Third, boy, is it ever in the way even with record numbers after a day with the dow losing 79 and s p advancing and nasdaq gaining, the last two both records. You need to understand that the government has become the one wild card in this market and does reek havoc on all sorts of stocks last fall the fed created its only personal bear market because he told us he might need to raise Interest Rates over shooting to stamp out inflation, which at the time was nonexi nonexiste nonexistent totally out of touch and crushed the market powells rookie mistake almost gave us a recession but came to his senses in january and changed course but we never should have been in that position to begin with thats what keeps happening. We never would have gotten in this mess with janet yellen. She was day to driven and understood the power of her words but even though president trumps tweets are about lower Interest Rates and maybe having some effect, i dont know. Remember what he did he sat janet yellen
The president criticizes the fed and europe as powell testifies this week. Deutsche bank announcing massive job cuts, exitinging Global Equities business, a highlyanticipated 8. 3 billion Restructuring Plan, but will it be the last. Another controversy brewing at starbucks well tell you what has the company apologizing this morning. Late last week, the s p was at within striking distance of 3k. Since the release of the stronger than expected june jobs number on friday, stocks have fallen on dampened hopes of a fed rate cut as the chairman prepares to testify on the hill later this week the president ramps up his criticism of the fed over the weekend. Take a listen. Despite everything, theyre not doing well and were doing great. Theyre not doing well at all, were doing great. Were taking money out and Interest Rates have gone up. If the fed didnt do what it did or even half, we would have the dow that would be as good as it is, it is doing good, but we would have a dow that would be any
Following yesterdays rout john ferroli and dan sculley join us. Happy friday to you both a lot of debate this morning about the jobs number, and the degree to which it tilts the macro debate whats your take its more of the same, which is strong job growth, low unemployment, but disappointing wage numbers which is the story weve seen a bunch of times over the last year or two i dont think this does much to resolve the debate growth looks good. The question is where inflation is going the wage numbers dont scream out that theres a whole lot of inflation worries for the nrt nearterm. Dan, do you agree how long can that dynamic last i would say we had solid news in particular in the manufacturing jobs sector this morning. We may continue to see that as we get infrastructure announcements into january potentially some changes in capex trends as we have fiscal tax reform and tax changes the broader takeaway for our team is that were seeing a rate of change inflection in job growth going back
Ahead. Abigail, a sea of red right now. Day, sharpbearish declines for the dow, s p, 500, this selloff has been pretty sharp and swift today. We have the smallcap index down about 1 . The russell 2000 higher earlier today. Doing a bit of a bearish reversal as tensions with north korea escalate, as scarlet was mentioning, uncertainty around d. C. Lots for investors to contend with today. The major averages on pace with her worst day since the middle of august. No one point, the dow had been on pace for his worst day since the middle of may and that is true for the 10 year yield. The 10 year yield drops, that tells us even bonds are rallying, down nine aces and. Nine basis points. Point, the 10 year yield had its biggest drop since june of last year. Could affect the fed. Either way, this is affecting the Financial Markets and the fact that financials, that the worst to sector on the day. S p 500 Financial Sector down about 2 . These are bigger movers within that sector. Lots of red here
Triple digits, just shy of a record for itself. And were about a quarter of the way through earnings, with 74 of Companies Beating estimates, about 10 higher than the average for the quarter. So is this market about to experience earnings euphoria, guys yes, we have hi, dan hey. Hey thats an inside joke no, i think the market has been experiencing that as well. The vix traded almost below nine today. I think it got down to 903 and the good news is, i think that companies that have been doing well are being rewarded and companies that are not faring as well are being punished you see mmm down 5 today. The earnings we saw that were outstanding were, in fact, outstanding. Led in my opinion by mcdonalds. We talk about it being a 160 stock. It got within 2 cents of that today. Cart pillar continues to surprise me to the upside. Ive been a skeptic for some time but theres no denying when saying that most of these reports, three of four, have been very good karen i agree it looks to me like t