americans. tune in on monday will watches closely "mornings with maria" 6 - 9:00 a.m. eastern weekdays on fox business. i will see you on sunday morning on the fox news channel 10:00 a.m. eastern lifers underwent and features on the exclusive interviews this weekend with the new fbi director casper tell and deputy director dan bongino former house intelligence determine devin nunes will talk about a sunday live on fox news. that will do it on fox business. have a great rest of your weekend. thank you for joining us and i'll see you next time. >> welcome to "barron's roundtable" where we get behind the headlines of her for you for the weekend. i am jack ordered. wheel prices are down but energy investing is not, barron's convened a roundtable to figure out where the pros are

prospecting. we begin with expert and on three things investors ought to think about right now. on the "barron's roundtable" ben levisohn megan leonhardt and andrew bary. investors like volatility windows in the right direction. >> we might have that we were up five-point to percent s&p 500 which is the beginning but only the biggest april 11 regional came down to a couple of things, the agreement with china in the pullback on the massive tariffs that we had but also trump went to saudi arabia and talked of a.i. inmate deals and the a.i. tree going. by the end of the week was a fantastic week course. jack: injured you like what you saw. >> trump 1.0 the tear had taken a backseat supply-side approach and i think the market like you clearly the market design when a bill that her fall back to globalization dare i say. bond yields moved up meet investors seek better group that

had completion. the court could be something the most common this the higher bond yields were a reflection of the second, the budget working his way through congress. because of you demanding more from more yield bonds 4.7 on the tenure which becomes a big problem. >> i think bonds are starting some of the problems 30 year treasury with 5% yield this past week, that's upper and with the range. if you're interested in bonds by etf like tlc 20 year treasury given the republicans voted that the deficit is too large so will also see what happened. next week we'll have economic reports that will have retailers reporting earnings and not give us an indication on the. >> wheel walmart saying basically to raise prices because of the tariffs that are

going through and working hear from target, home depot, lowes and others with the doing of the pricing front was the chilliness with what consumers are doing right now. the consumers run the economy consumer shopping we doing great. if they're not that we have problems that's very important to watch. jack: walmart statement by the ceo designing rate cuts off the table? >> at least for now. it's a situation we had a lot of interesting inflation data this week you the consumer price index acumen into pretty% year-over-year in april that is tantalizingly close to the 2% goal. of course we at wholesale prices come in this week as well, those were actually a lot lower than expected. both good news, the big problem no one can get complacent at this point, we have the tariffs coming in and has been pointed out, we had a lot of retailers saying we will have price increases. >> to be the fed should be coming sooner rather than later with trump on this one,

inflation is close to 2% the fed is keeping short recap for the quarter were four and a half short rates to be a percentage lower than where they are right now. >> i disagree i think the fed very responsible, central banker in wait-and-see mode tariffs and the magnitude we really have not seen this in our lifetime in my lifetime certainly, i do think it's one of the situations we have to wean see what we will expect for inflation. "the bottom line" if retailers are telling us to get a raise prices, consumers are going to file the when you shared an economic report that we can tell where tariffs are going to send inflation rate is trying to judge commuter traffic at 4:00 a.m. we have to wait a few hours or a few months. >> it's been an awful six months for united healthcare. of course the ceo of the health insurance arm was murdered back in december, the ceo of the entire company has stepped down

in the wall street journal reports that they may be under investigation, criminal investigation. >> is a disaster stock, the worst stock in the dow jones industrial down 40%. the biggest issue is not a buying opportunity where a value trap. the bull say this company is the best managed company in the industry with growth prospects. specifically low single-digit or low double-digit double earnings basically the stock is reading potentially 11 or 12 times and the earnings which is historically low, use all insider buying this past week which is favorable, the bear cases with bad news coming out, the investigation could be problematic. so some investors are taking a wait-and-see brothers that are thinking at this evaluation it's worth a look. >> the barricades, the bouquets. >> is a working genmark a lot. the insider fireside people inside the company are more

optimistic than wall street. it also hurt the dow and cut two to three present points of the doubt return this year. >> even looking only at this company but really the entire healthcare complex. we talked about how biotech stocks have gone nowhere, what is your view is opportunities. >> they are interesting opportunities with the drug sector about pfizer, merck, bristol-myers, novo all have been hit. yet 14 and 5% yield and in many cases nondrug stocks i would be concerned with trump would do with drug pricing and patent issues and other things. some of that is discounted in the stock. jack: is peak martin market uncertainty behind us, one wall street strategist says yes but tariffs still looming what's keeping them confident in dodge recession. bank of america cio chris heisey joined me next. ♪

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reacting that will set tariffs rates for the trading partners within the next few weeks does that mean the u.s. will avoid recession and will president trump get his wish for rate cuts, maryland bank of america private bank cio chris heisey. great to see you again. >> you as well. jack: i would love to start with the news late friday moody's announcing it was downgrading the u.s. debt. how significant is that? >> the significance adds another small uncertainty in the mix it was pretty much foretold that that was coming down the pike the debt and the deficit at this point has not been addressed as long as there is a framework going forward in their signs of

the deficit will be coming on narrowly in the chip away at the national debt over time that uncertainty should start to dissipate. >> let something make progress on the. meanwhile this adds uncertainty, you say we have passed peak uncertainty and you still worried about tariffs you think will dodge recession, what are you keeping your eye on. the global economics team continues to believe that we don a recession most notably because it continues to be resilient and why are they resilient, the job marketing continues and all the data that we look at still suggest the stability on the front, corporate cap ex has been delayed but has been canceled, that's the key as well. the delay ultimately comes. if we see an extension of the tax cut and jobs act as well as additional tailwind to that lower oil prices are balancing

outcome of the tariff effect. if you look through the looking glass, markets are discounting much better frontier later this year into 2026 with all the uncertainty will keep the april 8 and the volatility gauges, you did not see it widened out much in the credit side of things and words credit spreads, those of the best gauges to test whether or not you're going into recession in the next six, nine, 12 months. >> there's a debate as to whether the federal reserve to cut rates you say they don't think they will equally important, do you think they should. >> it's really more important to gauge what they're actually going to do versus what we think they should do. in the end the window is simply not open according to them to cut rates. if you look at the interest rate differential between the european rates and ours it would appear they would already be cutting.

with the potential for concerns over tariffs and knee-jerk price hikes from that coming down soon and no material weakness in the jobs market does not appear that the window is open for the two cut literally for the rest of the year. >> let's talk about the investment playbook, what are your top sectors right now is utilities, is that an a.i. play? >> is really power demand for the utility sector itself in the buildout of data centers et cetera. it's an infrastructure angle as well and we think that is a small sector and very little ownership across asset management community. the little bit of capital flow but the theme is there and it's a low tail. we don't see the big callous. it's not defensive sector so-called play for us. it's more of a buildout. jack: one more are you talking about your own books and you like financials? >> financials on the standpoint of the yield curve over the course of the next 12 - 8 months

and the potential for a little relief fund on regulation and a large perspective of where the dollar is going and where potential for increased lending and a resale merger and acquisition activity. all of that leads itself to a better road ahead. jack: animal spirits returning. thank you very much. always good to talk to you. good luck on the golf course this weekend. >> thank you. jack: thank you. despite the will prices, there are investment opportunities in energy. we will tell you where you should be looking now. ♪

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jack: oil prices falling sharply this year. good news for prices at the pump challenging for investors in the energy sector they drilled deep into the oil patch of the best investment opportunities at this cover story. andrew, why is it that will prices are falling. >> oil prices are down 10%, u.s. crude around $62 a barrel, it's a combination of economic concerns plus opec you for trying to regain market shares, you see higher production there. at the margin is basically too much oil. jack: supply and demand. >> is really interesting, these prices have been very stable over the years right now my colleagues at opec are sitting there but it's the dow jones

energy service, they're sitting there saying it's about 319 and even though we start to see prices trend up around memorial day were kind of seeing a little bit more stable this year so arguably they should not pass about 325 on a national average. this is good this is good for consumer sentiment we had a terrible dismal report yet again today for consumer sentiment. there is an inverse correlation with consumer sentiment is down and gas prices are up and vice versa. lower gas prices, happier consumers. jack: the only price that is 5 feet tall on the side of the road is gas. >> is good for the inflation outlook. >> exactly. it's interesting inflation outlook has been driven up. gas prices actually natural gas and electricity. those are big pieces of this puzzle. >> there very big frustrating piece of the puzzle. i look at my bill from the utility companies they have been going up.

it is annoying, what is pushing of natural gas prices. >> natural gas is up 20 to 30% the last year, around three and half dollars per million btus, it's been a combination of two factors one is growth and liquefied natural gas which comes with natural gas and also that's a big factor in the demand for electric power, natural gas is the biggest source of electric power in this country and as you see growth in a.i. and construction data centers, they need power, natural gas is the best source for that. jack: it continues to amaze me that the u.s. is the world's largest producer of oil well ahead of saudi arabia. but there is concern that is because of fracking, shale fracking and theirs can certainly teach shale. >> oil production has gone from 8 million barrels a day 15 years ago to 13 million barrels a day now, that is largely driven by fracking and much of what's happening in the premium base and then taxes but what you saw

that got attention to the markets was a letter from diamondback energy and major producer hunting back in the premium and the lower oil prices could me lower per vm and geologically we may have peaked out on shale production in the u.s. which could be bullish for oil prices and longer-term. jack: diamondback was whether the pics. >> there are a couple that they like, diamondback said the low cost producer and the premium, the biggest player in right now has 40 billion-dollar market cap and that's way too low for the value of the assets they think of oil goes up to $80 from 62 now it goes to 190 trading closer to 140. one others like to expand energy which is a natural gas. it has a 25 billion-dollar market cap is one of the biggest players and natural gas a trade that for time cash flow. they think it's too chiba has 2e

natural gas prices going, they think natural gas prices as other upside to them. jack: what about the big guys with the big dividends. >> the major has been very popular. our panel is a recommendation of shale which is the largest of the european super majors, the story there

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jack: i'm really glad we did not put money on this, you would have one you told me something far harder than tom cruise and the mission impossible movie ended in shoes, shoes are in i had a big deal couple weeks ago where schedulers got bought by private equity. this week we had an announcement that dick's sporting goods with 5-foot locker spanned into a market share in the business. i don't know much about shoes i have black boots and a pair of black sneakers but i do have kids and i look at my daughter who were daxs and crocs. there are a lot of interesting issues out there that people are buying different than what i

wear, this week we companies like on holdings which make shoes that people seem to love and birkenstock a good earnings and those are more horrifying to keep making them, those are doing great so were just seeing all the shoes stocks doing fantastic. >> you did not mention privately held speakers people are actually buying those, the interesting thing is the legacy shoemakers are not doing so well. >> the china u.s. trade agreement we had a big pop and all shoemakers like he had a big move and under armour had a big move for these companies with the turnaround under armour has been a turnaround for a very long time and you're better off sticking with upstarts that you are the legacy as a work other issues. jack: let's go to actionable ideas, making what are you looking. >> i feel like netflix may have broken my heart when they announced that richardson will not be back until next year but

it is the market has a safe haven at that point and this is my my colleagues actually picked it this week forbearance topic. it is interesting netflix just past the 500 million market cap and that is an interesting one does not feel like it's a good time but it actually is. >> and hasn't changed the same 15 years. andrew. >> the new york knicks the toast of the town make a strong run the defending boston celtics in the playoffs. the owner of the new york rangers' msg sports, it is cheap sports with sports investing is really hot stock is around 200 value $5 billion to the half combined estimate of the two teams. the reason the whole family controls it and they have been reluctant to sell. buying these two teams at a 50% discount right now. jack: i hope are still talking

about the next next week. good with your nuggets. as always good luck to read more checkout parents.com don't forget to follow us on x at barron's online for the latest update. that is all for us will see you on "barron's roundtable". -(theme music playing) -♪ bad boys -♪ whatcha want, whatcha want ♪ -♪ whatcha gonna do -hey! hey! whoa! -♪ when sheriff john brown come for you? ♪ -officer: you better stop... -♪ bad boys, bad boys -♪ whatcha gonna do -♪ whatcha gonna do when they come for you? ♪ -hands behind your back! -♪ bad boys, bad boys ♪ whatcha gonna do ♪ whatcha gonna do when they come for you? ♪ -announcer: "cops" is filmed on location