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Well stocks moving lower again major averages down more than 5% from recent highs and sort of the stock prices -- next best.
Doesn't expect deeper losses are full correction joining us now to tell us what will happen Sam Stovall chief equity strategist recipe capital IQ.
-- good to have you here.
I got a kicked out of the Federal Reserve today.
They went wobbly in the knees and started talk them up you know.
We're going to be we're gonna refine here we're gonna keep pop on the money all subtle about basic point was the -- Well basically saying that you know they we -- going to be watching the economy the economy is not taking off by any stretch.
And so it was such things sort of accusing those on Wall Street looking for weaknesses to try to exploit.
I look I love the idea that you know what message.
-- -- were they Carol hogs hogs arms.
I had to look at all -- from Jersey.
Also alive and I've been around with a -- I go to the county fair and suspenseful.
So what do you expect I mean are we gonna see the market now start to begin to stabilize find some equilibrium but what do you expect that.
Well I think that's a possibility we're getting toward the end of June which is the end of a quarter which is also called the window dressing period basically money managers say you know -- I really don't want to be holding on to those stocks that are really taken it on the chin.
So one might end up having a few more days in which to unload these stocks but then you know like pulling out on a -- rubber band we might snap back.
As we head into the beginning of the new quarter.
And so I don't really think we're going to be heading deeper than.
This may be eight to 9% pullback in all throw another three or 4% and there's -- -- think.
Yes because we'll look at let's face it we end up -- declines of anywhere from five to 20%.
Every year on average so it seems like it's something brand new whenever it happened.
And empirical we're -- start looking at sales results we're gonna start looking at earnings here now and earnest.
Some people are getting a little too cautious here about that there have been some optimism.
Some confidence around earnings in the coming out of this quarter what are your what are -- expect.
While S&P capital IQ expectations are for about a 4% gain in earnings in the second quarter.
And what we have found is that on average.
What we estimate in the beginning of the quarter ends up being light by anywhere from four to five percentage points.
So we might be surprised to the upside and -- gains of seven.
8% the only thing that is still disconcerting in my opinion is the expected growth in sales or revenues that's still pretty light and only one half of 1%.
We've been fighting men have a way forward for some time top line growth.
It's been tough to find.
In percentages were an all -- Exactly and actually in the beginning of the -- reporting period for the first quarter it was estimated we would see 4% growth we ended up.
-- one half of 1% so I'm hoping that it goes in the other direction this quarter but.
Unless we start getting a better picture on the economy etc.
revenues could still be fairly light.
-- Sobel is always good to see my pleasure --
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