>> WELCOME
>> BACK TO GENERAL BUSINESS THE
S AND P 500 IS OUTPERFORMING
THE DOW WITH ALL SECTORS OF
DOUBLE
DIGIT PERCENT THIS YEAR, LET'S
BRING IN CHRIS VERSACE CHIEF
INVESTMENT OFFICER TO MEDICAL
RESEARCH OCCURS ALWAYS GOOD TO
HAVE YOU ON THE SHOW LOOK DOWN
THAT.
BOEING IS CERTAINLY A BIG PART
OF THIS DOW STORY RIGHT BECAUSE
BOEING'S LOSSES ARE WEIGHING
HEAVILY ON THE DOW BUT.
WHAT ARE OTHER BLUE CHIP STOCKS
LAGGING THE ON CALL.
>> MORNINGTON
MORNING. HOPE YOU'RE ABSOLUTELY
RIGHT AND THAT YOU KNOW WE LOOK
AT THE DOW ONE OF THE BIG
THINGS WE HAVE TO LOOK
AT IS IT'S ONLY 30 STOCKS IN
THE WHAT'S THE CONSTRUCTION OF
THIS INDEX AS YOU CORRECTLY
POINT OUT
THAT BOEING IS OF THE LARGEST
COMPONENT ABOUT 8.5% OF IT, BUT
YOU KNOW LEAST TAKE A LOOK BACK
AT THOSE 30 STOCKS AND SEE HOW
THEY'RE PERFORMING. YOU KNOW
THERE'S ABOUT 6 STOCKS IN THAT
ABOUT 32% OF THE INDEX WE'RE
TALKING A LINK AT MCDONALD IBM
UNH
GOLDMAN SACHS. YOU KNOW THAT
YOU KNOW A TRADE SIDEWAYS FOR
THE YEAR WERE IN THE LAST
COUPLE MONTHS UNDER PRESSURE
AND I THINK THAT'S ONE OF
THE REASONS WHY THE DALLAS LAG
SO IT SPEAKS TO HOW IT'S
CONSTRUCTED AND THE
OUT IT. WAITS THE INDEX STOP
OKAY, SO I WANT TO MAKE SURE
THAT I'M NOT MISSING SOME SORT
OF.
>> OTHER MACROECONOMIC STORY
HERE OR SOME SORT OF ECONOMIC
INDICATED THAT A MISSING THAT
IS SORT OF A WARNING UP TO WHAT
IS HAPPENING IN THE ECONOMY
RIGHT NOW.
>> BASED ON HOW THOSE THOSE
CONSTITUENTS FOR TRADING IN
THE EACH AND HAVE THEIR OWN
COMPANY, SPECIFIC ISSUES A LOT
GOING THERE CAN BE OTHER ISSUES
ABOUT THE SPEED OF THE GLOBAL
ECONOMY TRADE CURRENCY. TAKE A
LIVE CATERPILLAR FOR EXAMPLE,
YOU KNOW THOSE ARE GOING TO
AFFECT THE CONSTITUENTS.
BUT IF YOU COMPARE TO THE S P
500 I BELIEVE ONE OF THE
LARGEST WEIGHTED STOCKS IS ONLY
AT 4%.
YOU KNOW THAT BOEING IMPACT 8
AND A HALF PERCENT IS A BIG
DEAL AND THAT'S ONE OF THE
DIFFERENCES BETWEEN WARRANTS OF
THESE 2 INDUSTRIES.
>> OF COURSE OF MY BETTER
PERSPECTIVE, YOU KNOW MOST OF
THESE INVESTORS ARE USING THE S
P TO MEASURE THEMSELVES AGAINST
THE LARGER MARKETS
AS WELL WATCHING OF COURSE
EARNINGS SEASON GET UNDERWAY
HERE AND MOSTLY WE'VE SEEN A
LOT OF
BIG SURPRISING. PROFIT BEATS AS
SPECIALLY GIVEN POLICE TO SOLVE
A TEST THAT WE JUST TALKED
ABOUT THAT IN THE LATEST
QUARTER. I THINK EXPECTATIONS
WERE ACTUALLY LOW GOING INTO
THIS EARNINGS SEASON.
>> WELL FIRST LET ME SAY YOU'RE
SPOT ON YOUR COMMENT ABOUT THE
S P 500 PROFESSIONAL INVESTORS
THAT'S THE BENCHMARK TO USE ITS
FAR MORE DIVERSE THAN 30 STOCKS
IN THE DOW CANDIDLY I DON'T
KNOW WHY WE CONTINUE TO TALK
ABOUT THE DOW 30 JUST JUST TO
BE HONEST WITH YOU BUT IN TERMS
OF EARNINGS. YOU ARE CORRECT
EXPECTATIONS ARE
COMING IN A LITTLE BETTER THAN
EXPECTED. YOU KNOW AGAIN IT
DEPENDS ON THE POCKET THAT
WE'RE LOOKING AT SERVICES
FINANCIAL COMPANIES BETTER THAN
EXPECTED. YOU KNOW THE
INDUSTRIALS HAVE SOME OF THEM
ARE EKING OUT PROFITS BUT YOU
KNOW OUR PROFITS ARE AHEAD OF
EXPECTATIONS. BUT MORE OFTEN
THAN NOT ARE SEEING
AN ISSUE NEGATIVE GUIDANCE YOU
KNOW INNOCENT INDUSTRIAL
DIRECTED AT THIS MORNING EVEN
INSIDE AS YOU SAID BEFORE 3 M'S
REPORT THERE ARE SOME REASONS
TO BE A LITTLE CONCERNED ABOUT
AND 9 US BUSINESS SO
I THINK PERHAPS WE SAW
EXPECTATIONS COME DOWN A LITTLE
BIT BUT TO ME IT'S REALLY THE
GUIDANCE ON THE ORDER THAT IS
GOING TO MAKE THE BIG
DIFFERENCE HERE.
>> SO WE ARE LEARNING THOUGH
WITH ALL-TIME HIGHS ON THE S
AND P 5 100 BUT IT WAS JUST A
COUPLE OF MONTHS AGO THAT WE
WERE TALKING ABOUT AN INVERTED
YIELD CURVE AND RECESSION
WARNINGS ON THE HORIZON SO WHAT
HAS CHANGED WHY ARE INVESTORS
MORE OPTIMISTIC NOW THAN THEY
WERE A FEW MONTHS AGO.
>> WELL TIM, I THINK IT'S A
COUPLE THINGS ONE WE'VE GOT A
SOME ADDITIONAL SIGNALS ON
POTENTIAL MONETARY POLICY
STIMULUS WE ALSO EXPECT
YET ANOTHER. THAT RATE CUT NEXT
WEEK SO THAT WAS A LITTLE
DIFFERENT PERHAPS THAN IT WAS
2, 3, 4 MONTHS AGO. WE'VE ALSO
GOT SOME SIGNS.
>> TREAT WERE YOU KNOW COULD
WEAR VERY
WELL BE MOVING FORWARD TO A
RESOLUTION OR AT LEAST THE
START OF A RESOLUTION EVEN THIS
MORNING CHINA'S OUT SAYING THAT
THEY ARE GOING TO.
>> I THINK BILLION WORTH
OF ACT OPPONENTS AND OVER THE
COMING YEAR IF YOU GET A PHASE
ONE DEAL AND I THINK IT'S SOME
OF
THOSE POSITIVES THAT HAVE
REDUCED THE UNCERTAINTY REDUCED
IN OTHER CASES, THE NEGATIVITY
THAT'S BEEN WEIGHING ON THE
MARKET NOT SEEING THAT THINGS
ARE ROSY TAKE A LOOK AT THE IHS
MARKIT FLASH PMI DATA FROM THE
EURO ZONE, 10 USED TO CONTRACT
IN THE MANUFACTURING SIDE.
THE UNIT WILL LOOK ON THE
CONTINUED SLOW MAKE THEM STAY.
>> ABSOLUTELY AND I THINK ONE
OF THE PIECE OF NEWS COMING
OUT TO REALLY BOLSTER THE STORY
OF THE JOBS MARKET STILL BEING
REALLY STRONG IS US WEEKLY
JOBLESS CLAIMS COMING IN LESS
THAN EXPECTED THESE CLAIMS
COMING IN ABOUT 212,000
WHEN WE END UP IN EXPECTING
ABOUT 215,000 OR SO SO THIS
TIGHT LABOR MARKET STILL
INDICATION THAT GROWTH IS STILL
HERE IN THE COUNTRY.
>> I MEAN YOU CAN ALSO TAKE A
LOOK AT THE THE JOLTS REPORT WE
CONTINUE TO SEE THE
MISMATCH BETWEEN SKILL SETS
THAT ARE AVAILABLE AND SKILL
SETS THAT ARE HE DID AND I
THINK THAT OVER TIME THIS CAN
HELP DRIVE UP REGIONS NATION AS
WELL IT SHOULD BE GOOD FOR
CONSENT. CHRIS WE LIVE IN THE
SERVICES.
>> IN THE US, BUT THAT DOESN'T
MEAN THAT MANUFACTURING IS
STILL NOT CRITICALLY IMPORTANT
HERE IN THE UNITED STATES EVEN
THOUGH MORE PEOPLE
BE WORKING SERVICES SECTOR WE
DID SEE A ECONOMIC
SIGNAL AND TERMS OF DURABLE
GOOD OR GOODS ORDERS FOR THE
MONTH OF SEPTEMBER FALLING 1.1%
WHAT IS THE MANUFACTURING STORY
THAT'S PLAYING OUT RIGHT NOW
AND HOW SHOULD INVESTORS WEIGH
IT.
>> WELL 2 THINGS TIM ONE WE
REMEMBER THAT WE HAVE TO TAKE
OUT TRANSPORTATION AND
AEROSPACE TO REALLY GET A SENSE
OF WHAT WHAT'S GOING ON AND OF
COURSE THOSE FIGURES GOING TO
BE IMPACTED BY BOEING'S WAS
WITH 7, 3, 7, MAX YEAR
OVER YEAR. YOU KNOW WE WANT TO
REALLY WANT TO FOCUS IN ON THE
CORE CAPITAL GOODS NUMBER
WHICH IS THE PROXY FOR BUSINESS
INVESTMENT IN THAT THAT YOU
KNOW NO SURPRISE GIVEN THE
SLOWING ECONOMY GETTING SOME OF
THE LINGERING UNCERTAINTY ON
TRADE WE ARE SEEING THAT NUMBER
CONTINUE TO YOU KNOW WIN
LOWERS SO YOU KNOW IT'S ANOTHER
HEADWIND FOR THE ECONOMY,
ANOTHER SIGN THAT YOU KNOW THE
GLOBAL ECONOMY AND THE US
ECONOMY CONTINUE TO SLOW.
>> THERE ARE A LOT OF HEADLINES
EVERY DAY ABOUT WHAT'S MAY BE
DRIVING THE MARKETS AND NOT AS
SOMETHING THAT WE MIGHT BE
MISSING CHRIS THAT WE SHOULD BE
TALKING ABOUT MORE.
>> WELL YOU KNOW HOPE I WOULD
ALWAYS ARGUE YOU WANT TO TALK
MORE ABOUT THE VATICAN VESTING
THAT'S THAT'S WHAT WE DO IT
ATTICA BUT OUTSIDE OF THAT.
I WOULD SAY THAT WE WANT TO
JUST KEEP OUR MINDS ON WHERE
EXPECTATIONS ARE GOING FOR THE
S P 500 NOT SO MUCH FOR 2019
THAT REALLY 2020. REMEMBER YOU
KNOW THE SO FAR THE
EXPECTATIONS CALL FOR 10% EPS
GROWTH AND I THINK A LOT OF
PEOPLE AS WE MOVE TOWARDS THE
END YOU'RE GOING TO RAISE A LOT
OF
QUESTIONS ABOUT HOW DO W