September 4, 2025 • 38 mins
Chuck Zodda and Mike Armstrong discuss McDonald's excalting the restaurant industry's tipping fight. What jobs will be included under Trump's 'no tax on tips?' Mark Voner, Founder and CEO - Veterans Development Corporation, joins the show to chat about how his company works with the VA, why his company maintains deep connections to the military, and why DAV is so important to him. Are low-cost airlines in a nose dive? Does Musk have a new vision for Tesla?
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Transcript
Episode Transcript
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Speaker 1 (00:00):
The Financial Exchange is produced by Money Matters Radio and
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(00:20):
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(00:42):
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(01:05):
Zada and Mike Armstrow.
Speaker 2 (01:10):
Chuck Mike entucking.
Speaker 3 (01:11):
With the end, we got a modest rally taking place
across US equity indices today. The Dow Jones Industrial Average
up a quarter percent, about one hundred and seventeen points,
SP five hundred up about a third of a percent,
or twenty points, and the NASDAK composite up a third
of a percent about sixty eight.
Speaker 2 (01:29):
Points as well.
Speaker 3 (01:31):
When we take a look at what is going on
in the bond market, tenure Treasury not really going anywhere,
down six tenths of a basis point to four point
two h five percent.
Speaker 2 (01:42):
It's no major movement there.
Speaker 3 (01:44):
Oil West text Intermediate sliding a little bit again on
the back of rumors of another OPEC plus output hike.
So you've got West Texas Intermediate down forty five cents
a barrel to sixty three fifty two. Gold is off
thirty one forty one ounce a day after hit an
all time high above thirty six hundred for the first time,
still sitting at thirty six oh four and ten cents
(02:06):
right now. And prior to the market opening, we received
weekly jobless claims that initial claims rose very modestly to
two hundred and thirty seven thousand. Continuing claims dropped by
four thousand to one point nine to four million, And
so we continue to be in just somewhat of a
frozen labor market with no signs of real trouble, but
(02:28):
no signs that we're breaking out and seeing the labor
market picking up at this point. So kind of the
status quo there, and that's why Hey, continued modest upward
drift in markets is kind of the norm, absent, you know,
a change in the economic data or earnings picture, Mike,
(02:49):
anything else to add before we get to our top
story here?
Speaker 4 (02:52):
No, I think I think too often we kind of
phrase this in the negative. The fundamentally, you know, we
haven't seen much change. Growth is moderating, we're moditoring in
a fairly healthy position, I guess is where I would
go back to. It's not to say there aren't concerns
that we have out there, but we don't want I
(03:13):
don't want to portray the idea that, oh, yeah, like
we're slowing down and that's a problem. No, we're at
four point two percent, unemployment, inflation at three percent. I'm
concerned about both of those things going up. But to
this point they haven't. And if we moderate right here
and continue to see you know, modest growth, that's not
a bad position to be.
Speaker 5 (03:32):
And given everything else going on.
Speaker 3 (03:35):
Top store here McDonald's, they escalate. The restaurant industries fight
over tipping. So here's the big thing is that McDonald's
has to pay workers at or above the federal minimum
wage and at the state level, we have to pay
at or above the state minimum wage because McDonald's workers
are not tipped, and they aren't happy because hey, there's
(03:57):
a different class of restaurants where you have you know,
sit down service, and those sit down restaurants do not
have to pay the normal minimum wage. They can pay
the tipped minimum wage, which is obviously far lower. It's
two dollars and thirteen cents an hour federally. But as
long as you know, workers receive tips that take them
north of seven twenty five an hour, the restaurant doesn't
(04:20):
have to pay them anything else. If there's a difference there,
they do have to make up that difference. But McDonald's saying, hey,
these these you know, sit down places like Chili's that
are you know, offering all these great deals right now,
they don't have to pay their labor full freight, but
we do, and we don't think that's fair.
Speaker 4 (04:36):
And by the way, those laborers that Chilis who make
those tips don't necessarily have to pay taxes on all
of it coming up here. So double disadvantage for McDonald's.
And then you know, add in the biggest state in
the country, California, who has all of these new fast
food minimum wage laws, it puts them at a further disadvantage.
(04:56):
So do I think that McDonald's is really concerned about
the state of the American worker?
Speaker 5 (05:05):
No, no, I.
Speaker 4 (05:09):
Market share because of the competitive disadvantages they have. Yes,
I'm quite certain that that is the case.
Speaker 3 (05:16):
So McDonald's trying to get lawmakers to phase out the.
Speaker 2 (05:20):
Tipped minimum wage. That's what they want to happen.
Speaker 3 (05:24):
They want all restaurants to have to pay full freight.
Here's you know, the minimum wage. This is what you've
got to pay. And sure if your workers receive tips, okay,
they can above and beyond that. A couple questions, Mike,
and I don't know, like what the law actually is
on this. McDonald's is the only reason that they have
(05:47):
to pay the full wage because like McDonald's does not
allow you to tip.
Speaker 5 (05:50):
Correct, No, I do not believe.
Speaker 4 (05:53):
I think I have seen maybe I think you can
donate to the Ronald McDonald's charity. And that's the only
tip jar that I've seen at McDonald's. I don't believe.
So let me ask this question. If offered the ability
to tip at a McDonald's, would you and how much?
(06:17):
This gets into like what are we paying.
Speaker 2 (06:19):
For with the tipping? Right? I don't.
Speaker 4 (06:22):
I don't have an answer for you. There, check I
like I do. You wouldn't walk me through a Tucker?
Speaker 5 (06:28):
No, it's fast food.
Speaker 2 (06:34):
Other questions I starts consistent with with that tipping. Okay,
here's the thing.
Speaker 3 (06:41):
Remember depending on the state, like state laws I believe
in a lot of cases don't allow back of house
workers to receive portions of those tips. So you literally
in many cases would just be tipping the person putting
in your order and on a kiosk. I don't think
you'd be allowed to in a lot of states because
where does it go?
Speaker 2 (07:01):
There is no front of house. Right.
Speaker 3 (07:05):
Counter to that, what if you are running your business
like a Chick fil a? Chick fil A, what do
they do, Mike? Do they bring you your food, Yes
they do? How like and this is why, like when
when we get into like all of these like actual
specifics of the conversation, it becomes a really challenging thing
to sort through as far as hey, like, what should
(07:28):
like the law be surrounding tipped minimum wage versus regular
in a restaurant and who should be allowed to be
tipped in who? I mean, does any of this have
any logical consistency?
Speaker 4 (07:38):
Not really, you know again like Chipotle versus just that
that makes no sense.
Speaker 3 (07:43):
Just as an example, why can't you tip someone back
of the house if if the cook makes a really
good meal for you, Why why can't I just walk
back there and be like, hey, here's a twenty big guy.
Speaker 6 (07:56):
Not very sanitary, Chuck.
Speaker 3 (07:58):
They could have a jar, or they could have one
of those vacuum tubes that the banks used to have.
Speaker 5 (08:03):
Chuck wouldn't need to put on a hairnet.
Speaker 3 (08:06):
No, totally a beard net maybe, But you know that's
a different story. So I don't know who's right or
wrong on this, because the whole like legal framework about
tipped minimum wage it's just a mess.
Speaker 4 (08:22):
Yeah, Everything surrounding tipping and gratuity these days has gotten
incredibly confusing, annoying, and I don't think McDonald's has much
of a leg to stand on here. I think they
are just they got some sour grapes, especially in California,
where they are at a distinct competitive disadvantage. But I
(08:44):
don't have a great idea about how to fix this.
Speaker 6 (08:46):
Well, Mike, you just went to Europe, right, Yeah, how
is your feeling about how the restaurant industry was over there?
Speaker 2 (08:54):
Yeah?
Speaker 4 (08:54):
I mean you run your credit card, you don't even
have the ability to add a tip. Some people add
a little bit of cash at the end of the meal,
and I did, because I swear to god, I was
describing this to other people, Like I feel itchy when
I eat a meal and don't leave it like a
sit down meal. It would just bother me when I
finished a sit down meal and didn't leave any tips,
So I would leave something in cash. But yeah, it's
(09:16):
a very much more pleasant system in my mind.
Speaker 2 (09:17):
Okay, do that?
Speaker 5 (09:19):
That's right?
Speaker 2 (09:19):
Dollars are euros euros.
Speaker 5 (09:22):
They might prefer dollars, not this year, but not this year.
Speaker 3 (09:26):
Yeah, in any case, So I don't know who's right
on this, but like, this is clearly going to be
a thing. If if McDonald's is talking about it, it's
going to be a thing because they've got some lobbying
heft on this, and you know, part of me then wonders, Okay,
do some of the other you know, companies get involved
at this point as well? Does when do you start
(09:47):
you know, going this route like to I don't even
know who owns Burger King right now. It's probably some
private equity firm.
Speaker 4 (09:53):
I mean, McDonald's went far enough to withdraw from the
National Restaurant Association over this issue. So yeah, I wouldn't
be prized if other fast food places do withdraw from
that as well and add to the pressure. But on
the other hand, this isn't happening anytime in this administration.
We haven't seen so no, we haven't seen a move
on federal minimum wage laws in decades, and I don't
(10:15):
see it happening now.
Speaker 2 (10:17):
I don't know.
Speaker 3 (10:17):
This one is interesting to me only that given the
note tax on tips legislation, you wonder if there's an
incentive for this administration to find a way for a
larger group of workers like.
Speaker 2 (10:34):
Here here here's my question.
Speaker 3 (10:36):
What if the answer isn't getting rid of the tipped
minimum wage, but expanding it to more parts of the
restaurant industry.
Speaker 5 (10:48):
So that what I have to tip a McDonald's.
Speaker 2 (10:49):
Now, yes, I'm not saying it's good or bad.
Speaker 3 (10:53):
I'm just saying, couldn't you see that being the path
that ends up being taken instead of.
Speaker 2 (10:58):
The other way?
Speaker 5 (10:59):
Yeah? No, I, Like I said, I just don't think.
Speaker 4 (11:04):
I don't think anything gets done on minimum wage under
this administration with such a narrow control.
Speaker 5 (11:09):
Now, I don't see it, even.
Speaker 3 (11:10):
Though yesterday the guide Did you see the guidance that
came out about the no tax on tips? Now, oh,
let's take a quick break, and when we come back,
we'll talk about some of the businesses and jobs covered
under the no tax on Tips legislation.
Speaker 2 (11:24):
We've also got trivia right after this.
Speaker 1 (11:27):
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Speaker 2 (12:01):
Time for trivia.
Speaker 6 (12:02):
You're in the Financial Exchange and our look at famous
bends continues with the most famous bend of them all,
Benjamin Franklin. Benjamin Franklin is usually associated with Philadelphia, but
he didn't arrive in the city until he was seventeen.
Franklin was actually born and raised in a different popular
(12:22):
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(12:42):
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See complete contest rules at Financial Exchange Show dot com.
Speaker 2 (12:56):
Mike So.
Speaker 3 (12:57):
Two days ago, the Treasury Department put out the list
of the sixty eight occupations that they are proposing be
eligible for the no tax on tips exemption? Would you
like me to go through them? Probably not all sixty eight,
but maybe I can do it quickly. In beverage and
food service bartender, wait staff, food service, dining room and
(13:19):
cafeteria attendants, chefs and cooks, food prep workers, fast food
and counter workers, dishwashers, host staff.
Speaker 2 (13:26):
Bakers, so pretty much everybody in food services, correct entertainment
and events, gambling dealers, gambling change persons, gambling cage workers,
gambling and sportsbook writers and runners, dancers, musicians and singers,
DJs except radio.
Speaker 3 (13:42):
Entertainers and performers, digital content creators, ushers, lobby attendants and
ticket takers. Don't know when the last time is I
tipped one of those, or even saw one of them.
Locker room, coatroom and dressing room attendants okay. Hospitality and
guest services, baggage porters and bell hops, concierge's, hotel, motel
or desk clerks, maids and housekeeping cleaners.
Speaker 5 (14:02):
Okay.
Speaker 2 (14:03):
Home services, home maintenance and repair workers, home landscaping and
groundskeeping workers, home electricians, plumbers, home heating and air conditioning mechanics,
home appliance installers, home cleaning service workers, locksmiths, and roadside
assistance workers.
Speaker 4 (14:16):
Those ones are a little bit surprising. So again, my
brother's a landscaper. He should almost definitely try and restructure
some of his billing the other thing.
Speaker 2 (14:27):
But this is only if you are doing it for homes. Right.
Speaker 3 (14:30):
You'll notice that. It's like if you are a plumber
on a commercial building, you can't get tipped.
Speaker 4 (14:35):
Well, you can get tipped. You you can't, you can't.
You're tax free?
Speaker 2 (14:40):
Okay? Sure.
Speaker 3 (14:42):
Personal services, personal care and service workers, private event planners,
So wedding planners now can pay no tax on tips,
private event photographers, private event videographers, event officiants, pet caretakers, tutors,
nannies and babysitters.
Speaker 2 (14:58):
Okay.
Speaker 3 (15:00):
Personal appearance in wellness skincare specialist, thought, massage therapists, barbers, hairdressers,
hairstyles shampoors, manicurists and pedicurists, eyebrow threading and waxing technicians,
makeup artists, exercise trainers, tattoo artists, tailors, shoe and leather workers.
Speaker 2 (15:17):
Sure, how many shoe and leather workers do we have left?
Not a lot of cobblers these days. Man recreation and
instruction golf caddies, Self enrichment teachers. What's a self enrichment teacher?
Speaker 5 (15:27):
It's like a life coach.
Speaker 2 (15:29):
Yeah, isn't that someone.
Speaker 3 (15:30):
Else's self enrichment? Like, isn't that other person in richment?
Self enrichment is like a self help book, right? That
is itself in Richmond. If you're not doing it yourself,
what's help to do myself enrichment? Recreational and tour pilots,
tour guides and escorts, travel guides, sports and recreation instructors,
(15:52):
and finally, transportation and delivery, parking and valet attendance, taxi
and ride share drivers, shuttle drivers, goods delivery people, personal
vehicle and equipment cleaners, private and charter bus drivers, water
taxi operators, rickshaw petticab and carriage drivers, and home movers.
Speaker 4 (16:09):
So I'm gonna ask the same question I did when
we were debating whether or not this would go into effect.
If I am my brother who is a landscaper, yes,
who just billed me three hundred dollars for work that
he did, why would I not rebuild all of my
work by saying there's one hundred percent mandatory gratuity, and
(16:31):
now your fee is one hundred and fifty dollars. There
does not seem to be anything that.
Speaker 2 (16:35):
Can have mandatory gratuity.
Speaker 4 (16:38):
If I go to a restaurant with a group of ten,
it's built right into the check. Okay, so this is
where we even get like, how can I mean, that's
not really a tip in my mind, but it is gratuity,
and therefore I believe would be I.
Speaker 3 (16:53):
Mean, here's the thing. Gratuity by definition is a gift.
So how can you have a mandatory gift? Which like,
this is again I know we're digressing here, but that
doesn't make sense.
Speaker 5 (17:06):
It doesn't.
Speaker 4 (17:06):
But if I fall into one of these categories, I
would do anything in my power. Again, if you are
the owner of the business, maybe you're not going to
be willing to do this, but I would do anything
in my power to lower my paid wage and increase
my tips.
Speaker 5 (17:21):
What's the cap twenty five.
Speaker 3 (17:22):
Grand a year, Yes, twenty five grand a year and
tips that you can exclude FRA money.
Speaker 5 (17:28):
That's a lot of dough.
Speaker 4 (17:30):
If you're working money, you don't get to save twenty
five thousand. It's a deduction, twenty five k deduction.
Speaker 3 (17:36):
Yeah, but the urban the Brookings Tax Policy Center estimates
it's a fourteen hundred savings on average, which I'm not
saying it's nothing.
Speaker 5 (17:42):
Yep.
Speaker 3 (17:43):
Okay, but it like it's it's not like you're saving
twenty five thousand non taxes yach year.
Speaker 5 (17:47):
No, No, I understood. I understood.
Speaker 3 (17:50):
So, yeah, that's that's the list. Can I was just
talk about this Wall Street Journal article that popped up.
Speaker 2 (17:56):
It was a h well.
Speaker 3 (17:57):
I clicked on it actually while I was looking at
at the previous one about McDonald's. Yeah, Purdue Chicken heiress
lists one hundred and four acre New Hampshire estate for
fifteen million dollars. So I saw Purdue Chicken airess and
I'm like, gotta click on it just to see what's
going on. Right, they buried the lead. It's it's in
(18:18):
the first sentence, but they buried it. Mitzie Purdue and
heiress to both the Purdue Chicken and Sheridan Hotel fortunes,
is one of the sellers of a New Hampshire estate
asking for fifteen million dollars. She's the daughter of the
Sheridan Hotels co founder and widow of Purdue Chicken CEO
Frank Purdue. What a get Like, isn't that amazing? Like, Like,
(18:46):
you are the heiress to both a massive hotel chain
and big Chicken.
Speaker 2 (18:52):
Does it get any better than that. It's hard to
see that it does.
Speaker 1 (18:58):
Mike.
Speaker 3 (18:58):
Yeah, yeah, you always got it. You always got a
roof over your head and a chicken in every pot. Yeah,
it's as good as it gets there, It's as good
as it gets. What else do you need if it
all goes to hell in a hand basket. I'm staying
here and here's my chicken. You're covered. It's as good
as it gets. Let's take a quick break here. When
(19:20):
we return, we're gonna have the trivia answer. We're gonna
have Wall Street Watch, and we're gonna be joined by
Mark Varner from Veterans Development Corporation right after.
Speaker 1 (19:29):
This, bringing the latest financial news straight to your radio.
Every day. It's the Financial Exchange on the Financial Exchange
Radio Network. Time now for Wall Street Watch, a complete
(19:54):
look at what's moving markets so far today right here
on the Financial Exchange Radio Network.
Speaker 6 (19:59):
Markets and positive territory as Wallstreet reacts to a lower
than expected ADP private payrolls report ahead of the all
important August Josh report to out tomorrow morning at eight thirty.
Right now, the Dow is up by four tenths of
one percent, or one hundred and eighty four points higher.
SMP five hundred is up nearly four tenths of a
percent as well, with twenty four points higher. Nasdaq is
(20:21):
up by a third of a percent, Russell two thousand
is also up by a third of a percent. Ten
year Treasure Reeled is down by one basis point at
four point one nine to two percent, and crude oil
is down nearly seven tenths of one percent, trading at
sixty three dollars in fifty four cents a barrel. Salesforce
weighing on the Dow today, with shares down nearly six
(20:43):
percent after the Cloud company posted as second quarter earnings
beat on both the top and bottom lines. However, it's
quarterly revenue outlook was weaker than expected. Meanwhile, recently, ipoid
software company Figma reported a double digit rise in quarterly
revenue but missed profit four forecast, sending that stock tumbling
by seventeen percent. Sticking with tech, where Hewlett Packard Enterprise
(21:07):
posted a fifty four percent jump in quarterly networking revenue,
boosted by its acquisition of Juniper Networks. Shares in the
Server in Cloud Software company are climbing five percent. Elsewhere,
American Eagle Outfitters said it anticipates a sales boost for
marketing campaigns featuring actress Sidney Sweeney and NFL star Travis Kelce.
(21:28):
The retailer also beat second quarter earnings in revenue estimates
that stock surging by thirty two percent and get Lab
shares dropping eight percent after the provider of software development
tools swung to our loss but raised its annual outlook.
The company CFO is also leaving to join Snowflake. I'm
Tucker Silva and that is Wall Street Watch.
Speaker 4 (21:50):
As we mentioned, joining us now is Mark Varner. Mark
is the CEO of the Veterans Development Corporation. He's also
the presenting sponsor of the DAV five K that's coming
up November eighth on Castlan and I'm gonna give everybody
a little bit more detail on the big.
Speaker 5 (22:05):
Event coming up in November.
Speaker 4 (22:06):
But Marks joining us now talk a little bit about
their partnership with the DAV, their commitment to that group
and their company generally in the in the industry. So Mark,
thank you for joining us. Appreciate it for those unawares.
Tell us a little bit about Veterans Development Corporation, the
company that you lead and the work that they do.
(22:26):
What space do they occupy in that construction space?
Speaker 7 (22:29):
Well, first of all, thank you for having me today.
I appreciate it. We do this all the time, and
I'm very appreciative of you having us. Veterans Development is
a general contractor that serves pretty much the federal government.
We do a lot of VA healthcare work pretty much
from Maine all the way down to Connecticut, Okay, and
we renovate and restore all of the VA hospitals.
Speaker 4 (22:52):
Now, VDC has been very involved with military members and
their families and you know, employing a number of those
people as well as your commitment to DAV How did
that come about? I know you have some military background
as well, but talk to us about the company and
their involvement with the military.
Speaker 5 (23:10):
Sure.
Speaker 7 (23:11):
Well, we got in touch with Dan Stack. He became
a family friend over twenty plus years ago.
Speaker 4 (23:17):
Dan Stack is the former adjudant of the DV and
now I think he's the president of the DAV.
Speaker 7 (23:23):
Absolutely with Mike Viela and Dan and I met through
my brother Timothy, who was an Army ranger. I was
served in the Marine Corps and when we got out,
my brother went to work for Dan at the DAV
and one thing led to another, and they did their
first annual DAV golf outing up in whaland got the
country club there at Sandy Burr and from that we
(23:45):
just spun off and over the years Dan and I
became very close. I got interested in the DAV through
all the work that they were doing, and then the
law came out for the Veteran Program for which we
are in now, which all service disabled veteran owned small
businessinesses have a set aside within the federal government.
Speaker 5 (24:02):
Okay, so that's kind of how it started.
Speaker 4 (24:04):
I feel like everyone I talk to that's been involved
with the DAV always comes back to one main story
that they've heard about the work that they do, or
some involvement they themselves had with the DAV. Does anything
stick with you in terms of you you've been involved
now for a few years between the race and fundraising opportunities.
Does anything stick with you about the work that they do?
Speaker 7 (24:25):
Oh, my goodness, there's so many the housing program that
they're doing and the actual individual service that they do
for all of the veterans that Dan has just been
an advocate. Mike now is running the show with his wife,
and it's just been an unbelievable experience to watch them
develop a person that may have an injury or some
(24:47):
sort of you know, internal injury mentally, and they just
work with the veterans from start to finish, and I
just like being a part of it.
Speaker 4 (24:55):
Would you mind Mark giving us a little bit more
background on your You said twenty years in the Marine Corps,
you have a brother and Army ranger. Sounds like a
family of military veterans, if I'm not mistaken. Would you
mind giving us a little bit more background on your experience.
Speaker 5 (25:08):
Yeah?
Speaker 7 (25:08):
Sure, My dad was in the Marine Corps in Korea,
my brother Timothy, and myself.
Speaker 5 (25:13):
My brother joined the Army.
Speaker 7 (25:14):
Want to be a little bit different than the naw
We have a big Marine Corps family and I joined
in nineteen eighty one after graduating high school, and from
that point it just really helped me launch my career
when I got out. You know, the Marine Corps teaches
you a lot of stuff about discipline, no doubt, and
I just took it from there and it's been a
(25:36):
wonderful experience to be part of the veteran community from
that date all the way till now.
Speaker 4 (25:41):
Shifting back to your business for a moment here. Your
area of construction is pretty niche. Obviously, you know, we
talk a lot about AI and housing and data center demand.
We talk a little about housing construction. The space that
you occupy is a little bit different. It's federal contracts,
it's all that sort of stuff. Where has that been
going over the course of the last few years and
(26:04):
is it an area that we're still seeing a lot
of building going on and demand for this type of
construction right now?
Speaker 7 (26:12):
Absolutely, the entire country is renovating every VA hospital constantly,
and they come out with these contracts that last about
five years called may talks. Multiple award task go to
contract people who buy to get into that contract and
they set aside a pile of money that the veteran community,
which is nice for the VA. All of it goes
(26:33):
service disabled veteran owned small business as a set aside program,
which mostly everybody knows. The VA hospital is in New
England in tough shape. They're rolled, so they constantly need renovating.
So there's a lot of work. Great opportunity if you
have a son, daughter, ann uncle that wants to get
into the trades. It's very very lucrative. The pay scale
(26:55):
is high because it's federal and they go for a
five year apprentice program. They graduate and they get a
raise every six months as long as they're doing their schooling.
I mean, if I had a son, which I have
two daughters, I'd have them.
Speaker 5 (27:07):
In the trades. Now three myself, we'll make sure they
call and the trades too.
Speaker 4 (27:12):
Mark Varner is the CEO of Veterans Development Corporation. He's
been joining us today to talk about their sponsorship of
the Disabled American Veterans five K Boston. It's coming up
November eighth. It's at Castle Island. We've been doing it
here on the Financial Exchange for the last few years.
It is an amazingly good time. They have the howitzer
(27:32):
shooting off to start the rais the It is a
really really fun and touching event to be at. And
you know, we really appreciate, obviously your sponsorship of that event.
Speaker 5 (27:42):
I know you play a huge role in that.
Speaker 2 (27:44):
Mark.
Speaker 4 (27:46):
If you want to learn more, you can go to
DAV five Kboston dot com and check out a whole
bunch more details. Usually this thing sells out pretty quickly,
but always opportunities to come spectate and check out.
Speaker 5 (28:00):
It's down on Castle Island in Boston. It's always a great.
Speaker 4 (28:02):
Time and we would love for you to take a look,
check it out and book your time.
Speaker 6 (28:08):
Tucker, dav five k dot Boston, dav five k dot Boston.
Speaker 4 (28:12):
Of course I got that slightly off, but dav five
k dot Boston to get more information. And again we've
been joined today by Mark Varner's, the CEO of Veterans
Development Corporation and presenting sponsor of the DAV five k.
Always appreciate you having us having on here and look
forward chatting you. Thank you soon, Mark, Thanks quick break.
We'll be right back with some stack roulette.
Speaker 5 (28:33):
That's next.
Speaker 1 (28:34):
Miss any of the show. The Financial Exchange Show podcast
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(28:56):
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Speaker 6 (29:10):
Triviy question we asked previously was what city was Benjamin
Franklin born and raised in I'll be Boston. Janet from
sam Mateo California's watching us on YouTube today is our winner,
taking home a Financial Exchange Show t shirt. Congrats to Janet,
and we play trivia every day here in the Financial
(29:31):
Exchange See complete contest rules at Financial Exchange Show dot com.
Speaker 2 (29:35):
Mike, what you got for stack Roulette?
Speaker 4 (29:37):
I got Spirit Airlines and low cost carriers generally. There's
an opinion piece in Bloomberg here about how low cost
airlines still have a niche, to which I would say,
facts are just not in evidence. Spirit Airlines sounds like
it is on the cusp of some very serious threats
(29:58):
to being able to even operate going forward. They've closed
something like sixteen roots that they used to fly, canceling
a whole bunch of flights, and for me personally, at least,
it's gotten to the stage where I am. I have
flown Spirits several times. I have had generally a pretty
good experience in spite of all the criticism they get.
(30:18):
I don't think I would book a flight on Spirit
more than a few months out right now. I might
get my money back from my credit card company. If
they go fully belly up, but then I got to
rebook on another airline, I'm probably just not willing to
do it.
Speaker 5 (30:31):
At this stage.
Speaker 4 (30:32):
Frontier struggles, Southwest has had to completely revamp their business model.
I'm just not entirely convinced that in the age of
Delta and American offering a very stripped down, low cost
flying version, that there is a space for Spirit airlines
and the likes of them today.
Speaker 3 (30:52):
Yeah, this piece tries to make the argument that, oh,
it's you know, the problem is that like these companies
aren't transparent and when all the fees in there the
same cost, and they shouldn't try to go up market.
But these companies can't make money just selling market basement prices.
It's that there's I think the big guys A are
just too big right now. There's not enough competition and
(31:15):
so ultimately you can't compete with that scale. And if
that's the case, the place I get to is, look,
as much as I'm you know, a big antitrust guy, Hey,
if you were going to allow for Delta Northwest to merge,
and you were going to allow for United and Continental
to merge, and US Air and American to merge.
Speaker 2 (31:35):
You can't turn.
Speaker 3 (31:36):
Around then and be like, hey, Jet Blue and Spirit,
that's a bridge too far. Yeah, because they just can't
compete like it's it doesn't make sense to try to
make them compete on an unleveled playing field. So I
think ultimately maybe there is a place for budget carriers,
but only if they're allowed to achieve the same scale
(31:58):
as the companies that they're competing again, either through allowing
them to merge, which I don't love, or Chuck's great
big twenty twenty five plan to break up the big airlines?
Speaker 5 (32:10):
Would you book on Spirit right now?
Speaker 4 (32:13):
No, because I'm looking at like February break and what
I know is if I book on Spirit and they
go belly up and then I have to book on
Delta the last second, it would be crushing. And so
I'm looking at this right now like I might pay.
I might be willing to pay two hundred dollars more
per seat to fly on an airline that I know
won't go out of business.
Speaker 2 (32:34):
Yeah, yeah, I would agree.
Speaker 6 (32:36):
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Speaker 2 (33:42):
Mike, I want to cover this piece from Bloomberg.
Speaker 3 (33:45):
A thirty thousand dollars Samsung TV hints at where the
company's lineup is heading and what is this for? But
so it's for really like it's for people who love TV.
Speaker 2 (33:57):
And have money. Yeah, like watching Triple D. You know,
watching what Triple D down just drivings and dives.
Speaker 5 (34:04):
Yeah, yeah, of.
Speaker 6 (34:05):
Course that's the target demo.
Speaker 3 (34:07):
You know, it's funny. I just heard that term like
two weeks ago for the first time.
Speaker 2 (34:12):
No you haven't heard that. No again, I'm not cool,
I'm not hip.
Speaker 3 (34:16):
But anyways, the big thing it's a one hundred and
fifteen inch TV with what they call it, it's a
micro RGB backliding system. That the big premise on this
is that each pixel is you know, custom lit with
a red, green, and blue light, not just a white
one that comes through, and so you can get better
color definition.
Speaker 2 (34:36):
I don't know the premise.
Speaker 3 (34:38):
Of this MIC is not that there's gonna be a
ton of people that buy this, but this is how
TV development always happens. Is you do the high end first,
then you migrate it down as it becomes more cost effective.
You know, think about LED like LCD TVs that you know,
the flat screen I remember back in you know, two thousand,
was like whoa flat screen TV? Like it's ten thousand dollars.
Now it's like, hey, here's a forty two inch for
eight dollars, you know, like it migrates down as you go.
(35:03):
The part that I find funny about this and I
do this, like I think about this a lot. So
they have these pictures of these these TVs, right, and
I'm looking at this on the computer and they're trying
to the The caption says, the TV can produce a
wider gamut of colors than Samsung's other sets. Okay, but
(35:24):
the screen that I'm seeing it on can't. So who
cares that there's a picture of the TV? You know, like, Okay,
that's that's great, But like you don't need to show
me because my screen cannot show me those other colors.
Speaker 2 (35:38):
So I always just find that kind of comical.
Speaker 5 (35:41):
Yeah, but that's just me.
Speaker 4 (35:43):
Musk has a new master plan to turn around teslao
ooh what is it?
Speaker 2 (35:47):
Uh?
Speaker 4 (35:48):
I think that it's robots, But quite honestly, I don't
think I can get past the first sentence. My only
question is does Elon Musk still have the ability to
move Tesla stock like he once did? Made does he
like he has made enough people angry at this stage
(36:11):
that I'm not convinced he has the same luster that
he did three years ago. When it came to making
promises that he ultimately doesn't deliver on.
Speaker 3 (36:20):
I think his ideas are just worse. You know, like
the Robotaxi event earlier this year. Okay, so they unveiled
like this custody, like this special model Robotaxi that they
brought to a Hollywood set because they knew it wasn't
ready for prime time, and then the ones in Austin
(36:42):
and San Francisco were just model wise, like the idea
just wasn't good, I think, is what I'm getting at.
I think if there was something like truly exciting that
they were that he was debuting, I think people would
be kind of.
Speaker 2 (36:56):
Interested in it.
Speaker 3 (36:58):
But I don't think that he's getting there because there's
already other companies like Weimo that are doing robotaxis. They
are already other companies that are building humanoid robots. The
stuff that moved the needle was, Hey, I'm gonna mass
produce the world's first you know, I'm gonna make the
world's first mass produced electric vehicle. Okay, have at it,
(37:19):
like no one's done that.
Speaker 2 (37:20):
Yep.
Speaker 3 (37:21):
You know, this is kind of like he's playing from behind.
Even all the AI stuff. It's like, Okay, everyone's doing that.
What's really you know, that next step ahead that no
one's looking at.
Speaker 2 (37:32):
I think that's the question.
Speaker 3 (37:35):
So I just think that the ideas are not as
transformative because there's lots of other companies that are already
doing this stuff. Fair that that's I don't know. I
think if there's a good enough idea, I don't think
anyone would care, like what Elon Hazer hasn't said, Like
it's just okay, this stuff's kind of lackluster. Now it's like, yeh, fine,
(37:56):
you're doing robotaxis, so is everyone else. Oh, you're gonna
make robots, so is everyone else? Have you met the
robot dogs that are?
Speaker 1 (38:04):
You know?
Speaker 2 (38:08):
Yeah?
Speaker 3 (38:09):
Anyways, let's take a quick break for the rest of
the day. Tomorrow, Job's Friday Big one. Do we see
a continuation of the weakness from the prior one? Do
we bounce back and show some new strength into the fall?
A lot to cover? Tune in tomorrow right here.
The Financial Exchange is produced by Money Matters Radio and
is hosted by employees of the Armstrong Advisory Group, a
registered investment advisor. All opinions expressed are solely those of
the hosts. Do not reflect the opinions of Armstrong Advisory
or anyone else. Investments can lose money. This program does
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(00:20):
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(00:42):
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a donation today. This is the Financial Exchange with Chuck
(01:05):
Zada and Mike Armstrow.
Speaker 2 (01:10):
Chuck Mike entucking.
Speaker 3 (01:11):
With the end, we got a modest rally taking place
across US equity indices today. The Dow Jones Industrial Average
up a quarter percent, about one hundred and seventeen points,
SP five hundred up about a third of a percent,
or twenty points, and the NASDAK composite up a third
of a percent about sixty eight.
Speaker 2 (01:29):
Points as well.
Speaker 3 (01:31):
When we take a look at what is going on
in the bond market, tenure Treasury not really going anywhere,
down six tenths of a basis point to four point
two h five percent.
Speaker 2 (01:42):
It's no major movement there.
Speaker 3 (01:44):
Oil West text Intermediate sliding a little bit again on
the back of rumors of another OPEC plus output hike.
So you've got West Texas Intermediate down forty five cents
a barrel to sixty three fifty two. Gold is off
thirty one forty one ounce a day after hit an
all time high above thirty six hundred for the first time,
still sitting at thirty six oh four and ten cents
(02:06):
right now. And prior to the market opening, we received
weekly jobless claims that initial claims rose very modestly to
two hundred and thirty seven thousand. Continuing claims dropped by
four thousand to one point nine to four million, And
so we continue to be in just somewhat of a
frozen labor market with no signs of real trouble, but
(02:28):
no signs that we're breaking out and seeing the labor
market picking up at this point. So kind of the
status quo there, and that's why Hey, continued modest upward
drift in markets is kind of the norm, absent, you know,
a change in the economic data or earnings picture, Mike,
(02:49):
anything else to add before we get to our top
story here?
Speaker 4 (02:52):
No, I think I think too often we kind of
phrase this in the negative. The fundamentally, you know, we
haven't seen much change. Growth is moderating, we're moditoring in
a fairly healthy position, I guess is where I would
go back to. It's not to say there aren't concerns
that we have out there, but we don't want I
(03:13):
don't want to portray the idea that, oh, yeah, like
we're slowing down and that's a problem. No, we're at
four point two percent, unemployment, inflation at three percent. I'm
concerned about both of those things going up. But to
this point they haven't. And if we moderate right here
and continue to see you know, modest growth, that's not
a bad position to be.
Speaker 5 (03:32):
And given everything else going on.
Speaker 3 (03:35):
Top store here McDonald's, they escalate. The restaurant industries fight
over tipping. So here's the big thing is that McDonald's
has to pay workers at or above the federal minimum
wage and at the state level, we have to pay
at or above the state minimum wage because McDonald's workers
are not tipped, and they aren't happy because hey, there's
(03:57):
a different class of restaurants where you have you know,
sit down service, and those sit down restaurants do not
have to pay the normal minimum wage. They can pay
the tipped minimum wage, which is obviously far lower. It's
two dollars and thirteen cents an hour federally. But as
long as you know, workers receive tips that take them
north of seven twenty five an hour, the restaurant doesn't
(04:20):
have to pay them anything else. If there's a difference there,
they do have to make up that difference. But McDonald's saying, hey,
these these you know, sit down places like Chili's that
are you know, offering all these great deals right now,
they don't have to pay their labor full freight, but
we do, and we don't think that's fair.
Speaker 4 (04:36):
And by the way, those laborers that Chilis who make
those tips don't necessarily have to pay taxes on all
of it coming up here. So double disadvantage for McDonald's.
And then you know, add in the biggest state in
the country, California, who has all of these new fast
food minimum wage laws, it puts them at a further disadvantage.
(04:56):
So do I think that McDonald's is really concerned about
the state of the American worker?
Speaker 5 (05:05):
No, no, I.
Speaker 4 (05:09):
Market share because of the competitive disadvantages they have. Yes,
I'm quite certain that that is the case.
Speaker 3 (05:16):
So McDonald's trying to get lawmakers to phase out the.
Speaker 2 (05:20):
Tipped minimum wage. That's what they want to happen.
Speaker 3 (05:24):
They want all restaurants to have to pay full freight.
Here's you know, the minimum wage. This is what you've
got to pay. And sure if your workers receive tips, okay,
they can above and beyond that. A couple questions, Mike,
and I don't know, like what the law actually is
on this. McDonald's is the only reason that they have
(05:47):
to pay the full wage because like McDonald's does not
allow you to tip.
Speaker 5 (05:50):
Correct, No, I do not believe.
Speaker 4 (05:53):
I think I have seen maybe I think you can
donate to the Ronald McDonald's charity. And that's the only
tip jar that I've seen at McDonald's. I don't believe.
So let me ask this question. If offered the ability
to tip at a McDonald's, would you and how much?
(06:17):
This gets into like what are we paying.
Speaker 2 (06:19):
For with the tipping? Right? I don't.
Speaker 4 (06:22):
I don't have an answer for you. There, check I
like I do. You wouldn't walk me through a Tucker?
Speaker 5 (06:28):
No, it's fast food.
Speaker 2 (06:34):
Other questions I starts consistent with with that tipping. Okay,
here's the thing.
Speaker 3 (06:41):
Remember depending on the state, like state laws I believe
in a lot of cases don't allow back of house
workers to receive portions of those tips. So you literally
in many cases would just be tipping the person putting
in your order and on a kiosk. I don't think
you'd be allowed to in a lot of states because
where does it go?
Speaker 2 (07:01):
There is no front of house. Right.
Speaker 3 (07:05):
Counter to that, what if you are running your business
like a Chick fil a? Chick fil A, what do
they do, Mike? Do they bring you your food, Yes
they do? How like and this is why, like when
when we get into like all of these like actual
specifics of the conversation, it becomes a really challenging thing
to sort through as far as hey, like, what should
(07:28):
like the law be surrounding tipped minimum wage versus regular
in a restaurant and who should be allowed to be
tipped in who? I mean, does any of this have
any logical consistency?
Speaker 4 (07:38):
Not really, you know again like Chipotle versus just that
that makes no sense.
Speaker 3 (07:43):
Just as an example, why can't you tip someone back
of the house if if the cook makes a really
good meal for you, Why why can't I just walk
back there and be like, hey, here's a twenty big guy.
Speaker 6 (07:56):
Not very sanitary, Chuck.
Speaker 3 (07:58):
They could have a jar, or they could have one
of those vacuum tubes that the banks used to have.
Speaker 5 (08:03):
Chuck wouldn't need to put on a hairnet.
Speaker 3 (08:06):
No, totally a beard net maybe, But you know that's
a different story. So I don't know who's right or
wrong on this, because the whole like legal framework about
tipped minimum wage it's just a mess.
Speaker 4 (08:22):
Yeah, Everything surrounding tipping and gratuity these days has gotten
incredibly confusing, annoying, and I don't think McDonald's has much
of a leg to stand on here. I think they
are just they got some sour grapes, especially in California,
where they are at a distinct competitive disadvantage. But I
(08:44):
don't have a great idea about how to fix this.
Speaker 6 (08:46):
Well, Mike, you just went to Europe, right, Yeah, how
is your feeling about how the restaurant industry was over there?
Speaker 2 (08:54):
Yeah?
Speaker 4 (08:54):
I mean you run your credit card, you don't even
have the ability to add a tip. Some people add
a little bit of cash at the end of the meal,
and I did, because I swear to god, I was
describing this to other people, Like I feel itchy when
I eat a meal and don't leave it like a
sit down meal. It would just bother me when I
finished a sit down meal and didn't leave any tips,
So I would leave something in cash. But yeah, it's
(09:16):
a very much more pleasant system in my mind.
Speaker 2 (09:17):
Okay, do that?
Speaker 5 (09:19):
That's right?
Speaker 2 (09:19):
Dollars are euros euros.
Speaker 5 (09:22):
They might prefer dollars, not this year, but not this year.
Speaker 3 (09:26):
Yeah, in any case, So I don't know who's right
on this, but like, this is clearly going to be
a thing. If if McDonald's is talking about it, it's
going to be a thing because they've got some lobbying
heft on this, and you know, part of me then wonders, Okay,
do some of the other you know, companies get involved
at this point as well? Does when do you start
(09:47):
you know, going this route like to I don't even
know who owns Burger King right now. It's probably some
private equity firm.
Speaker 4 (09:53):
I mean, McDonald's went far enough to withdraw from the
National Restaurant Association over this issue. So yeah, I wouldn't
be prized if other fast food places do withdraw from
that as well and add to the pressure. But on
the other hand, this isn't happening anytime in this administration.
We haven't seen so no, we haven't seen a move
on federal minimum wage laws in decades, and I don't
(10:15):
see it happening now.
Speaker 2 (10:17):
I don't know.
Speaker 3 (10:17):
This one is interesting to me only that given the
note tax on tips legislation, you wonder if there's an
incentive for this administration to find a way for a
larger group of workers like.
Speaker 2 (10:34):
Here here here's my question.
Speaker 3 (10:36):
What if the answer isn't getting rid of the tipped
minimum wage, but expanding it to more parts of the
restaurant industry.
Speaker 5 (10:48):
So that what I have to tip a McDonald's.
Speaker 2 (10:49):
Now, yes, I'm not saying it's good or bad.
Speaker 3 (10:53):
I'm just saying, couldn't you see that being the path
that ends up being taken instead of.
Speaker 2 (10:58):
The other way?
Speaker 5 (10:59):
Yeah? No, I, Like I said, I just don't think.
Speaker 4 (11:04):
I don't think anything gets done on minimum wage under
this administration with such a narrow control.
Speaker 5 (11:09):
Now, I don't see it, even.
Speaker 3 (11:10):
Though yesterday the guide Did you see the guidance that
came out about the no tax on tips? Now, oh,
let's take a quick break, and when we come back,
we'll talk about some of the businesses and jobs covered
under the no tax on Tips legislation.
Speaker 2 (11:24):
We've also got trivia right after this.
Speaker 1 (11:27):
The Financial Exchange streams live on YouTube. Subscribe to our
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(11:49):
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Speaker 2 (12:01):
Time for trivia.
Speaker 6 (12:02):
You're in the Financial Exchange and our look at famous
bends continues with the most famous bend of them all,
Benjamin Franklin. Benjamin Franklin is usually associated with Philadelphia, but
he didn't arrive in the city until he was seventeen.
Franklin was actually born and raised in a different popular
(12:22):
colonial city. So trivia question today, what city was Benjamin
Franklin born and raised in? Once again, what city was
Benjamin Franklin born and raised in? Be the seventh person
today to text us at six one seven three six
two thirteen eighty five with correct answer, and he win
(12:42):
a Financial Exchange Show T shirt. Once again, the seventh
correct response to textas to the number six one seven,
three six two thirteen eighty five will win that T shirt.
See complete contest rules at Financial Exchange Show dot com.
Speaker 2 (12:56):
Mike So.
Speaker 3 (12:57):
Two days ago, the Treasury Department put out the list
of the sixty eight occupations that they are proposing be
eligible for the no tax on tips exemption? Would you
like me to go through them? Probably not all sixty eight,
but maybe I can do it quickly. In beverage and
food service bartender, wait staff, food service, dining room and
(13:19):
cafeteria attendants, chefs and cooks, food prep workers, fast food
and counter workers, dishwashers, host staff.
Speaker 2 (13:26):
Bakers, so pretty much everybody in food services, correct entertainment
and events, gambling dealers, gambling change persons, gambling cage workers,
gambling and sportsbook writers and runners, dancers, musicians and singers,
DJs except radio.
Speaker 3 (13:42):
Entertainers and performers, digital content creators, ushers, lobby attendants and
ticket takers. Don't know when the last time is I
tipped one of those, or even saw one of them.
Locker room, coatroom and dressing room attendants okay. Hospitality and
guest services, baggage porters and bell hops, concierge's, hotel, motel
or desk clerks, maids and housekeeping cleaners.
Speaker 5 (14:02):
Okay.
Speaker 2 (14:03):
Home services, home maintenance and repair workers, home landscaping and
groundskeeping workers, home electricians, plumbers, home heating and air conditioning mechanics,
home appliance installers, home cleaning service workers, locksmiths, and roadside
assistance workers.
Speaker 4 (14:16):
Those ones are a little bit surprising. So again, my
brother's a landscaper. He should almost definitely try and restructure
some of his billing the other thing.
Speaker 2 (14:27):
But this is only if you are doing it for homes. Right.
Speaker 3 (14:30):
You'll notice that. It's like if you are a plumber
on a commercial building, you can't get tipped.
Speaker 4 (14:35):
Well, you can get tipped. You you can't, you can't.
You're tax free?
Speaker 2 (14:40):
Okay? Sure.
Speaker 3 (14:42):
Personal services, personal care and service workers, private event planners,
So wedding planners now can pay no tax on tips,
private event photographers, private event videographers, event officiants, pet caretakers, tutors,
nannies and babysitters.
Speaker 2 (14:58):
Okay.
Speaker 3 (15:00):
Personal appearance in wellness skincare specialist, thought, massage therapists, barbers, hairdressers,
hairstyles shampoors, manicurists and pedicurists, eyebrow threading and waxing technicians,
makeup artists, exercise trainers, tattoo artists, tailors, shoe and leather workers.
Speaker 2 (15:17):
Sure, how many shoe and leather workers do we have left?
Not a lot of cobblers these days. Man recreation and
instruction golf caddies, Self enrichment teachers. What's a self enrichment teacher?
Speaker 5 (15:27):
It's like a life coach.
Speaker 2 (15:29):
Yeah, isn't that someone.
Speaker 3 (15:30):
Else's self enrichment? Like, isn't that other person in richment?
Self enrichment is like a self help book, right? That
is itself in Richmond. If you're not doing it yourself,
what's help to do myself enrichment? Recreational and tour pilots,
tour guides and escorts, travel guides, sports and recreation instructors,
(15:52):
and finally, transportation and delivery, parking and valet attendance, taxi
and ride share drivers, shuttle drivers, goods delivery people, personal
vehicle and equipment cleaners, private and charter bus drivers, water
taxi operators, rickshaw petticab and carriage drivers, and home movers.
Speaker 4 (16:09):
So I'm gonna ask the same question I did when
we were debating whether or not this would go into effect.
If I am my brother who is a landscaper, yes,
who just billed me three hundred dollars for work that
he did, why would I not rebuild all of my
work by saying there's one hundred percent mandatory gratuity, and
(16:31):
now your fee is one hundred and fifty dollars. There
does not seem to be anything that.
Speaker 2 (16:35):
Can have mandatory gratuity.
Speaker 4 (16:38):
If I go to a restaurant with a group of ten,
it's built right into the check. Okay, so this is
where we even get like, how can I mean, that's
not really a tip in my mind, but it is gratuity,
and therefore I believe would be I.
Speaker 3 (16:53):
Mean, here's the thing. Gratuity by definition is a gift.
So how can you have a mandatory gift? Which like,
this is again I know we're digressing here, but that
doesn't make sense.
Speaker 5 (17:06):
It doesn't.
Speaker 4 (17:06):
But if I fall into one of these categories, I
would do anything in my power. Again, if you are
the owner of the business, maybe you're not going to
be willing to do this, but I would do anything
in my power to lower my paid wage and increase
my tips.
Speaker 5 (17:21):
What's the cap twenty five.
Speaker 3 (17:22):
Grand a year, Yes, twenty five grand a year and
tips that you can exclude FRA money.
Speaker 5 (17:28):
That's a lot of dough.
Speaker 4 (17:30):
If you're working money, you don't get to save twenty
five thousand. It's a deduction, twenty five k deduction.
Speaker 3 (17:36):
Yeah, but the urban the Brookings Tax Policy Center estimates
it's a fourteen hundred savings on average, which I'm not
saying it's nothing.
Speaker 5 (17:42):
Yep.
Speaker 3 (17:43):
Okay, but it like it's it's not like you're saving
twenty five thousand non taxes yach year.
Speaker 5 (17:47):
No, No, I understood. I understood.
Speaker 3 (17:50):
So, yeah, that's that's the list. Can I was just
talk about this Wall Street Journal article that popped up.
Speaker 2 (17:56):
It was a h well.
Speaker 3 (17:57):
I clicked on it actually while I was looking at
at the previous one about McDonald's. Yeah, Purdue Chicken heiress
lists one hundred and four acre New Hampshire estate for
fifteen million dollars. So I saw Purdue Chicken airess and
I'm like, gotta click on it just to see what's
going on. Right, they buried the lead. It's it's in
(18:18):
the first sentence, but they buried it. Mitzie Purdue and
heiress to both the Purdue Chicken and Sheridan Hotel fortunes,
is one of the sellers of a New Hampshire estate
asking for fifteen million dollars. She's the daughter of the
Sheridan Hotels co founder and widow of Purdue Chicken CEO
Frank Purdue. What a get Like, isn't that amazing? Like, Like,
(18:46):
you are the heiress to both a massive hotel chain
and big Chicken.
Speaker 2 (18:52):
Does it get any better than that. It's hard to
see that it does.
Speaker 1 (18:58):
Mike.
Speaker 3 (18:58):
Yeah, yeah, you always got it. You always got a
roof over your head and a chicken in every pot. Yeah,
it's as good as it gets there, It's as good
as it gets. What else do you need if it
all goes to hell in a hand basket. I'm staying
here and here's my chicken. You're covered. It's as good
as it gets. Let's take a quick break here. When
(19:20):
we return, we're gonna have the trivia answer. We're gonna
have Wall Street Watch, and we're gonna be joined by
Mark Varner from Veterans Development Corporation right after.
Speaker 1 (19:29):
This, bringing the latest financial news straight to your radio.
Every day. It's the Financial Exchange on the Financial Exchange
Radio Network. Time now for Wall Street Watch, a complete
(19:54):
look at what's moving markets so far today right here
on the Financial Exchange Radio Network.
Speaker 6 (19:59):
Markets and positive territory as Wallstreet reacts to a lower
than expected ADP private payrolls report ahead of the all
important August Josh report to out tomorrow morning at eight thirty.
Right now, the Dow is up by four tenths of
one percent, or one hundred and eighty four points higher.
SMP five hundred is up nearly four tenths of a
percent as well, with twenty four points higher. Nasdaq is
(20:21):
up by a third of a percent, Russell two thousand
is also up by a third of a percent. Ten
year Treasure Reeled is down by one basis point at
four point one nine to two percent, and crude oil
is down nearly seven tenths of one percent, trading at
sixty three dollars in fifty four cents a barrel. Salesforce
weighing on the Dow today, with shares down nearly six
(20:43):
percent after the Cloud company posted as second quarter earnings
beat on both the top and bottom lines. However, it's
quarterly revenue outlook was weaker than expected. Meanwhile, recently, ipoid
software company Figma reported a double digit rise in quarterly
revenue but missed profit four forecast, sending that stock tumbling
by seventeen percent. Sticking with tech, where Hewlett Packard Enterprise
(21:07):
posted a fifty four percent jump in quarterly networking revenue,
boosted by its acquisition of Juniper Networks. Shares in the
Server in Cloud Software company are climbing five percent. Elsewhere,
American Eagle Outfitters said it anticipates a sales boost for
marketing campaigns featuring actress Sidney Sweeney and NFL star Travis Kelce.
(21:28):
The retailer also beat second quarter earnings in revenue estimates
that stock surging by thirty two percent and get Lab
shares dropping eight percent after the provider of software development
tools swung to our loss but raised its annual outlook.
The company CFO is also leaving to join Snowflake. I'm
Tucker Silva and that is Wall Street Watch.
Speaker 4 (21:50):
As we mentioned, joining us now is Mark Varner. Mark
is the CEO of the Veterans Development Corporation. He's also
the presenting sponsor of the DAV five K that's coming
up November eighth on Castlan and I'm gonna give everybody
a little bit more detail on the big.
Speaker 5 (22:05):
Event coming up in November.
Speaker 4 (22:06):
But Marks joining us now talk a little bit about
their partnership with the DAV, their commitment to that group
and their company generally in the in the industry. So Mark,
thank you for joining us. Appreciate it for those unawares.
Tell us a little bit about Veterans Development Corporation, the
company that you lead and the work that they do.
(22:26):
What space do they occupy in that construction space?
Speaker 7 (22:29):
Well, first of all, thank you for having me today.
I appreciate it. We do this all the time, and
I'm very appreciative of you having us. Veterans Development is
a general contractor that serves pretty much the federal government.
We do a lot of VA healthcare work pretty much
from Maine all the way down to Connecticut, Okay, and
we renovate and restore all of the VA hospitals.
Speaker 4 (22:52):
Now, VDC has been very involved with military members and
their families and you know, employing a number of those
people as well as your commitment to DAV How did
that come about? I know you have some military background
as well, but talk to us about the company and
their involvement with the military.
Speaker 5 (23:10):
Sure.
Speaker 7 (23:11):
Well, we got in touch with Dan Stack. He became
a family friend over twenty plus years ago.
Speaker 4 (23:17):
Dan Stack is the former adjudant of the DV and
now I think he's the president of the DAV.
Speaker 7 (23:23):
Absolutely with Mike Viela and Dan and I met through
my brother Timothy, who was an Army ranger. I was
served in the Marine Corps and when we got out,
my brother went to work for Dan at the DAV
and one thing led to another, and they did their
first annual DAV golf outing up in whaland got the
country club there at Sandy Burr and from that we
(23:45):
just spun off and over the years Dan and I
became very close. I got interested in the DAV through
all the work that they were doing, and then the
law came out for the Veteran Program for which we
are in now, which all service disabled veteran owned small
businessinesses have a set aside within the federal government.
Speaker 5 (24:02):
Okay, so that's kind of how it started.
Speaker 4 (24:04):
I feel like everyone I talk to that's been involved
with the DAV always comes back to one main story
that they've heard about the work that they do, or
some involvement they themselves had with the DAV. Does anything
stick with you in terms of you you've been involved
now for a few years between the race and fundraising opportunities.
Does anything stick with you about the work that they do?
Speaker 7 (24:25):
Oh, my goodness, there's so many the housing program that
they're doing and the actual individual service that they do
for all of the veterans that Dan has just been
an advocate. Mike now is running the show with his wife,
and it's just been an unbelievable experience to watch them
develop a person that may have an injury or some
(24:47):
sort of you know, internal injury mentally, and they just
work with the veterans from start to finish, and I
just like being a part of it.
Speaker 4 (24:55):
Would you mind Mark giving us a little bit more
background on your You said twenty years in the Marine Corps,
you have a brother and Army ranger. Sounds like a
family of military veterans, if I'm not mistaken. Would you
mind giving us a little bit more background on your experience.
Speaker 5 (25:08):
Yeah?
Speaker 7 (25:08):
Sure, My dad was in the Marine Corps in Korea,
my brother Timothy, and myself.
Speaker 5 (25:13):
My brother joined the Army.
Speaker 7 (25:14):
Want to be a little bit different than the naw
We have a big Marine Corps family and I joined
in nineteen eighty one after graduating high school, and from
that point it just really helped me launch my career
when I got out. You know, the Marine Corps teaches
you a lot of stuff about discipline, no doubt, and
I just took it from there and it's been a
(25:36):
wonderful experience to be part of the veteran community from
that date all the way till now.
Speaker 4 (25:41):
Shifting back to your business for a moment here. Your
area of construction is pretty niche. Obviously, you know, we
talk a lot about AI and housing and data center demand.
We talk a little about housing construction. The space that
you occupy is a little bit different. It's federal contracts,
it's all that sort of stuff. Where has that been
going over the course of the last few years and
(26:04):
is it an area that we're still seeing a lot
of building going on and demand for this type of
construction right now?
Speaker 7 (26:12):
Absolutely, the entire country is renovating every VA hospital constantly,
and they come out with these contracts that last about
five years called may talks. Multiple award task go to
contract people who buy to get into that contract and
they set aside a pile of money that the veteran community,
which is nice for the VA. All of it goes
(26:33):
service disabled veteran owned small business as a set aside program,
which mostly everybody knows. The VA hospital is in New
England in tough shape. They're rolled, so they constantly need renovating.
So there's a lot of work. Great opportunity if you
have a son, daughter, ann uncle that wants to get
into the trades. It's very very lucrative. The pay scale
(26:55):
is high because it's federal and they go for a
five year apprentice program. They graduate and they get a
raise every six months as long as they're doing their schooling.
I mean, if I had a son, which I have
two daughters, I'd have them.
Speaker 5 (27:07):
In the trades. Now three myself, we'll make sure they
call and the trades too.
Speaker 4 (27:12):
Mark Varner is the CEO of Veterans Development Corporation. He's
been joining us today to talk about their sponsorship of
the Disabled American Veterans five K Boston. It's coming up
November eighth. It's at Castle Island. We've been doing it
here on the Financial Exchange for the last few years.
It is an amazingly good time. They have the howitzer
(27:32):
shooting off to start the rais the It is a
really really fun and touching event to be at. And
you know, we really appreciate, obviously your sponsorship of that event.
Speaker 5 (27:42):
I know you play a huge role in that.
Speaker 2 (27:44):
Mark.
Speaker 4 (27:46):
If you want to learn more, you can go to
DAV five Kboston dot com and check out a whole
bunch more details. Usually this thing sells out pretty quickly,
but always opportunities to come spectate and check out.
Speaker 5 (28:00):
It's down on Castle Island in Boston. It's always a great.
Speaker 4 (28:02):
Time and we would love for you to take a look,
check it out and book your time.
Speaker 6 (28:08):
Tucker, dav five k dot Boston, dav five k dot Boston.
Speaker 4 (28:12):
Of course I got that slightly off, but dav five
k dot Boston to get more information. And again we've
been joined today by Mark Varner's, the CEO of Veterans
Development Corporation and presenting sponsor of the DAV five k.
Always appreciate you having us having on here and look
forward chatting you. Thank you soon, Mark, Thanks quick break.
We'll be right back with some stack roulette.
Speaker 5 (28:33):
That's next.
Speaker 1 (28:34):
Miss any of the show. The Financial Exchange Show podcast
is available on Apple, Spotify, and iHeartRadio. Hit the subscribe
button and leave us a five star review. This is
the Financial Exchange Radio Network. The Financial Exchange is now
available every day from eleven to noon. Non Serious XM's
Business Radio Channel one thirty two. Stay informed about the
(28:56):
latest from Wall Street, fiscal policy, and breaking business news.
Every day, The Financial Exchange is live. I'm Serious XM's
Business Radio Channel one thirty two. This is the Financial
Exchange Radio Network.
Speaker 6 (29:10):
Triviy question we asked previously was what city was Benjamin
Franklin born and raised in I'll be Boston. Janet from
sam Mateo California's watching us on YouTube today is our winner,
taking home a Financial Exchange Show t shirt. Congrats to Janet,
and we play trivia every day here in the Financial
(29:31):
Exchange See complete contest rules at Financial Exchange Show dot com.
Speaker 2 (29:35):
Mike, what you got for stack Roulette?
Speaker 4 (29:37):
I got Spirit Airlines and low cost carriers generally. There's
an opinion piece in Bloomberg here about how low cost
airlines still have a niche, to which I would say,
facts are just not in evidence. Spirit Airlines sounds like
it is on the cusp of some very serious threats
(29:58):
to being able to even operate going forward. They've closed
something like sixteen roots that they used to fly, canceling
a whole bunch of flights, and for me personally, at least,
it's gotten to the stage where I am. I have
flown Spirits several times. I have had generally a pretty
good experience in spite of all the criticism they get.
(30:18):
I don't think I would book a flight on Spirit
more than a few months out right now. I might
get my money back from my credit card company. If
they go fully belly up, but then I got to
rebook on another airline, I'm probably just not willing to
do it.
Speaker 5 (30:31):
At this stage.
Speaker 4 (30:32):
Frontier struggles, Southwest has had to completely revamp their business model.
I'm just not entirely convinced that in the age of
Delta and American offering a very stripped down, low cost
flying version, that there is a space for Spirit airlines
and the likes of them today.
Speaker 3 (30:52):
Yeah, this piece tries to make the argument that, oh,
it's you know, the problem is that like these companies
aren't transparent and when all the fees in there the
same cost, and they shouldn't try to go up market.
But these companies can't make money just selling market basement prices.
It's that there's I think the big guys A are
just too big right now. There's not enough competition and
(31:15):
so ultimately you can't compete with that scale. And if
that's the case, the place I get to is, look,
as much as I'm you know, a big antitrust guy, Hey,
if you were going to allow for Delta Northwest to merge,
and you were going to allow for United and Continental
to merge, and US Air and American to merge.
Speaker 2 (31:35):
You can't turn.
Speaker 3 (31:36):
Around then and be like, hey, Jet Blue and Spirit,
that's a bridge too far. Yeah, because they just can't
compete like it's it doesn't make sense to try to
make them compete on an unleveled playing field. So I
think ultimately maybe there is a place for budget carriers,
but only if they're allowed to achieve the same scale
(31:58):
as the companies that they're competing again, either through allowing
them to merge, which I don't love, or Chuck's great
big twenty twenty five plan to break up the big airlines?
Speaker 5 (32:10):
Would you book on Spirit right now?
Speaker 4 (32:13):
No, because I'm looking at like February break and what
I know is if I book on Spirit and they
go belly up and then I have to book on
Delta the last second, it would be crushing. And so
I'm looking at this right now like I might pay.
I might be willing to pay two hundred dollars more
per seat to fly on an airline that I know
won't go out of business.
Speaker 2 (32:34):
Yeah, yeah, I would agree.
Speaker 6 (32:36):
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Speaker 2 (33:42):
Mike, I want to cover this piece from Bloomberg.
Speaker 3 (33:45):
A thirty thousand dollars Samsung TV hints at where the
company's lineup is heading and what is this for? But
so it's for really like it's for people who love TV.
Speaker 2 (33:57):
And have money. Yeah, like watching Triple D. You know,
watching what Triple D down just drivings and dives.
Speaker 5 (34:04):
Yeah, yeah, of.
Speaker 6 (34:05):
Course that's the target demo.
Speaker 3 (34:07):
You know, it's funny. I just heard that term like
two weeks ago for the first time.
Speaker 2 (34:12):
No you haven't heard that. No again, I'm not cool,
I'm not hip.
Speaker 3 (34:16):
But anyways, the big thing it's a one hundred and
fifteen inch TV with what they call it, it's a
micro RGB backliding system. That the big premise on this
is that each pixel is you know, custom lit with
a red, green, and blue light, not just a white
one that comes through, and so you can get better
color definition.
Speaker 2 (34:36):
I don't know the premise.
Speaker 3 (34:38):
Of this MIC is not that there's gonna be a
ton of people that buy this, but this is how
TV development always happens. Is you do the high end first,
then you migrate it down as it becomes more cost effective.
You know, think about LED like LCD TVs that you know,
the flat screen I remember back in you know, two thousand,
was like whoa flat screen TV? Like it's ten thousand dollars.
Now it's like, hey, here's a forty two inch for
eight dollars, you know, like it migrates down as you go.
(35:03):
The part that I find funny about this and I
do this, like I think about this a lot. So
they have these pictures of these these TVs, right, and
I'm looking at this on the computer and they're trying
to the The caption says, the TV can produce a
wider gamut of colors than Samsung's other sets. Okay, but
(35:24):
the screen that I'm seeing it on can't. So who
cares that there's a picture of the TV? You know, like, Okay,
that's that's great, But like you don't need to show
me because my screen cannot show me those other colors.
Speaker 2 (35:38):
So I always just find that kind of comical.
Speaker 5 (35:41):
Yeah, but that's just me.
Speaker 4 (35:43):
Musk has a new master plan to turn around teslao
ooh what is it?
Speaker 2 (35:47):
Uh?
Speaker 4 (35:48):
I think that it's robots, But quite honestly, I don't
think I can get past the first sentence. My only
question is does Elon Musk still have the ability to
move Tesla stock like he once did? Made does he
like he has made enough people angry at this stage
(36:11):
that I'm not convinced he has the same luster that
he did three years ago. When it came to making
promises that he ultimately doesn't deliver on.
Speaker 3 (36:20):
I think his ideas are just worse. You know, like
the Robotaxi event earlier this year. Okay, so they unveiled
like this custody, like this special model Robotaxi that they
brought to a Hollywood set because they knew it wasn't
ready for prime time, and then the ones in Austin
(36:42):
and San Francisco were just model wise, like the idea
just wasn't good, I think, is what I'm getting at.
I think if there was something like truly exciting that
they were that he was debuting, I think people would
be kind of.
Speaker 2 (36:56):
Interested in it.
Speaker 3 (36:58):
But I don't think that he's getting there because there's
already other companies like Weimo that are doing robotaxis. They
are already other companies that are building humanoid robots. The
stuff that moved the needle was, Hey, I'm gonna mass
produce the world's first you know, I'm gonna make the
world's first mass produced electric vehicle. Okay, have at it,
(37:19):
like no one's done that.
Speaker 2 (37:20):
Yep.
Speaker 3 (37:21):
You know, this is kind of like he's playing from behind.
Even all the AI stuff. It's like, Okay, everyone's doing that.
What's really you know, that next step ahead that no
one's looking at.
Speaker 2 (37:32):
I think that's the question.
Speaker 3 (37:35):
So I just think that the ideas are not as
transformative because there's lots of other companies that are already
doing this stuff. Fair that that's I don't know. I
think if there's a good enough idea, I don't think
anyone would care, like what Elon Hazer hasn't said, Like
it's just okay, this stuff's kind of lackluster. Now it's like, yeh, fine,
(37:56):
you're doing robotaxis, so is everyone else. Oh, you're gonna
make robots, so is everyone else? Have you met the
robot dogs that are?
Speaker 1 (38:04):
You know?
Speaker 2 (38:08):
Yeah?
Speaker 3 (38:09):
Anyways, let's take a quick break for the rest of
the day. Tomorrow, Job's Friday Big one. Do we see
a continuation of the weakness from the prior one? Do
we bounce back and show some new strength into the fall?
A lot to cover? Tune in tomorrow right here.
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