Oct 28, 2011|
Jeff Macke from Yahoo! Finance tells us What's Up On Wall Street.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
McDonald's has brought back the big red sand. I went. Lot of what they've got to do with -- about the body. Automated -- is making another come back. But that's what he usually got about an hour of the. Thank you very much -- once money is brought to you by network capital funding corporation your future financed. Welcome to the show it's a Friday I guess my big question of the day is. After that wonderful stock market rally that we experienced yesterday. We went 300 points on the Dow up more than 3% on the S&P 500 just a great day for stocks. Well today not so much today's kind of a middle of the road date down about twelve points on the Dow Jones Industrial Average great show for hope here -- is able to stay with us for a whole hour on Larry -- of course coming on. Now Ross can be joined by Elizabeth O'Brien talking about insider buying of stocks. But nothing more important. Than what's going on right now in Jeff Mac he's gonna help us straighten that now allowed Jeff MacKey from Yahoo! finance Jeff welcome to the show. I -- much greater regular cup or want -- back yes yes I hear I. If it last year at the start to hear this house are. Hey Jeff out with dells are stocks get a little high is is that way that we see in a little bit of -- settling today at the little expensive at these levels. Not so much on historical basis the is people just don't know we didn't know what was gonna go on and Europe we don't know what's gonna go on here economically. And I think what we saw yesterday it was just too many fund managers bet against the tape lot of guys short stocks lot of guys don't know enough of them and win the market takes often don't invest in and opt for use either short squeezes it and it's a great day for the -- Not so much for the bears. The -- -- -- -- bears must have been taken to the woodshed yesterday a lot of money lost for them but you know what. A lot of people had made the argument that stocks were undervalued. And I just a few weeks ago it was too well how much -- we rally -- during the month of October. Oh my -- were up over what 15% in October 3 where that 11100 on the S&P which is kind of professional look at. Now what 1280. However you want to do -- -- you know there are some bigger long division carried a lot Europe's top 15%. That's probably the best October we've had perhaps ever. That is stock -- to applause. Well and and may be doubt that's all get a some consolidation are you seeing traders today selling into this are you seeing people take your profits off. I thought we could see maybe a hundred points a loss on the -- but we're not seeing it seems like it's holding on. Right now if anything defines 2011 it's that which should be happening doesn't but that's -- wish it to about under point decline that they're talking about. 1% pullback board that would be completely natural. And frankly -- healthy for the market you just -- buyers out there almost any dip is being seen by. The folks imaginable for the shorts the people Malan and -- as a buying opportunity of these things come to feed on themselves. Well it any other problem that the the shorts have right now and if you're bearish the challenge you have is a few sellout. You know -- if you go to cash you're getting zero reward on your money and when he had to come back in May in only expecting it to go to 1110101000. I don't know I don't see it. I I don't see a huge decline. Coming in the markets anytime soon or may be I'm reading it wrong what's your perspective. I think you're exactly right particularly to -- and the years he's the font managers that may talk a big game about the long term but I imagine they're light -- -- and year to year and we've got December 31 comment. If you're trailing the market UMass folks money you are a little bit the panic zone and that's gonna make you a buyer you may want a shortened to about 101001 not ordinary times soon. That means -- quad have to file. Now well let it be it seemed like it would what are we see it for corporate earnings today any any big announcements. You know we we saw some numbers and Chevron I tend to ignore goers and I'd look at the names -- really part of the economy big oil is big oil that got a lot of moving parts that don't really tell me what happened on main street. A company like wal pull on me -- man dies. They came out today with where. Pretty much atrocious quarter. More concerned that this be okay mountains that then they're demand what they're seeing from spending is that recessionary levels. Right here right now that's cause for pauses your bowl on the economy. Is that because of the housing crisis and need people -- the you know. Housing sales numbers have been abysmal all yearlong. Yeah I'd say it's unfortunately bad but lack of demand at a chemical label you're exactly right -- plenty of things apartheid reported out of it appointed unemployment. You can point -- uncertainty over what's going on Europe may. Flagging demand you can go anywhere you want but at the end of the day the demand just isn't fair and it almost doesn't matter why because we don't have a quick fix no matter what it has. ICI shares of Hewlett-Packard rallying today. Made -- made a big announcement regarding their PC division really taking a powder. Moved to Leo Leo apotheker is that correct. Yeah out yes he's gonna hold onto the PCs which makes sense that serious thing is that -- was part of the board that voted to get rid of them in the first place. So you know built figure these these shenanigans that go on the board on. But this is the right call for HP HP gets a ton of their revenues that divisions working a little bit form as a PC division. Not so much exciting in terms in the margins but that's how they do all the businesses. Basically stem from -- as I appreciate them as I printer ink. So getting rid of those fires they'll never made sense in the first place in -- reassurance to investors see that the grownups are back in charge. You we're hearing reports out of Harvard University professor their robot. And -- economics professor at Harvard. Suggesting that Greece is going to leave the eurozone. My question is are they going to leave of their own decision or they gonna be excused and dismissed from the anti terrorism. Well judging by the banks or voluntary and called marked out of Greek debt this week. It doesn't they're gonna get kicked out and the -- say they left willingly and I almost certainly won't get kicked out for any reason the Germans and the French. Are sick of having many people myself included -- Greece would be gone already and they should've been part of this in the first place that has to share. The same concerns needs wants or economic characteristics of the rest of the year. What is what happens is that they do get thrown -- is there economy crumble. And their economy has crumbled. It's already -- you know it's already crumbled bacon devalue their currency which would be the benefit to about so make him pay off -- don't monster just absurd amount that you get under tax basis in particular. They can devalue their currency alone without after the directly Euro and of their mass and maybe they can take out of it but the problem is that they just don't have the same needs. As charming as perhaps the -- of the gold after concerns factories never should have been in there in the first place in your opinion. Now they're better if you at a country club -- the guys who show up. You get out of the club a. Great descriptions. China day you know he'd try to had a tough year are you bullish or bearish on China over the next three years -- -- I wouldn't touch -- an -- -- -- -- that I think that you know the -- -- by Andy you're gonna you can catch a balance on that has a lot of it is but the problem of these markets. Or -- it it's whatever however you would characterize them. Is that they tend to grow huge right from the beginning and we put a lot of faith in them. And the -- growing pains he can't just decide you were capitalist right now let's go for it. They yeah it doesn't work that what we -- and Russia few years ago in 2007 hours that they talked thing and it fell 70% in the ligament. I think China has growing pains I think there's money to demand elsewhere I think the US is about a placed -- -- and seniors. Well I'm glad to hear that because that's word got most of my money in no sotomayor's first episode the. Outstanding I think that he's as multi nationals in the great global growth has been a crazy. All of that work for awhile but if you look at it over the last three years we are just some breakout crunch some numbers force yesterday. Actually US markets are outperformed by quite a bit over the emerging growth markets and that's supplement no one's talent ya. Except for me in the folks separate out on not been announced but -- You know we're looking at -- in the US is now performing and that -- figured continued its concern about tenure cycles. Well that's good to know Jeff MacKey thank you very much for joining us appreciate it. Thank you import. Ladies and gentlemen that was Jeff MacKey joining us today from Yahoo! finance up next will be Larry Kudlow right now the let's take a quick look at some of the commodity prices. That oil prices down thank goodness down a dollar five a barrel at 9291. We've got gold down two dollars and sixty cents an ounce it's 1744. And not a commodity but interest rates the yield on the ten year treasury -- about 2.2 9% to -- we stand. Markets have been open for again going on three hours to be three hours about fifteen minutes. Up next Larry Kudlow on Boston's stock station AM 680 WRK.