Steve says economists have upgraded their Q2 estimates which suggests to him that Q1 might have been the bottom. Consequently, he thinks earnings might be surprisingly strong, especially in areas that are expecting weakness such as financial services and consumer discretionary.
Jeff Macke tells the panel that the consumer isn’t dead. The CEO’s are just talking down the earnings.
Eric Bolling adds the world economy is raging. He predicts earnings coming in around 7%.
Pete Najarian agrees.
Dylan asks the panel, what’s the trade?
Jeff Macke says get long Zumiez (ZUMZ), Guess (GES) and Coldwater Creek (CWTR), because those companies are doing well, despite negative perceptions about consumer spending.
Eric Bolling says employment is strong and he likes steel, and commodity-based companies.