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Morning Commentary


By Charles Payne, CEO & Principal Analyst
5/21/2019 9:28 AM

Key support points held yesterday as there were a couple waves of buying at critical parts of the session selloff.

The most intriguing battle of the session wasn’t Trump versus China, but Kim Kardashian versus Jack and the Box & Stifel Nicholaus.  The well-regarded Wall Street firm lifted its rating in the restaurant chain to ‘buy’ from ‘hold’ before the start of trading sending the shares higher. 

Then, Kardashian struck with a threatening tweet that took the wind out of the rally, resulting in the stock closing fractionally lower even as the board market rebounded into the close.

Kim Kardashian West


Hey, Jack In The Box I have a serious complaint but I won’t fully put you on blast, check your corporate email inbox or send me a DM with direct person for my team to contact. Pronto!

Investing in Stronger Household Incomes

As it turns out, restaurants were among the more intriguing industries yesterday as upgrades and takeover speculation sent most names higher.  With retailers threatening to raise prices, as if they can simply mark them up as much as 100% and not miss a beat, there is a chance restaurants could see extra business. Instead of paying $300.00 for sneakers that normally cost $150.00, some folks might decide a trip to Texas Roundhouse is a better deal (and you get change back).

We are combing through the names.

Portfolio Approach

Communication Services

Consumer Discretionary

Consumer Staples












Real Estate











Today’s Session

The administration has provided American businesses an extension to complete projects with Huawei this morning, which is setting the tone for an up session.   I think there is significant demand to buy this market.  In fact, despite headlines and recent pressure, it’s very telling that markets have held up as much as they have.

The retail earnings scoreboard sees mostly misses, although TJ Maxx (TJX) posted a strong number, beating consensus across the board.  Watch Home Depot (HD) closely because the company beat on earnings, but same store sales rose less than expected.  But most analysis understand those estimates didn’t take into account greater rain across the nation that hurt the stores vaunted gardening business.

Winning War at Home

President Xi orders China national anthem played each morning across the entire nation.  Brilliant move, as it will build national resistance and understanding during economic slump.  Meanwhile, too many Americans don't respect our national anthem.

In addition to long time China resentment towards western imperils, their second-best weapon is having their media and most of America’s media fighting on their behalf.

Farmers Plight

While the mainstream media is talking about the plight of farmers, now is a good time to discuss long term trends (preceding current trade assault from China) and solutions that got zero coverage during collapse.

What are the numbers in the Portfolio Approach? I am guessing the higher the number the better but I guess I missed the rules to the numbers.

Jim Gill on 5/21/2019 12:36:34 PM
Yes, the portfolio approach takes into account the distribution of a portfolio up to potential 20 holdings (which includes cash as a holding along with 11 S&P sectors). We issue a comprehensive PA report each Friday that goes into greater depth on distribution, news and other changes.

Charles Payne on 5/21/2019 12:50:51 PM
Growing up we heard the national anthem daily and as each TV station began and closed each day we heard that or another patriotic song. Every day we said the pledge of allegiance and everyone joined in because we were proud to be in this country. The lack of these things just broadens the divides in this country and undermines our strength to negotiate in the common interests of all Americans. We have much to be proud of and the majority of USA citizens are open to being the melting pot of diverse ideas to grow as a strong and unified free country. A little patriotism will go a long way in promoting that.

John SoRelle on 5/24/2019 12:03:13 PM
I agree John its long overdue that we get back to this. One of the origins was NYC schools during the last wave of European immigrants which included a lot of anarchists. The idea was to make sure children pledged to their new nation. The country should always have vigorous debate but always be united behind the flag and our shared freedoms. CP

Charles Payne on 5/24/2019 12:11:26 PM

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