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Wayne Ferbert, Zega Financial co-founder, on how news from Europe, the economic comeback and earnings reports are driving the markets.
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-- Agricole mentioned it's all about earnings.
Economic indicators and Europe this is of course according to -- -- he's the co-founder of -- -- financial.
And he says those three -- we'll keep this keep us basically market range or -- -- for the next year.
Wayne those three -- I guess -- the three things that everyone's looking -- let's take them one at a time earnings.
We -- companies much be on the bottom line profits doing okay.
Not necessarily on the top -- still we're not seeing sales -- -- out of the water so what's your take on earning season thus far.
Well that that definitely the top line growth is part of the problem but I actually think the worst problem is that CEOs are guiding for guidance.
Even lower or in many cases the lower end of their ranges.
And I would calls before ballot that we're getting to be muted at best and certainly that's not gonna -- well for the economy or for.
Our earnings going forward or or as a result for the markets our ranges that we're gonna trade and.
That's still comes down to sales in the consumer again right and then of course we have economic data we -- durable goods orders to -- basically across the board so.
Doesn't seem like the economy get any better either does it.
Certainly the indicators have -- been to the port side with the exception of inflation relatively under control on a few housing numbers that have been spending good and -- today's housing numbers.
Out of the equation.
Although they they weren't very good either I'm actually more worried about forward jobs numbers given what does what I just mentioned a minute ago about about earnings.
This CEOs are giving poor forward guidance say they're not very -- and CEOs are not gonna hire going forward if they're not very optimistic.
About their forward outlook -- -- actually job numbers to get even worse and we know that's tends to be the headline number when we tend to follow the markets.
Let consumers are buying products you know need to hire people to make more of them.
And finally Europe -- your third eat basically though the overall global appetite for risk is just -- hasn't.
Well -- it has.
And you know Europe and has that chance to be a contagion for the US and for other countries you know we've contended that the US can continue to rally.
As even if -- worsens as long as Europe doesn't just sort of for lack of a better -- throw up all over itself the problem is is Whaley.
And I kind of feels like Europe needs a bucket because.
Spain's continue to get worst part cost they're contained -- it can't increase and actually I think Italy is in a similar go to Spain they've just had a better -- -- -- better PR job.
At.
Handling their situation.
I'm not gonna continue -- -- analogy so let's get your stock picks you like Hewlett-Packard believer and I in the midst of all this in this this is company that's really been struggling.
Yes you know it's that quintessential value trap and I feel like I've been trapped -- -- for about a year -- we have we have increased position recently.
And will -- -- increase -- if it keeps going down -- mean it's just got three very strong franchises and out of it and enterprise data business.
Enterprise services and -- -- business and so I think that that's gonna put a floor in the stock crank -- at some point.
Yeah hopefully is right Bank of America also and you -- this is another one not for the faint of.
-- -- you know my past I've done.
A lot of business of BankAmerica when I'll tell you is I think management strongly I think they've got again also that three very strong franchises inside of it.
That create a lot of earnings -- I actually think this stock.
It traded on the trade earnings alone it on forward earnings report but that's I think could be.
A fourteen or fifteen dollar stock but they've got no margin for Aaron we look at that JPMorgan moved down cause them to move down in sympathy.
Just because people -- that the other balance sheet of Bank of America worries them.
Right and -- -- you're the -- was Microsoft which I guess has nowhere to go but up because it looks like the flat line chart.
-- -- -- time Wayne fervor -- a financial call founder down Baltimore thanks for sharing your thoughts are bank.
