Jim Chanos says this is the Cheapest thing in the Stock Market... | MRKT Call

Guy Adami (0:00)

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Guy here. You're listening to an audio broadcast of Market Call. That's MRKT Call. It's a daily video series I do with Dan Nathan every Monday through Thursday, live at 1 p.m. Eastern. We break down the big market moving headlines and offer trade ideas.

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All right, it's Tuesday, the 30th of January. Guy Adami, Dan Nathan, today we're joined by a legend, Jim Chanos. This is MRKT Call, the last Tuesday in the month. Thanks for joining us. Much nicer day today. You can see behind me that there are people actually in the pool. I heard there were some things going on yesterday, Dan Nathan, that I was not made aware of. I wish I was. But today's MRKT Call, we got Jim, and I'm thrilled. By the way, today on Fast Money, we got a big short panel. Think about that. Those four cats from The Big Short, just here on stage at iConnections, they'll be joining us on CNBC's Fast Money.

We have Mr. McKnight coming from Fortress. That's a huge get.

Dan Nathan (2:02)

Yeah, we do.

Guy Adami (2:03)

Blithe Masters, I think, is coming on the show.

Dan Nathan (2:05)

Big show.

Guy Adami (2:06)

So it's gonna be a big Fast Money as well.

Dan Nathan (2:07)

So here's the thing, a little preview here. So Melissa Lee, host of CNBC's Fast Money, she just interviewed Steve Iseman, Danny Moses, Porter Collins and Vincent Daniel, and that was straight fire, isn't it? What the kids say, guys?

Guy Adami (2:17)

I don't know what the kids say, but the room was filled and people were excited. And they're like big short groupies out there.

Dan Nathan (2:23)

There are, I guess.

There's Kendall Kat over here, she's a big fan. All right, let's focus on, because we have a legend right here, right now with us. And I know he doesn't love that, but this is Jim Chanos. He is the founder of Chanos and Co. We've known Jim for an awful long time. I think a lot of investors out there know him prominently for some pretty big short situations of your own, Jim. Welcome, bud.

Jim Chanos (2:47)

Hey, good to be here.

Guy Adami (2:49)

Well, you're a gentleman, Jim, and let's just go through the rundown real quick because there are some parallels here to the.com bubble, parallels. What's next for Tesla? It's obviously had a huge downdraft, traded down to 179

Technical support held, bounced. We'll see.

What do you like in this market? We're gonna talk about that. And obviously some big tech earnings starting tonight, firmly in the face of Microsoft, which finds itself with a $3 trillion market cap. But before we get into that, so much of the market, at least the textbooks that I read, the market should be built on earnings, earnings growth, revenue and revenue growth. That should be the four pillars of the market, which I totally get. And you were saying before the show started that you were hearing anecdotally or seeing that some of the estimates are coming down in a major way. So let's go from the top down and look at earnings and sort of what you think is going on in the market.

Jim Chanos (3:38)

Yeah, well, it's a quaint notion that you think that earnings and rates are-

Guy Adami (3:42)

It is old fashioned. Yes, thank you for that.

Jim Chanos (3:45)

Look, macro is not my forte, as you know, but it's hard not to notice that the earnings estimates are coming down, not going up.

I have no idea where interest rates are going, but the point is that as always, analysts generally are too optimistic. Now there was a couple of year period where they were not optimistic enough, where earnings accelerated. But now we're back to the estimates come down as the year goes on. And we're seeing that with 2023 numbers, the fourth quarter seems to be coming in pretty weak for earnings, strong GDP. But I don't know, are we gonna see $240 in 2024 earnings for the S&P? It seems increasingly unlikely.