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PNC Wealth Management Senior V.P. Bill Stone and OneStopOption.com Chief Trading Advisor Alan Knuckman on Nordstrom’s first-quarter earnings results...
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Get to some other things you just mentioned eBay why do you like -- specifically going to a little bit more detail.
And I think eBay's interest things -- one thing is just.
The sit back in and say which way is the world going in terms of retailing most definitely it's going towards e-commerce -- GE -- who wins a couple ways there one is obviously their own website.
The second is being involved in just e-commerce payments for more than just their own website and last as they do have exposure to -- To also in the mobile apps in terms of using their e-commerce I think it's an.
An interesting way you get to look at -- certainly.
Have had nice cash flows -- buying back stock I think that's the opportunity there may be some -- -- implemented dividend but you have to leave that to the side for now.
Let's go back to the action at the CME -- I wanna go to you first bill is.
Is talking about all things being equal you want to be in stocks revenue treasuries because if you get a dividend stock.
It's yielding about the same is a ten year treasury right now so wanna go for the stocks it'll increase the value unless.
Bowl market collapses now has -- are the folks who deal with the with these catastrophic possibilities that -- -- thinking that there is a better.
Or less chance that that's gonna happen that is that we go into another recession.
I would tell you for sure that the sensitivity level down here is very high right now in the primary concern for traders here in Chicago.
-- is what's happening over in Europe it's been on the radar for a very long time.
Obviously those concerns -- revived at the beginning of the week after the elections but that's the primary concern if you go and -- -- figure what are they watching -- watch in the US dollar.
US dollar index just above that eighty level.
The more gains we get there the more it affects all those other investments and we talk about whether or not people -- to hold on to stocks right now sometimes David you don't have a choice is a money manager.
-- you're losing money in other areas of your portfolio and other areas of the market.
You've got to raise that cash elsewhere that they -- they explain a lot of that selling.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well this is scared to there's some questions here's what's actually going on their sales let's talk about there -- per share they missed on earnings per share over seventy cents Dana -- the street was expecting 75 cents.
-- revenue they say that their first quarter sales 2.5 three billion the street was expecting 2.5 two billion.
But we want to double down into this report to make sure we've got this right and I want to give me some of the guidance they're giving.
Because I don't think investors are going to like this they expect to low single digit increase in San -- sales -- second quarter a low single digit increase in the second quarter David.
Okay they were looking at projections and I Alan I want to go to you first is as we can see after hours.
It is trading down significantly right now right looking into the future again they're there they're they've pretty honest you're projecting that in fact.
Sales are think are gonna be slowing down that perhaps some of that front ended sales in the retail because the good weather.
All over the country did have some effects on on what's happening now in terms of retail sales.
Well maybe some -- some people loaded up early on their shoes for spring and that obviously had a big impact at Nordstrom.
But if you look at the stock the stock had a 30% increase since December so it was it was poised for a little bit of profit taking a pull back.
But they get back to your other guest.
I think equities are really the choice in the chase for yield if you look at it globally -- money -- -- gulf we've got such low interest rates that's not a very viable choice.
And here and here in America companies are still doing very well their profits are continuing growth.
-- money won't flow into the stock market just on a default in my opinion.
Well just looking at the -- ask of Nordstrom Sandra money's flowing out people aren't interested -- -- -- at least at the moment I'm looking at the shares and specifically part of this report says that the same store sales expectations are expected to be up between four and 6%.
Look at gain is certainly nice but is that really what people were looking.
But if you look at the numbers -- that would -- CBS slowdown from what we've seen as far as same store sales for Nordstrom's.
They rose 9% it and 7% at -- -- stores.
-- and there are outlet stores have been doing very well you know a lot of -- shopping and a lot of the pickup in sales that we side or send.
Was obviously at the beginning of the year we had some warmer months that had people going out shopping also the holiday sales were very good remember we were all screaming luxuries back.
And Nordstrom was really a barometer of that luxury spending this is a key test is whether or not we're gonna see that spending continues a very important -- -- bill we got to go but Bill -- I gotta ask would you be buying it is 7% discount which is what it's doing after our state would you be by Nordstrom tomorrow.
In -- is not a name we O'Neill I think the one we like you would just totally different is that that -- -- really a Home Depot.
That may benefit from the stabilization now home prices okay Home Depot not Nordstrom but you know what I have to ask is resting everybody would you buy thinks -- what -- public.
I you know -- Liz -- -- on the on the Warren Buffett rule on ideas that you probably auto way to avoid them.
Bill stalled thank you very -- Sandra great to see --
