THESE MARKETS AND FOR THAT I'M
JOINED BY MITCH ROCHELLE IS
A FOUNDING A PARTNER AT MACRO
TRENDS ADVISORS AN ADJUNCT
FACULTY MEMBER AT THE
UNIVERSITY OF SAN DIEGO
BUSINESS SCHOOL WHICH IS GOOD
TO SEE YOU
THIS MORNING. LET'S TALK ABOUT
THE MARKETS SHRUGGING IT OFF
AND WHY IS THAT.
>> IT'S KIND OF CRAZY THING
ABOUT IT CHRISTIAN LOVE JUST
LAST WEEK IT WAS A ROLLER
COASTER RIDE AS DEALERS AND A
DEAL WAS NEGOTIATED WE'RE
NOT NEGOTIATING AND LO AND
BEHOLD THE NASDAQ WAS UP OVER
4% AND THE OTHER 2 INDICES DOWN
IS TO BE CLOSE TO 4%. SO THE
FACT OF THE
MATTER IS I THINK THERE'S
BELIEF WITHIN THE MARKET MAKERS
AND THE FOLKS BEHIND YOU ON THE
FLOOR THAT THERE WILL BE A DEAL
IN THE OFFING.
>> AND IS THAT YOU NEED TO COME
BEFORE THE ELECTION MAJOR CAN'T
WAIT TILL AFTER THE ELECTION.
>> I THINK IS IN THE ECONOMY
NEEDS A DEAL. NO QUESTION ABOUT
IT WE NEED STIMULUS WHERE WE'RE
SORT OF RUN OUT OF EVERYTHING
WE HAD TO USE THE
PAYCHECK PROTECTION BEHIND THE
STIMULUS CHECKS ARE GONE AND
THE CAR. I MEAN REALLY STILL
NEEDS A SHOT IN THE ARM BECAUSE
THE UNEMPLOYMENT RATE IS AND
WHERE WE WANTED
TO BE EMPLOYMENT IS IN THERE
THERE'S SO MANY BUSINESSES
GOING OUT OF BUSINESS SO WE DO
NEED SOME FORM OF SO
WHENEVER IT IS CAN'T BE SOON
ENOUGH I THINK THAT'S WHAT THE
ECONOMY IS SAYING AND THE MARCH
KILLED THEM.
>> AND IT'S INTERESTING BECAUSE
THESE TECH NAMES THAT CLEARLY
OUTPERFORMING TODAY THE BIGGEST
TECH NAMES OUT THEIR APPLE
MICROSOFT AMAZON UP MORE THAN
ONE PERCENT PREMARKET THESE
GAINS CONTINUE TO HOLD HERE AT
THE OPEN WHICH IS A BIG REASON
WHY WE SEE THIS MARKET ACTUALLY
BOOSTED ACROSS
THE BOARD. BUT MICHELLE GOT TO
THINK EARNINGS THAT MIGHT BE
BETTER THAN EXPECTED COURSE
APPLE'S IPHONE ANNOUNCEMENT
TOMORROW THAT SHOULD INCLUDE 5
G PHONES
CAPABLE PHONES TO ACCESS THAT
AS WELL AS AMAZON'S PRIME DAY A
POTENTIAL POSITIVES HERE FOR
INVESTORS WAS THE DRAW THAT YOU
SEE TO TECHNOLOGY RIGHT NOW FOR
INVESTORS.
>> BECAUSE IF YOU LOOK THIS
INCREDIBLY WEIRD TWENTY-TWENTY
THAT WORK ALL STILL FINDING
WAYS TO
COPE WITH. THE ONE THING THAT
WE COULD COUNT ON FOR THE MOST
PART
WAS TECHNOLOGY. AND I THINK THE
ONE THING THAT MADE SOMEWHAT
NORMAL IN 8 VERY ABNORMAL
TIME AND IN LEAST IN MY
LIFETIME IF NOT IN IN
MODERN HISTORY, HE IS THROUGH
THE ADVENT OF TECHNOLOGY SO I I
BELIEVE THAT INVESTORS LOOK AT
THAT AND REALIZE THAT THE
FUTURE OF OUR ECONOMY AND THE
FUTURE OF SO MANY
BUSINESSES GOING RELY UPON
INNOVATIONS IN TECHNOLOGY IN
THESE COMPANIES
HAVE DELIVERED. THEY'VE
DELIVERED THE THEY'VE DELIVERED
THE SOLUTIONS AND I THINK
THAT'S WHY THEY'RE LEADING THE
MARKET.
>> OTHER THING THAT I WONDER
MITCH IS BECAUSE WE HAVE A
LITTLE BIT MORE CERTAINTY OR AT
LEAST THE POLLS ARE SHOWING
THAT BIDEN'S LEAD IS WIDENING
VERSUS PRESIDENT TRUMP SINCE
PRESIDENT TRUMP WAS DIAGNOSED
WITH THE VIRUS IF THAT PROVIDES
INVESTORS WITH
THE LITTLE BIT MORE CERTAINTY
THAT WE COULD ACTUALLY KNOW WHO
THE WINNER MIGHT BE ON
ELECTION. I DO THINK THAT THAT
IS CONTRIBUTING TO THE RALLY
THAT WE'VE SEEN THE PAST FEW
DAYS.
>> I I BUT LET'S UNPACK THAT A
LITTLE BIT
I THINK THE RATHER SPEEDY
RECOVERY
THE VIRUS.
>> THE ELECTORATE HOPE THAT
MAYBE IF YOU DO CATCH AND IT'S
NOT SO BAD AND I THINK AND WE
LOSE SIGHT OF THE FACT THAT
PEOPLE WHO VOTE ALSO INVEST
RIGHT SO I THINK THAT GAVE THE
MARKET A LITTLE BIT OF A SHOT
IN
THE ARM. AND I THINK THE
REALITY
IS THAT THE VACCINE. WHENEVER
IT COMES IN PEOPLE GETTING BACK
TO WORK AND BACK TO NORMAL
IS SORT OF FAR APART SO I THINK
WE GOT A LITTLE BIT OF
GOOD NEWS, IN THE INTERIM THAT
GAVE THE MARKET IN GAVE SOME
VOTERS SOME CONFIDENCE.
>> EVEN THOUGH WE'RE ALL STILL
TRYING TO REALLY DECIPHER RIGHT
THE TRUE HEALTH OF THE
OBVIOUSLY HE'S BEEN
ON SEVERAL DIFFERENT
MEDICATIONS TO TRY TO BOOST HIS
STAMINA DURING THIS CRUCIAL
TIME TO BE OUT ON THE CAMPAIGN
TRAIL. BUT I THINK A LOT OF
PEOPLE STILL REALLY
QUESTIONING THAT THE HEALTH OF
THE PRESIDENT MITCH I ALSO WANT
TO GET TO THIS EARNING SEASON
THAT'S UPON US WE HAVE A LOT TO
GET TO THIS MORNING HERE JUST
IN TERMS OF POTENTIAL MARKET
MOVERS. I DO YOU ANTICIPATE
THAT THESE EARNINGS WILL BE
BETTER THAN EXPECTED AND THAT
THAT COULD BE A POSITIVE FOR
THE MARKETS HERE OVER THE NEXT
FEW WEEKS.
>> THE ONE THING THE CFO SINCE
CEO'S HAVE.
>> IN DOING A REALLY GOOD JOB
OF MANAGING EXPECTATIONS.
LAST QUARTER I THINK 84% OF THE
S AND P
500 BEAT EXPECTATIONS.
>> THE BANKS WHICH ARE GOING TO
LEAD THIS WEEK IS ALL THE BIG
NAMES REPORTING EARNINGS
TOMORROW, WEDNESDAY, A LITTLE
BIT INTO THURSDAY. THE FACT OF
THE MATTER IS LAST CALL
THEY REALLY BEAT EXPECTATIONS.
SO I THINK FROM AN EXPECTATIONS
MANAGEMENT PERSPECTIVE I THINK
THEY'VE
DONE WELL WHAT THEY HAVEN'T
REALLY DONE AND THIS IS ACROSS
NOT JUST THE BANKS WITH THE S
AND P 500 IN GENERAL HASN'T
GIVEN A LOT OF LONG-TERM
FORWARD GUY AND AND I REALIZE
THAT
THEY CAN'T SO THE THING THAT I
BELIEVE NOW THAT WE'RE IN THE
3RD QUARTER AND MERGER OF 2
QUARTERS INTO THIS INVESTORS
WILL START LOOKING FOR MORE
CLARITY ABOUT FUTURE GUIDANCE
AND I THINK THAT COULD
INFLUENCE THE WAY THE MARKET
BEHAVES THROUGHOUT THE REST OF
THE YEAR IN PART.
>> AT THE FACT THAT WE MAY NOT
GET A VACCINE
FOR MASS DISTRIBUTION UNTIL THE
SUMMER OF NEXT YEAR MITCH WHAT
SORT OF RISK FACTORS DOES THAT
PUT IN THIS MARKET OVER THE
COURSE OF THE NEXT 9 MONTHS.
>> I THINK IT'S GOING TO BE YOU
KNOW HOW BUSINESSES
REALLY DO.
>> OVER THE LONG UP WITH THEIR
WORK FORCE OPERATING
LARGELY REMOTELY. YOU START TO
HEAR SOME STORIES ABOUT
COMPANIES SAYING THAT'S FINE
YOU CAN WORK. REMOTELY.
INTO 2021, BUT IF YOU'RE NOT
LIVING WHERE YOU'RE LIVING IN
YOUR LIVING IN LOW
THE COST OF LIVING ENVIRONMENT
PERHAPS WE'RE GOING TO REDUCE
YOUR COMPENSATION WE'VE BEEN
GETTING THESE ARE SOME OF THE
STORIES AND THE COST SAVINGS
FOR COMPANIES THAT HAVE NOT
PUTTING IN PLACE ON AIRPLANES
AND NOT HAVING OFF SITES IN ALL
OF THE THINGS ARE DISCRETIONARY
SPEND PERHAPS THAT THEY'VE BEEN
SAVING. I THINK THAT'S GOING TO
EVAPORATE OVER TIME BECAUSE
THEIR FIXED COSTS OF PEOPLE AND
THE FIXED COST
OF SPACE. I'M GOING TO BEGIN TO
BECOME A DRAG ON EARNINGS IF
THEIR REVENUES HAVE BEEN PICKED
UP SO I THINK IT'S GOING TO BE
THERE'S GOING TO BE A SHAKEOUT.
OVER TIME AS WE GO QUARTER
AFTER QUARTER AND WE REALIZE
WHAT
THE REAL LONG-TERM RUN RATE
REVENUE AND PROFITABILITY OF
COMPANIES ARE AND WHAT IF