Adam Johnson (BullseyeBrief, Earnings Season)


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

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It seems like we're off to a pretty pretty strong start at this point Adam. Blockbuster star I think. But I hit bid mr. bull here in New York for some honesty I don't want in the ball and I have been incredibly bullish you know. While year. He leaves averting an appointment or incredibly powerful chronic and either for me. Bubble. They attorney fees and thus far is exceeding their expectations and operate like I'm about to see accurately the actual number 51 of these. 500 companies via the 500 have reported that spark. And earnings growth. At this point based on the report is tracking. 30%. Now I think it actually get a comment ultimately won all but a report. You know 30% a lot of that coming from the bank which bodes very well at bat better. The top line sales Europe is coming up and we haven't been you know that kind of top line growth. Shut in in several years we need to go back like you know. Cash for clunkers went all that artificial stimulus act in you know about the weather you know also I'd I'd love what I'm seeing it here. Adam one of the things that you sometimes see in a growth cycle like this is that earnings down the road may compress because of higher wages that companies need to pay. If you have shortages of capable employees is that something that Larry let you know if that is that something that you could see happening later this year because I've talked to a whole bunch of different business owners and across different industries they all pretty much say look we can't find enough people to do all the work we. Yet about I that the average American workers start to make him more. Wage growth has been tracking up two point 7%. Now which is okay but honestly given the strength in the economy should really be above Greek debt. And I think there a couple of reasons why that happening and structural. On number one we have they like and about and baby boomers retiring every day they're being replaced we. You know millennial who frankly caught a lot less and a lot of the millennial don't necessarily want it W do you know they want the independence that. You know being able to work for several different where they wanna get locked in. But that also means that they're probably. Making less then. Then you know. The people they're replaced and a number one and he's got. Technology. That is streamlining our leader and operations and you know keep reading about. All the retail jobs being evaporated by e-commerce just an example war robot. Would be job sorters at FedEx war. Welders at GM well there's been structural reasons why I think that's happening but. You know it equally ketchup there comes a point where if you can't hire people you gotta anymore I hope you're okay. You pay them more our workers worked hard it is there to make money and that it. Adam you mentioned financials off the top is a sector that's reporting good earnings so far this quarter any other areas of the economy that you've got a spotlight on. Well I think actually that we are going to see a tremendous acceleration in spending by consumers. I'll bet not gonna happen. Probably until the middle of the summer as people start spending money on vacation. And that is due largely to act you know the average American who by the way are about fifty by about dollars. Got a raise of about 5%. Bet real money. And at that starts to percolate through the economy I think you're gonna be. Tremendous benefit to leisure. Sectors to food and restaurant spektr's you know people want a great that they don't really want to go out by the air that letter. That's what we're finding if you look at the data on consumer prices and money blow at how consumers are spending their money. It's our experience is. You know I think that's where you're gonna be leaders look at that you know what subscriber adds that degree gap and old attic. Shape and get a rating. Adam does the potential uncertainty when it comes to the implementation of any tariffs give you any pause with regards to companies and their expansion plans going forward. No and I know that you know. People what they were able to call it like breakdown be like could not Patrick in the coldly back. Honestly I tell you what I think is going on your show I McGee U ample back. I think it pulls air. Thing is about negotiation. Look at what happened when there's open first erupted over steel and aluminum. And the bit about Chinese steel actually is not that it ever way it only one and a half percent of Chinese he'll ever by the way you let up this was about. Gaining an upper hand in after the initiation with China and Mexico which by the way out purple one quarter is still leave court. At the very next day after the sanctions were quote unquote in it. What we found out what that. Canada and Mexico can be exempted it enacted could stay with regard to what's happening right now China. And and that get expert at goalie back and forth well. If these sanctions ever do you take it back. It won't be until June because they are they quote unquote. Quiet period between now and then. That's really not so quiet way and it turns out at all lobbyists and approach the government they well what about what about bad decree are out. And I really just say is that all about negotiations which is why the market now is starting to kind of treat this step at a grain belt when that what. When announcement you know sanctions and trade war at all. Burst were. Getting a call about a month ago yeah you know we wake up 1 morning be downstairs. Under but now we're you know we're about it back or bigger. And good Adams thank you for the time we appreciate it and scheduled we soon. Outbound great actually ramble chuck I know what I know that. Eco I really appreciate. Everything we wanted Adam thanks again for coming on that is Adam Johnson from bull's eye briefed dot com talking about the recent earnings season and the state of the US economy.