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United Capital CEO Joe Duran and RJ O’Brien Managing Director John Brady on Gap and Aeropostale earnings and the outlook for the markets.
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Doran united capital's CEO and founding partner.
Look we're looking at the retail stocks right now Joseph we've had some.
-- retail sales in July what excellence we seeing a turnaround in consumer sentiment.
I think -- people's -- are starting to god for value and it looks like it might stick.
They -- them out of Mavis Fowler -- they're able to refinance again.
And so people feel more optimistic and that's overwhelming some of the concerns about the global economy because what this feeling in their pocket -- And what they see -- -- -- is stability and the lay -- of kind of -- -- sees that system just a little and loans so they feel better and so they're spending law.
Syngenta -- reading -- argue that as -- watch gap shares selloff in this earnings report that you believe that we're gonna see this correction.
It should investors jump in and buy -- the -- in the stock market a dip in the stock market.
Yeah I think I think generally I'm not a big fan of investors doing a whole lot of trading at all we.
Tend to look up to people serious money so what we say they have run as make sure you have a -- -- vehicle with -- about some thoughts.
We do think that where -- quite overbought we've had a very nice rally.
And and I think the recession people are concerned we might be going into -- that's.
Really gone gone into the back of people's minds.
But we are available at the volumes been very light and it's quite possible that where in the it's sometime in the next few weeks we'll see a pull back.
We should not be too active in trade initiatives build -- bombarded -- -- everything but if you are gonna buy.
I do think there's going to be a bit of a decline coming out that there will give the opportunity to buy little lower than that we're seeing today night will be bring back -- John John not.
We just have to just -- a pullback but I get the same same -- is waiting for Jackson Hole in about.
At the end of the month and a -- ECB in September and in the meantime.
The market just melts upwards as many people -- said.
That's right that's right and of course late here this afternoon John hills around to the Wall Street Journal.
-- -- is a mouthpiece for the Fed has a piece out suggesting that the hawks on the FOMC board.
Plosser Fisher.
Bomb disaster out of Kansas City are going to perhaps -- George are gonna perhaps push back against -- whole idea of QE3 out the September meeting.
We would suggest sure there were whispers today but given the rise in crude oil.
That the White House wary of rather close election may go ahead -- one of the strategic oil reserve when in the coming weeks to alleviate any higher gasoline prices up -- So we'll be rather fluid for short.
Tell you do have some specific plays for investors out there not recommending the trade this volatile market.
I -- you do like some dividend plays.
Yeah I think if you're gonna -- dividends -- very much like.
The global franchise brands.
That -- dividends and ambassador around the world I think.
I think that the real pain in Europe a lot of it is is.
Is happening and has been price stents I think really good brands that composite pricing pressure -- asset and so Procter & Gamble those kinds of names Johnson & Johnson but frankly -- -- Princess trying to -- jump into very quickly because we have earnings going on Arab -- sell -- would then.
-- -- -- -- -- -- -- -- -- Yeah actually -- coming in on the bottom line pretty much in line and in fact -- right in line with analysts' estimates of zero cents so no profit no loss there are opposed -- Revenue numbers a little bit like 485 point three million bucks about five million below.
The estimate there but they also talk about the soft start to the back to school season they have.
And giving a light forecast for the current quarter they're seeing between a quarter and thirty cents per share.
And the estimate on the street 38 cents per share -- to give back in after hours.
Hi Robert thank you wanna go back to John outside in Iraqi of that you know you're talking about to -- you mentioned I believe Procter & Gamble.
Cadillac as I was mentioning I like the guy -- that on the global franchises so there.
Right a couple of good ETFs and that mutual funds that are about the dividend paying -- Grabs our way we think it's a great place to be through this market.
And that things that you -- -- like some of these big names -- you're looking -- on the screen there including vastly Procter & Gamble how deeply earnings going forward a lot of their earnings that we've been seeing lately.
-- Joseph had been indicating that companies are doing that all you know kind.
Costs and make the profits look good to be -- Indian.
Not a I think what we see is a tale of two cities.
The companies that have top line growth at apple.
Google.
Those other companies that are doing the best that's why we like these global consumer brands that tobacco companies girl growing.
Their revenues and -- that this still be up to they increased profit margins.
The company is that we're seeing today Aeropostale.
That making their numbers by squeezing margins -- so when.
-- I would say that that's something you want to look at is on companies whose revenues -- grind and that's not a very big universe.
Companies.
-- -- Gentlemen thank you very much Joseph -- we appreciate -- John -- will be checking in with you again -- -- few minutes -- how the S&P futures closed thank you very much.
