"MAKING MONEY."
♪♪
CHARLES: STOCKS HIGHER ON SLEW
OF POSITIVE EARNINGS AND
CORPORATE NEWS.
BIG BANKS COMING BACK WITH A
BANG, JPMORGAN CHASE UP MORE
THAN 4%.
THE COMPANY POSTED RECORD FIRST
QUARTER RESULTS BENEFITING FROM
HIGHER INTEREST RATES.
STRONG TRADE FIGURES FROM CHINA
ALSO HELPING THE MARKET PUSH
ASIDE FEARS OF A GLOBAL SLOW
DOWN.
THIS BIG CORPORATE MOVES, RIGHT?
BLOCKBUSTER TAKEOVER,
STRONGER-THAN-EXPECTED EARNINGS,
STRONGER-THAN-EXPECTED ECONOMY,
POSITIVE TRADE TALKS.
EXCITING RUSH OF NEW OFFERINGS.
SHOULD THE BEARS GO INTO PER --
HIBERNATION.
ROB LUNA, LINDSEY PIEGZA, AUTHOR
OF THE COMMON SENSE BULL, DIDEDI
OF THE COMMON SENSE BULL, DIDEDE
GHABOUR.
>> I DO THINK SOME OF THE DATA
HAS BEEN A LITTLE MORE
OPTIMISTIC THAN EXPECTED.
THAT IS CONTINUING TO SUPPORT
THE NOTION THAT THE ECONOMY IS
NOT FALLING OFF A CLIFF AND THAT
THE GLOBAL ECONOMY MAY BE ABLE
TO STAVE OFF SOME OF THE MORE
DIRE ESTIMATES OF GLOBAL
RECESSION OR NEGATIVE OUTRIGHT
GROWTH.
SO I DO THINK THERE IS OPTIMISM
BEING BAKED IN HERE, THAT IS
HELPING TO BOOST CONFIDENCE,
BOOST INVESTOR SENTIMENT, SO
GIVE A LITTLE UP TICK TO THE
MARKET AT OF LATE.
CHARLES: EDDIE, ANOTHER THING
GIVEN UP TICK, EVERYONE WAS
WAITING FOR JPMORGAN EARNINGS
REPORTS.
WE KNOW THE FINANCIAL REALLY FOR
A WHILE NOW PERENNIAL
DISAPPOINTMENTS.
NOT TODAY.
IS IS THIS MAYBE A SHIFT WE'RE
SEEING?
BY THE WAY THEY'RE ACTUALLY
LENDING MONEY TO PEOPLE.
THAT IS A NOVEL IDEA FOR BANKS.
>> HOW ABOUT THAT?
I ACTUALLY CAME INTO THE YEAR I
THINK I SAID ON YOUR SHOW IN
JANUARY I WAS PRETTY OPTIMISTIC
ON THE BANKS THIS YEAR.
IT WAS A CONTRARIAN CALL.
THEY HAVE UNDERPERFORMED THE
MARKET.
I THINK IF BANKS TAKE OVER AS
NEW LEADERSHIP THAT WILL BE
VERY, VERY POSITIVE FOR THE
MARKETS.
I THINK THE BANKS WILL CONTINUE
TO BE STRONG.
SORT TERM THEY MAY HAVE SOME
CONCERNS WITH THE FLATTENING OF
THE YIELD CURVE AND THEY'RE
WELL-CAPITALIZED.
LOOK AT THE END OF THE DAY THIS
IS ONE OF THE MOST HATED BUT
MARKETS IN HISTORY.
PEOPLE UNDERESTIMATED THE
STRENGTH OF THIS ECONOMY.
I JUST DON'T UNDERSTAND WHAT
SOME OF THE BEARS HAVE BEEN
LOOKING AT.
CHARLES: ROB WHAT IS INTERESTING
ALSO, OBVIOUSLY THE STOCK OF THE
DAY WITHOUT A DOUBT IS DISNEY, A
HUGE MOVE FORWARD, TAKING OUT A
HIGH ESTABLISHED NOVEMBER 11,
2015.
WE SAW THIS STOCK ESSENTIALLY
TRADE SIDEWAYS FOR FOUR OR FIVE
YEARS.
NOW IT IS BREAKING OUT.
WE SEE VALUE PLACE.
COULD THIS BE A SHIFT IN
LEADERSHIP?
>> YEAH, I MEAN, CHARLES, DISNEY
IS A STOCK I THINK PEOPLE SOLD
FOR DEAD COUPLE YEARS AGO IN
FAVOR OF A COMPANY LIKE NETFLIX.
THEY HAVE BEEN MAKING HUGE
INVESTMENTS IN THIS COMPANY AND
I'M ACTUALLY SURPRISED THAT THE
STOCK HAS UNDERPERFORMED SO MUCH
BECAUSE BOB IGER AND THE REST OF
THE TEAM REALLY ARTICULATED WHAT
WOULD BE HAPPENING.
WHAT IS GOOD NEWS FOR DISNEY,
CHARLES, WILL BE BAD NEWS FOR
NETFLIX.
I THINK DISNEY WILL CONTINUE TO
LEAD HERE.
IF YOU LOOK AT THE VALUATIONS
WHAT NETFLIX IS TRADING.
WE DID SOME WORK, HEY, WHAT IF
WE PUT SAME MULTIPLE WITH DISNEY
LIKE NETFLIX THAT STOCK WOULD
TRADE 88.
THE STOCK IS AT $335 A SHARE.
IF YOU OWN AT NETFLIX, YOU NEED
TO LOOK AT THINGS.
DISNEY EXTREME LEADER AND THE
STOCK WILL CONTINUE TO MOVE
HIGHER.
>> DO YOU FIND IT INTERESTING,
ROB, THE VOTE IS OKAY, THIS
PRICE POINT HALF OF WHAT
WALL STREET WAS ANTICIPATING,
BOB IGER WILL STAY AROUND UNTIL
2021 AND THESE ARE AGGRESSIVE
NUMBERS BUT ULTIMATELY THEY ARE
PRICING DISNEY DIFFERENTLY
BECAUSE THEY WILL HAVE TROUBLE
MAYBE BEING PROFITABLE WITH THIS
AGGRESSIVE PUSH?
>> I THINK SO BUT THERE ARE ALSO
THINGS MUCH FASTER EXPANSION
INTO CHINA PEOPLE WEREN'T
EXPECTING, WHEN YOU LOOK, LOOK
AT WHAT NETFLIX IS DOING THIS
YEAR, CHARLES.
THEY'RE SPENDING $15 BILLION ON
ORIGINAL CONTENT.
MAKING 70 BILLION, DISNEY SPENT
ON FOX MAYBE NOT LOOK THAT BAD.
WHAT THEY WILL HIT THIS YEAR,
PUTTING ALL ORIGINAL FILMS OUT
THERE.
THEY HAVE FOX'S BUSINESS OUT
THERE.
LET'S NOT FORGET, ESPN PLUS,
THEY ALSO HAVE CONTROLLING
OWNERSHIP IN HULU RIGHT NOW.
I THINK THE FUTURE IS VERY
BRIGHT FOR DISNEY.
I THINK THEY WILL HAVE A GREAT
OFFERING.
I WOULD BE VERY BEARISH ON
NETFLIX RIGHT NOW.
I THINK YOU'RE SEEING THAT PLAY
OUT IN THE MARKET.
CHARLES: LINDSEY, WANT TO ASK
YOU ABOUT SPEAKING ABOUT THE
FUTURE, WALL STREET SETTLED ON
NOTION THAT THE FED WAS ON THE
SIDELINES, I, CAN WE HAVE IT
BOTH WAYS, BUT EARNINGS COME IN
THAN ANTICIPATED, GDP GROW
FASTER THAN THOUGHT IT WOULD AT
START OF THE YEAR AND FED REMAIN
ON THE SIDELINES?
>> WE CAN SEE BETTER THAN
EXPECTED PERFORMANCE OF THE
ECONOMY, DEPENDING HOW LOW OF
THE BAR OF EXPECTATIONS COMES
DOWN.
I THINK A LOT OF STREET
ECONOMISTS HAVE MAYBE MADE DOWN
THAT HAND, TALKING ABOUT A
RECESSION COMING INTO PLAY AS
SOON AS 2020 OR POSSIBLY EVEN BY
THE END OF 2019 WE'VE SEEN SOME
FORECASTS.
DEPENDING WHERE THE BAR OF
EXPECTATION COMES IN, THE U.S.
ECONOMY COULD OUTPERFORM.
THAT BEING SAID WE'RE LOOKING
FOR GROWTH IN THE U.S. TO REMAIN
IN POSITIVE TERRITORY AROUND
1 1/2, 1.8%.
STILL CONTINUING THE EXPANSION
BUT AS NOTICEABLY SLOWER PACE.
THIS IS IN LOCKSTEP WITH WHAT
THE CHAIRMAN WAS EXPECTING AS
WELL.
HE WAS VERY CLEAR ABOUT THAT IN
THE MOST RECENT PRESS CONFERENCE
IN MARCH BUT THAT DOESN'T MEAN
THAT EVEN IF WE DO SEE POSITIVE
GROWTH THAT THE FED NEEDS
FURTHER ACTION, FURTHER BACKUP
IN RATES.
CHARLES: RIGHT.
>> SO I DO THINK AT THIS POINT
THE FED WILL REMAIN ON THE
SIDELINE EVEN IF WE DO SEE
CONTINUED POSITIVE GROWTH OR
GROWTH EXCEEDS SOME OF THOSE