You're watching...
Stifel Nicolaus Managing Director David Lutz and CAZ Investments CIO Christopher Zook on the outlook for the markets and its impact on investors’ st...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
The Big Apple let's bring in our market panel joining us now is David -- he's Stiefel Nicholas managing director and Christopher's up.
CAZ.
Investments chairman and chief investment officer Chris.
Is it possible you see you see the possibility of a twenty to 30% pull back in the market overall now that's.
Kind of hurricanes sandy kind of perfect -- of developing if that happens including going off the fiscal cliff but could this.
Be the beginning -- it could if for example.
Apple disappoints away Amazon just has could that be the beginning of a real big pull out 20%.
Well I think that we have started a correction now.
Because of the fact that earnings are disappointing so it does take a little bit of perfect storm for us to go down twenty to 35%.
But the reality is that we have to have revenue growth in this country we have to have revenue growth to sustained profit growth.
We're not gonna get that.
And companies are showing that there are vulnerable to the slowdown in revenue growth.
And that eventually is going to make it very difficult for them to grow their earnings.
That's gonna cause stocks to pull back if that's the case well let's see if there's revenue and profit growth -- Expedia Adam Shapiro the numbers -- how they do.
That's right it's a -- have beaten Wall Street should like this on earnings per share a dollar 32 they were expecting on the street -- dollar -- six revenue came men.
At one point 19 billion street was expecting one point 17 billion and even with tough times in Europe we've seen Expedia is revenue.
Continue to go up that was up 14% in the second quarter to one point 04 -- -- -- up to one point 19 billion lives are at.
David -- when you hear that okay so there's a -- Amazon but in an area where there's discretionary spending -- travel.
And Expedia there is upbeat on both top and bottom line are things as bad as say Mark Sebastian in the pits just that they -- We you know what I mean there is a big wall worry out their lives concerning a lot of different things and yes everybody's -- -- the revenue growth was slowing down on the 127%.
Of US companies are exposed to the European slowdown in those guys are gone through some really tough times right now.
But that being said you know names like Amazon you know the stock is now off maybe about 225%.
From its recent highs of few months ago.
This -- really attractive doubted these levels because we look at some of the big multi conglomerates like that acts.
-- -- out saying that you know they think the holiday season's going to be strong we can see 13%.
Year over year growth the US consumer spending they're probably gonna be spending it names like Amazon they're going to be spending -- names like over stop what they.
How does that because there's an interesting difference between FedEx and Amazon Amazon's stock has come down quite a bit in fact.
With today's fall back quite a bit -- whereas FedEx Cup has remained pretty healthy the stock values so would that.
Force you -- focus on Amazon -- she.
Well I would have -- be focusing on Amazon as we go into the holiday season in the I'll probably a Smart time to pick up.
It's gonna be right -- election you know one of the things it's been weighing on the market that we seen investors are buying a lot of protection right now against some market going into the election.
You know we're sitting here looking -- outstanding contracts tied to the -- reaching all time highs we're watching the fix up 30% in a week we have the value of outstanding puts.
You know over seventy billion dollars all tied to the election as soon as the market gets over this wall of worry.
You know what we're gonna start seeing a lot more confidence coming back in equities and I think that's gonna benefit names like -- gonna benefit -- -- fed exits down.
They're don't well right now because the dollar's rallying in the cost of -- coming off.
David -- -- resort thank you guys terrific stuff appreciate it thank you thanks for rolling with a.
