Sep 21, 2010|
Barry and Suzanne O'Halloran of Bloomberg TV discuss the market as good housing data was released.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Hi everybody welcome to lunch money my name is Barry Armstrong and we're having a slow day on Wall Street today. The Dow Jones is down six points the NASDAQ is down four points the S&P 500 down two points. The yield on the ten year treasuries two point 66%. The price of oil down a dollar 68 per barrel at 73 dollars and fifteen cents a barrel the price of gold down three dollars an -- at 1275. This should not be X unexpected today is the day where the Federal Reserve meets other Federal Reserve. Is represented by the open market committee and they meet once every six weeks and they make a determination as to whether or not they're going to raise interest rates -- they're going to lower interest rates and whether or not they're gonna buy back treasurys and buy back mortgages. That meeting occurs today. And he'll be an announcement made at 2:15 PM we should not expect a lot of movement in terms of stock prices. Until after that announcement is made after that it's Katie bar the door because who knows what stocks will do gonna go -- -- positive news coming out of the Fed. Stocks could go up in price and if we get negative news coming out of the -- stocks could go down in price you'll hear all about it tonight on the 6 o'clock news. But you can hear about it right now because Suzanne -- power and from Bloomberg television. Is going to explain to us with this fed meeting is all about. Good afternoon Suzanne get afternoon Mary thanks for having me what do you expect what is your expectation for today's fed meeting eat eat what. I'm expecting -- fed to deal a whole lot. Most economists do expect them to keep their extended period language that means interest rates are gonna and stay right where they are. Well we are watching in my this meeting maybe a little bit more interest in another means as there is a slight chance as a could have economists on Wall Street who think effects kick him out. Indecent quantitative he's seen in just to simplify that that would be the -- coming in in resume mean they're buying and treasuries and mortgages. Are adding an idea that. Probably not -- at this meeting. But maybe somewhere down the road if they work to do that at this meaning it can it. Created -- the panic in the market because it is monetary policy policy until it would suggest to glossary and investors that the Fed is. -- -- That the economic recovery is not going as planned what they're doing is not working now -- would be a measure of last resort so that's will be the -- for. Not expected but hey you never know very. So to fifteen is we're gonna get that information SAT fifteen so as dimensions that's probably won't do a whole -- no big teens on Wall Street now. Until we do hear from the -- -- the Fed does keep. They're send the language policy and they announced no other specific changes because it's he stocks continue to rally it's -- great September's us again at some numbers today the S Nokia 8% the strongest month of the year in the NASDAQ-100 index. Which is benchmark to the NASDAQ -- hundred help -- the biggest companies. Up 12% why is the stock market rallying to such a degree what are you hearing down in New York. That perhaps. Investors who haven't been in the market. Are getting into the market as we -- approach the end of the year I was you know some of the better performers be of companies like or colon and on a best use -- companies. They had very strong earnings and we've had a lot of mergers and acquisitions and honest -- anticipation that's gonna continue. Going for the deals at -- on the small side about a billion dollars. And around then that's payments the average but the premiums being paid are are skyrocketing -- Those are kind of some of the reasons that have been driving the market will continue we'll see because that area as we've discussed. The economy is kind of bouncing along the bottom here things may not -- -- Morris but they're not getting better. -- what marginally to say it's bouncing along but we got very good housing data this morning we did and housing starts and permits or sign a future growth rate. Those came in better than expected. But if you look a little deeper into the numbers and it says. That starts. Which is when builders break ground in there actually doing projects those are very get. Permits when builders are applying for an application to you future projects did not rise as much. So the pessimists on Austria are pointing that out but it is -- news. These numbers very but keep in mind the permits number was not as did. As the starts and that would be the real future looking indicator and I wanna mention to. We heard from Lennar the home -- yesterday. Good profit report they've. -- a loss a year ago they had a profit but CEO Stuart Miller said like all the -- CEOs are sane that sales are down -- the expiration of tax credit. And where they're making money is there improving their balance sheet they're being more efficient. In terms of how they operate the homebuilders and now also. Buying distressed assets so that's not a recovery in the housing market that's just shows other taking advantage of making their business stronger until things pick up. Now you did an interview with Bob -- from the UAW earlier this week correct. I I did actually just yesterday you know the egg question for you -- trade unions have typically voted. Democrat. In the past is they typically lineup on the left side of the aisle. Is there any indication from barber the UAW -- the trade unions that you've been talking to that there -- gonna vote Republican this election. Well we did talk about the bombing administration and he -- -- very supportive. Of the administration's support during a downturn in credited them -- saving on an industry how they're gonna look this -- time around not serve but. Again he was very supportive of the Obama administration's -- likely they'll continue. An after action and as you know laying your viewers know we have General Motors that is expected to do an IPO this year that would be good news for. The market that would show investors and and mean street that the auto industry is truly. Turning around and we have Chrysler CEO. Also seen then they can probably do you know 9 PM next year so those are positive science. So I have one last question for races and yes have you seen the new movie Wall Street money never sleeps I had an their answer and there is a screen that we're going to be ninety later this week I heard it's dead. Another -- as a first -- and every plane am -- kinda every piece in -- and hearing a need. Lost treated you gotta love Michael Douglas and and his role he played that and nothing NCAA but I think you might be hard to top -- it's now what do you think. I don't know where I'm gonna go see tomorrow night with all our WRKO listeners we have a special screening up here in Boston so and I and the -- my invitation -- will let you know the the -- -- -- that and -- -- Suzanne thanks for joining us -- had a good day folks I was -- of how learn from Bloomberg television joining us and stealing the importance of that Federal Reserve meeting again. That occurs at 215 this afternoon. Will hear all about it tonight don't expect a lot of movement in terms of stock prices until after 2:15 PM Michael Douglas and -- Lebow's. New film Wall Street money never sleeps. He hits the theaters this Friday WRKO. Has a chance for you and a guest to see an advance screening of Wall Street money never sleeps. This Thursday in Boston for your chance to win visit FaceBook dot cob. WRKO. Lunch money slash WRKO lunch money. Like our page and comment on the Wall Street post by 2 PM. At 2 PM we will randomly select 25 people to attend Thursday screening. A Wall Street money never sleeps starring Michael Douglas and Shia LaBeouf. That's FaceBook dot com slash WR KL lunch money brought to you by 8 AM 680 WR KL. I have a question for. You know it's it's September. And we got a memo yesterday in the memo stated that the recession. Concluded. In June of 2009. It began if you didn't get the memo that recession began. In December of 2007. And -- concluded in 2009. And here's some of the damage that has been done by this latest recession by the way this recession the worst recession since. The Great Depression of the great the 1930s is is the worst recession we've had since the 1930s. It wiped out seven point three million jobs in the United States we lost seven point three million jobs in the United States. It cut four point 1%. From mark economic output. It has cost us 21%. Of our network so we collectively are worth. 21%. West then we were. Back in December of 2007. I don't know how much less you're worth. But we collectively are worth 21% less than we weren't in 2007 it's the longest slump since the great to set reset depression. And who says so will the national bureau. Of economic research and we are really gonna be fortunate because we're gonna have a professor from the Kennedy school of government at Harvard University. His name is Jeffrey. Frankel and he's going to explain to us how they've come to the conclusion. That the recession. Is over what I wanted to go what I would like to do is I'd like to hear from you I'd like to hear from you our listeners as to whether or not you think the recession is over. And how this recession has impacted you in your family. Our phone number here in the studio 617. 26 X 6868. That's 6172666868. Our text number if you want to text us you can Texas at 68680. And of course our email address is lunch money. -- W -- GO dot com. But when I talked to folks I talk to people every day and they don't have as much money is they had five or ten years ago I talked to people that are working professionals -- laborers. And they'll tell me hey I'm not make in the same wage that I was making ten years ago. I would like to know from you. How this recession has impacted you how has this recession impacted your family and are you in agreement that we are out of recession according to. The the NBER we'd been out of this recession since. June of last year it doesn't feel quite like we're out of this recession to me I still think we're in a recession. If not why are we feeling such pain -- we have an unemployment rate of nine and a half percent why -- we have record rates of foreclosure why is my house and why is your house worth so much less today. Then it was worth five years ago is your house worth less than it was worth ten years ago I wonder I just wonder who puts out the data. -- claims that were out of recession there are those that would argue that we're ended depression. I don't know I'd love to hear from you I'd like to hear your input as to whether or not where in or out of recession Jack your next on WRKO. They I don't. I think where I'm definitely still hundreds dead and I'm not out of work right now but I could be tomorrow on the -- -- Well a lot of my friends are out in the one that have gotten job and they -- dropped significantly. Less money than anywhere. Then I ask you you make it more money today than you were five years ago. I am I am I can say that I am not that he's not me I'm more worried about my job today that's what I -- -- you're right thank god I'd take a pay cut I knew I was gonna -- Have a job of the next five years. How has the -- the recession and infecting your behavior would like what have you done differently since the option. I'd bring I -- lunch every day. And -- we don't regard these may be one them up. It blow -- -- every week it will hop you don't do that anymore and not. I don't drive alert the -- side and Mario. Now I tell you what go to FaceBook dot com and you take your wife out to the movies tomorrow night let's go to frank we are next on. -- As soon as soon as you announced where there's. Professor you can pop mixes from. You lot are very credibility well. Now now c'mon what a well you know you yourself are presidents rarely are they are. Did you. I went -- for her in an earlier on. Let's listen housing recession or did you do you agree that we're out of recession. You know personally I. Don't -- What I. Meant. Don't like to know we're breaking up on us but that's the question the great debate here today on lunch money is. Are we out of recession how are you doing today relative to where you were five and ten years ago that's the question that I'd liked having -- give us a call our phone number 6172666868. You're listening to lunch money on Boston's stock station. AM 680 W mark jail.