CNBC Fast Money Episode: “Souring On Apple… And An Auto Affordability Push As Car Prices Speed Higher”
Date: January 16, 2026
Host: Leslie Picker (in for Melissa Lee), with Tim Seymour, Steve Grasso, Bono, Mike Howell

Episode Overview

This episode examines Apple’s prolonged stock slump, debates the tech giant’s AI and services future, and scrutinizes the recent White House push on auto affordability as car prices hit new records. The panel also discusses the dramatic developments in energy policy for big tech, regional bank earnings momentum, and the coming Netflix earnings. The traders reveal their 2026 investment acronyms and close with actionable final trades.

Key Discussion Points & Insights

1. Apple’s Slump: Falling Out of Favor?

[01:44–09:15]

• Stock Context: Apple has booked seven consecutive weekly losses, tumbling over 11% from December highs, now lagging Nvidia and Alphabet. Despite a new AI partnership with Google’s Gemini, Apple and Meta are the year’s worst Magnificent Seven performers.
• Tim Seymour: Not overly concerned; sees no immediate catalyst but appreciates the Google Gemini partnership.

  “I just think there’s been better things to trade... I’m not that alarmed...The problem is there’s not a big catalyst here. The problem is it’s 31 times forward. I can live with that in my portfolio.” (02:45)

• Bono: Apple’s slow, cautious approach to AI is both a downside (lagging excitement) and an argument for continued ownership due to defensive balance sheet.

  “All indications would suggest that they are in no rush to [join the AI play], which is part of the downside and why you can probably still own it.” (04:10)

• Steve Grasso: Points to Apple’s cash and resilient services as bullish factors—historically, such losing streaks snap back.

  “There’s a number of things to be bullish about...If we’re just looking at a trade, I think you’d be a buyer of Apple right now.” (05:59)

• Mike Howell: Applauds services growth but sees the stock as fairly valued.

  “Don’t love it, don’t hate it...7% growth, that’s probably a little better than the market overall, but not a whole lot better.” (06:52)

• Catalysts & Management: Discussion on Tim Cook succession; panel agrees maintaining current strategy is safer than a radical pivot.

  Bono: “Transitions happen. What would concern me more is if they had made some massive push prior to [a] transition.” (09:34)
  Steve Grasso: “You want somebody from services who gets the cloud, who gets that aspect to the business.” (10:18)

2. Fed Chair Drama—Warsh vs. Hassett

[10:31–19:33]

• Politics & Market Implications: President Trump notes he wants to keep Kevin Hassett in his current role, boosting Kevin Warsh’s odds as the next Fed Chair.
• Ben Emmons (Guest): Warsh seen as more hawkish, less market-friendly—cautious about using the Fed’s balance sheet for stimulus.

  “He’s come out several times saying we’ve used [the] balance sheet the wrong way... he doesn’t want to go on with that process.” (12:12)

• Tim Seymour: Focus is on confirmability and the symbolism of Fed independence.

  “There’s no question this was about could Hassett be confirmed? ...If anything, Kevin Hassett... is not confirmable.” (12:49)

• Yield Curve & Rate Cuts: Debate over whether the Fed will be forced to lower rates by May, with most panelists expecting cuts rather than hikes.
• Bono: Less Fed publicity could mean lower market volatility.

  “Perhaps it ends up lowering volatility where you’re not trading on the back of Fed headlines.” (18:54)

3. Grid Power Shift—Big Tech to Pay for Energy

[21:54–25:50]

• Energy Policy Update: Trump administration asks large power users (e.g., hyperscalers, big tech) to fund new plants, with the PJM grid operator threatening curtailment if companies don’t “bring their own generation.”
• Winners/Losers:
  • Losers: Independent power producers (IPPs) like Constellation, Vista, Talon (drops on loss of volatility/spot auction profits).
  • Winners: Infrastructure stocks (GE Vernova, Siemens, Oklo, NuScale) and “picks and shovels” (Quanta, Eaton, Mastec).
• Steve Grasso: Initial selloff in some names is a buying opportunity for more consistent earnings ahead.

  “I think all of the things that were sold off today should be bought...on more consistent earnings going forward.” (23:19)

• Tim Seymour: IPPs like Constellation’s nuclear/nat gas focus remain attractive; uranium price spike is thematic.

  “[Constellation] doesn’t change my thesis on where they are and... their ability to actually grow and serve really growing markets...” (24:01)

• Bono: Advises patience rather than rushing to buy falling IPPs; sees structural headwinds.

  “I wouldn’t catch the falling knife here... I do see a scenario in which they are the net losers in this situation.” (24:58)

4. Regional Banks: Comeback or Caution?

[28:19–31:03]

• Earnings Beat: PNC Financial beats forecasts; KRE (regional bank ETF) up 17% in three months but underperforms select names today.
• Mike Howell: Dispersion is the theme—some regionals thriving, but those with commercial real estate exposure remain pressured.

  “A big part of the weakness for some... was their exposure to regional commercial real estate... that’s where I think the pressure is going to continue.” (29:05)

• Steve Grasso: Steepening yield curve and low credit card exposure benefit regionals over large banks.

  “If you look at the steepening of the yield curve... that has an outsized advantage to regionals... you want to stick to with them.” (30:21)

5. Auto Affordability: Can Car Prices Come Down?

[32:11–36:05]

• Phil LeBeau (Field Report):
  • New vehicles now average over $50,000.
  • Average loan payment: $781 (new), $565–$590 (used).
  • One in five new car buyers pays $1,000/month or more.
  • Used car prices also near record highs due to supply shortages post-pandemic.
  • “Auto suppliers—BorgWarner, Magna, Lear—stand to benefit from capacity crunch.” (32:11)
• Panel Take:
  • Tim Seymour: Affordability issue could increase profits for GM/Ford as companies become more efficient, with restructuring unlocking value, especially in core businesses.

    “The move in GM still doesn’t make it an expensive company and it’s never been run better.” (34:41)

  • Bono: Sees risk for pure-play EVs; Tesla’s diversified business is best positioned.

    “If you’re going to be in the EV space, that clearly is probably where you want to be.” (35:38)

6. Netflix: Betting on the Bounce?

[38:24–42:27]

• Julia Boorstin (Field Report): Netflix lost 29% since last earnings and is off 15% since the Warner Bros. deal.
  • Key metric: Revenue growth (projected +16.8% YoY), not subscribers.
  • EPS growth projected: +29%.
  • Deal speculation: May pivot to all-cash to accelerate Warner buy.
• Mike Howell: Options market is bullish—calls outpace puts 2:1; implied earnings move 7%.

  “If they hit those numbers... it’s trading only about 27 times forward earnings... might be an opportunity on the long side.” (40:05)

• Steve Grasso: The acquisition marks a strategic pivot but broad interest persists.

  “They are the best at what they do. It’s Netflix and everybody else. But this is a definite pivot...” (41:02)

• Tim Seymour: Sees the sell-off as an opportunity; business fundamentals remain strong.

  “I think it is time to buy Netflix... Their core business is alive and well and it’s crushing it.” (41:31)

7. Trader Acronym Reveals: 2026 Picks

[43:35–46:26]

Bono: “BULL”

• Bitcoin: Potential rebound driven by geopolitics and currency debasement talk.

• URA (uranium ETF): Electric power headlines, all hands on deck for grid and generation.

• Eli Lilly: Leading GLP-1/weight-loss drug race, but headline/legislative risk.

• LMT (Lockheed Martin): Defense contractor; positioned for higher spending amid global turmoil.

  “What I went for is... counter trend and headline risk. That’s the way to trade if you’re trying to outperform.” (43:58)

Mike Howell: “FASTER”

• Fluor Corp (Engineering/utilities/new grid build)
• Alcoa (Aluminum)
• SLB (Schlumberger - Oil Services)
• Trade Desk (Advertising tech)
• Exelon (Utility)
• Ralph Lauren (High-end consumer discretionary)

  “I’m looking...for companies whose year on year sales growth is expected to be greater than...the S&P and hopefully trading cheaper.” (45:28)

Notable Quotes & Memorable Moments

• Tim Seymour (on AI for Apple):

  “Siri can only get better. Sorry Siri, you can hear that.” [07:50]

• Bono (on Fed change):

  “I think it serves another purpose... he [Warsh] does not want the same type of celebrity circus around the Fed.” [17:40]

• Phil LeBeau (on car affordability):

  “One out of every five auto loans is now $1,000 a month or more.” [32:11]

• Steve Grasso (on IPP stocks post-policy shift):

  “All the things that were sold off today should be bought on more consistent earnings going forward.” [23:19]

• Tim Seymour (on Netflix):

  “Let’s not confuse the concern about a stock that’s run out of momentum... Their core business is alive and well and it’s crushing it.” [41:31]

Timestamps for Key Segments

• Apple slump & AI future: 01:44–09:15
• Fed Chair/Warsh odds: 10:31–19:33
• Big tech energy grid debate: 21:54–25:50
• Regional bank earnings: 28:19–31:03
• Auto affordability crisis: 32:11–36:05
• Netflix preview & options: 38:24–42:27
• Trader acronyms: 43:35–46:26
• Final Trades: 46:40–47:20

Final Trades

• Mike Howell: GM for light truck sales amid lower gas prices.
• Tim Seymour: Regional banks due to yield curve steepening.
• Bono: KRE (regional banks ETF), likely to trend higher.
• Steve Grasso: Quantum computing, specifically IonQ.

Tone:
Conversational, lively, informed, with healthy debate between panelists and a distinct focus on actionable insights for investors.

Useful for listeners who missed the show: Provides a comprehensive look at major stock movers, policy changes impacting markets, sector trends, and tactical ideas for the year ahead—all directly from Wall Street pros, with a focus on both the details and the big picture.