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Barron’s Mike Santoli discusses how Wal-Mart and Europe are impacting the trading day.
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All over it speaking about stock up -- -- always here with us in studio as well associate editor of debt that parents.
I don't know if you have a recommendation but -- did in this type of situation that investors -- themselves.
Now what do I do.
Yeah well I think I think one of the things as investors are not used to any kind of drama at the home office and in Wal-Mart when it comes to executive success when it comes to.
Strategy and I think part of it the thesis on the company in the stock has been.
You know look to -- -- hold their own -- not growing in the US and more global growth is where attack.
What's the price of global growth I mean these are just a kind of basic overlay of questions you would have and then of course the Mexican subsidiary which trade separately is getting.
Is getting hammered today as well so I don't know that this is something is a big swing factor from what must global business but it's a with a reason to take costs.
What does it say and does -- speak to a lack of oversight and -- and and Bentonville if you well that.
If it looks like executives weren't on the case -- -- this goes back to -- 2005.
That raises bigger issues about the ability of management to run such a giant -- unwieldy -- That obviously is going to be the question was this a one off thing if -- in fact it did go down this way war is it kind of business as usual when you're when you're attempting in.
Literally almost every country around the world trying to get real estate to pop -- -- there are markets now here on Fox Business let's go to the market -- Nicole talked about being down -- 140 plus points today.
What do you think -- -- obviously Europe the data -- and the French elections and China wasn't much better terms of their data do we make the sell off here I think there's some unfinished business with this kind of correction from the highs that we've been on dealing with the last few weeks and not so much that -- in -- -- like the last two years we have this nasty summer.
But I do think that you know people got a little bit used to the idea that global growth was kicking in.
Europe was kind of in a box.
Meaning it was put away you can be okay with it -- -- that clearly not the case of the interest did however to see how the market trades essentially from now on when Europe closes.
You often see a difference in tone when Europe's affecting trading here -- -- Unit uses up that energy by eleven or twelve in the in the day -- -- -- five minutes away from hot seat up exactly whether whether US fundamentals are gonna matter a little more.
You wrote about to have the move to the boom more stable mega cap growth stocks -- a time of the world looks like.
It might be -- slowing down even the US economy its talk talk about McDonald's Disney Nike and hit new highs this year you have all thirty Dow stocks are down today -- -- -- What changes -- a lot of these talks have run so much they.
-- start to look a little long in the to grandma's -- potentially -- 48 leasing you actually -- yeah much closer look pretty good that weird -- look on it is saying robot calls the great.
-- yeah I'm Brett Myers hello stocks in the right -- Exactly they're they're -- kind of the obvious blue chip stocks that anybody might have had a portfolio for the last thirty years right.
And actually interestingly when I looked at the list I also thought of these gimmicky mutual funds in the ninety's which were like the young investor fund trying to get little kids -- well guess what they -- bought Disney Nike Coca-Cola McDonnell yeah.
A nifty fifty which was that we initiated within six amazing -- what that are.
However the reason that what we see is -- a basically defensive undertone to the market recently small cast an underperforming the treasury yields still.
Refuses to go lots of people clearly -- evidence -- concerned about the general growth outlook that would lift all boats.
At a do you think they're kind of getting a little crowded into these names where you know people saying look the feds keeping interest rates -- nothing.
Heard the foreseeable -- make enough -- -- my cash they are almost uncomfortably using these big stable growth stocks.
As a as a bond proxy not a healthy thing but doesn't mean they're gonna stop performing since -- -- stocks are down today and sells everything else thank you write -- -- nothing risk free these days Mike thank.
