Also in this playlist...
This transcript is automatically generated
-- PL financial thanks for being -- yet so -- outlook on earnings have isn't that good but haven't we seen a bearish outlook on earnings kind of turn more positive as more reports came in and more recent quarter.
Yeah well you know would take a look at as we -- evolved through the earnings season.
You know you tend to get a little bit of an upbeat tone once you get past the first couple weeks and -- get a lot of the first reporters -- listen this is.
Just before their fifth quarter in a row.
A pretty light revenue and earnings growth and I'm afraid we've got more that to come here as we look at the second half expectations are still in the eight to 12% range for Q3 Q foreperson 500 profits.
Don't think we're gonna see numbers that strong so expect those numbers still need to come down it seems like one thing that may be happening more broadly.
Is that all of the cost savings in the cutbacks at the companies went through.
And the downturn which raise productivity and raised their earnings.
Back to be running out and I can only cut so much and now they need to see more demand when he sat.
Yeah that's the key corporate austerity can only take you so far it's -- see some growth but unfortunately we're still seeing in -- number varies.
Is this still -- focus on and on austerity we heard from some of the financials JPMorgan still looking to cut heads.
As the try and make -- make their bottom line look a little better relatively light top line.
This is a problem across corporate America is one of the things holding us back we're not seeing a lot of revenue growth and unfortunately outside the US we just can't count -- much growth there either you're -- you're seeing that in technology land.
Not just with Microsoft which has its own problems but you're hearing at other places as well.
Oracle for example not a lot of great demand overseas and some currency issues with the rise in the dollar Beckett -- -- in the second half as well and yet some of the banks had just blockbuster.
Huge earnings up 40% 30%.
What's not to like if this -- sector by sector uneven spiky thing.
Are you seeing -- general Malays and -- across the economy because I wonder whether you be in too pessimistic Jeff.
Well I Dicey a general Malays but listen you -- financials had a good quarter but that's really looking in the rear view mirror because what they did was they actually.
Tim -- their loan loss reserves and that's really what -- their earnings numbers the fact they're reserving a -- against losses right so you can do that might be able to do that for another couple of quarters but the reality is there's not a lot of loan demand out there.
Net interest margins are rising right so they're making more -- well but they're not making enough loans nor the scene in -- transaction revenue to really turn things around and a big way -- -- we had thirty of the S&P 500 companies thirty report last week media -- so this week.
Overall give -- a guest what is it consists assessment on combined earnings of the 500 companies in the SP 500.
And what do you say it's gonna comment at at instead out for earnings.
The expectations are for about two to 3% growth we think -- may be more around five but the markets I think been counting on something a little bit stronger and -- -- was the Fed will have to seal it all shapes up.
What are the -- who will listen for our share buybacks that so we're getting deposit numbers at all corporations have been the big buyers of stock this year not individual investors and that's just their earnings per share numbers we'll see how much the -- that yesterday we heard from Morgan Stanley.
A new buyback authorization program.
That's been a key getting the positive numbers again will be listening for those as we look to the second half it's pretty good strategy.
They'll buyers out there the companies -- by an actor and shared -- -- -- -- the Wall Street -- few weeks go 300 billion dollars and announced a stock buybacks.
Even though we are near all time highs in stocks is that.
A good idea for companies be buying back so much stock when a lot of their -- -- all time high.
I think -- question here where were they when they were at all time low is right we certainly didn't see the buying -- I don't think we're at the end of this rally he can't say that stocks are.
Overpriced -- neither overbought here in the near term -- due for a little consolidation.
But not overvalued.
Valuations on a trillion bases it.
-- fifteen to sixteen times earnings not expensive -- on a forward looking -- may -- only around fourteen and a half so it's not a bad idea for them to buy some shares but I'd rather see them do some hiring and some capital expenditures instead OK Jeff -- -- thanks -- -- with -- that idea.
Filter by section