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Earnings season beginning today all the majors stock indexes higher today my next guest says there will be interesting to see how these markets react.
As more negative guidance emerges.
Good test negative guidance unimaginable.
Joining us now Cantor Fitzgerald head of US equities bill Nichols voted here as being negative guidance my -- that's that's not inspiring.
Well I think you know the question is at what point time would matter you know I think the guidance is one thing and then you know what with the numbers -- -- report and I'll -- -- -- -- penny better so.
You know immediately the first company report -- things off to lay out -- start but.
You know the markets have -- under little turmoil the last two or three weeks and seemed to stabilize and now feel like they wanna march higher.
A penny better or we're talking about losses nonprofits in the market gets excited not so very I should I should point out too.
-- -- trading up lower in after hours trading.
Well what do you expect to see from these companies in the way of growth in earnings I give us a sense of you.
In the quality of these earnings.
-- I think that's the other concern is what's happening on the top -- it's one thing to sort of manage your head count and manage that through these choppy waters some reports solid earnings per share but the question is what's the real revenue component.
And you know is is there any real ability to you achieve longer sustainable earnings down the road I think -- have been very good about.
Being fish and and controlling other cost a question -- we see any real growth and out right now -- economists like -- slogging along.
You know up 11 and a half percent you know certainly not something to -- too excited about.
What is the principle headwind.
For the markets themselves of course but.
For the economy.
The foundation of that market.
And why can't we achieve some vigorous.
-- -- I think the headwinds are a little bit of uncertainty going -- about you know what the new Obama care system will be in terms of people's.
-- playing you know large number employees what that cost will be.
I'm also going forward looking at you know what's going on the deficit and how much the government wants to be involved you know in terms of no cutting their spending -- -- 759.
Billion dollars in deficit that's over that's up.
That's a big mark.
Down Vermont there we've been used to.
I'm just kidding of course they OMB.
The CB not terrific and four -- forecasting.
And that is great precarious and certainly for the administration for for corporate America.
But also the Fed.
I mean we've watched this I mean who where -- thought we think of the Federal Reserve open market committee is a bunch of -- -- That that we're going to have another opportunity this week Wednesday that we're going to hear from the Fed we're gonna get a look at them the -- -- and here we go again.
Well I think you just look at the ten year -- -- we got down as low as one point 4% which is clearly low by any standard historically low.
And the fact we've moved up 57 you still love any long term measure but that move it's such a short period of time one year who really -- a large part of that -- in the last two months.
Notes that sort of uncertain about where we've rates -- out.
65% jump -- them and them.
In that rate is stunning stuff and -- cause a lot of uncertainty in the bond markets they saw people kind of selling Dana positions in order but the stock market really stabilized by well you have to be you know I'm optimistic about the resiliency of the equity markets and face of that.
Think -- the ball mark and stabilize a little bit -- the bullish side of the story where the FCC some stability in the bond market.
Thank corporate American kind of make their decisions figure out what they're borrowing costs are going to be and make their business plans up for the future while we watch the bond market sell off.
Pretty strongly and and we also -- watched the market.
Faced some outflows and -- and funds.
I'd be expected to continue.
All the questions where those funds go so -- -- out of bond funds you know and and you've seen -- performances in domestic markets of largely stayed in the US.
The oil money goes in the cash and you still unseen real uptick in any.
People return of your cash so we have we certainly haven't seen -- rotation from the bond market equities have.
I you've seen a little bit out I think the last year's performance in the stock market is a little bit of -- of what I mean a little last a month or so we know what's the selling nothing meaningful now.
-- -- -- Appreciate you being here and and cross your fingers and hope your your your outlook as the correct -- -- Nichols good to have you with -- -- to be here.
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