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John Thomas Financial Chief Market Analyst Wayne Kaufman on the earnings season and outlook for the markets.
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Tonight the -- earnings season -- and not so good news for apple today.
-- quarter earnings fallen short of Wall Street expectations.
Now apple as you know release its iPad many earlier this week.
The tech giant did -- revenue expectations of 36 billion dollars with so far this season.
Many SP 500 companies are coming up short here with more Wayne Kaufman chief market analyst for John Thomas financial.
So we want to start with apple this is a company that everybody likes to believe then but -- very good at managing expectations what went wrong here.
I'm not sure that than that much went wrong.
They they may have some supply problems but to me what's the biggest problem with the stock is I think you decided.
Everybody likes apple and -- appoint you get a stock that's over owned.
And institutions all -- -- so if you didn't own apple.
All throughout all the big news this year the big run up to 700 dollars.
As an investor what were you waiting for.
Well let let's break this down -- the but did you know how Wall Street marks the company.
Sort of lets people know what to expect out of an earnings season there's -- you know there's a dialogue that goes on.
And it becomes very clear to the analyst following the company what -- think that expectation this and that's what you report and then.
That market likes the fact that there were no ugly surprises in your stock goes up this did not happen with apple today you know they -- still in the high then us.
By eight cents it would appear they have.
Supply problems they're having a tough time getting as much out as they have orders for so we'll see in the coming quarter if they can fix stuff.
All right you know they've got so many new products coming -- think the next quarter is going to be a bang up quarter.
They're gonna do much better.
You'd like to think so but there's going to be tremendous competition.
I think that a lot of people are gonna wanna see how the apple I'm sorry -- the Microsoft.
Tablet is gonna be accepted if that's and if that is a dud.
Than apples really gonna have clear sailing on their tablets and -- still gonna have all the phone business.
I think the stock -- recover but if the competition.
In tablets he got all these many -- -- unity got Amazon you've got.
The know everybody's got -- and Toys 'R' Us have that has a tablet.
That's your problem is who's gonna win there could affect the earnings season for just a second because we've got a lot of companies that are missing -- -- GB IBM.
Caterpillar -- -- Microsoft of the list goes on nine and I think the real key here that a lot of people are paying attention to.
Is missing on the top line the revenues are not there some 60% of vets and 500 companies missing revenue -- What do you make of that.
It's -- It's bed and that the companies that you just named -- global.
Bellwethers these are companies with footprint around the world in multiple different industries so it's not like you can point to any one industry.
Basic materials has been worse than others but just general global demand is not great and that's that's a bit they -- -- come.
Eddie tells us that the economy itself is not doing that well economy itself and you know I think there's a lot of worries out out there -- about whether the US.
-- and grow at any substantial rate is the rest of the world's economy isn't.
Go downhill what -- said.
That's that's very obvious you -- buck a huge trend United States does not.
Any longer stand on its own economically if this is not the 1950s.
Or the 1960s.
What it does.
-- have to be that way I mean I truly believe we're still the world's biggest economy with 5% of the population.
We're still -- economic giant and we still can't be if we choose to be and we put the right rules in place.
If we put the right rules in place if we put the right leadership in place so I -- you know the last time I was -- -- that I could make the case for a super bull market.
Starting not that far down the road but we have to put the right rules in place have to have the right policies that's -- You know relative to the election I'm very much in support of Romney because I think he's number one the economy and number one of that is.
Energy policy I think President Obama has has proven he's got the wrong.
Energy policy.
Why is energy the -- because when you look at both of their plans for growing the economy what you find is that.
Becoming energy independent is point number one or two to -- out which candidate you're looking at.
Wolf first of all I think people don't believe mr.
Obama that that really is his agenda his agenda has been.
-- he's.
For example true but why is energy so important it's the lifeblood of everything that we do.
And if we get the cheapest energy costs here.
We have tremendous labor we've got the greatest workforce in the world and that -- companies from all around the world will put factories here.
They'll start opening businesses here on top of which our own entrepreneur where -- will.
With new leadership in -- that's not anti business.
They will decide that they want to get back in the game right now there's so many who are out of the game small business job creation.
Small business creations at the lowest level in thirty years.
Another ideology and better we gonna do better absolutely right -- thanks for coming on -- always been very nice to have you here thank.
