ten cents back on January nineteenth, which was what Monday,
7:56
Speaker 3: are now trading over five dollars and thirty cents in
7:59
Speaker 3: anticipation and of the stress on the grid that you're
8:02
Speaker 3: already seeing in many parts of the country with the
8:04
Speaker 3: low temperatures.
8:05
Speaker 2: Yeah, Oklahoma City normally gets nine inches of snow in
8:08
Speaker 2: a typical year, but almost never gets more than like
8:12
Speaker 2: three inches at a time. They're not going to know
8:16
Speaker 2: what to do with eighteen inches of snow. Yeah, Like,
8:19
Speaker 2: it's just it's going to be a mess. Little Rock,
8:22
Speaker 2: Arkansas is supposed to get five to twelve inches. They
8:29
Speaker 2: don't have any plows there. They just don't exist. I mean,
8:31
Speaker 2: they have plows, but there for you know, planting crops,
8:33
Speaker 2: not for you know, clearing roads. It doesn't work like that.
8:36
Speaker 2: They're not the same kind of plow. So this is
8:40
Speaker 2: gonna be a problem. And you know, you certainly you know,
8:44
Speaker 2: I can tell you we were out grocery shopping Wednesday
8:48
Speaker 2: and yesterday just to try to get ahead of this thing.
8:51
Speaker 2: And even then, like you could sense people starting to
8:53
Speaker 2: gear up for it. It's, uh, you know, everyone's kind
8:56
Speaker 2: of you know, trying to just hunker down at this point.
8:59
Speaker 2: But if you're in one of these areas where you're
9:02
Speaker 2: not familiar with snow, best thing that you can do.
9:06
Speaker 2: And look, you've probably seen it occasionally, you know, when
9:08
Speaker 2: you do get these, you know, smaller storms that come through,
9:11
Speaker 2: just stay off the roads because there's a lot of
9:12
Speaker 2: bad drivers out there that don't know how to deal
9:14
Speaker 2: with it. And the more you can just hunker down
9:17
Speaker 2: and sit through it, the better off you typically are.
9:21
Speaker 3: Not you, you're a good driver, but everybody else out
9:24
Speaker 3: there's pretty bad sod be careful.
9:26
Speaker 2: It's true to take a quick break. When we return.
9:30
Speaker 2: Let's talk a little bit about TikTok. We haven't talked
9:32
Speaker 2: about them and forever, so we'll discuss TikTok and we've
9:35
Speaker 2: got trivia next.
9:37
Speaker 1: The Financial Exchange is now available every day from eleven
9:40
Speaker 1: to noon non Serious XMS Business Radio Channel one thirty two.
9:44
Speaker 1: Stay informed about the latest from Wall Street, fiscal policy,
9:47
Speaker 1: and breaking business news every day. The Financial Exchange is
9:51
Speaker 1: life on Serious XM's Business Radio Channel one thirty two.
9:55
Speaker 1: This is the Financial Exchange Radio Network. Only interviews and
10:00
Speaker 1: full shows of the Financial Exchange on our YouTube page.
10:04
Speaker 1: Subscribe to our page and get caught up on anything
10:06
Speaker 1: and everything you might have missed. This is the Financial
10:09
Speaker 1: Exchange Radio Network.
10:16
Speaker 4: The Financial Exchange is incredibly proud to be a partner
10:19
Speaker 4: of the Disabled American Veterans. Department of Massachusetts. Planning as
10:23
Speaker 4: well underway for the twenty twenty six DAV five k.
10:27
Speaker 4: The event sold out in record time last year, so
10:30
Speaker 4: head to DAV fivek dot Boston for all the information
10:33
Speaker 4: about how you can participate this November, or make a
10:36
Speaker 4: donation to support our great American heroes. Your gifts help
10:40
Speaker 4: fund free rides to medical appointments for veterans in the
10:43
Speaker 4: nation's first DAV led housing initiative, providing homes for single
10:48
Speaker 4: veterans and veteran families. Go to DAV fivek dot Boston
10:52
Speaker 4: and make your donation today. That's DAV five k dot Boston.
10:58
Speaker 4: Time for trivia here in the Financial Exchange, and today's
11:01
Speaker 4: the birthday of one of the most important figures of
11:03
Speaker 4: the American Revolution. This man was the elected President of
11:07
Speaker 4: the Continental Congress in seventeen seventy five, was elected as
11:10
Speaker 4: the first governor of Massachusetts in eighteen eighty. It was
11:14
Speaker 4: the first person to sign the Declaration of Independence. So
11:18
Speaker 4: trivia question today, who is the first signee of the
11:22
Speaker 4: Declaration of Independence? Once again, who is the first signee
11:26
Speaker 4: of the Declaration of Independence, be the seventh person today
11:30
Speaker 4: a textas at sixty one seven three six two thirteen
11:32
Speaker 4: eighty five with the correct answer along with the keyword trivia,
11:36
Speaker 4: and he win. A Financial Exchange showed t shirt once again.
11:39
Speaker 4: The seventh correct response to textas to the number six
11:42
Speaker 4: one seven three six two thirteen eighty five with the
11:46
Speaker 4: correct answer along with keyword trivia, will win that T shirt.
11:50
Speaker 4: See complete contest rules at Financial Exchange show dot com.
11:55
Speaker 2: If you could have been a signer to any one
11:57
Speaker 2: document in human history, which one would you have signed?
12:03
Speaker 4: Hmhmm cheez.
12:07
Speaker 2: H Like would you pick the Declaration of Independence? Karta?
12:15
Speaker 2: H how come?
12:18
Speaker 3: I'm not sure. I kind of just like the name.
12:22
Speaker 2: I appreciate the honesty. Yeah, I might go with like,
12:29
Speaker 2: I don't know, like the uh if I could have
12:32
Speaker 2: been Gutenberg, like signing the first Bible that was printed,
12:37
Speaker 2: I think that would be pretty cool. You know, US
12:41
Speaker 2: Constitution obviously kind of a big one. Also, you know,
12:44
Speaker 2: I think that's you know, put that one on the list.
12:50
Speaker 2: I think what else would kind of you know, make
12:52
Speaker 2: uh make it you know, to the top. I don't know.
12:57
Speaker 2: I gotta I gotta think that one through a little
12:58
Speaker 2: bit more. In any case, let's talk to talk. TikTok
13:02
Speaker 2: has been trying to have its US operations sold to
13:06
Speaker 2: American investors for how long has this actually been going
13:11
Speaker 2: on now, Mike.
13:13
Speaker 3: Let's see, the legislation to ban TikTok was passed in
13:17
Speaker 3: twenty twenty four, so before that it has been some
13:23
Speaker 3: time that it's been front and center here.
13:25
Speaker 2: So the good news is that it does look like
13:29
Speaker 2: a deal has been signed on this. It still is
13:32
Speaker 2: unclear to me that this is really the level of
13:35
Speaker 2: separation that you want from the parent company, and so
13:42
Speaker 2: it's probably a step forward, but I'll really need to
13:44
Speaker 2: see how this operates, you know, over the next year
13:48
Speaker 2: or two, in order to be able to get a
13:50
Speaker 2: sense of, hey, is there really the level of separation
13:53
Speaker 2: that you need there? Simply because I'm a big believer
13:56
Speaker 2: that you don't want a social media app to have
13:59
Speaker 2: in any way way control over its operations or algorithm
14:03
Speaker 2: from a foreign country who you can very easily view,
14:07
Speaker 2: as you know, adversarial in many respects. And so I'm
14:12
Speaker 2: hopeful that this is a step forward, but I'll need
14:15
Speaker 2: to see how it actually plays out in reality. With
14:17
Speaker 2: the governance in order to be able to determine is
14:22
Speaker 2: this really you know, more than just you know, window
14:25
Speaker 2: dressing on.
14:26
Speaker 3: It, right, because a big chunk of it is still
14:28
Speaker 3: going to be owned by Byte Dance themselves. Another one
14:31
Speaker 3: fifth of the company is going to still be owned
14:34
Speaker 3: and controlled by Byte Dance, which is another thirty percent
14:38
Speaker 3: is going to be controlled by existing Byte Dance TikTok investors,
14:43
Speaker 3: so probably some with pretty big Chinese government ties. I
14:49
Speaker 3: know there's a lot to be said about where the
14:51
Speaker 3: data is stored, but it seems to me that in
14:53
Speaker 3: a best case scenario, US investors have the ability to
15:00
Speaker 3: TechEd if and when China is spying on American users
15:04
Speaker 3: of TikTok or trying to influence things, and can report
15:07
Speaker 3: it out rather than preventing anything whatsoever. But like you said,
15:12
Speaker 3: a lot more to be shown here. The other question
15:14
Speaker 3: is I don't think that anybody is going to sue
15:16
Speaker 3: over this, but I'm not one hundred percent convinced it
15:19
Speaker 3: even complies with the law that was passed in twenty twenty.
15:22
Speaker 3: It might not, like it's it's really unclear. So but
15:27
Speaker 3: then again, who's going to sue overwrite this?
15:29
Speaker 2: Right?
15:29
Speaker 3: Like who's harmed? You know, Facebook would probably like to sue,
15:32
Speaker 3: but they're not going to draw the ire of the
15:34
Speaker 3: Trump administration by doing so. And I don't know who
15:37
Speaker 3: else is harmed by the deal. So yeah, I'm not.
15:40
Speaker 2: Sure right, I don't even have a TikTok account. You know,
15:44
Speaker 2: do either of you have a TikTok account? No? No, nope, nope, Yeah, okay, anyways.
15:49
Speaker 3: So maybe it's yesterday's news. Anyway, the the you know,
15:54
Speaker 3: the the forward thinking fashion trends of Chuck, Mike, and
15:58
Speaker 3: Tucker don't have accounts than who does?
16:01
Speaker 2: It's true, what's the last social media website that you
16:04
Speaker 2: signed up for? Uh?
16:07
Speaker 4: Instagram?
16:08
Speaker 2: I don't have one of those.
16:10
Speaker 3: Those. I still have Napchat, I might be Snapchat. Yeah,
16:14
Speaker 3: I still have a Facebook account, but I haven't been
16:17
Speaker 3: in my Facebook account in five years right now.
16:20
Speaker 4: Yeah, I like have to have Facebook because it's like
16:23
Speaker 4: linked to the show yep, So otherwise, like I would
16:27
Speaker 4: have deleted that long ago. I don't even go on it.
16:30
Speaker 2: I occasionally, like if if my wife and I like
16:32
Speaker 2: sitting on the couch and she's like scrolling through her Facebook,
16:35
Speaker 2: I'll occasionally look over and I commented to her the
16:38
Speaker 2: other day, I'm like, this isn't even like your friends
16:40
Speaker 2: that you're seeing. It's just like every other thing is
16:43
Speaker 2: an AD and the rest of it is just like,
16:46
Speaker 2: you know, random garbage from random people. And She's like, Yeah,
16:49
Speaker 2: I really don't like this, but I'm still doing it
16:53
Speaker 2: just because of you know, kind of reflex.
16:55
Speaker 3: What are you talking about?
16:56
Speaker 2: Check?
16:56
Speaker 3: What about all that pro Russia stuff that's being posted
16:58
Speaker 3: on your Facebook account? You're not doing that well?
17:01
Speaker 2: I mean, you caught me yet. In any case, let's
17:07
Speaker 2: what do we want to talk about here? Do we
17:08
Speaker 2: want to talk about New York City free childcare? Do
17:11
Speaker 2: we want to talk about retail investors at smarting Wall Streets?
17:14
Speaker 2: What's your pick? Michael?
17:16
Speaker 3: I always like talking about childcare because I'm still scarred
17:20
Speaker 3: from the cost that the cost overruns that I saw personally.
17:24
Speaker 3: So how is New York City going to deliver free
17:29
Speaker 3: child care to two year olds? I would like to
17:31
Speaker 3: see how they're going to make this one happen because
17:33
Speaker 3: it sounds expensive in my experience.
17:36
Speaker 2: So yeah, I mean basically what they are trying to
17:40
Speaker 2: do is they're going to be trying to roll this
17:43
Speaker 2: out to about two thousand two year olds as kind
17:47
Speaker 2: of a pilot program later this year, and they've committed
17:52
Speaker 2: to spending one hundred million dollars to help fund some
17:55
Speaker 2: additional seats for three year olds as well. But ultimately, look,
18:00
Speaker 2: the amount of revenue that's going to be needed to
18:02
Speaker 2: deal with this is significant, which in my mind means
18:06
Speaker 2: you have to do one of two things, cut other
18:08
Speaker 2: services somewhere or raise additional revenue through new taxes, fees,
18:12
Speaker 2: or something else. And that's how you you know, would
18:16
Speaker 2: end up getting there. Now. Ultimately, look, you might decide,
18:21
Speaker 2: as you know, whether you're the mayor of New York City,
18:23
Speaker 2: whether you are you know, city council member, and you
18:25
Speaker 2: know some other town, whatever it might be, you might
18:27
Speaker 2: decide that's what you want to do. Ultimately, Look, we've
18:31
Speaker 2: raised taxes in you know, property taxes largely you know,
18:34
Speaker 2: to pay for schools for you know, K through twelve, uh,
18:38
Speaker 2: you know, fire police, you know, other services like that.
18:40
Speaker 2: But schools make up in many cases the biggest or
18:44
Speaker 2: second biggest chunk of most city and town budgets. And
18:48
Speaker 2: so if you're simply saying, look, I want to basically
18:50
Speaker 2: extend that for you know, another couple of years. That's
18:54
Speaker 2: a decision that places can make, but it's likely going
18:57
Speaker 2: to come with higher taxes or reduced other services in
19:02
Speaker 2: order to get it done.
19:04
Speaker 3: No doubt. I mean, in places like Boston and New York,
19:07
Speaker 3: if you have more than one child, you probably need
19:10
Speaker 3: to be pulling in six figures to justify paying for
19:12
Speaker 3: childcare in the area.
19:14
Speaker 2: Yeah, it's I mean you're talking. You know, the cost
19:17
Speaker 2: in those high cost of living areas is easily you know,
19:21
Speaker 2: twenty to thirty thousand dollars per year, which you need
19:24
Speaker 2: to get to in terms of after tax income. Quick
19:27
Speaker 2: break here. When we come back, we get the trivia
19:29
Speaker 2: answer and Wall Street Watches.
19:31
Speaker 1: Next, bringing the latest financial news straight to your radio.
19:44
Speaker 1: Every day. It's the Financial Exchange on the Financial Exchange
19:48
Speaker 1: Radio Network. Time now for Wall Street Watch a complete
19:54
Speaker 1: look at what's moving market so far today right here
19:58
Speaker 1: on the Financial Exchange Radio.
19:59
Speaker 4: Netw Markets are a mixed territory to close out a
20:03
Speaker 4: vault a week. Right now, the Dow is down by
20:07
Speaker 4: six tens of a percent, or two hundred and ninety
20:09
Speaker 4: two points lower, SMP five hundred is edging only four
20:13
Speaker 4: points higher, Nasdaq up four tenths of a percent or
20:15
Speaker 4: one hundred points higher, Russell two thousands down nearly one percent,
20:19
Speaker 4: Tenure Tres reeled excuse me, flat at four point two
20:24
Speaker 4: four five percent, and crude oil up two point six percent,
20:29
Speaker 4: trading just below sixty one dollars a barrel. Intel tumbling
20:33
Speaker 4: fifteen percent now on the heels of its earnings report,
20:37
Speaker 4: where the chip maker posted a bigger than expected loss
20:40
Speaker 4: and forecasted more losses in the current quarter. The company
20:43
Speaker 4: said it doesn't have the supply it needs for seasonal demand,
20:46
Speaker 4: and also continues to spend heavily to ramp up production
20:50
Speaker 4: of its latest chips, sticking with the chip sector when
20:53
Speaker 4: video shares are up one and a half percent after
20:56
Speaker 4: CNBC reported that CEO Jensen Wog plans to visit in
21:00
Speaker 4: the coming days as questions continue to mount over in
21:03
Speaker 4: Nvidia's ability to sell in the Chinese market. Neil Capital
21:07
Speaker 4: One missed expectations for adjust at earnings in the previous
21:10
Speaker 4: quarter and raised its credit loss provisions. The credit card
21:14
Speaker 4: company also announced it agreed to buy financial technology company
21:17
Speaker 4: Brex for just over five billion dollars in cash and stock.
21:22
Speaker 4: Capital One stock is down by six percent in Clorox
21:26
Speaker 4: reaffirmed its fiscal year outlook and said it would buy
21:29
Speaker 4: purel maker Gojo Industries for two point twenty five billion dollars.
21:34
Speaker 4: Clorox shares a climbing over two percent. I'm Tucker Silva
21:37
Speaker 4: and that is Wall Street Watch. And in the previous
21:39
Speaker 4: segment we asked you the trivia question who was the
21:42
Speaker 4: first signee of the Declaration of Independence? That would be
21:46
Speaker 4: John Hancock. Elizabeth from brex Brexville, Ohio is our winner
21:51
Speaker 4: today listening on SiriusXM. Congrats to Elizabeth and we play
21:56
Speaker 4: trivia every day here in the Financial Exchange See complete
21:59
Speaker 4: contest rules at Financial Exchange Show dot com.
22:02
Speaker 2: Mike, we skip ahead and talk about the best and
22:04
Speaker 2: worst airlines of twenty twenty five.
22:07
Speaker 3: Yes we can.
22:08
Speaker 2: Wall Street Journal puts this out every year they go
22:12
Speaker 2: through these rankings, and Delta has won for the last
22:16
Speaker 2: four years running twenty one, twenty two, twenty three, and
22:18
Speaker 2: twenty four. But for twenty twenty five, we have a
22:22
Speaker 2: new champion in the Wall Street Journal Top Airline rankings,
22:26
Speaker 2: and that champion is Southwest. Did you have this on
22:32
Speaker 2: your Bengo card?
22:33
Speaker 3: Mic, No, you know they've taken a lot of flak
22:36
Speaker 3: recently for all the changes that they've been making to
22:40
Speaker 3: their branding and just fees and charges and how they
22:45
Speaker 3: sell themselves as an airline. I don't think anybody's been
22:48
Speaker 3: paying terribly close attention to their on time rates and
22:51
Speaker 3: the other factors that are taken into consideration for best
22:53
Speaker 3: and worst airlines by the Wall Street Journal. But they
22:58
Speaker 3: had some really really bad performance issues. I think it
23:02
Speaker 3: was back in twenty twenty three that contributed them to
23:05
Speaker 3: them dropping to the number four spot and taking the
23:09
Speaker 3: top seed this year next to by the way, one
23:13
Speaker 3: that I did not have Bengo card, which was Allegiant Air,
23:17
Speaker 3: which is a very discount airline. My cousin actually flies
23:20
Speaker 3: for them, but I did not expect to see them
23:22
Speaker 3: anywhere in the top few. But again, when you're ranking
23:25
Speaker 3: these based on lost bags and delays and cancelations, these
23:29
Speaker 3: two are apparently dominating the space and unseating Delta for
23:33
Speaker 3: the top airline.
23:34
Speaker 2: Yeah, the big thing, So let's talk Delta. Delta still
23:38
Speaker 2: ranking best for on time arrivals. They ranked third in
23:44
Speaker 2: extreme delays. They were fifth in terms of mishandled baggage.
23:48
Speaker 2: That's kind of where they've always ranked in that area,
23:51
Speaker 2: Delta and Allegiant tying for the lowest rate of involuntary bumping.
23:54
Speaker 2: But Delta where they really fell this year two hour
23:57
Speaker 2: plus tarmac delays. They fell from the third run airline
24:00
Speaker 2: to the fifth ranked one there and then also dropping
24:05
Speaker 2: from second to fourth in terms of canceled flights. This
24:09
Speaker 2: is my annual reminder that these things are often volatile
24:13
Speaker 2: and based just on where bad weather happens in any
24:15
Speaker 2: particular year. So as an example, if a couple of
24:18
Speaker 2: years ago, big snowstorm hits you know, love Field in
24:20
Speaker 2: Texas Southwest, which is you know, that's their main hub.
24:24
Speaker 2: That's why they their ticker is LUV. By the way,
24:26
Speaker 2: did you know that Michael I did? Yes, Oh, just
24:29
Speaker 2: making sure and you know that's why they had, you know,
24:32
Speaker 2: horrible performance. Then if Atlanta gets hit by this ice
24:36
Speaker 2: storm here, you know, in two days, and it ends up,
24:38
Speaker 2: you know, dropping a full inch of ice on the ground,
24:42
Speaker 2: Delta is going to end up, you know, at the
24:43
Speaker 2: short end of the stick there, and it's nothing they
24:45
Speaker 2: can do about. It's just their turn to deal with it.
24:48
Speaker 2: So you know, some of this is luck of the draw.
24:51
Speaker 2: The stuff that I think is you know more about
24:54
Speaker 2: how well you're actually operating? Is the involuntary bumping thing?
25:00
Speaker 2: I think is just ridiculous. Like the idea that you're
25:02
Speaker 2: just going to overbook a plane to me is kind
25:06
Speaker 2: of it's kind of ridiculous. I just don't understand how
25:11
Speaker 2: you can do that. Like imagine that you went to
25:15
Speaker 2: a restaurant and you're like, hey, I've got a reservation
25:18
Speaker 2: at six and they're like, sorry, we're overbooked. Go somewhere else.
25:22
Speaker 3: But no, they wouldn't say that. They would say, sorry,
25:24
Speaker 3: we're overbooked. We booked you next Tuesday at three pm.
25:27
Speaker 3: How's that sound for you?
25:28
Speaker 2: Yes, can you come back? I don't care. We'll hold
25:29
Speaker 2: your table for you. Then, well, how do I know
25:31
Speaker 2: you hold it? You already got rid of this reservation.
25:34
Speaker 2: So the idea that you just overbook a plane to
25:37
Speaker 2: me is crazy. I mean, imagine you go on a cruise.
25:40
Speaker 2: All right, where are we in Rouma seven to twenty?
25:43
Speaker 2: You walk in? Why is there another family in here? Oh? Sorry,
25:47
Speaker 2: we're overbooked? Well no, like, why is it okay on
25:51
Speaker 2: a plane? But it's not okay anywhere else? Is there
25:54
Speaker 2: anywhere else that over books hotels? No, I can't think
26:01
Speaker 2: of one off Han Texas at sixty one seven three
26:04
Speaker 2: six two thirteen eighty five. If you can think of
26:06
Speaker 2: another business that over books relative to capacity that they have,
26:11
Speaker 2: I'd be curious if anyone has any ideas. I'm sure
26:14
Speaker 2: there's one or two that are out there that are
26:16
Speaker 2: very obvious. But again six one seven three six two
26:19
Speaker 2: thirteen eighty five.
26:21
Speaker 4: If you've been dreaming about a getaway that feels far away,
26:24
Speaker 4: a bit easy to get to, it's time to think
26:26
Speaker 4: about the US Virgin Islands, America's Caribbean. This is This
26:30
Speaker 4: is a place where you can fall naturally in rhythm
26:32
Speaker 4: with the harpeiat of the islands, enjoy crystal clear water
26:35
Speaker 4: and powder soft beaches, world class dining, and unforgettable sunsets.
26:40
Speaker 4: And here's the best part. Travel from New England is easy.
26:43
Speaker 4: The US Virgin Islands are part of the United States,
26:46
Speaker 4: which means no passport is required and there's no money
26:49
Speaker 4: to exchange. Just pack your bags and go. Spend your
26:53
Speaker 4: days snorkeling, sailing, hiking, or simply relaxing by the water.
26:57
Speaker 4: In your evenings, enjoying local cuisine, music and warm island breezes.
27:02
Speaker 4: Explores Saint Thomas, Saint John, and Saint Croix, three distinct islands,
27:07
Speaker 4: each with its own vibe, its own flavor, in its
27:09
Speaker 4: own way of helping you unplug and reset start planning
27:14
Speaker 4: your Karebbean escape. Today, I visit USVII dot com discover
27:18
Speaker 4: why the US Virgin Islands are America's Caribbean paradise. For
27:22
Speaker 4: more information and to book your trip, head to visit
27:26
Speaker 4: USVII dot com. That's visit USVII dot com. Somebody in
27:32
Speaker 4: the text line says doctor's offices.
27:34
Speaker 2: Huh uh, I mean, yeah, I could see that in
27:38
Speaker 2: terms of like you're constantly, you know, kind of running
27:40
Speaker 2: behind schedule. You know, it's like you talk to any
27:44
Speaker 2: doctor about like how scheduled their day is, and it's
27:46
Speaker 2: just like kind of insane.
27:47
Speaker 3: Actually, yeah, yeah, it's a little bit different. But I
27:51
Speaker 3: do take your point there that they're judged on these
27:54
Speaker 3: metrics of how quickly they turn over patients and so
27:58
Speaker 3: they are oftentimes running late. Yeah, that's a fair one.
28:02
Speaker 2: I don't think any other industry like consistently over books
28:06
Speaker 2: in the same way.
28:08
Speaker 4: No, I can't many.
28:09
Speaker 2: Imagine you show up okay Land, you land on your
28:12
Speaker 2: overbooked plane and you go to the rental car company, Oh, sorry,
28:16
Speaker 2: we gave your car away.
28:18
Speaker 3: Oh. Actually, rental cars have absolutely done that to me
28:21
Speaker 3: have They absolutely rental cars. So what they might not overbook,
28:26
Speaker 3: but what they consistently do is show cars that they
28:30
Speaker 3: don't actually have available on their lots. And I have
28:33
Speaker 3: on more than one occasion booked a car showed up
28:36
Speaker 3: and they're just like, yes, sorry, we don't have that.
28:39
Speaker 4: I just had to get a rent So they do
28:41
Speaker 4: have a car for you.
28:42
Speaker 3: No, No, I have don't have any cars right, They're like,
28:45
Speaker 3: there is no car available for you at this at
28:48
Speaker 3: this place.
28:49
Speaker 2: Yeah.
28:49
Speaker 4: I just had to rent a car and I thought
28:51
Speaker 4: it was going to be able to get a Jetta
28:52
Speaker 4: and they're like, oh, we don't have that. Here's this
28:55
Speaker 4: clown car with the brand I won't name because it
28:58
Speaker 4: was just awful or RAB four. I was like, give
29:02
Speaker 4: you the RAB four and you're covering the fifteen dollars
29:05
Speaker 4: up charge for it because I'm not getting in that
29:07
Speaker 4: clown car.
29:08
Speaker 2: Nope, can I can I make a guess? Sure?
29:11
Speaker 3: Suzuki close Mitsubishi.
29:16
Speaker 4: Yeah.
29:18
Speaker 2: I was like, this thing's gonna blow away, it away?
29:21
Speaker 4: Yeah, yeah, it's gotta just float away into the New
29:25
Speaker 4: England wind. There goes Tucker and the Mitchibishi floating away the.
29:31
Speaker 2: Smallest car possible. Let's take a quick break here and uh,
29:37
Speaker 2: when we come back, we're gonna be joined by Paul
29:38
Speaker 2: Monica from Barons talking about the the Dow Jones Transportation Index.
29:44
Speaker 2: Right after this.
29:46
Speaker 1: The Financial Exchange is Life on Series XM's Business Radio
29:50
Speaker 1: Channel one thirty two week days from eleven to noon.
29:52
Speaker 1: Get the latest business and financial news from across the
29:55
Speaker 1: country and around the world, and keep up to date
29:58
Speaker 1: on how it might affect your That's the Financial Exchange
30:02
Speaker 1: weekdays from eleven to noon on Series XM's Business Radio
30:05
Speaker 1: Channel one thirty two. Face He's the Financial Exchange Radio Network.
30:10
Speaker 1: The Financial Exchange Show podcast drops every day on Apple, Spotify,
30:14
Speaker 1: and iHeartRadio. Hit that subscribe button and leave us a
30:17
Speaker 1: five star review. You're listening to the Financial Exchange Radio Network.
30:22
Speaker 3: Ladies and gentlemen, the weekend.
30:31
Speaker 2: As promised from now joined by Paul Lamonica from Barons,
30:37
Speaker 2: and we're talking about his latest piece that's titled Transports
30:40
Speaker 2: hit New High as a bullish signal for the market. Paul,
30:43
Speaker 2: how you doing today.
30:45
Speaker 1: Good.
30:45
Speaker 2: Thanks, how you guys doing doing well? So talk to
30:47
Speaker 2: us a little bit about the crux of this piece here.
30:51
Speaker 5: Yeah, transportation stocks. We're talking about railroads, airlines, shipping companies,
30:59
Speaker 5: you know, FedEx, you, yes, even Uber which is now
31:01
Speaker 5: part of the Dow Jones transportation average. There is this
31:07
Speaker 5: theory that you know, Charles Dow of Dow Jones fame
31:11
Speaker 5: of you know, created called the doubt theory that you know,
31:15
Speaker 5: if you were to see transportation stocks hitting highs at
31:20
Speaker 5: the same time as the broader Dow Jones industrial average,
31:24
Speaker 5: that that's a confirmation signal of.
31:27
Speaker 2: A bull market. Because if the transportation.
31:30
Speaker 5: Companies are doing well at the same time that the
31:33
Speaker 5: broader Dow industrials are, it potentially shows that the economy
31:38
Speaker 5: is you know, on solid footing, and that should be
31:41
Speaker 5: good news for corporate profits and consumer spending and the like.
31:46
Speaker 5: And that's exactly what we're seeing today. Notwithstanding, but yesterday
31:50
Speaker 5: the Dow Jones transports hitting a new record high, the
31:53
Speaker 5: overall down not that far from an all time high
31:56
Speaker 5: as well. So I think this tells a good story
32:00
Speaker 5: about the economy and could bode well for future market returns.
32:05
Speaker 2: When we look at this, how do we reconcile this
32:08
Speaker 2: with some of the concern that's been voiced in some
32:11
Speaker 2: of these earnings reports for transport stocks. Whether we talk
32:14
Speaker 2: about a couple of the airlines that have reported that
32:16
Speaker 2: have been a little bit more cautious. Uh, you know,
32:19
Speaker 2: you talk about FedEx in here. Uh, and uh, you know,
32:23
Speaker 2: obviously when we look at uh, you know, FedEx, they're
32:26
Speaker 2: down a couple percent today and have had you know,
32:29
Speaker 2: kind of an uneven the last couple of years. But
32:32
Speaker 2: now on the upswing, how do we reconcile you know,
32:35
Speaker 2: kind of what we're seeing here.
32:36
Speaker 5: Yeah, I think there still are legitimate concerns about where
32:42
Speaker 5: the economy is going. The FED meets next week is
32:45
Speaker 5: probably not going to cut interest rates again, even though
32:49
Speaker 5: they've done so for you know, a couple of meetings
32:52
Speaker 5: at the end of last year. Right now, a lot
32:56
Speaker 5: of people talking about that K shaped economy, and that
32:59
Speaker 5: problem has helped the airlines to some extent because you know,
33:05
Speaker 5: more wealthy consumers are probably still traveling, you know, and
33:10
Speaker 5: I think business travel has been holding up, you know,
33:13
Speaker 5: relatively well also, But you know, the Dow Jones transportation
33:17
Speaker 5: average is a very broad look at the transportation sector.
33:22
Speaker 5: It's not just the airlines. You've got the railroads in there,
33:26
Speaker 5: and there's a lot of drama going on right now
33:30
Speaker 5: with the merger potentially between Union Pacific and Norfolk Southern.
33:35
Speaker 5: CSX did have decent guidance when they reported, you know,
33:38
Speaker 5: last night at last check, I think the stock was higher.
33:41
Speaker 5: Definitely opened higher. Might have you know, pulled back a
33:45
Speaker 5: little bit with the broader market, but you know, there
33:47
Speaker 5: are some good signs, you know, even though you know
33:51
Speaker 5: FedEx and ups have some challenges as well.
33:55
Speaker 2: Paul, appreciate the time today. I hope you have a
33:58
Speaker 2: fantastic weekend and we'll catch up with you soon.
34:02
Speaker 5: Great, have a good one, guys.
34:03
Speaker 2: Thank you. That is Paul Amonica from Baron's talking about
34:06
Speaker 2: the Dow Jones Transportation Index. Mike, what do we got
34:10
Speaker 2: that we haven't covered yet today?
34:12
Speaker 3: I wanted to go back to the airlines really quickly,
34:13
Speaker 3: because to your point, any one year can be off
34:16
Speaker 3: about these. When you take a look at the last
34:18
Speaker 3: five years, Delta Southwest in Alaska by far stand out
34:22
Speaker 3: as the three best airlines according to this ranking, and
34:25
Speaker 3: they've consistently been towards the top the worst are also
34:31
Speaker 3: amazingly consistent. Spirit, Frontier, and jet Blue round out the
34:35
Speaker 3: absolute worst over the last five years, with Frontier and
34:39
Speaker 3: jet Blue in particularly shining for that last play spot.
34:45
Speaker 3: So I just found that to be interesting. And jet Blue,
34:48
Speaker 3: while it's shown improven for the last two years, has
34:50
Speaker 3: consistently been a bit of a dumpster fire out there,
34:54
Speaker 3: and Spirit as well. It'd be interesting to see how
34:58
Speaker 3: those two shape up given their scale issue that they've
35:00
Speaker 3: faced over the last few years.
35:01
Speaker 2: Yeah, it'll be it'll be kind of wild to see what,
35:06
Speaker 2: you know, the next decade of airline trends looks like.
35:09
Speaker 2: Because again, like you think about it, the two thousands
35:12
Speaker 2: were defined by the budget carriers coming in and eating
35:15
Speaker 2: everyone else's lunch. Yeah, and now basically since twenty twenty,
35:19
Speaker 2: I mean twenty ten, I thought was you know, kind
35:20
Speaker 2: of just you know, even Stephen like everyone was competing.
35:23
Speaker 2: But the last five years now, the legacy carriers, because
35:25
Speaker 2: of their size and also the spending profile of you know,
35:29
Speaker 2: high income owners targeting you know, those that premium seating,
35:33
Speaker 2: the legacy guys have been eating the discount guy's lunches,
35:37
Speaker 2: and it's it's just kind of again, Is this the
35:42
Speaker 2: way things are going to stay, or are all of
35:45
Speaker 2: these airlines that are expanding their premium seating right now
35:48
Speaker 2: are they maybe doing it into the teeth of something
35:50
Speaker 2: that's going to change over the next five or six years.
35:53
Speaker 2: It's kind of an interesting way to think about it
35:56
Speaker 2: in that context, I think. So that's what I got
35:59
Speaker 2: on it. Apple is going to be revamping Siri as
36:02
Speaker 2: a built in iPhone Mac chatbot to fend off open AI.
36:07
Speaker 2: So basically what's happening. Just to make sure I understand properly, Mike,
36:12
Speaker 2: Apple has agreed to a deal in which they are
36:16
Speaker 2: going to be using Gemini to power their new Siri
36:21
Speaker 2: and sounds like it and then their new theory they're
36:24
Speaker 2: going to try to make basically into a chatbot as
36:28
Speaker 2: opposed to you know, all voice activated in everything, and
36:33
Speaker 2: it's going to you can still do you know, the
36:36
Speaker 2: voice activation, but it sounds like they're going to have
36:38
Speaker 2: more prompts that are you know, in different apps that
36:42
Speaker 2: you can use to access it as well, similar to
36:45
Speaker 2: how a lot of people currently use different AI chatbots
36:50
Speaker 2: At the moment.
36:51
Speaker 3: Yeah, I guess I'm most interested that Apple does actually
36:55
Speaker 3: feel like they're falling far enough behind here that they
36:57
Speaker 3: needed to strike this deal. They've been pretty hands off
37:01
Speaker 3: with anything artificial intelligence related, and I think they must
37:06
Speaker 3: be seeing enough of a differential between what's serious capable
37:10
Speaker 3: of versus what some of these I know they're different tools,
37:13
Speaker 3: but you know these these AI power chatbots are able
37:16
Speaker 3: to do, and I guess, I guess make the decision
37:19
Speaker 3: that they needed to make a move on it.
37:22
Speaker 2: I'm still just trying to see the case for how
37:25
Speaker 2: AI chat makes average like tech companies any money in
37:29
Speaker 2: the retail space, like with the with in just like
37:32
Speaker 2: the personal consumer space. I understand the premise behind Hey,
37:37
Speaker 2: we can sell this for lots of money to businesses
37:39
Speaker 2: who want a productivity boost. I just I struggle to
37:45
Speaker 2: see how this is something that the average person really
37:49
Speaker 2: wants and needs on a daily basis to the point
37:51
Speaker 2: where someone can make money off of it for average use.
37:54
Speaker 3: I mean, the answer has always been advertising, but it
37:56
Speaker 3: just doesn't make a ton of sense to me there.
37:58
Speaker 2: It's an expensive way to deliver out advertising. Yeah, markets
38:02
Speaker 2: remain mixed at the moment. We're done for the day,
38:05
Speaker 2: done for the week. I'm awfully hungry, to be completely honest,
38:10
Speaker 2: and uh eagerly anticipating my sandwich. But I hope they
38:14
Speaker 2: stay safe, stay warm. Hope you all have a great weekend.
38:17
Speaker 2: We'll see you back on Monday.