>> WELCOME BACK SUCH AS
OPENING BELL EVERYONE AT LET'S
TALK SOME MARKETS HERE THE
JUST YET BEING OFF ON WALL
STREET AND THERE'S ALREADY A
BUNCH OF STORIES THAT WE'RE
COVERING FROM BANK EARNINGS TO
STIMULUS TALKS.
SO LET'S JUMP IN JOINING ME NOW
TO DISCUSS THE JASON WHERE IS
THE CHIEF INVESTMENT OFFICER AT
ALBION FINANCIAL GRAHAM.
JASON IT IS GOOD TO SEE YOU
THIS MORNING IS SO
OF BANK EARNINGS GOLDMAN SACHS,
THE BRIGHT SPOT HERE THE FROM
REPORTING EARNINGS. BEFORE THE
BELL BETTER THAN EXPECTED AND
THE STOCK IS HIGHER AND THE CEO
DAVID SAW AND JUST MARKING
HIS SECOND YEAR LEADING THIS
COMPANY, WHAT WAS YOUR TAKE
AWAY.
>> I'M KRISTEN GOOD
YOU KNOW THE BANKS THAT ARE NOT
AS X OPPOSED TAKE THE PROCESS
OF MAKING LOANS ARE GETTING
CRUSHED BY LOW INTEREST RATES
THROUGH LOWER NET INTEREST
MARGINS US ARE DOING BETTER
THIS QUARTER. GOLDMAN SACHS HAD
A BIG BEACH WITH THEIR BOND
TRADING DESK. WE HAD A BIG
BEAT. THEIR ASSET MANAGEMENT
DIVISION AND THINGS LOOK PRETTY
GOOD OUTSIDE OF FOR BANKING
FOR GOLDMAN SO I THINK
CERTAINLY THAT HAS HELPED.
WITH WITH RESULTS IN
THE QUARTER THAT'S A THAT'S A
FEATURE BANKS LIKE BANK OF
AMERICA
WELLS FARGO. AND CITIGROUP TO
SOME DEGREE DON'T ENJOY TO THE
SAME MIX
SPENT THE GOLDMANS JP MORGAN'S
IN MORGAN STANLEY'S OF THE
WORLD ARE BENEFITING FROM SO
THAT THAT'S KIND OF BIG TAKE
AWAY FROM GOLDMAN PIECE OF THE
THOSE OTHER BANKS REPORTED THIS
MORNING.
>> SO IT DOES SEEM LIKE GOLDMAN
ISN'T IT HAS A STRONG POSITION
HERE JP MORGAN OBVIOUSLY IS A
DIVERSIFIED BUSINESS SIMILAR TO
GOLDMAN BUT WE SAW IN THE WAKE
OF HIS EARNINGS YESTERDAY, THE
STOCK WAS ACTUALLY DOWN ALONG
WITH SOME OF THE OTHER BANK
EARNINGS THAT
YOU'VE MENTIONED AND SO I'M
WONDERING HOLISTICALLY WHAT'S
THE TAKE AWAY FROM BANK
EARNINGS IS A POSITIVE IS IT
NEGATIVE IS GOLDMAN JUST AN
OUTLIER.
>> YEAH IT'S A GREAT IN
GOLDMAN'S A BIT OF AN OUTLIER
JUST BE BECAUSE YOU KNOW AS YOU
MET WITH JP MORGAN, YOU KNOW
THEY HAVE A MORE DIVERSIFIED
BUSINESS MODEL WE AND JP MORGAN
FOR CLIENTS, YOU KNOW THERE.
THEY ARE IN THE
CORE BUSINESS OF OF OF TAKING
DEPOSITS AND MAKING LOANS BUT
THERE ALSO IN THE INVESTMENT
BANKING SIDE OF THINGS THAT'S
THAT MANAGEMENT AS WELL SO THIS
MORNING KIRSTIE THEREFORE
JP MORGAN AGAIN GOLDMAN'S MORE
CENTERED ON THE THINGS THAT ARE
WORKING THIS YEAR AND THEN
THOSE OTHER THE EPICENTER OF
THEIR BUSINESS OR IN AREAS THAT
ARE WORKING IN LOWER
INTEREST RATES BEEN A BIG HEAD.
ONCE I THINK THE BIG TAKE AWAY
IS THAT VALUATIONS ARE LOW IN
THE BANKING SECTOR.
THEY'RE ON THE STOCKS FOR GOOD
REASON THAT GOOD REASON IS THAT
WE ARE EMERGING FROM A
RECESSION. WE HAVE A SOMEWHAT
TEPID APPETITE FOR NEW LOANS
GIVEN WE ARE COMING OUT OF
RECESSION, THAT'S PRETTY
STANDARD OF THE BUSINESS CYCLE
AND GIVEN INTEREST RATES ARE
DOWN AT 0 AND THE DRONE
HOW THAT IS NOT INTERESTED IN
RAISING RATES ANYTIME SOON IT'S
JUST A PRETTY DIFFICULT
ENVIRONMENT ON
BALLOTS FOR.
>> 4 BIG BANKS RIGHT NOW
THERE'S GOING TO BE A VOTE NEXT
WEEK SAID IT
HOUSE BY REPUBLICANS RIGHT IN
THE REPUBLICAN LED SENATE THAT
IS ON SMALL
BUSINESS LOANS. WHAT DO YOU
THINK THE CHANCES ARE THAT WE
GET STIMULUS BEFORE THE
ELECTION AND EVEN THOUGH
WE KNOW MAIN STREET NEEDS IT
RIGHT, THERE'S BASICALLY NO ONE
THIS IS MAIN STREET DOESN'T
NEEDED EXCEPT FOR MAYBE SOME OF
THE
SENATE REPUBLICANS DO THE
MARKETS NEED WHAT DO THE
MARKETS NEED TO SEE TO AVOID A
PULLBACK.
>> IT'S A GREAT QUESTION AND I
THINK AT THIS POINT THE
EXPECTATION IS THAT WE WILL NOT
GET STIMULUS AHEAD OF
THE ELECTION. WE'RE LESS THAN 3
WEEKS OUT SO EVEN IF THEY WERE
TO
>> AND AGAIN UNLIKELY
GIVEN THE.
>> CHASM BETWEEN HOUSE
DEMOCRATS AND SENATE
REPUBLICANS BUT IF THEY WERE TO
PASS SOMETHING YOU KNOW JUST
GETTING THE MECHANICS GOING
GETTING
THE PLUMBING. TURNED ON TO GET
STIMULUS OUT INTO THE ECONOMY
IS IS
PROBABLY NOT GOING TO HAPPEN IN
2 AND A HALF WEEKS I THINK THE
MARKET CORRECT.
LEE IS ASSUMING THAT STIMULUS
IS A POST-ELECTION THING NOT
ONLY
THUS THE VIEWPOINT OF BOTH
PARTIES COMING TOGETHER IN BOTH
CHAMBERS COMING TOGETHER ON
CAPITOL HILL BUT ALSO JUST THE
RE THE YOU KNOW REALITIES OF
GETTING THAT OUT INTO THE
ECONOMY THIS IS GOING TO BE
DEFINITELY SOMETHING THAT'S
YOU KNOW AFTER THE ELECTION THE
MARKET UNDERSTANDS THAT SO I
DON'T THINK THE EXPECTATION IS
HYPER SOMETHING TO HAPPEN AHEAD
OF TIME AND WE SAW PELOSI
SAYING THAT
1.8 TRILLION FROM THE
REPUBLICANS IT'S NOT ENOUGH,
BUT IT DOESN'T SEEM THE SENATE
REPUBLICANS WANT TO GO BEYOND
THAT THEY WANT TO DO SOMETHING
A LITTLE MORE TARGETED THE
PROBABLY GONNA HAS SOMETHING
LATER THIS MONTH THIS MORE
SYMBOLIC AHEAD OF THE LAW
ACTION THAN ANYTHING ELSE SO
WE'LL SEE WHAT HAPPENS AFTER
NOVEMBER, 3RD.
>> AND VERY QUICKLY JASON A
CONTESTED ELECTION DO YOU THINK
WE'LL GET ONE AND HOW DOES THAT
IMPACT STOCKS.
>> I THINK THAT'S THE BIG
CONCERN FOR INVESTORS RIGHT NOW
IT'S NOT SO MUCH AS A JOE BIDEN
OR DONALD TRUMP IS IT WE EVEN
KNOW AS PRESIDENT FOR A WHILE I
THINK IF THE MARGINS THAT JOE
BIDEN SEEMS TO HAVE NOT ONLY AT
THE NATIONAL LEVEL BUT MORE
IMPORTANTLY STATE-LEVEL HOLD
AND WE HAVE AN ELECTION THAT
THE RISK OF A CONTEST. THE
LEGEND GOES DOWN DRAMATICALLY
AT THE TITANS A LOT AND I THINK
THE VOLATILITY
GOING INTO THAT IN THE CONCERN
ABOUT THE CONTESTED ELECTION