Earnings & the Markets

" Joining us now us CNBC market analyst you crossover star -- we also have -- cash and UBS financial services guys you're listening Bob's funny everybody that -- let me start with you."

" Well I made an attempt reform might feel like still think these these earnings were not quite not a -- On how Lloyd joy that everybody's -- and think they -- that's their revenue shortfall doesn't bother me and I think. It may come home to -- a little bit later in the year but for now the market is on mother's side they seem to be interpreting things. His way and that's what help -- that rally that we've had over the last ten days and we're pausing for breath right here."

" Right Steve Grasso look I appreciate -- degrade our actions cautious view and appreciate it -- there's this study for JPMorgan. It shows sequentially. On quarter by quarter from Q1 Q2. 70% of these reporting companies are actually improving their revenue sales I mean that's something that we have not focused on. A year a year the sales are down yeah that's a function of the economic slump. But sequentially. There's a lot of improvement in revenues that is not being accurately reported I didn't know if you've seen or heard about this study but I want to put it on the table because these numbers may be better than we think. I I figure a 100% right and you know how many times of people that -- closer to the end and we are the beginning. A -- won't -- I've seen real money being put to work this week I couldn't say that a couple of weeks ago so why short covering now it's real money. So if you want to talk about earnings on a level of company by company basis. We're two years into this thing since August of 07 -- two years into this eventually things have to start improving and I think you start -- real science. C and C do you think we put an -- here I mean do you think we're going to move office 9000 -- I think if you look at the S&P and you know my customers are telling me that they don't think -- did -- or stay much lower than 950. I think that might be a little bit aggressive but I think we're right we're all to a nine -- yes in the short term. I mean it. I understand pullbacks in corrections we may be due for why do you know a lot more about that that I do. But fundamentally. When you -- easy money Fed continuing that's what Ben Bernanke told us this week. When you see profits bottoming and may be improving -- you see the whole economic recession bottoming in May be pointing out with the leading indicators. Don't just think the fundamentals are really behind this stock market rally. Well I do but I think it's that they're playing a much more anticipatory role -- and and not. Since shift back from the fundamentals and technicals I give you want for your side. We've got over 80% of the stock to above their 200 day moving average. That usually means that the rallies got further to go where everybody's in a kind of comfort position. So -- that we get pulled back and expect one next week. I think the bulls still have the -- and can move would further why is that the main source URA wise man and I'd tell you how long time. What is your main source of skepticism about the summer rally right now are well -- It's my concern is the economy I'm worried about the sustainability I think what little stimulus we had. May be getting used up in here and I'm worried about. Bill -- and W I I think we may. She later in the year. Both in the stock market and the economy another move down. That's what -- we caught him. Even if somebody dared say this morning at gridlock in Washington is -- actually see gridlock on the health care. I think right now gridlock is bad gridlock is incredibly bullish and you seem that the health care get watered down. The market rallies. Energy bill gets pushed off to December the market rallies I think it's it's a clear message sent to Washington that they don't like -- yet. You know -- and Steve credit markets friends whether there. Money market sit down live board Ted spread or whether you go out to the differential between junk bond rates and treasury rates. Does spreads have narrowed so much more than 50%. Now. That we're really free Lehman levels in those credit markets fear spreads. Why does it reference or implications for stocks I mean I don't freely me and you get -- I think about 1200 on the S and speak first we gotta get 2000. But how does that inform you know what's that bond market taught us about profits and economic recovery -- stocks have to make up."

" I'll taste something better. At VH seventy level all of my short hedge funds they didn't get along but recovered all their positions. So I think at that point he saw the market rotation getting back into that whole mentality. And I think that tells a whole lot. -- ourselves -- can we get back to about 1200 level. Obviously. I think we have a lot of ground to make up but everyone I've spoken to his more aggressive meg Goldman 1060 -- yes of -- what would 1100 him. Tonight we'll get stuck just that I'm sorry got to leave it there aren't you -- Steve -- back Samsonite. "