Jul 26, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This is the financial exchange with the Barry Armstrong and chunks of you're exclusive look at business and financial news affecting your day your city your world. Stay informed and up today about economic and market trends plus get breaking business news and every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. Ask not for whom the opening bell tolls it tolls for FaceBook and unfortunately. Not Facebook's best day as a publicly traded company in fact it's likely going to end up being their worst day as they publicly traded company. Weinke is all said and done. We've got chuck Jon and soccer here today and John what's the let's look at phase would this is. I think the biggest story of the day because. Had to go back through though the last decade just kind of looking for any instances that we've seen of something like this. I have not found a company that was worth as much as FaceBook was a really any company that gave away. A hundred in twenty billion dollars in market cap in a single. Minutes this is a thing it's such a big company and such a big market cap we've seen much larger declines percentage wise were if you. Had 101000 dollars invested you'll lost you know 5000 dollars overnight that does happen. Will we not seen those companies who lost last night at one point in a very brief period of time a 140 billion dollars of value. To put that in perspective a FaceBook obviously is the number one social media platform. They lost the equivalent of four. Twitter corporations. In the course of about a half hour after the market closed. What that translates into its largest shareholder and founder Mark Zuckerberg was a sixteen point eight billion dollar personal loss. That's just hungering that's never happened. One and you may its terms of total dollars and that you mention that they lost you know fort twitters that's one way to put it when you look at some of these other companies. An and in you kind of go down the list in terms of you know what companies are equivalent to what they actually lost McDonald's. McDonald's C great example York anywhere in this rain suit tubby tummy you'd think that of these companies are big ones IBM. McDonald's. Nike. 3M. Honeywell. General they lost one point one General Electric. I can understand the stock paying off 10% on on the fact that the revenues were quo with the expected costs were much higher yeah idea that we legal and that. This was extraordinary because the conference call is when the market just punish the owner Laurent. And what really I find troubling as an investor is. It was the third speaker in the conference call Zuckerberg said yes things are finally had a great quarter Yani you know Sandburg came in and said. Here's a couple more things and things are fine. The CFO comes on and like one blockbuster. After another. Just saw this stock EEE. Margins are gonna get awful you know revenue growth is gonna slowly just one afternoon it's big big big give me being eight in what concerns me is. Did all this happen like an hour ago why did they not warn Wall Street. Why did they don't want warn people who were buying the stock. That hate our expenses are gonna be 50% higher next year. On the issues we have been dealing with the EU are gonna cost us a fortune. Investing in the infrastructure to deal with the privacy concerns. Why didn't they tell us that margins are not only going from 47 to 44% which would freak U out but c'mon three speakers into the conference call and say. And they're heading to the mid thirties and the gonna stay there. I mean this is like bombshell stuff hidden in a conference call. And any and you figure again that this is something that they probably knew. 234 weeks ago and you gotta tell us and so the problem is you know this is a stock that was trading a 195 bucks a share correctly go NC go back to you say. Look you could say all these investors who bought in at 200 Julia and you know ball. And deal people say oh investors have to be responsible and look I get that. But if they company knows that they have something that is going to fundamentally altered the DNA of how their company is viewed by 20%. They have an obligation to to be able to say look this is something that's coming. We don't have the final numbers yet yet but expect that this is gonna be something that we guide to. And then all of a sudden you say OK so FaceBook on that they might plunge seven or 8% to. And then yesterday made it kind of stays flat because it already done that little 73% plunge didn't go through the ten. That this was one bombshell announcement after knows that came out after the close trading last night. That was not directly related to this earnings report yet to do with the fundamental operations at this company. And you know when I start think you'll get where we stand right now I mention this that the real problem here's all the people who bought the stock between 170 and 217 dollars a share. They bought it assuming certain basic fundamentals. Had they know that the business was fine. But the gonna have to spend 50%. More to keep the business where they need to to get it to be if they had understood along these. Important facts the stock never went to that in we'd be like you said you know a slight down downturn and be trading like it's okay a 170 is a good price. And again this isn't something that caught FaceBook by surprise because a lot of this is related to changes in Europe with regards to privacy regulation called the general data protection regulation GDP are. This something that went into effect on May 25 the companies have been preparing for it really for the last year or so. They get at that there's no went out there aside from maybe Google that has more information on what is going on on line than FaceBook right. The fact that they would not claimed that the fact that you know they could even make the argument yeah we're just gonna wait till conference call we didn't know for sure until. In this stuff a month ago and this two outs and they probably knew this six months ago to be completely honest. You know it's either it's either that they had bad intent. Or they're not very good I don't think I business and LT I would not under it in either issues of concern. I wonder if these people don't understand business and finance and Al beaver that their technology people for for more soccer berg to go on that conference call. And say we had a great quarter. Every young looks really good Inkster Graham is doing fantastic messengers doing fantastic revenues were up 42%. Happy days are here and then to have their chief you know and the sheriff's Hamburg and the person number two person go on and basically reiterate that everything's fine. And then have the third speaker. Deliver bombshell after bombshell in the just sit there and like you know totaling that bodes. He is is that is this just utter stupidity. This. This raises serious questions it's OK if it's one of those cases where the two answers are well there's three answers okay that there's incompetence bright. There is. I guess Howard is that you don't want to be the bearer of acronyms you know that that that that's the other when that that's not exactly what bill does he let her tell you exactly or. Bad intent. I guess it. Based on what I see here I kind of write off bad intent I didn't really. They didn't hide this for the entire Coleman just dump it in like a footnote somewhere in the quarterly report so I don't think it's bad intent but that leaves. A company it's a Howard isn't even when those really what you want from a business leader. There you know there's been concern that. More adults were news in the remote FaceBook and not just FaceBook a lot of these companies that we come out of nowhere. Entered into multi billion dollars or Saber supposed to be that adult exactly. And she was not gonna she was not on this conference call the person delivering. The goods. And that would be a concern to me it's if it that would passing the buck it's like this is the. This is awful that no one wants that that's the way I look at it. Do you what game thrown ball. No I don't okay well in in a go very very is identified me as one of the thirteen people in America is on definitely I'll I'll go to the first and where we're pretty much but one of the key takeaways from the time. When the key take which means the first episode of the first book is look if you're going to dole out the punishment you've got to be the one its wings this award. Listen if you have bad news that you've got to tell you gotta be the one to tell OK don't punt that over to the CFO that no one knew their name before today because no one cared. You say it because your Mark Zuckerberg hey you've got to stand up and do absolutely and that's what we. Ability as McChrystal took to be fair. This kind of the first time they've ever had this problem. In and so I I almost give them somewhat of a pass because look they've made the mistake now. Don't do it again. If they make the same mistake again from a communications standpoint then there's. Not trying to get in the pass on this but it really hasn't had any bad news. In like six hours in they've grown enormously even this report. I mean. Let's look at some of the positives they did grow revenues 42%. Yeah it it's impossible for company that size to be growing revenues 42% they're doing and I know you're racing to beat number mr. Graham has been a huge success although there one negative cheers. There having issues with something called instead grim stories. Now monetizing that getting the revenues they got an idea how to get revenue off that you have like everybody's using a they can't find a lot of ways to make money that problems have chats saddened by the way is it to knock off of snap Chad. And maybe it's a problem that FaceBook should've had. Had they respected people's privacy that's the bare argument is that FaceBook is making a lot of money. Awful of your privacy. And when we take that away and we allow users to opt out of they're following you everywhere yeah it's very hard for them to make money and that's the at the core of the problem and the biggest issues I think big picture here is. We may be looking at peak social media in the developed world. United States the user base for FaceBook. Flat lined for the first time ever in the United States and it was down in Europe. In part a which in large part because of the privacy concerns but we seem to be a point where everybody's got it. And the kind of get a little bit tired of it in the kind of getting bothered by the privacy issues. Even if peaked this takes us over. You can vote if you are driving a want to vote just pull over to the side of the room please Smartphone and go do it there. But on financial exchange showed dot com you can vote in our poll question of the day. How often do you use FaceBook and we left the word used in naturally ambiguous to some people just go on and reaping some people post things but how often do you use FaceBook daily. Weekly or monthly we had talked three is also an option for Nolan. Dallas thing about it's an option for not because there are people who I don't used at all but daily weekly monthly or now I I don't use it I am. I'm I'm a weekly user are probably checked in the big two or three times a week. I usually look at a couple things that people were doing I don't think I've posted anything in like six to eight months now and then that's kind of my standard operating procedure. And you know I would not be good personal poll on this because. It would not reflect what's happened in in my life which is that I'm using it daily. But I rarely now post status updates. And I use it daily just to find out what's going on and that amount. I mean so Mike usage per day has probably gone from eighteen minutes down to two minutes. I'm gonna start it they just live blogging everything you do on FaceBook just had loaned spell well. This is not under. Thinking about eating something else that that was the first year FaceBook regatta those stances. You'll be elect chuck exotic is. Tired still in the bathroom pass tag long day Michael back to Linear status of like 2001. Meter center public you know. It's everybody stances. Tupper Silva is more or something like right at all and it's having lunch at home yeah. Having worked with no location really hard time falling asleep anyway and having good ideas. As Derek. Can't sleep has tag work's gonna suck at tech got warm milk. Good idea that was like the origins of a social media and then it turned into basically a political hate fest yes it's like if you don't have a hateful thought. You don't have a reason to be on pace yes it's politics. Humorous videos and these puppies and cats and moderate political opinion that's as outlaw and dance praises. The transcripts. Would vote like the Harlem shake. You remember that oh yeah I remember that I guess that's on FaceBook and they get all kinds of stuff like that so. But our poll question we're gonna take a break will be back in just a couple minutes on the financial exchange radio network. Have a question for Berrian junk. Now you can text us at 63566. 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We're talking a whole bunch of FaceBook today is the stock continued. To decline now off. Eighteen point 6% for the day by the way we did pull you list of the U largest market cap lost. On a single day ever. If FaceBook is north of about ninety billion dollars it is going to be the biggest. Single loss ever for market cap. Surpassing Intel which lost about ninety billion back in 2000 at the height of the tech bubble. Microsoft apple Exxon GE alphabet and Amazon also all north of 38 billion in a single day. But FaceBook right now off close to a hundred in twenty billion dollars for the day down almost 20% of its market cap. John let's let's talk about and let's talk about that the there's two issues that specifically FaceBook is dealing with right now number one they've growing expenses number two they have no profit deceleration it aired revenue deceleration is still growing revenue right. But they've said it's not to be as quickly let's look first at rising expenses what are the big things that are actually. Costing them more money. They're saying there costs associated with. Making this a more privacy friendly environment that there's a lot of investments in infrastructure they have to make. And the other thing is from a revenue perspective. There they make a lot of money knowing a lot of personal stuff about you. Yep and the EU. It's a bigger deal than we think because you know the EU actually cares about privacy concerns yes the US does not US won the Ozal like you know they know everything about us just be careful. I it it's increasingly clear that people are very concerned. About privacy. And where this really hurts FaceBook on the revenue side news. It makes it much more difficult for them to sell advertising to advertisers who can't get this personal information about you. You use FaceBook for free because they make a lot of money off your privacy is something is free you wore the product correct and an. One previous conference call. Sheryl Sandburg was pretty. Pretty open about this and I was surprised. She did discuss the possibility that FaceBook would start charging people. Who wanted to opt out in terms of privacy. Which solar you can keep your privacy issues private. But it's gonna cost you X amount of money per month to be on FaceBook. That may sound ridiculous but she was saying if we can do that. We can't afford to park provides this wonderful service to you for free which confirms it's not a free product we're selling our privacy by using. One in in along those lines you know we're talking earlier prior to the show today. And we came to the realization both was kind of said this where we said. I want to leave FaceBook but I don't feel like I can end. Anyone who's ever known someone who either has smoked cigarettes if you smoke cigarettes yourself yeah. That exact sentiment is often what is expressed I want to quit but I don't know how I want to quit but I can't I want to quit but I just I can't stop. And we've we've we've joked about FaceBook being the cigarettes of today the 20% and I was able to mention that to you and you said you know John what you're talking about sounds a lot like exactly like addiction it's I know this is hurting me I know it's useless I know it's a waste of my time I know it's not contributing anything positive but I can't stop. And in the early days who separate if you use moderation you'll be okay. And we're telling people if you use social media in moderation you'll be yelled hey you might not be. I go back to and I wish to pronounce his name but the co owner of the Golden State Warriors. Who I again I can't pronounce his name but he was in front lines he was involved initially in helping build FaceBook in the early days. And left the company after a couple of years and he said we knew we are creating FaceBook. We were creating a monster that would have adverse impact on society. That would be very difficult to consume in terms of its impact on your health and he said I don't allow my kids to use FaceBook. I think it's dangerous I don't think it's helping we've seen stories about the isolation that is created the depression it's Korean among teenagers. And and adults. On there's a downside to this and it's it's a more monster that's being created almost overnight and we really don't know how to consume. And it it doesn't give people what they think it does people think that it's OI get this great opportunity to connect with all these people in this in that. It's really hard to actually connect with someone over FaceBook because you're not you. You're that you that you display two years old world it's you know no one ever sits there. You don't see someone after their father dies just crying for six hours straight on FaceBook you see in Salem release or I'm sad that I lost this person and it so much to me. You're not their console them and you don't see people at the realist you don't see people. At the true highs and lows you see how they decide to present it after the process. And there are people who consume that who think that is reality. But and it us and it's not most of us direction now. We're gonna take a break when we come back we'll move away from FaceBook we're gonna talk a little bit of trade here on the financial exchange. Like there's something. I was on Twitter. Show breaking business news is always first right here on the financial exchange radio network. Are you having problems the blocked sink or drain. What a leaky Foster a shower. 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Or you can download it right now on our website at legal exchange showed dot com that's legal exchange show dot com. Hi this is Barry Armstrong and if you're a landlord or property manager I'm sure you've heard me talk about Z rent leader banks tremendous on line rent collection program I'm excited to tell you now about their brand new product called Z deposit this is another free program which streamline the opening of tenant security deposit accounts three totally digital experience with C deposit landlords can open an account online invite tenants to entered their information and manage all their security deposits Z deposit also automate many of the compliance headaches for landlords such as generating account disclosure forms and will even send out annual interest payments directly to Tenet's -- called the Z deposit team to get started at 7816418691. That's 7816418691. Or visit them online and see deposit dot net member FDIC leader bank a step ahead. 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Or -- leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency god guaranteed by the bank and may go down in value leader back a step ahead this is a special announcement for -- landlords chasing -- only rent payments and making trips to the bank to deposit checks -- -- hassle out of round date with -- and leader banks all -- rent collection -- he -- automatically -- tenant's -- and deposited into your account visit WWW -- he -- dot -- to learn more -- see rent your payments for each unit received regularly on the same day every moment tenants pay nothing in the first six months -- free for all landlords visit WWW -- see rent -- meant to learn more or call 7816418691. Time now for the street watch a look at the market's performance so far today until Bulgarian joke right here on the financial exchange radio network. Like Armstrong joins us now on Wall Street watching Mike we've got a few different help. And these two looked at today. Let's start first with the Valero well I see there about three and a half percent basic good news for them I'm assuming. Yeah world's largest petroleum refiner. They'd be. With profit to fifteen shares are being sent by about seventeen cents. Revenue well above expectations. It up their revenue is up. Nearly 40% year over year net income up two to 3% compared to last year religious and big investments that are paying for them so showing it in the earnings and like you mentioned stopped stopped abruptly. Ford down four and a half percent and oh they reported earnings must not have been too good for them. Correct. And revenue is all right but really cutting their forecast or forward. Mainly due to trade tariffs so a second on America that's sightings and as a potential problem. Yeah so worried as you mentioned stock down about 4%. And then Mattel is down seven point 2% as well this is a company that is really had some struggles in the last couple years. What's the latest from them. Yes so both then and Hasbro have been vetoed trying to deal with the closure of Toys 'R' Us which was there mean. Nationwide supplier of Torre's. Hasbro's seems to haven't figured out and they lecture ported. You know lost because of it but not as big people were dissipating Mattel on the other hand report a loss there's a lot bigger than analysts had been projecting. Revenue missed as well and they're going to be cutting 2200 jobs which is about 22%. Of its global workforce so stocks down. Over 7% at this point. Very good thank you Mike. That is Mike Armstrong with Wall Street watch we talked a whole lot about FaceBook today so let's move off of that for a little bit. Let's go to visit trade we had a big meeting yesterday between now president trump and the European Commission president John Kline younger. I was corrected by and said jumpers yesterday it looked like Tucker it's it's junker but I I I always like saying junker but it's it's it's it's junker. So trumpet new Yorker. Tiger which would be great name for a law firm by the words column junker for doesn't work out yes but for now he's a younger. If so I just have that the humor the cash for clunkers program or so especially since this is all part here is just. Running through my head right that was one of the great names of all time just for Parker was that not the it was. It it resonated if you really want to but so that they said down yesterday and they had a little up how well and we got all kinds of warm if he's coming out of this. I'm not sold I I like the fact that nothing got worse yeah. But we saw this between in the negotiations with China even earlier this year where in May. I think it was Treasury Secretary minutia today we put the trade war on hold and all of sudden next two months on a ramp up pretty quickly so. I'm a little more optimistic on this one just because I think there are smaller issues to be dealt with yeah been dealing with China. It's hey we want you to put more your automotive factories in America late we've seen new Toyota and other companies do. We want you'd to import more soybeans and it's it's it's relatively straightforward compared to the intellectual property and that we. See from China. Yeah and you know there's a couple of things number one I was watching CNBC win win about an hour before this this news conference happened. And the stock market went from unchanged up to almost 200 points. Because rumors were coming from their side from the European side yes that. We have a great deal coming. Round so again this wasn't our side which we've seen before our side putting a smiley face on something the European side yet and that's really good news because it wasn't just us putting a smiley face on something that may or may not be that positive deposit the fact is substantively. We do have that the EU will buy more liquefied natural gas yep we have that the EU the EU will buy more soybeans this is really good news for farmers. The bad news is. He neutral news there's not information about the auto tariffs being. Not implemented or reduced or or or taken away. But there isn't the real good new series. There was. The indication that the gonna put the auto turf discussion on hold. Pending further talks so that the whole year chuck is much more positive but we're just a week ago. The president was talking about the EU using words like enemy. Right hole now all of a sudden the talk is about the EU as someone to engage in talks as our friend that's good news. So you know what I think is the the biggest piece out of all the ones that you just mentioned there. What BO NG but now don't ask just just because he you have this this pipeline that rush is trying to build to connect a larger pipeline over into Germany yeah and I think when it comes to energy security and also. Keeping those dollars away from Poland to Russia. This is a a big piece there and I know just gets mentioned alongside O we agreed to you know hold off on auto tariffs. The LG is a. Big piece there in my opinion no question about that at anecdotally 111 observation that's worth considering we're gonna get a monster GDP number on Friday we know that. Somewhere between three point eight and five point two it's averaged a four point 2% yeah. There are some one offs in that including the fact that inventory which brought the first quarter weighed down. It's gonna and it went on to this yes of trade and inventories were 2.2 percent which is a lot. But here's another factor is gonna artificially boost this number. You have foreign countries. Biting our soybeans like crazy right now is they don't know if they're connected they're trying to stockpiled saying we don't know for going to be able to get these going forward and think about all the products that companies are buying like crazy. Knowing that the price could go. On August 31 so there's a little bit of artificial demand going on right now on a perceived fire sale in advance of of a higher tax well. And this is why I went when we get the GDP report that the of peace that I want to see more and anything else partly because it's a really good leading indicator of where the economy's going yeah. Gross domestic private investment how much money is actually being invested into new production ended in a new capex what's actually happening from an investment standpoint is. All the things about demand and inventories and things like that. Those are gonna fluctuate in and those move based on the you know things that happen in any given quarter the private investment. Is companies coming and saying we wanna be here for the long run and for the last six quarters we've seen steady increases in that number. We wanna we want to be able to continue to see that this is where we'll get the real measure pay and finance sales to this is the measure of hey how have tariffs actually impacted thing. But in terms of our economy we should point out and in what when the numbers down the ones we point out a lot of these one off things work against it. Would you look at as a trend line and the good news is there's no matter how it comes out it's going to be a a monster number on Friday. We've gone from a trending around 2%. To trending around 33 point one that's a substantial improvement and that is sustainable. The four of five numbers but we had a four number all four number in 2014. And we had another number right like that 2016 so. It's not like me I'm reading some of the stuff were happy days are here again. And I heard once saw one guy say it's four point eight now it's going to be higher you're not it's not going to be higher a year from now. Yeah by the administration forecast it's going to be a lot lower a year from now. Folks it is hard to find a bank that is checking and savings accounts that can provide a decent return and if you're in the market for one. Look no further than leader banks Zuma rewards account qualifying customers get 1% back on debit. 10% back to feature business is no minimum balance required and no monthly fees but that's not all. There Zuma savings account has a 2.0 5% EPY. That's 2.0 5% in great perks for Zuma customers if you're searching for great rate. It's time to call leader bank 877. 6917900. That's 877. 6917900. Minimum deposit opener and EP why is ten dollars 2.0 5% AP wire mass residents only. These may reduce earnings rate subject to change that noticed member FDIC. Leader bank a step ahead. Where you take a quick break now when we come back Adam Johnson from bull's eye brief dot com is coming on with us. Talk about where we stand in the markets today that's coming up right after this break on the financial exchange radio and. Join our brand new tax club by texting the word ferry it's a 63566. To send your first and last name and get involved today you're listening to the financial exchange radio network. Hi this is Barry Armstrong and if you're a landlord or property manager I'm sure you've heard me talk about he rent leader banks tremendous on line rent collection program I'm excited to tell you now about their brand new product called Z deposit this is another free program which streamlined the opening of tenant security deposit accounts three totally digital experience with C deposit landlords can open an account online invite tenants to entered there information and manage all their security deposits Z deposit also automate many of the compliance headaches for landlords such as generating account disclosure forms and will even send out annual interest payments directly to Tenet's -- called the Z deposit teen to get started at 78164186. And 91 that's 7816418691. Or visit them on line and -- deposit dot net member FDIC leader bank step ahead. Getting up before the sunrise definitely makes you a morning person identified problems and you get a head start on salt and hi this is very arm strong I'm up early every day helping advise my clients about their problems one of which can be understanding that fees associated with mutual funds there are management fees twelve B one fees and reinvestment peace among others they can have a negative effect on your portfolio let my firm help you make sense of these bees by requesting our free guide it's called hidden cost of mutual funds call 803934. Zeros or one to get your copy today at 803934001. Or download it right now at Armstrong advisory dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are there securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America's companies are unaffiliated ivory. Buddy it's very Armstrong and I'm joined by estate planning attorney Todd Lipsky. From the law firm of Cushing in Dolan for your legal exchange quick tip of the day we're talking about Medicaid. Irritable global trusts Todd. And one of the concerns that I hear. From listeners is that people are afraid of giving up control. To their trusty. When they use these herbal global trust. Is that in fact valid concern. It is not a valid concern but that's not a good enough answer let me help you understand why it's not. First and foremost. Their concern is that way because they're not serving as trustee and they can't if they want the protection. From the nursing however two things they need to remember one. During their life. 95%. Of the things that need to be done with that trust. Will be done by them so they can still make the investment decisions talked to the financial advisors to make the investment decisions like their house yeah so. So all this stuff can be done by them. There's only about 5% of the time that we need a lawyer. Earth that not a lawyer the trustee to do anything is a trustee opt in one of the children idiots it is and so that's another good point that it normally it's a child. And the last that the number two reason you don't have to worry is they retain the right to remove and replace the trustee anytime they want. So they're really still what the boss that's nice folks if he'd like to learn more about the top misconceptions. Regarding Medicaid durable global trusts. Paul Cushing in Dolan told free at 866. 8485699. If you let that guide right now he simply go to their website which is. Legal exchange showed dot com legal exchange showed dot com or call them at all Parikh. 866. 8485699. The financial exchanges line on FaceBook and YouTube watch Berrian chug discuss the issues of the day and see which one smiles the most. Days as the financial exchange radio network. This segment of the financial exchanges brought to you in part by easy plumbing your one stop shop for all your plumbing and heating needs. They specialize in repairing your faulty equipment not replacing it so called easy plumbing today at 7818621190. That seven. 81 8621190. Or visit them online easy plumbing MA dot com. Easy plumbing we can fix it mass master license number 10183. Adam Johnson now joins us from New York for our weekly segment is the founder and author of bullseye brief. Actionable ideas for thoughtful investors and Adam thank you for joining us today. Oh great to be with instructor on it. You know it is that it's a funny thing is I look at my green all greens on the act out in all red on the NASDAQ is likely to be got to backward straight leadership. We would we we haven't seen one of these and about twelve years I think but let's let's talk a little bit about what's going on with FaceBook here and and we talked a little bit about with regards the company earlier but. You mentioned leadership and it's been really narrow leadership for the last really eighteen months on that each team but really the last twelve months now. In terms of how this affects the overall market do you have any concerns about market leadership faltering especially with Netflix having a little bit of a disappointing quarters well. Yeah kind of interesting and you know that two of the five things I write a book. Amazon apple netbook cool October expect that we are gonna cost one isn't quite as good there's. What happened at FaceBook there's not signal a market I mean they could. Failed its top line revenue straight in the past quarter quarter reported last night we're still are 43%. And all of a is that the growth in the second half hour commute. We know what the court if you've got 43 that it is is not something you can possibly late you know I expect. You know I ran a 350 compile and guess what my second morality going to be quite as bad. You you you can only be able to olympians you know. Quarter to quarter. Of the year. The company is growing it it. Billion outlook Iran what. And and pick a message in the of these large. Most widely used axes applications in the world each up about one billion. This is not a market the it can be setting the. Looking acts where the rest of the market is right now on specifically with regards to earnings. Seems like get it it's been a bang up core I think we're still north of 20% when it's all said and done. Oh yeah they're back. Over 200 so a little cold 4045. Cent the S&P 500 companies reported that our support. As of about 4 o'clock today that never go back after it is newspapers. But earnings are tracking up. 22%. And sales event you know again revenues up in the track up about 9%. Well you know with the economy going gangbusters I mean that at all about the to ease the earnings would have played it. You know we talk about it to about every week right you know bid the vote. Number of Americans ever. Making the higher gross adjusted income. Ever and they're out there. Spending that money which is why earnings growth in court all that tax cut but why earnings growth as a strong though a bit of a very strong market we're gonna get GDP. A release allowed 30 Thursday that tomorrow morning I did they are gonna get a four handle it GDP that's what I could that January people thought I was crazy. And now all the but it you know we have some people think well we could get that I. They'll be economy's doing very very well the stock market. That having been you know an epic adding a cup date because of FaceBook but I am very positive on the economy and very comparable work. At a what do you make go bug the trade negotiations between. The EU in the United States and kind of that the turn they took yesterday. Love it I mean it is what we've been waiting for. Bent on comparable. Because look at like you know board which is trading. He broke yes there book. I don't. And aspects but you know it treating about seven times earnings. It yielding what 66%. I mean. You know gotten way too cheap what we've been waiting for what happened yesterday mr. trump takes people to the point of maximum gain queen who. And we had Jacques what your record yet. The head of the EU come to the commission come to the white out effect if the radio like being out got their. And Spain would work it out there and I know that there are a lot of it. Ergonomic ear there's a lot of them. And it doesn't cooked Drupal is that a lot of people feel like you know. Mr. trump is just you know playing out another reality TV show but. You know one way or another this is moving forward if we can actually get to a world of true free trade. Certainly between US and Europe where there are note here with their level playing field. It may caught a huge job but honestly this is what we want so it's been an uncomfortable process and shaking it up. But I love the fact that we're actually getting back to link where we're talking about. Openly. With Europe about free trade. In about getting rid of barrier and letting it blow back for. Across the Atlantic at Berry good. Adam do you think yesterday's. Positive meeting with the Europe gives any. Type potential momentum to a deal with China are we still not quite there. I wish it would but it doesn't feel like it. I wood long an XP semiconductor. And I sold it thankfully that any question again. Because of the Chinese regulators didn't approve the deal Qualcomm you know it was always had them put an understanding between the Chinese in the US. That mr. trump if you get this is BTU back. Then which he did. Even though Ted crews aided import because the other China Telecom company violated Iran sanctions on. But bicker about a way to get the tee back in business you but that option let you get an ETE. And we the Chinese will approve it the purchase of an XP by Qualcomm. Didn't happen. I stole it thank goodness I mean by back but that don't lead that this thing probably get worse before get better and I hate to say that as. I'm an optimistic. We can it affect me but I I feel like. Countries people businesses whatever. We need Bill Clinton you know look at it not everyone can be a good guy in the in the way out of the side of the China gonna get. You know North Korea no longer than bill and Iran the villains and we all trying to we can late night you're. But China's going to be our government so I feel like. The proper that we Koppel at yesterday Europe. You're not fighting it where to turn a Porsche would but it's not I understand why he's doing it because it eases the base and make. And we got election coming up in you know that specially after the disaster. That would be prudent thing in the hope that he felt. Yeah it definitely get excited and I know that the worm wood to mark the very go. Make sense to me Adam we appreciate you joining us we'll catch up the next week. Oh. Outstanding debt is Adam Johnson from a bullseye brief dot com he publicist three new stock picks. This Sunday at 7 AM so join him once again at bullseye brief. Dot com but done what what do you make of the China situation we talked a little bit about Europe but you know we're we think China goes we've got potentially 200 billion dollars worth of goods. Subject to increase tariffs coming. Really the next month and a half for so I want to get implemented. I want this to get ironed out pretty quick in my bigger concern is actually beyond terrorists it's the concern that the Chinese consumer may decide to become anti American. And stop buying GM vehicles and by the way they buy more GM cars then we buy. I'm concerned that the gonna stop buying iphones and that's where Apple's growth story is so. I would like to get this ironed out pretty soon because I'm concerned about the damage. With us selling stuff to Chinese consumers and there's a lot more of them than there are a bus in their huge grow growing economy. In terms of the the impact in the US if those additional terrorist were to go through would be on things that are more consumer facing as well sneakers handbags clothing things along those lines and so. You'd also see ending in impact in terms of paying increased prices in the United States. If we got to that point as well. That is all the time that we have on this hour of the financial exchange. We're back in just a little bit though with an awful lot more. It's not too late to get a great grade and home mortgage leader bank specializes in a wide variety of purchase and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing call lead 776917. B 900 that's 8776917900. Or visit leader bank dot com member FDIC's equal housing lender. And MLS number 449250. Subject to credit approval leader bank a step ahead. According to consumer reports nearly 15 of available mutual funds have raised their expenses over the past five years a mutual fund with higher expenses doesn't mean you'll get a higher return Armstrong advisory group has written a free guide to help you understand these these so call 803934001. And get yours today call 803934001. Or downloaded right now and Armstrong advisory dot com securities are for two securities America incorporated an advisory services are registered as America advisors incorporated member of general as a PC Barry Armstrong represented a Armstrong advisory group the securities America companies are unaffiliated. As we get older estate planning becomes that much more important hi this is Todd let's ga partner with Cushing and Dolan and if you have loved ones or friends that may need nursing home care. You need to protect yourselves and your assets the best way to do this is through a trust. But there's a lot of misinformation out there about losing control and having to ask permission from your trusty this is simply not true you don't need to give everything away. And you can stay in control at Cushing and Dolan we've been helping families like cures for more than thirty years with their state planning needs we've got a new guide out this month called the top misconceptions about Medicaid irrevocable trusts this guy details more than thirty of the most common misconceptions. About these Medicaid irrevocable trust and you can get your free copy today by calling 866848. 5699. That's 866. Eight or 85699. Or you can download it right now on our website at legal exchange showed dot com that's legal exchange show dot com. If you're landlord looking to find an easier way to collect rent payments than you need to hear about leader bank's own line rent collection product called Z rent it's a great service for landlords allowing them to collect tenant's rent payments electronically and he rent dot net without the need to collect checks most landlords used local neighborhood banks to do their business and now a collection of local banks are offering this unique program including leader bank and stolen bank member FDIC. If you're a landlord and are interested in having your bank required does he ran technology Tillman McCall does he ran team at 781 at 6418691. That's 7816418691. Or visit Z Rand dot net stop chasing down late payments and running to the bank to make your deposits at your bank to add zero to its list of offerings. Visit C Rand dot net or call 7816418691. For more information that 78164186917816410. Specifically the costs of all morning different kinds of mutual funds Mike. Let's first talk about the differences between load in no load funds what to those terms actually mean. Yes when you talk about a load you're talking about compensating someone for the sale of that mutual fund. There are a lot of different options when it comes to these but. Typically the most common is just an upfront load that you and paint the advisors so if you put 101000 dollars in to a mutual fund that. Mutual fund may charge you 45%. Bank and gets paid to the eyes. In a no load fund you don't necessarily have that upfront fee but you still do not operating expenses each year just because the fund has to pay its employees and so force you do it Syria let's say just go to fidelity dot com and pick up one of their mutual funds. You might not be compensating. And advisor sales person for recommending that fond of but fidelity has their expense is that they are running in the air still charging new. It's all detailed net expense ratio that you every year what is a typical expense ratio on a mutual fund these days I would really hesitate to give a typical because it varies so much UNC funds as low as. Three basis points all the way up to wave over 1% so there is a huge range of mutual fund expenses. As Mike said there's a lot to know about mutual fund expenses and what you are actually paying it fortunately the Armstrong advisory group was put together a great new guide called hidden cost of mutual funds. All you have to do to get it is call 800. 393. 4001. Or go to Armstrong advisory dot com once again that number 80393. 4001. Armstrong advisory dot com. Securities offered to securities America incorporated members Jenrette SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and buy your gold locally it just makes sense give leader bank a call and learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency god guaranteed by the bank and may go down in value leader back. A step ahead getting up before the sun rise definitely makes you a morning person you identify problems and you get a head start unsalted them hi this is very Armstrong I'm up early every day helping advise my clients about their problems one of which can be understanding the fees associated with mutual funds there are management fees twelve B one fees and reinvestment fees among others they can have a negative effect on your portfolio let my firm help you make sense of these bees by requesting our free guide it's called the hidden cost of mutual funds call 803934001. To get your copy today that's 803934001. Or download it right now at Armstrong advisory dot com. Security czar for the two securities America incorporated member finreg SAP C and advisory services are for through securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America's companies are unaffiliated. Time for bank the pays you would liter maximum reward accounts can 1% cash back with a debit purchases and an extra 10% back when you use your card featured businesses to qualify for these and other awards using statements direct deposit 1000 dollars and make a debit transactions each month to learn more call 8776917900. Or visit leader bank dot com minimum to open and earned annual percentage yield ten dollars mass residents only bees may reduce earnings rate subject to change without notice member FTSE leader bank. A step ahead hi this is very Armstrong and if you're a landlord or property manager I'm sure you've heard me talk about Z rent leader banks tremendous on line rent collection program I'm excited to tell you now about their brand new product called Z deposit this is another free program which streamline the opening of tenant security deposit accounts three totally digital experience with C deposit landlords can open an account online invite tenants to entered their information and manage all their security deposits Z deposit also automate many of the compliance headaches for landlords such as generating account disclosure forms and will even send out annual interest payments directly to Tenet's -- called the Z deposit team to get started at 78164186. And 91 that's 7816418691. Or visit them online and see deposit dot net member FDIC leader bank step ahead. This is the financial exchange with Barry Armstrong and shut sun out. You're exclusive look at business and financial news affecting your day your city your world. Stay informed and up. Today about economic and market trends plus get breaking business news every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. We've got earnings we've got trade we've got us. Rather than really addicting doesn't it we get GDP tomorrow but we've got. Earnings and trade and there's a whole bunch there to get through. We're going to be joined in a little bit by Sarah friar of Bloomberg talked about Facebook's disastrous. Earnings. Report that they put out just after the closing bell yesterday. But we start our discussion with expectations for the biggest company reporting today. And that is Amazon and last week on our show was John. I was talking with Mike. And you know we'd be a weed your guess you could call it as to which company Mattel was gonna hit it trillion dollars in market cap first apple or Amazon. And Mike took apple a two kims on the reason that took him zones because there earnings date was forties had about Apple's cannot take Google. Outs like FaceBook. I. Taught at an app Tucker doesn't like and on that Tucker thanks Joseph made a moderate so Amazon is gonna come out with their earnings report later this afternoon. And they are expected to us about a one point two billion dollar profit not bad for a company that you know historically didn't report much in the way of profits. They are going to be showing revenue of somewhere in the ballpark. Of 53 billion dollars for the quarter which by the way is up. In the ballpark of 40% from a year ago not bad for a company that's on pace to 200 billion dollars in revenue this year. And their Amazon Web Services revenue is expected to be around six billion dollars up almost 50%. From a year prior. So I mean there's a lot of expectations of very good news hole punched a six fold increase in profits when you add everything all together. The big chunk of that as you said it's gonna come from the cloud web services and it's all their profits come from that. And advertising via is growing rapidly so a lot of money that comes in that way that's their high margin there a couple of our margin businesses they have. The bar is very high. They're expected there really well to put this in perspective though they're battling in your in your in your wager their between apple and Amazon. Apple's got to earn about sixty billion dollars in profits. Amazon is gonna earn him maybe 44 to 54 or five. There. Priced equally pretty close within you know two per 3%. You know there's really no comparison and earnings but ironically. If the reaction by the market is as positive for Amazon as it was negative for FaceBook. There there that you're one trillion dollar company that. What one thing I'm interest in on this is we have these Supreme Court decision about a month ago. That would allow states to collect sales tax from online sellers that did not have a physical presence in their state. Right now there's been some speculation that this could hurt Amazon because small retailers might say hey look I don't have the infrastructure to do that and I might not be able to be on your platform is I don't wanna have to be responsible for this. But it's. I see a huge opportunity for Amazon here one house that. Just develop a piece of software that takes care of that and building and your platform where we. Four for this for the small retail yeah. But they got to go through you to get sailor you you have to be on our platform we can offer on our marketplace. Gained in and it's going to take care of all this and we'll take an extra you know 1% year sales as a result. And it's all taken care if it was on could become the solution to this problem for these companies. I think this could be an appeal to this decision because. We're trying to figure what it means and we have to deal. I I don't know but I'm I would challenge the legality of we talked about on Tuesday when I pulled in the show on Tuesday. A small company in New Hampshire. Yes that you know that does not collect taxes because they don't have taxes right like if they sell online. They go to start paying a Washington State tax and Oregon State tax and a Florida and whatever tact they had to pay all these different taxes. They don't have the ability to be able to do that which they will soon you know it is someone's gonna come out again with a piece of software where tape put this into your system and in its gonna take care of that for you it's not available today and bright person will be expensive but the cost to come down his yo it's can modified. Two monetized modified. The modified that Michael. And that's doing business the company modified. To monetized some stumbling. It does sound only. But I hope you'd ever gonna forget the modified. Jock you and me both. That's the way I look at it though is the Supreme Court in that ruling says look we hit intended when we first put that ruling and would when the when the first rule was made in the early nineties. They said look we did we wanted to remove any potential. You variations in the market that could give one seller an advantage over another. In this new rule and they said look we inadvertently gave online sellers an advantage because there was no online market correct you know 26 years ago didn't exist then so they're they're maybe a case where you have to find middle ground where if your company below a certain size. They're safe harbor on the state taxes or something like that you know if you're below a 100000 in revenue. And I don't know what the exact you know answer is there. But. I think Amazon could be a solution for companies that have this problem to no question about that and that's where that's. You can part is about second party sellers are third party sellers on sellers they you know they have a big advantage when they go on with Amazon and team with a Amazon. And it's great for Amazon because they have this massive inventory. That they don't even have to take care of that as you know third party literally takes care but to put in perspective in terms what we're expecting today. The bar is really high so don't be surprised there's a possibility that Amazon's stock could sell off on very good news. And that's simply selling the news and the bar being real high now do they might lower the pork too there's an equal chance of that. But the market cap is 890. Billion dollars if they were have a 110 billion dollar game they'd be the first to get 21 trillion I don't think. I don't think it's possible that to happen and we would you have expectations that I and yet the need to go a hundred billion dollars higher it's probably not gonna happen but it could happen soon. It certainly could we're gonna take a quick break right now when we come back we're gonna have a conversation with Sarah friar from Bloomberg about FaceBook. And also we've got trivia coming up right here on the financial exchange radio network. Only this there is the charts graphs and numbers all day and just listen to us it's the financial exchange with Barry Armstrong and chuck signed up on the financial exchange radio network. According to consumer reports nearly 15. Of all available mutual funds have raised their expenses over the last five years hi this is very Armstrong do you know what you're paying for your mutual funds and understand the difference between ongoing yearly fees and transaction fees the costs of mutual funds eating into your returns which is one reason why some funds end up with sub par performance you may own funds that have higher expenses but that doesn't mean you'll get a higher return the Armstrong advisory group has written a free guide called hidden costs of mutual funds to help you make sense of these fees so call now 803934001. And get your copy today understand the true cost of your investments don't get surprised by hidden please call 803934001. Port download the guide right now at Armstrong advisory dot. If you're landlord looking to find an easier way to collect rent payment and you need to hear about leader bank's online rent collection product called zebra it's a great service or landlord allowing them to collect tenant's rent payments electronically and he rent dot net without the need to collect checks mostly in the reduce local neighborhood banks to do their business and now a collection of local banks are offering this unique program including leader bank and still a bank member FDIC. If you're a landlord and are interested in having your bank required to zero and technology tell them McCall does he ran team at 7816418691. That's 7816418691. Or visit C Rand dot net stopped chasing down late payments and running the bank to make your deposits at your bank UNC were to its list of offerings. Visit he Rand dot net or call 7816418691. For more information that 7816418691716418691. Or zero rent dot net as we get older. The state plane becomes that much more important Titus is Todd let's ga partner with cursing and Dolan and if you have loved ones or friends that may need nursing home care. You need to protect yourselves and your assets the best way to do this is through a trust. But there's a lot of misinformation out there about losing control and having to ask permission from your trusty this is simply not true you don't need to give everything away. And you can stay in control at Cushing and Dolan we've been helping families like cures for more than thirty years what their state planning needs we've got a new guide out this month called the top misconceptions about Medicaid irrevocable trusts this guy details more than thirty of the most common misconceptions. About these Medicaid irrevocable trusts and you can get your free copy today by calling 866848. 5699. That's 866. Eight or 85699. Or you can download it right now on our website at legal exchange showed dot com that's legal exchange show dot com. Are you having problems the blocked sink or drain. What a leaky Foster a shower. These types of minor problems can become big headaches if they're not dealt with quickly and efficiently and believe me. I've had all kinds of trouble trying to get people who can come in and do capable. Qualified work I talked easy coming in their professional punctual and thorough and all the work that they do so if you need a reliable plumber. With fair competitive prices cold easy plumbing. Easy makes it easy they're experts they're knowledgeable they're courteous they will be on time to take care of your issue and make sure that it doesn't happen again all you have to do is call today. In your plumbing problems. They're history call easy plumbing at 781. Each seeks to. 119 B at 781. 862. 1190. Or he can visit them online at easy plumbing MA dot com for more information Massa master license number 10. 183 again the number is 781862119. No. We wanna hear from. Tech Steward Barry's 263566. And let us know what you think about the stories we discuss your team to the financial exchange radio network. John when he along with Chuck Todd and Tucker Silva. Other big story today courses FaceBook and its massive price decline controversy surrounding company. Finally hitting the business in the big way Sarah friar from Bloomberg joined to Sarah thanks for joining us. Sarah we thought that FaceBook might be immune to these controversies of you look at the price action in recent weeks but apparently not. Well I think I broke her at her and her. Crap and eighth. Are connected more. Of the world and the population. And there's not a lot more road and all angles but the company is out there that made me there's little data private. You isn't that foreign meddling in there have caught on. And you can I edit. The anymore there that caught in a only had a real impact on the council is is that that Billy Beane. Yeah we saw usage flat in the United States and slight declines in Europe. Are you willing to go as far as to say that this is peak social media in the developed world. Well if you meant to say that because what we. Really need it but yet. They aren't in that one back and is a messenger all of corporate cut more than a million user in a room right. And only one they've written article on a double great. Not there and app or will go up in. One or they gave a number of our time yesterday and that those property a total of them. A move a odd million all. Over the year I. Luke I spoke on eight but the basics as maverick at all quote that it. And we won't count is there a way that that these other properties. That. Sir when you look at the company itself to the thing that really jump out at me is as shocking. Which when they said that they expect expenses to increase 50%. Agreed to their revenues grew 42% that's very impressive. But I mean you just don't see large companies say we're looking at an increase in expenses a 50%. Really as it's pretty dramatic impact in the company saying about. Back. I thought that the big problem but we all heard about it. The big new problem they went back or not having electorate. I want you need to back in wearing it. On earth reality. And on that point eight there. More money and many end and securing a spot where. The critic is well. You all very active in basically did it eight. Making eating high market. Art is out there and as our O now is figure out where their Kyle and art and there only is that the crowd. Sheryl Sandberg in the past had hinted that. Charging users if he was really not out of the question if we wanted to completely protect our privacy. I hope you're member of that and do you think that that is a possibility down the line you'll be very content or. Oh. Okay actually actually my birthday in April 08 the company. Hack in and editor at more. Than ever happen. I where people would pay for. It without. An. But Rick Perry there. Are pretty who have brought out. There are people like hey you know not ill lit the eight I'd. By nine. Let me ask you this on the other side of the mountain after FaceBook invest this fortune which they says coming for the next couple years. And let's have a business normalize as and they got that expense behind them what kind of business are we looking at on the other side of the mountain. The economy. A lot more and amber at what. That changed the management of what map out a and again. And our our. Eight. Are they going. Back and actually at the what are incredibly popular. It. A little bit more at the I met with into the habit and and ran. I know that they'd be paying that first hour is. Eat. It changes everything in the neck or eating pot or. Yet or as. I'd read it and that. Early. With what you're saying and the fact that if they meet their earnings goal for this year the stock by my estimate to sell for about 23 times earnings which is. Really not that much for growth company you think the market might be slightly overreacting with this kind of a massive decline. Well. Analysts. Note this morning that day I eat me eat it a little. Bit like you there are a lot of about pat. Both it. That in order con back and well. Though. No longer. Revenue. And you know maybe it will eat when app. It out and it. Do you think Scott management by surprise because I. I was stunned by the fact that it took the third speaker. At the the good news conference or that the for the conference call to bring up ball after ball of negative news. That the chairman. You know look we're just blew us to. Yes so you're saying that Ali. Yet. It. There are relevant I met Matt and I. Their growth meant. It in went back on the air and this is going to. A recurring and we get you and other growth. I don't let it and it wouldn't act. Wrote the older. Nady is that where I remembered it became and predicted. Or mountain. A lot of that I. Eight. Our analysts are far from Bloomberg thank you very much that report on FaceBook certainly a busy day today no doubt about that. McDermott surfer from Bloomberg. They're you know that the more you look at that FaceBook situation. That the more. And again that the more right I come to the realization I don't think there was any intent as Sarah mentioned. What they they kind of always go in this order but as I said initially. The they've never had a quarterly so I know it's OK to go in this order and kind of sale everything was OK for the court it's okay to do that when things are good. I really think it's just think they've. Don't have any experience handling bad news and they didn't really know what to expect you to kind of falls in the company's side of things on who just doesn't make Mark Zuckerberg look very good to c'mon think things are great and then. You know ten minutes welder Dodd though things are not great. Don't exactly it's it's it's it's like when you come home you say you know mom what's for an oval or haven't lamb chops and you walk in the kitchen is on fire and like. What the heck you mean we're having lamb chops. Bert well don't. Oh I won't do that will Dunst well. Before before it gets Tribune or couple cortex. Kaman one out of the sub some four. A stop you if FaceBook a few years ago because as 90% yes and it's extremely unproductive play second that and another Texan of the sudden some for a delete my personal countering created an anonymous accounts. Best thing I've done since quitting smoking to that I'd say. You are not offer FaceBook you still have FaceBook but that's an interesting approach that we had talked about that earlier chuck and Heidi about the leading the account you have and start over with the people you want in your network what you're stole all. No I know it but if it's Tibet cure rating of better experience and you know what it's all about so instead of having 800 friends and really talked to like. Solid sank the putt all six and it is a look at just wanna have twenty friends and called the death sent out the numbers yeah. Get rid of all the people that you don't actually care about and that you just had because old school have 500 friends and and a friend of the friend who you let in because the scene mechanized cut it looked down it just happens. We get it again let's do a little bit of trivia here on the financial exchange if you are the of what numbers should we do today talker. Seven no we do that yesterday let's 26. Why I don't know. I have a good and another reason for me if you are the sixth person to Texas at 63566. With the correct answer. You gonna get a fifty dollar gift cards Arnold's lobster and clam bar on US route six in east ham Massachusetts. Today we are doing trivia based on the FBI and the reason why. Is that the FB yet. The FB five. Was launched 110 years ago today so we're going to be doing trivia based on the FBI. Under which US president was the FBI established texas' text us at 63566. And if you are the sixth my purse the six person with the right answer you're going to get that fifty dollar gift cards Arnold once again. The question is under which US president was the FBI established texas'. Text us and speed it's the world. That's like I have daughters are done a whole week a house. Text us at 663566. Text and six don't work remain well if retarded I thought that maybe that was Latin words if you are these six. Person to taxed six 566. Picks you get the prize OK we're done shell earnings they kicked off earnings yesterday for big oil companies they had a nice little quarter here. They saw that. There they're profits up five up to five point two billion dollars up from one point nine billion a year earlier. A nice quarter Indy you're talking about which we don't world Dutch shell Royal Dutch Shell a target that they had a unbelievable quarter for up almost triple. And yelled higher prices we complain about but the fact of the matter is it's a float to the bottom line of a lot of these multinationals. Great news for show great news companies like BP actual news for our economy which is the other shale economy we hit. Eleven million barrels a day for the first song that just don't think over a week ago on projections show in the US to do twelve point five million barrels day by the middle next year this is a money to our economy so yeah that's the good news of higher oil prices. Big numbers coming up we've got knocked Comcast earnings and also. We're gonna answer the question of why Wi-Fi is free on airlines right after this break. The financial exchange is alive on FaceBook so make sure to like your page and watched the guys break down the latest on the markets every day beginning at ten on the financial exchange radio network. As we get older state plane becomes that much more important hi this is Todd let's ga partner with cursing and dole and and if you have loved ones or friends that may need nursing home care. You need to protect your selves and your assets the best way to do this is through a trust. But there's a lot of misinformation out there about losing control and having to ask permission from your trusty this is simply not true you don't need to give everything away. And you can stay in control act Cushing and Dolan we've been helping families like yours for more than thirty years with their estate planning needs we've got a new guide out this month called the top misconceptions about Medicaid irrevocable trust this guy details more than thirty of the most common misconceptions. About these Medicaid irrevocable trusts and you can get your free copy today by calling 866848. 5699. That's 866. Eight or 85699. Or you can download it right now on our website at legal exchange showed dot com that's legal exchange show dot com. Getting up before the sunrise definitely makes you a morning person you identify problems and you get a head start on salt -- hi this is very Armstrong I'm up early every day helping advise my clients about their problems one of which can be understanding the fees associated with mutual funds there are management fees twelve B one fees and reinvestment peace among others they can have a negative effect on your portfolio let my firm helped you make sense of these bees by requesting our free guide it's called the hidden cost of mutual funds call 803934001. To get your copy today that's 803934001. Or download it right now. At Armstrong advisory dot com. Securities are free to securities America incorporated members finreg SIPC and advisory services are for your securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. Are you having problems the blocked sink or dream. What leaking Foster a shower. These types of minor problems can become big headaches if they're not dealt with quickly and efficiently in believe me. I've that all kinds of trouble trying to get people who can come in and do capable. Qualified work I talked easy plumbing and their professional punctual and thorough and all the work that they do so if you need a reliable plumber. With fair competitive prices. All easy plumbing. Easy makes it easy they're experts they're knowledgeable courteous. They will be on time to take care viewer issue and make sure that it doesn't happen again all you have to do is call today in your plumbing problems. They're history call easy plumbing at 781. 862. 119781. 8621190. Or he can visit them on line at easy pull me MA dot com for more information. Massa master license number 10. 183 again the number is 781. 862119. No. Hi this is chuck and Mike from the financial exchange and today we're talking about the hidden costs of mutual funds. And Michael Lotta times people look at the sales load they Payer they look at the expense ratio on a fund. But they don't realize there are other expenses built into on what kind of expenses do we see in addition to the ones people note well. The biggest one that usually gets left out is something around the trading costs of mutual funds. And a few years ago the SEC pretty much came out and told the mutual fund companies that because these costs are so complicated. To calculate. They are not action required to disclose them in the operating expenses so if you look at a fund that trades a lot. And by that I mean turning over the portfolio may be hundred or 200% a year. Those costs can be significant. Are there any types of funds that typically have lower turn over rates that don't trade is much that you can get a better deal absolutely I mean when you look at basics of trading how much 100 vs another. Usually an index fund trades a lot less than actively managed mutual funds are for instance you can buy an index fund. That just replicate the S&P 500 that's gonna have a lot less turnover than an actively manage large cap mutual fund in case. Folks beyond just the headline numbers there are other expenses associated with owning mutual funds and they are strong advisory group has put together a guy on these expenses. Titled hidden cost of mutual funds all you have to do to get it is call 800. 393. 4001. Or you can go to Armstrong advisory dot com once again the title is hitting costs of mutual funds in you can get it by calling 800. 3934001. Are going to Armstrong advisory dot com. Securities offered to securities America incorporated members SpinRite SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Marion Jones no finances and if you care about your finances it's good for you know Barrington shot. Believe me here for the financial exchange on the financial exchange revealing them work. If if our trivia question prior to the bridge was under US president was the FBI establishing its it was Teddy Roosevelt was the president during that time. Whether it answer Jack. From Brockton who lowest described as an enthusiastic. Financial action into listener he liked it loves the staff he loves the show he loves the diverse topics. Tucker take about crew he loves the stack so up. He deserves it. Thank you Jack you're gonna be get your all your kind words in the fact you are number six. You're gonna get a job a distant from Arnold's lobster and clam bar located in US route six and east in Massachusetts. Their lead ships Susie is why on the Cape Cod stuff clam contest for the third year in a row get down to Arnold's and check out their great food for yourself. Call 5082552575. Or visit them online at Arnold restaurant dot com for more information. In this segment of the financial exchanges brought to you by as he read to you Lori landlord. Take advantage of zero at a fully automatic online red collection tool that's free for landlords with an account of the participating bank can always free for tenants. Now we're collection of local banks are offering this unique program including leader bank and stone banks or sign up an average payments directly deposited endear count. Call 7816418691. Today or visit Z rent dot net for more information member FD eyes see. Comcast coming out with earnings yesterday. They added a whole bunch of Internet customers. Put a mixed report overall for. Yeah net increase of 260000. High speed Internet customers as you said. Vs a 195000. Forecast by FactSet. That's a really good number is Mike theory chuck is that in this battle. Of of trying to get business. When you if you get the Internet business you have a huge advantage. Because now granted the aft still sell their product the video against other people do it streaming but if you're doing streaming. And you're on Comcast they're at least getting your bill for that is Comcast have a streaming platform of their own. I don't think they do AT&T as DirecTV now correct I don't think luckily I don't think Verizon or Comcast have won what do you mean by streaming but there's a Davis streaming dedicated package I mean I think you DirecTV now our YouTube TV. Now yeah well. I just like a 35 all or months yeah yeah. Bill that they don't have a package to replace your cable and obviously they want to make money on the table watching cable TV correct. I mean what Comcast has done is they've invested in the pipe and they've done a very good job there there Internet connection is very very good. A lot of people subscribe to Comcast just for the Internet. And then get streaming beats the image they have though is if they get you on the Internet they can make. Other packages they can beat them on you selling their video because it's it's a lot cheaper for. Yeah so you know there argument is okay we don't have a streaming package because. We can get you on our cable package for price that's probably comparable if not slightly less than some of the other packages so that's that's the big news for them and they beat by a nickel. Other revenue did commit a little bit short so. Yup yup Comcast had a pretty good quarter overall for for a company in in a very challenging business right now we're capex costs are high end you know you have. Really challenges were when it comes to pricing these people are priced shopping a lot more now than they used to think. No question about that in their decision to buy NBC universal look smarter and smarter all the time they were ahead of their time on that way at a time ever in a while it's yesterday's technology now that's content that's proprietary content and everybody including as you see AT&T. Just throw money up against the wall and having such a difficult time it's all about acquiring that high level content and they've got it that's a big thing. And of course it at the sports teams which is also something that is generally not DV horrible the value which is gone up. The theme parks as we talked about so you don't they have a nice to verse business. But again that the whole Internet you know pipe is under is under attack. So John. Is this next one's a story that you're gonna have to help me with a little bit and the reason why. I don't use Wi-Fi on airports. I use my in my airplane flight as a way to decompress and disconnect map or I get on the plane. And maybe a put on some tunes maybe I read a book maybe I play get it whatever might be you're not ruled by the way. But I don't really want Wi-Fi on airplanes and for the most part there's been like one or two times and a business trip that I need right but. Generally come flying anywhere I don't want Wi-Fi but why is it still expensive. On most flights you know it could be like twenty to thirty bucks for a flight. In some case apparently I didn't realize this but it's a very expensive thing to set up. It's a high cost thing for the air line through the company that they're dealing with. I to provide this service I didn't realize was actually as I was pretty dislike. Hook up a router at home in and you know they're there's your Wi-Fi for the 49 dollar but router. I always and our port that's not always find it funny when people complain about the speed of one final point is I sit there and I go. You worked 30000 community here moving its sic trial and it 600 mile an hour. During late multiple network in and you're saying. Oh I can't stream breaking bad one this is. Awful places it's actually get over yourself you don't have it you're born with his god given right to bask Wi-Fi on a plane. It's funny how people think that it's in these younger they are they because like this god given to like rolling the Wi-Fi so slow on this point yet. Here's the third U six miles up traveling at 505. He miles per hour and we're supposed to maintain a nice safe secure. You know connection. Seven network is actually very expensive the problem here is. In order for that for them to deceive or breakeven on it they have to charge an amount of money that a lot of people find prohibitive. And I think I think you're not alone I think anyone other than the real dyed in the wool business traveler who who needs that time to do his business strictly because he's if he's working. Ten hours a day four of its wind he's using that as worked. But but vacationers. Like there like I'm an among the most common planes out there are the 737 in the A 320s and again about a 120 people on board at any given time usually. What percentage of those people do you think pay for Wi-Fi any given flight. I have no idea. But I like it wouldn't surprise me if it's five yeah and surprise me for tonight I thought I know I agree an end and that what they're saying is that nobody is making any money from connectivity. It's it's not a money making thing and it's one of those fees that is optional on the line. At the reason the airline dozens of the cost will not because of trying to nickel and I'm. Does this truly is one legitimate fee that is actually costing you know there's a lot of that they're trying to nickel and Dionne when they charge you eight dollars for a second snack pack or something yeah. You know that that cost him twelve cents to buy from their supplier or or roast six that has six inches more leg room is gonna cost you 35 dollars more that's nickel and I. Here's a question so we've we've seen a gradual degradation in the quote you know it economy class ticket where it's where it's gone from it used to be. OK I go back and hammer when firstly it was traveling as a kid and a coach ticket that you still got who used to get a blanket you still get a feel that it was okay we're gonna take with food and we're intake with a blanket and pillow. Then we're good now we're gonna start shrinking your leg room now we're gonna make you. Hate to pick your seat because otherwise we're just gonna assign you receive it's going to be there when you don't like it's 27 G which doesn't even exist on planes again and it's a wing and it's a middle seat or on the wing media so. My question is. What's the next realistic proposal for how bad air travel can get at his alike don't want because I've you don't want from Ryan air where they said we're gonna get rid of seats in just have polls like subway cars you know and the F Mason and this is happening because it's too dangerous. Sit then they came out with a proposal for. What they called seat belts instead of seatbelt in order to hold your feet to the ground. While you are standing up so they can pack UN that way what do you think is the most realistic next report have you ever tried to get into a bathroom. In night which way. On April in general and I didn't get threaten the new head usually go a couple times they don't have done. Airline. Try to get like you sit on the toilet and go to the bathroom. On an airline no I wouldn't all cost well there's actually talk about making the bathrooms smaller. But you can say charging for the and that that church or but as I possibly commit and smaller I don't know because. I. Never asked that question Neil the answer is always yes. Yeah they can always make it worse and I say this is someone who. I think in general people under appreciate that the benefits of flying and it. Yet you can pay 300 dollars in flight across the country in six hours them it's pretty amazing evening it is five hours delayed it's still amazing that you can do. The bush. But some of the stuff where they stopped treating you like human beings are bothers me so I appreciate the magic of air travel. I hate the dehumanizing aspects where it's like you know at the U hurry up and turn into. Travelers account a promise that every time the airlines serving customers. They ask what would you like lower fares war this and Ellison loafers and no matter what it is I mean like would you like flying a corporate environment like. A demo we talked Tucker couple months ago we talked about you know would you pay half price decline cargo hold it how it. And I said yes and a heartbeat. First of all I'd idyllic a dance club down there's Wheeler called cargo or something like I card debt that's what it was going to be my I think they have found the Ricardo club if they don't call there is equipped. What that call budget economy. Witches taking economy stepped. Cheaper where you can't pick your seat until they assigned to you you know as the day media and you an update sitting in the middle seat in the back up to domain. And you can't even bring on carry on. I think that's the stage where they've gone too far. And I mean we're real we did going to be something worse coming a giant just just wait give it a couple of years because every time we think it can't get worse. It does in the caught even lower budget economy yes. Folks we get older estate planning becomes that much more important you have loved ones or friends that may be nursing home care. In you need to protect ourselves and your assets in the best way to do this. Is using a trust but there is a lot of misinformation out there about losing control over your trust or having to ask permission from your trustee to use your money. It's simply not true you don't have to give everything away and you can stay in control and you never have to ask for permission to use your own money. Cushing and old has a brand new guy out this month. Called the top misconceptions. About Medicaid irrevocable trusts the guy details thirty of the most common misconceptions about estate planning. You get yours today by calling 8668. Foray. 5699. That's 866848. 5699. Or you can download right now at the legal exchange showed dot com that's illegal exchange show. Dot com so this Qualcomm and XP deal. To put done. At least for now and it puts welcome and lifting box because you know there in time business where you either have to reinvest in the business or acquire other businesses. You have to keep growing keep getting better kick goes sideways. Now Qualcomm has a problem there're there're growth company that has atomic cash. And frankly doesn't know what to do it. So there there and that kind of bucks right now and they're gonna pay two billion dollar breakup fee for the steel fall apart that state senator Gregg would do the deal so here's two billion dollars we're sorry to waste your time so yes so there this situation they've got a lot of cash to spend. And there's no real avenue for them to go right now at a point where they. Need to be reinvesting in in getting bigger and better and it's a deal if they thought I was gonna get done is going to be costly to get out of. Let's take a quick break when we come back we're talking about a couple new initiatives from Wal-Mart is also. My blood wiser still struggles to get more people drink unit in the United States that is right after this break. Marian Cilic in the financial exchange on the financial exchange radio network if you Google asset protection planning the get more than six million results. Priceless to make sense of all that information. The answer is you shouldn't what you need to do is call Cushing and Dolan the experts and elder law they've written a brand new guide told top misconceptions about Medicaid are applicable trusts this guy. 8668485699. Many people have concerns about how to access their own money if their kids or their trustees and about paying higher taxes if they want their assets to be unavailable for nursing home costs these are just a few of the myths that Cushing and -- reference in their new guide the top misconceptions about Medicaid or river Kabul trusts Cushing and Dolan has been helping families like yours for nearly thirty years call for your free guide today at 8668485699. That's 8668485699. You can also downloaded right now on our website and legal exchange showed diet can. Hi this is bury our trunk and if you're a landlord or property manager I'm sure you've heard me talk about Z rent leader banks tremendous on line rent collection program I'm excited to tell you now about their brand new product called Z deposit this is another free program which streamline the opening of tenant security deposit accounts three totally digital experience with C deposit landlords can open an account online invite tenants to entered their information and manage all their security deposits Z deposit also automate many of the compliance headaches for landlords such as generating account disclosure forms and even send out annual interest payments directly to attendance this call the Z deposit team to get started at 78164186. And 91 that's 7816418691. Or visit them online at C deposit. Dot net member FDIC leader bank step ahead. Are you having problems the blocked sink or drain. What a leaky Foster a shower. These types of minor problems can become big headaches if they're not dealt with quickly and efficiently. In believe me. I've that all kinds of trouble trying to get people who can come in and do capable qualified work I talked easy plumbing and their professional punctual and thorough and all the work that they do so if you need a reliable plumber. With fair competitive prices always. Easy makes it easy either experts they're knowledgeable they're courteous. They will be on time to take care of your issue and make sure that it doesn't happen again all you have to do is call today in your plumbing problems they're history call easy plumbing at 781. 862. 1190 that 781. 86201190. Or you can visit them on line at easy plumbing MA dot com for more information. Massa master license number 10. 183 again the number is 781. 862119. No. Time for bank the pays June with liter maximum reward account get 1% cash back with a debit purchases and an extra 10% back when you user carted feature businesses qualify these and other awards using statements direct deposit 1000 dollars and make a debit transactions each month to learn more call 8776917. To 900 or visit leader bank dot com. Minimum to open and current annual percentage yield ten dollar mass residents only he's may reduce earnings rate subject to change without notice member FDIC leader bank a step ahead whether you're celebrating a milestone or diversifying your portfolio precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank location bank locally and -- gold locally it just makes sense give leader bank a call and learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency not guaranteed by the bank and may go down in value leader back a step ahead. Security suffered through securities America income members finreg SIPC an advisory services arbiters securities America advisors think Gary Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. What's hot and what's trending. The world of finance find out from Barry Armstrong and chuck signed up on the financial exchange radio network. And. Let's stick quick look at our poll question that they are now on financial exchange dot com Tucker how we look at show floor deck question of the day on a financial change dot com was how often do you use FaceBook. Daily weekly monthly or non. And none is actually we. At 43% of her listeners are good here Daly was in second at 41%. Weekly came in third and 9% and monthly. Came in dead last at 6%. You know. Uncle didn't have an email address until last year I respect. To elect takes a lot of guts in this in in today's world all losing. Six the forest I'll grab some of them ballpark just said look at it if you really need me call me good. Looked as well people turn to laugh and don't pull YI I found it interesting that I daily and none where the same because. A lot of I think everybody a lot of people get hooked into it. Where they shouldn't have been living and that's where they at least check in every day in the mean. I think within the context quite simply I I just when I pitched the internal servers of FaceBook sound just like it's a pinball she was Smart is experts have lightning. The dollar signs everywhere everything's fine until we talked to someone else that I think a lot of people views and every day but those people using it every day. Are using it to shorter periods of time I think that's the big story the top of dates she used to be that people were on freely 45 to fifty minutes today that's not anymore. Yes it sure doesn't seem like you check in once today to make sure you know what's going on and and I think I think time on usage time is gone down well. But talk about two initiatives from Wal-Mart one that I think is good one that I think is dome. The first one and I think is good. And that is Wal-Mart is making a big bet on their baby business now the babies. Quickly you know Wal-Mart is by far the biggest retailer in the United States and they try to put make a push to go with the competition inked. And I mean they base it's ironic because Wal-Mart single handedly put Toys 'R' Us out of business Toys 'R' Us was the dominant toward us retailer in the United States. Wal-Mart decides take them on head to head. Undercut them massively. And they had a slow decline to death. Not you know years later. Ironically right now babies. Is leading to a stepped up effort by Wal-Mart to come in. And get a lot more baby items rolled out of Wal-Mart dot com I'm sure we'll do real well because price wise that can do in honestly I think it's great they're making the push online because then people say oh I got all this baby stuff fuel what else is online in a potentially as a way to jumpstart their online business which still isn't able to compete with Amazon and they said that more people have been searching for being be in or nursery items. Which again gives them a clear heads up that hey if people are searching for that means they wanna buy it they're gonna stock a lot more babies. Baby items on Wal-Mart dot com into Wal-Mart. So let's talk about dumb ideas and so Wal-Mart is going to be partnering and Arizona specifically Chandler Arizona they're partnering with Wayne Mo who is Google's autonomous driving company. It in the agency's office going to be cool except they completely screw it up again just speculate. They just they can get out of the wrong way on some of the stuff so you would think. Self driving car what you're gonna do is Wal-Mart is going to use the self driving cars to make deliveries to people. Know they're not gonna do that they're gonna say oh. Will send a self driving car do you you can kind of Wal-Mart in the car and then pick it up from the store and the self driving car we'll take you back home while that heck would I wanna do that. It's pretty much the same ideas driving to a Wal-Mart stop sitting at a pick up. Section. Yeah I mean is it Wal-Mart board. Many say not easier trying to get people to come into your stores and let them just by on line we don't like your stores don't want to come in there is a goofy website dedicated to the people Wal-Mart has kept her. This week is there's orders honestly block watch out because. Did there's this industry called the newspaper industry and they said people are never gonna wanna violent people only want to read in print people all. They did it in now you get to New York Daily News laid off half its employees yeah you get straight now. Watch. You have to realize. I know if you want people coming your stores because you're stores where people shop around and they I kept that but. They don't want to an I feel like they just won't accept reality in the note. It's interesting is they're concerned about you know because they're competition online is themselves they're getting a lot of people like me who might walk to the store and buy fifty dollars ripped the stuff. Instead I'm not going to score bordering on line which is eating its there margin. So their answer to that is they're gonna send a self driving car to my house still picked me up I mean how is that cheaper than just buying it online. It just I. Mean self driving vehicle they'll come out of the sky I want to like so much about this I just. That's a hands well they said the purpose was to learn I think they learned he'd be good news. We get a big day coming up tomorrow we're done for the day. We get GDP coming out tomorrow for the second quarter going to be a big big prints. We'll talk about it tomorrow on the financial exchange radio network.