Transcripts For FBC Markets Now 20131018 : comparemela.com

FBC Markets Now October 18, 2013

A great indication of how the market is doing, the Broader Market and it hit a record alltime high today of 1741. That is great news up 42 this year, 2013. What a nice run for the s p 500. Many names within it outperforming the overall market. Right now the Dow Jones Industrials up 8 points. As i mentioned, names hitting record, also take a look at google which impress investors as it crossed the 1000 mark. It is pretty fun to watch across that level earlier this morning. Trading at an alltime high of 1007 and change. That is a great run therefore google which has had a wonderful run year to date. Overall the market is looking pretty good, other names that have been hitting some highs, chipotle Mexican Grill. Overall a winning day as we wrap it up. Next week the first of our jobs report. Now that the government is open again, we can get those pieces of information, key information. Back to you. Lori debuting 85 per share now over 1000. How times have changed. The s p 500 as we are reporting off of the 27th record close coming off this year to new alltime highs today, intraday highs once again. Chief Market Strategist for lpl financial. Welcome to the show, jeff. How are you positioning today . Finally the job report for the month of september. Jeff the words of new alltime highs, get used to seeing them. You will see them between now and the yearend. If you have not gotten back in, get that reallocated the 401 k or the ira, the Government Shutdown is over, stocks are backup. You havent missed it. Clear ceiling between here and the yearend. Consumer confidence likely to bounce back. Better retail Sales Numbers in the coming week. The numbers were seeing this earnings season look pretty good. We are likely to see good guidance for the Fourth Quarter as well. By the upside in the stock market for the remainder of the year. Lori in terms of growth, what do you mean specifically . I am shocked the market has had such a bull run especially in the short term because we are not seeing robust growth. That is true. We certainly arent. Expectations were so very low. They remain low now. Were only expecting to see midsingledigit earnings growth. Coming and better than that. Expectations have been so low. We have been able to exceed those. Economic growth hitting 3 next year. What is that to get excited about. Lori do you see that foleys strength in Earnings Report because of the Profit Growth or will it be bottom line, more costcutting, and will it be as forgettinforgiving of companiesy beat the estimate if it is not due to Profit Growth . Top line growth . We had to see topline growth, that is the key. The key for the stock market. Fortunately we see that turnaround. The institute for supply management index, my favorite indicator of for profit and Revenue Growth is splashing a really good signal over the course of the next six months where likely to see profit rise. A Good Relationship between the isn index have profits over the next six months. Better Revenue Growth will be the key to pulling profits up over the course of the next year. Lori europe is on a tear, seven Straight Days of rally, the Euro Dollar Exchange shooting up to 137, a weakening dollar. A weaker dollar. We dont like to see weaker dollar. It is understandable with the fed, our friend, little bit of pressure on the dollar as is likely to be lower for longer Interest Rates in the u. S. That actually does create a more favorable economic momentum backdrop. Lori the china market is heating up again. And that is a good demand for our exports, no . China has been seeing some soft numbers. Hopefully we see it pick up again. They were really worried about what they shutdown and debt default can mean for the u. S. What it can mean economically for the exports that may be improving as well. You are right. Lori no slowing down, buying into the market for the Fourth Quarter. See you very soon. Thank you. Adam the Government Shutdown put a tapering as some believe it could now be march or even later. Peter barnes in washington, d. C. , with more for us. Peter . Icon is predicting the fed to start dialing down 85 billion per month in qe bond purchases tapering the purchases later rather than sooner because of the Government Shutdown. One problem is the data delay. Announcing yesterday it will finally release the jobs report for september next tuesday, two and half weeks late. The october jobs report back a week november 8. Inflation reports have been delayed as well as a result richard fisher, saying for those who really look at the data, it is going to basically delay thought of changing course. It is not just the delays of this report. Federal reserve bank of cleveland says the shutdown will also affect the accuracy of these statistics for months to come. The repercussions will continue for at least seven months because of data collection. That has some economist pushing the taper to the feds december meeting at the earliest, but with physical battles pushed back to the new year because of this deal this week, Barclays Capital says the shutdown may also delay the paper by slowing consumer spending. In the real economy, households that rely on payments from the government may take more precautionary action to inflate themselves from potential future disruptions. These effects proved to be economically material, a delay of fed tapering and the 2014 would seem likely. Adam. Adam Federal Reserve governor speaking this hour. Expect to have anything to add regarding the talks . That speech is just getting underway. He is focusing on Bank Regulation and too big to fail banks. The governor says the fed and the fdic will propose in the next few months to require Bank Holding Companies to hold loss absorbing debt that would supplement higher Capital Requirements and help prevent future taxpayer bailouts if the banks get in trouble again. At them. Adam we will see how the banks react to that. Thank you very much. You bet. Lori u. S. Money market funds some of the biggest outflows last week since august of 2011. Reporting investors poured 43 billion. A government could on its debt. While we could see some of that money come in, the next shutdown could be 89 days away leaves some folks on the sidelines. Adam commuters in San Francisco faced heavy traffic and delays get into work this morning. Traffic workers went on strike for the second time in four months. Officials failed to reach a contract deal and talks have dragged on for several months. The latest round of negotiations broke down because of differences over wage increases and new rules on limiting overtime. Lori more problems for the obamacare rolled out this going beyond website glitches. Health insurers say they are getting flawed data, and that is reducing their ability to process and relief. Including duplicates enrollments and spouses reported as children. The longer it takes to get these issues resolved, the longer it will take people to get back to signup. Insurers taking a big hit in todays trading down by 2 , 3 . Adam remember the General Motors added like a rock . What do you do . You raise prices. What . Gm raising prices to increase sales . We will show you why. Lori Chicago Ohare International airport new runway open for business. We will take you there. Adam how about stone you like a tornado . Hoping to follow up on the success has a movie about flying boulders and they jumped the shark, wouldnt you agree . When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our r commitment has never been stronger. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. Lori Chicago Ohare International airport tops the list when it comes to delays, cancellations and overall traveler headaches. All that may change when it comes to a new cemetery runway. Our very own jeff flock on the scene, calling it a cemetery runway . Jeff here is the deal. Not because of anything that will happen to you after you take off. The new runway out there behind me, maybe you can hear that plane, cannot see them too well, it is built over a cemetery. 150yearold cemetery. Take a look at the map of the runways. Maybe you see what the concessionaires. There is also when it comes to congestion, ohare is still number one. Take a look at the numbers from the department of transportation on the Worst Airports for departures. The Worst Airport is ohare. 67 of the flights take off on time. Midway second. Newark third. Dallas is forth. Got to wondering where is a good place to take off from. Take a look at these numbers on the best places. No cities that we are anywhere near. Number one is portland. 87 of those flights take off on time. Salt lake city, seattle and phoenix. Best places to fly from. Next hour, the best places to fly to. Airline stocks a big day for a lot of stocks today, but many Airline Stocks say hitting 52week highs, among them, what do you have my list . Usair, delta, united. United a big carrier here at ohare. Up 32 year to date. Before i go away i will tell you i checked the departmen departu. No delays today. Maybe it is having an impact. We will keep watching. Lori thank you for bringing us those updates. Adam we will get out of the humor business, i will keep my day job. Timtime to check the market. Covering the trades, ben willis on the floor of the New York Stock Exchange. Phil flynn on the pits of the cme. This is another record day for the s p. Are people overly optimistic . No, dont think they are overly optimistic. They may be getting a little ahead of themselves but the introduction we had from our elected officials interrupted what had been an uptrend. On the s p last month, that seems to put an nice bottom in place for us to continue the upward trajectory into the end of the year. Adam phil flynn, oil searching for direction even as we get up its numbers out of china with growth to the economy, why are we searching for direction . The oil market seems to be decoupling from the rest of the commodity complex. The reason is very clear. If you look at what is happening around the globe, geopolitical risk premium is probably at the lowest level it has been in decades. Add to that u. S. Production near record high, near record high, big production in the middle east keeping the cap on this market. Again maybe the oil market is going to get away from the risk on, risk on mentality we dealt with since the financial crisis began. Adam i want to go back to something you said about revenue. I thought revenue would be the big player and people would be upset with what we see. I want to pull out General Electric. What propelled the stock was the backlog of orders. If you cancel the orders again what am i missing . Sounds like people are overly optimistic. Youre not missing the point and revenue. But on the exchanges the stock market look forward, it is a backlog of orders the market is looking at an something indicative of an economy, the World Economy improving. Nowhere near as quickly as it has in the past and nowhere near as quickly as we would like it to. Given the fact of the matter the fed is going to have to taper at some point it continues to tell investors with the longterm horizon they need not be in bonds and needs to be inequities. Adam now i want to go back to phil flynn. Golgold is on track for a gain r the week. People should be inequities. What would you say . They are both good, what the heck. Why not buy in bulk, and gold has gotten a lot of people confused this week. Everybody was so negative on gold, the risk trade is out, as we got to the government crisis gold had their best week in a turnaround. There was one person who came out with a very strong accommodation for gold. The ecb chief asked him last week fed chairman ben bernanke said we dont understand gold, but mario druggie does. He says he doesnt understand why Central Banks would be selling gold. He says it is a very good hedge against the dollar. The magic man who can stop an economic crisis with a few words that he can start a gold rally with the same kind of recommendation. We will see. Adam thank you both for joining us. Thank you. Lori ca cant say it enough, he to watch the dollar against the euro strengthening to 137. Analyst putting it up to two. Some significant moves may be playing a role in rising commodities today. Just thought i would add to that discussion. We want to take a minute to thank the fox business listeners on sirius radio because beginning today you can catch us, listen to us while you work on 113 for the latest financial news. Dont miss it. Adam wh we want to bring up to date on this. Raising prices to boost sales. Economics 101 head scratch or if i can learn to read. Coming to a gm dealership near you. Lori jamie bonds submarine car hitting the auction block. Wait until you hear who bought it. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Ido more with less with intbuss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. At 23 minutes past the hour, this is your fox news minute. Former House Speaker tom foley has died of competitions from a stroke. His wife says Washington State democrats died at his home in the nations capital. He became the first speaker since the civil war to fail to win reelection in his home district. He was ousted in republican revolution of 1994. Tom foley dead at the age of 84. Nsa leak or Edward Snowden says no chance of chinese or the russians got hands on secret u. S. Intelligence documents. He tells the New York Times brought no documen documents wio russia. The document have at least numerous stories about u. S. Surveillance activities. And in sports, Russell Wilson threw three touchdown passes as the Seattle Seahawks beat the Arizona Cardinals 3422. Seattle improving to 61 and a game and half lead over the San Francisco 49ers in the nfc west. Arizona fell to 34. Those are your News Headlines. Now back to lori and adam. Adam thank you very much. General motors making moves to pick up sales in the pickup trucks. It is counterintuitive, but it is raising prices. To get potential buyers a rebate. Is this all a gimmick . An auto critic for the detroit free press. Thank you for joining us. You guys in detroit understand how the manufacturers price their products. I always thought rebate were a bad word because it cheapens the brand but indicates theyre having a a tough time moving products. What is gm trying to do here . Actually rebates have become part of the cost of doing business. Every new vehicle just what introduced with some kind of a rebate on it. Part of what people expect to see in advertising. Since they went on sale three months ago have been selling very well. The prices they get at the top of the industry. What they are called the transaction price is the price of vehicle actually sells for after rebates and all that stuff. Chevy and gmc trucks averaging the highest in the industry. More a case of raising prices because we can and no longer have to talk about having the rebate so they can get people a deal. They seem to have played the hand pretty well. The trucks have been well received. Adam in comparison to ford and somebody who doesnt follow the sales portions of the car industry as closely as you do, who is selling more trucks, ford or gm . Ford is selling more trucks, which has been the case for years. General motors has picked up a couple of points of share this year, which is difficult to do especially with trucks. Pick of owners tend to be phenomenally loyal because they use the trucks for work so much, they cant take any chances so they stick to something that works. Gm managed to pick up a couple of points of shares. A new truck is coming next year, that is helping gm as well. Adam whose margin of profit on the truck is better . Right now, General Motors. Gm was averaging probably about 2500 higher. That will have

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