SPEAKER 04 :
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, thestreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 05 :
And welcome to the Monday, Monday, November the 4th. And what a week it will be. This is Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based only firm. And I’m here with Barry Kite, our chartered financial analyst. And I’m just going to say we have a cautious market here today. It’s like, you know, let’s just wait and see what happens on Tuesday. And let’s not forget on Thursday, Wednesday actually, when the Fed will have their decision. Right now the Dow is down 70 points despite the addition of NVIDIA. And I don’t know if it’s officially in there yet. But NVIDIA did go into the Dow on Friday. The Dow is down 71 points. The NASDAQ is down just 6 right now, 18,232. The S&P is actually up a little bit, up 5. I think maybe the oil stocks might be having a good day today. Russell 2000 is down, let’s call it flat. And oil is up $1.88 today to 71.37 as OPEC. decides to keep their cuts in place. Gold is basically flat, up a little, 2753. The 10-year is down eight basis points to 4.28. And Bitcoin is up $611 to 68,383. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And I’m here with Barry Kite, our Chartered Financial Analyst. Well, look, Barry, it’s going to be a very busy week. The market’s going to play it very cautiously here today, a day in front of the presidential election that we’ve been talking about now for three years and 364 days, I think. And we also have the Fed.
SPEAKER 06 :
Yeah, and the Fed’s actually, they’re waiting, too. They’re actually going to meet on Wednesday, and then the announcement doesn’t come on until Thursday. So they, too, like the market. Yeah, it was an odd calendar, kind of an odd calendar change. And I was looking at me, and you were talking about investors waiting. I’m like, well, the Fed’s waiting a day, too. So everybody’s waiting.
SPEAKER 05 :
If you feel like you’re being cautious, you have good company in Jerome Powell. Well, we finished up the market on an up note on Friday. The Dow was up 289. The NASDAQ was up 144 on Friday. And then came the stunning news after the market closed. Now, I’ve been talking about this. I said they need to kick Intel out and put NVIDIA in there for the chip sector representative. And that’s exactly what happened on Friday. I think they just got tired of looking at that chart of Intel, that sideways chart that’s been so ugly for so long. And they said, look, you know, NVIDIA, how much bigger is NVIDIA than Intel? Why are we leaving Intel in the Dow? And boom. That happened after the close on Friday. Now, I don’t know when it’s official. You’ll have to look into that, Barry. I haven’t had time this morning here. It happened so quickly. And then I think Jeff sent me a text that Sherwin-Williams is going into the Dow. He asked me, is that true?
SPEAKER 06 :
I said, I don’t know. Yeah, they’re actually getting rid of Dow Chemicals. So they’re replacing, which is funny, they’re replacing a Dow name, Dow Chemical, or whatever they’re referring. I don’t know if they’re Dow Chemical now, just Dow Inc., I think. Well, you’ve got to have a paint store. Yeah, so Sherman Williams will be replacing that.
SPEAKER 05 :
You’ve got to have a paint store stock in the Dow. When it’s one chemical for another, right? Yeah, I said, I don’t know. You’re going to have to ask Sherwin-Williams if it’s true. Anyways, so the markets were positive on Friday, but they closed well off of their high. You know, we had a crazy week last week. I would say there were more… The disappointments, the big ones that beat and did well, I mean, there was just only a few, Amazon, Booking.com, and there was one other one I’m trying to think of. But on the other side of the ledger, you had disappointing news. Earnings from Lilly, Apple. Let’s see, who else had some disappointing earnings last week? Oh, Microsoft had a bad day. Uber had a bad earnings report. Not bad, but, you know.
SPEAKER 06 :
It depends on how you interpreted it, right?
SPEAKER 05 :
You know, these guys are greedy. They want you to just knock the ball out of the park. Meta also. It’s like, you know, if… If Aaron Judge hits a home run and it only lands in the third row, it’s like, oh, it was an upper deck. It was not an upper deck home run. That’s basically how the market interprets some of this stuff from time to time. Boeing got their strike over with. Maybe you can start making some constructive progress there. I don’t think Boeing is going to get kicked out of the Dow anytime soon, but it would be nice to get it back on track. As far as the election goes tomorrow, well, you know, tomorrow is the day. And, you know, you weigh out in your mind there’s a lot of different possible outcomes. I think the differences between the two candidates couldn’t be any further apart from one another. It’s a decision that, you know, I mean, you’re not like, you know, these are so close it doesn’t really matter who we pick. I mean, these are two very far apart ideologies. And, you know, leadership, all the kind of stuff, experience. It’s a huge gap in between the two candidates. So you have a very stark contrast to choose between. And what we know by the end of the day, I think there’s a lot of question about that. You know, I was there when Bush v. Gore. That kept the market pretty much captive for quite a while until that was finally decided. So anyways, there’s just a lot that can happen tomorrow. How will either side react? Will there be a final decision tomorrow? I’m not sure. We shall see.
SPEAKER 06 :
I saw a pundit this morning said they’re thinking, you know, I think it was around 2.30 when Trump was announced the winner in 2016. So I think it was about 2.30 a.m. And I saw a market commentator said they think by 3.30 a.m., in Wednesday morning, right, that we should know. But, you know, there’s a good chance we won’t know for a while.
SPEAKER 05 :
I’m sure there’s a proposition bet out there on one of these gambling sites. When will the winner be declared? Yes, 12 days after the election, 22 days, 22 minutes after the polls close. I mean, I’m sure there’s all kinds of betting propositions in there if you’ve got an inkling towards one or another. And then, of course, I think it’s pretty unanimous that the Fed will cut interest rates by 25 basis points on Thursday, I guess, Thursday.
SPEAKER 06 :
Yeah, we’ve got a 99.8% chance that there is what I’m looking at as a 25 basis point cut on Thursday. Maybe I just won’t get out of bed. Markets pretty much priced it in. Yeah, markets pretty much priced it in 100%.
SPEAKER 05 :
Is there a sleeping pill that will wake me up on Friday morning in time to prepare for the show? You know, the other thing I would say, I’ve seen a lot about the, it is not normal at all for the Fed to cut interest rates by 50 basis points and see the kind of jump that we have seen in interest. interest rates after a big cut like that. And there’s a lot of actually yellow flags, even some red flags going up about the state of the bond market right now.
SPEAKER 06 :
And we call that a steepening curve. In other words, the lower end of the curve, which the Fed controls, went down. The opposite end of that curve, which is largely controlled by investors, has gone up.
SPEAKER 05 :
Yeah, the market determines rates, right? At the end of the day, it’s the stock market that determines rates. And what drives rates higher? Well, people selling off bonds. Okay, and then if that’s not enough… Okay, you’ve got a Fed decision, a presidential decision, a decision what to have for lunch today, and you’ve got earnings this week. 100 S&P 500 companies, Palantir, Qualcomm, Block, Datadog, Gilead Sciences, CVS, Devon Energy, Duke, Rivian. It goes on and on and on. We’ll kind of go through it day by day. But suffice it to say, there’s a lot to worry about here this week. This is probably one of the most active weeks in the market that I can remember with everything kind of colliding at the same time with election, earnings, Fed decision. And let’s not forget, we had a very weak jobs report on Friday. You also have to worry a little bit about the economy. I was worried. that the earnings situation deteriorated during the last week, and I answered that question, whether it did or not, in my newsletter on Friday. Don’t let anybody know now. That took me a long time to come up with that. If you want to read last week’s newsletter, I think you’d be kind of surprised at GunnarssonCapital.com. GunnarssonCapital.com. Okay, when we come back, the earnings calendar for the week. And welcome back here to the second quarter of today’s Best Stocks Now show. The market has improved a little bit since the open. The S&P is now up seven points. The NASDAQ is now up 20. And the Dow is down 105. The market, I don’t think there’s any question, the market is expecting a Trump win. Whether you like Trump, whether you like Harris. the market has pretty much built in for the last three weeks a Trump victory, which obviously a Harris victory might upset the markets on Wednesday and Thursday. And why do I say that? Well, you know, when you look at all the various sectors of the market, the oil sector, The bond market, the Bitcoin, Trump’s own stocks, it would just seem. And I heard Griffin, Ken Griffin of Citadel over the weekend say, and he does not like Trump at all, and he said that the market has built in a Trump. So, okay, I’m just letting you know.
SPEAKER 06 :
And as a high-frequency trader, he has his finger on the pulse of the market.
SPEAKER 05 :
He sees every trade that takes place. And I saw some other people pretty well connected in the markets that say the same thing. I haven’t heard anybody say, that the market has built in a Harris victory.
SPEAKER 06 :
So that could be… Yeah, the only thing I’ve seen is different degrees of a Trump victory, really, is all you’ve seen in the market. Yeah, and whether or not it gets decided right away. The chances of victory have reduced.
SPEAKER 05 :
And I would say, okay, so let’s look at the risk this week. If the Fed came in on Thursday with no cut at all, the market wouldn’t be happy. That could take some… That could shave some hair off the top of the market there. And if Harris were to win tomorrow, I’m just saying that’s not what the market is expecting. So those are two things that could disrupt. And the third disruptor, obviously, the earnings. Now, I did bring earnings up to date on Friday and Saturday. I didn’t get the newsletter out until Sunday. Because I really had to focus in on that and really check those numbers because we now have 70% of the S&P 500 in. In other words, there’s not going to be much change. We pretty much are where we are at and I don’t see a whole lot of improvement one way or another. up or down with those earnings expectations for the rest of this year, for all of next year, and for 2026. There’s quite a good number out there right now in 2026. And I went through, you know, it’s pretty much average. 75% of the companies have beat their earnings. 60% have beat their sales. And there were some changes this week, which are reflected in the newsletter. Man, we had a lot of requests for the newsletter over the weekend. And if you want to see my latest macro outlook… You can get two free weeks of the newsletter at GundersonCapital.com. It’s pretty hard to argue with the guy that’s been right for the last, what, 15, I don’t know how many years. I started doing that macro outlook. Back about 2009, I think we’ve been right about the macro outlook of the market every single year since then. And I am not a perma-bull by any stretch of the imagination. I am a guy that follows earnings and earnings estimates. I’m a numbers guy. And that is how I make my calls on the market. And I look for any subtle changes anywhere. that indicate either a change to the upside or a change to the downside going forward. There’s some big stories here today. I think there’s a big nuclear story here today, which is a little bit bearish on that whole private companies buying electricity from the utilities, which you and I question. How does that set with the people that are just… Everyday people going to work every day and coming home from work that need the energy themselves. Are we going to play favorites and let these big companies to run their data centers? Well, there’s a decision that came down today that throws that all in question. We’ll get to that in a bit. Palantir will report tonight. That’s a big one. They are now in the S&P 500, Cleveland Cliffs, AIG, big insurance company, Fang, which is a big energy company. Marriott has already reported, and they warned about the softness in China. If there’s anything consistent in the market, that’s been consistent, a soft Chinese economy. Tomorrow, Lumen Technologies, CRISPR, DuPont. Devon Energy, Archer Daniels Midland, Cummins Engines, Yum Brands, Marathon Petroleum. Wednesday, CVS, which has definitely been on its back feet here recently. Qualcomm Roll Report on Wednesday, Gilead Sciences, Iron Mountain. Teva Pharmaceutical, Beyond Meat, Marathon Oil, Novo Nordisk. That’ll be interesting. They’ve been struggling lately. Arm Holdings, Lyft, the competitor to Uber. On Thursday, Lucid. Well, let’s see how lucid those numbers are. That’s a company that’s kind of really on their back foot right now. Fisker’s gone. And the other one, Rivian’s been struggling. And Lucid’s been struggling big time. Also reporting the darling of Seeking Alpha, Realty Income. You know, those Seeking Alpha, there will be 20… 200 articles the next day after a reality income report. Square’s going to report on Thursday. Airbnb, the Trade Desk, DraftKings, CloudFlare, Blink Charging, Warner Brothers. So suffice it to say. There’s a big week coming up. Oh, and Paramount. I saw an interesting story on Paramount today. Paramount owns CBS. And you have a big conservative who I’ve seen him on TV before. He’s got a ponytail. He owns Paul Mitchell. And he owns Patron Tequila. Pretty well-known guy. He’s wanting to buy CBS. And his argument is all of the major networks are… You know, Harris supporters, let’s just say, and he would like to make CBS a middle-of-the-road news, report the news. That would be nice to just have the news once again. So, anyways, that’s kind of an interesting story. Now, here’s the story that catches my eye this morning, big one, as if there’s not enough. Talon Energy shares plunge as FERC, which is the Federal Energy Regulatory Commission, rejects the nuclear power deal with Amazon. Okay, now, there’s been other deals. Apple has the deal with Constellation, and let’s see, Amazon had a deal, Apple has a deal, Google made a deal.
SPEAKER 06 :
Microsoft had one. I think Microsoft, was there a Constellation?
SPEAKER 05 :
Yeah, there’s Constellation.
SPEAKER 06 :
Whoever had Three Mile Island, yeah, that’s what I’m thinking.
SPEAKER 05 :
Okay, so… The amended interconnection deal would have supplied more power from Talon to the Amazon data center at the nuclear power plant in Pennsylvania. Members of FERC said the deal could raise power bills for the public and affect the grid’s reliability, which, you know, that’s a question we had right from the start with these big tech companies going directly to the to the utility and making a deal which kind of gives them preference, in my mind, over just the little guy. More on this when we come back. And Warren Buffett, wow, his cash pile is swelling. Why? This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GuntersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 01 :
Call out the instigator Because there’s something in the air
SPEAKER 05 :
And welcome back here to the second quarter, or the second half of today’s Best Stocks Now show. What is behind Warren Buffett’s swelling cash pile? Well, he reported his company, Berkshire Hathaway, reported earnings over the weekend. They cut their Apple stake again, which I’ve been calling a soggy company. It had entered that soggy territory quite some time ago. And the only way I see for Apple to get out of that, we’ve talked about this ad nauseum, is they need a new product. They need something exciting. They’ve got to have that in there. That’s all important and new, something new to get out of the single-digit growth funk that they’re in. I think the biggest hurdle they’ve had thrown at them is Huawei taking away major market share in China from their own iPhone sales. So his cash pile, one of the reasons his cash pile is growing is is the number of stocks that he can buy is shrinking with how big his overall size of his fund. His top holdings are American Express, Chevron, Chubb, Citigroup, Coca-Cola, DaVita, Kraft Heinz, Moody’s, Occidental Petroleum, and SiriusXM. Does that sound like a powerful lineup? Well, he’s a very patient value investor that has done very, very well over the years. That wouldn’t be a portfolio that I would have, but look. I mean, he goes at it. He comes at it from the intrinsic value point of view.
SPEAKER 06 :
He also has a lot of private companies that he owns. Yeah, that’s probably where I think… Investments in concrete companies.
SPEAKER 05 :
Yeah, Dairy Queen, Seas Chocolates. I think that’s where he gets his performance from.
SPEAKER 06 :
Yeah, and you’ve got to remember, too, he’s got so much cash, it’s hard to… It’s hard to find a deal that’s big enough to move the needle, especially on the private side. He ends up, by definition, following the old Ben Graham, where he wants to see a certain value right there, which leads him to some of those names that you just rattled off. I think the… Yeah, I think the interesting part of that whole story this weekend was the fact that they didn’t buy. I think it’s the first time they haven’t bought stock, done any stock buybacks at all since, I want to say it’s 2012. Don’t quote me on that number. And basically the reason was, he basically is saying that in his calculations, the stock is overvalued.
SPEAKER 05 :
Yeah, I mean, you could come away with the… opinion or the analysis that uh he’s not real interested in his own he’s bearish on his own stock i think look everything has a course as a uh you know if you look i look at it kind of like fidelity magellan when peter lynch was there in the heyday by the time peter lynch left I mean, he could have stuck around. That style of investing lasted a long time. But the people that took over for Peter Lynch and nowadays, Magellan is an S&P 500 performer. You’re going to vary very little from the market because it’s hard to get those stocks because it became so big and unwieldy. And I think Buffett has the same problem. Has it run its course? And, you know, I mean, look, he’s not long for this world at his age. And the new guys will take over, and they know the Buffett method. But they have a very big, large, unwieldy fund that they can’t go in and buy a Palantir. And there’s just certain stocks that will never meet their criteria. The NVIDIAs of the world. He finally dabbled into the tech space and he’s kind of backed out. He didn’t stay with Apple for very long. Okay, speaking of NVIDIA, which enters the DAO, which is pretty shocking that the DAO was actually proactive for a change. Usually, well, look how long they’ve kept sleepy Intel in the DAO.
SPEAKER 06 :
And that takes place on the 8th, by the way, November 8th.
SPEAKER 05 :
Okay, that’s what I thought. It’s not being influenced. NVIDIA’s, the demand for the HPM4 chips are so large that NVIDIA’s asking one of their suppliers, hey, we want you to move everything up six months.
SPEAKER 1 :
Okay, so.
SPEAKER 05 :
Imagine sitting there in the morning meeting over in Korea at SK Hynix and says, look, you guys, all this stuff we’ve got planned for November of next year. NVIDIA wants it by May. They’re choking on their donuts. So anyways, that just shows you how incredible this demand is for NVIDIA’s chips. Marriott full-year outlook lowered again on sluggish Chinese economy. And, you know, the question did come up recently with the Chinese stocks. They had a week or two. of some spectacular performance. And Tepper, David Tepper, owner of the North Carolina Panthers, there’s another job while I’m talking. Look up what their record is. I don’t know. I haven’t looked lately. What’s the record of the Panthers? Oh, they just got their second win this weekend. Oh, well, okay, second win. All right, so we should listen to Tepper on management. And he just said, buy everything China. And I disagreed wholeheartedly with him. And it looks like as of now, that was a sucker bet going into those Chinese stocks. And their economy continues to be very, very soft. Now, I’m in California.
SPEAKER 06 :
That bazooka hasn’t fired off yet, I guess, right?
SPEAKER 05 :
No, no. I’m headed home later this afternoon after I’m done trading and everything. I can’t believe the electricity. It’s double what we pay on the other coast. And the gas here is $4.50 a gallon, which is double what we pay on the other coast. And I finally figured out my thermostat in my room here. If you crack a window, the thermostat goes off. I finally figured it out on day four at this hotel. I thought, why does the thermostat not work here? So that’s just California. They’re very, very hell-bent on kind of controlling every little… You can’t crack a window. Without the thermostat turning off. You know, in the South, we run the full blast air conditioning windows open or not, right? 24-7. I’m just saying. Viking shares jump after positive early data on oral obesity pill. Okay, is that going to be the game changer? Novo Nordisk is going to report, well actually Viking, which I’ve poo-pooed, I don’t think it’s a big deal. Viking is actually down 7.9%. It was up 22% this morning at one point in the pre-market. They’re getting good results on the obesity pill. In the meantime, Lilly had disappointing results. I think it’s just, I wouldn’t be pulling the plug on Lilly yet. Noble, on the other hand, I don’t know what’s going on there. That’s a very weak chart on the Novo Nordisk, and I’ll be looking at that very, very closely this week.
SPEAKER 06 :
Okay, Constellation. Well, the interesting thing is on Viking, I hope this particular study or piece of news is on more than six people. Remember the last time I think it came out, I don’t know, a couple weeks later, that, oh, there are good results involved. Literally, I think it was six patients. I’m like, we’re going to need more than six patients.
SPEAKER 05 :
Which is, you know, the other option is a shot, self-given, usually I think in your stomach area, you know, once a week. So I just don’t think that the pill is the game changer. Maybe it is. I don’t know. We’ll see. But, you know, from everything I’ve heard, it’s very difficult. I need to talk to my guy in the pharmaceutical industry about it, but I heard him say it’s very difficult to do what they’re doing in pill form. Constellation Energy is the second knock on the nuke industry today. They reported earnings, which I thought were pretty good. Now, Constellation is the one that made the deal with Apple. No, Microsoft. to provide Microsoft with energy for the next 20 years. Microsoft does not want to get cut short.
SPEAKER 06 :
And the interesting piece about that is they’re turning back on, right, basically adding power to the grid versus a lot of these situations, especially think about some of the power issues that Texas had a couple years ago. If you’ve got these big data centers or big companies competing with your normal customer in what’s historically been a highly regulated industry, then you’re essentially going to have, unless you increase the supply of power, which is not easy to do, then you’re going to create higher prices.
SPEAKER 05 :
Yes, and we have taken a lot of energy offline. Where I’m sitting here in California, just south of me, the Carlsbad power plant is gone. It’s gone. And just north of me, the San Onofre nuclear power plant has been totally decommissioned. And now California, you know, is hurting. That’s why their energy prices are double what they are in the rest of the country. Okay, when we come back, more earnings, earnings, earnings, and more earnings.
SPEAKER 02 :
You’ve got to go where you want to go and do what you want to do with it.
SPEAKER 05 :
And welcome back here to the final segment of today’s Best Docs Now show. You know, I’m pretty active now that X, formerly Twitter, has settled down and everything seems to be working right. And I kind of took a break from it just as it went through the transition and all. But, no, I’m on there every day. But I send out messages to the general public, observations. If I take action or if I see something really under the radar, obviously that only goes out to my subscribers and clients. But I make a lot of general observations on X, and it’s real easy to follow me on X on Twitter. Just go at Bill Gunderson. Go to X.com. And look up at Bill Gunderson and follow me. You can look at the end of the day at all the tweets or messages that I sent out. And I have my followers continue to build. I think I have something to say that’s worthwhile. And obviously the people agree out there. I have a pretty good building that following back up. Pretty quickly. So if you are on X, make sure you follow Bill Gunderson. Okay, now the market has improved. The NASDAQ is up 33 points. NVIDIA is starting to improve a little bit here, which doesn’t surprise me after getting added to the Dow. Okay, Constellation Energy misses earnings, and this is the one that signed the deal. I don’t think it was that bad of a report. The stock is down, however, 9.8%, which brings me to another subject. You know, earnings season is the roll of the dice, Barry. I mean, we don’t know. Every company that reports, some of them you go, ah, dang it. Some of them you go, oh, wow, you just don’t know.
SPEAKER 06 :
Not only that, you don’t know how the market’s going to react to a number where, you know, I mean, I looked at the Microsoft number, and I’m thinking, no, not a bad number.
SPEAKER 05 :
No.
SPEAKER 06 :
And, of course, market-wise, they’re like, you know. Market disagreed. Right.
SPEAKER 05 :
And I think that over time it smooths out. But these big gyrations, I mean, like Constellation shot up big time about two months ago when they announced the Apple deal, or Microsoft deal. It went clear up to 288. And now today it’s at 232. So it’s off about 50 points, 15% down from its all-time high there. You just have to wait. Let the numbers settle. I mean, I have a few on the cusp that I didn’t like their earnings last week. And we’re going to see where their targets come in. We’re going to see how the charts look this week. Microsoft would be a good example of that. I did cut half of my Microsoft earnings. Not too long ago, which I’m glad I did because it’s trickled down since then. Am I going to keep that other half in a portfolio that only allows 20 or, well, only has 20 stocks at the current time? Or am I going to find something a little bit more vibrant and lively? Is Microsoft finally approaching and moving into a soggy territory like Apple did about a year and a half, two years ago? Could be. We’ll see. We’ll take a look. And obviously if I find something better, that one could be on the cusp. And NVO is another one that’s on the cusp. Hey, you want to stay on my team, you better produce. Or I’m sending you back to the Dodgers used to have a team in Albuquerque. where they would send the guys, okay, you’re going back to Albuquerque. The Dodgers or the Padres have, let’s see, El Paso. I’m pretty sure it’s El Paso. The Chihuahuas. Okay. It’s all they do. If a guy’s not producing, the manager holds up a Chihuahua jersey and flashes it. Kid, you know, I got a one-way ticket to Chihuahua. That’s the way I do it, too. I’m not going to stick around. You know, this is an active portfolio. Not overly active, but always looking to upgrade and to kick one out, pick one up, just like the Dow did on Friday. They kicked out Intel. They waited a long time. I don’t think they’re as proactive. I don’t think they’re as proactive as we are. Sherwin-Williams is kind of a – I guess they’re looking for a chemical end of the day.
SPEAKER 06 :
Yeah, because they got rid of Dow Chemical. I guess their name now is really Dow Inc. I think they took the chemical piece out of it. But, yeah, I mean – It’s a similar name, right, in terms of they do – we think of Sherwin-Williams as paint on our wall, but they do a lot of coatings and other compounds. So it’s kind of a like-for-like, I guess, there as well, similar to Intel and NVIDIA. And most of it’s mostly symbolic. There’s not a – certainly the stock’s not going to get as much of a pop as it would if it’s added to the S&P 500 for the first time, and that’s because – The S&P is actually a traded index. There’s not a ton of Dow. You don’t have a big SPY version of the Dow that’s heavily traded. But it’s a very, very symbolic move. And I think my first message to you was, you’ve been calling for that for a long time.
SPEAKER 05 :
Well, and you know, the Dow was the one they quote on the news all the time. The Dow was up 27%. points today.
SPEAKER 06 :
Yeah. And it’s the oldest index. That’s the biggest reason you go back in history, right? It’s really the first index in terms of on the corner of not even probably a building in Wall Street. It was a corner on Wall Street, right? And that’s kind of how it got its… They’ve got its heyday.
SPEAKER 05 :
And they’ve got to be looking at the severe underperformance of the Dow versus the NASDAQ over the last decade or two and saying, you know, we’ve got to pep things up and stay a little bit more current here. My other change, I would kick Disney out of the Dow. It represents the leisure slash media. I would kick it out and replace it with Netflix. I don’t think that will happen. I called for Amazon being put in the Dow for a long time. And there was something about they had too many shares or they had to split the stock. Maybe that’s Netflix’s issue, right?
SPEAKER 06 :
Yeah, the price. Yeah. With the construction of the index, we don’t have enough time to get into it now, but the larger the stock, the bigger the price, the bigger effect it has on that particular index. So you need a bunch of stocks that are closely priced in terms of the actual price of the shares versus the underlying value of the company.
SPEAKER 05 :
So anyways, that’s a pretty big shakeup there for those sleepy guys over at the Dow. Now, okay, speaking of sleepy, you know, Wall Street in general is very sleepy. And, you know, we see stocks, people picking up coverage on them when we’re pretty much done with them. They run their course. So anyways, that’s what the newsletter is all about every week. Best stocks now. I mean, I say it. I mean it. I do what I can do to try to identify those best stocks now. And they’re not Procter & Gamble and Kimberly Clark and Mobile, etc. They’re ones that are more vibrant and lively today. Get two free weeks of the newsletter at GuntersonCapital.com. Put our research department to work for you. Give us a call. Set up an appointment. 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 03 :
We’ll be right back. We’ll be right back.
