Transcript for Stock Market Up, But Spending Is Down
Futures looking up this morning after a large fall two days investors eager for another rally hoping -- that anyway the rise. -- by some pretty good numbers from Germany and Hewlett-Packard posting a good quarter. And to explain some of those numbers and movements in the markets please introduce -- -- member for opening bell team lower analysts are from Yahoo! finance Laurie Good Friday morning to you. Good Friday morning to you I can be nice to see it's great to see I feel very -- that we're gonna have a maiden voyage on this Friday morning. I'm thrilled for army and for a -- -- what better way to sailing to the weekend rigs that's exactly what I'm thing I've let -- work go ahead of time. -- each -- coming out their numbers of profits fell shares -- explain some of the backs were behind that. Yeah you know the where were -- Wall Street right frenetic and ink and and dropped 16% in your stock goes up because it beat expectations of eight. What investors were expecting for the last quarter and -- on the outlook HP -- you know is in the midst of a turnaround. And so while their profits are and how the there exceeding expectations of what the street expect them to deliver -- and that's why you're seeing some steady gains in the price. This morning okay so where exactly is the company losing money. -- down flat revenue decline across all of HP's main business division so revenues are down. HP is fighting for a shrinking share of the PC markets and that's really what's working against them but it's really get top line issue today they need. More sales and and so they're trying to trying to business -- an amber waves but that that's really that Atlantans. Michael -- is obviously digging into his pocket -- to try to buy back his company not to go private again any reason to think that there could be a similar approach to HP to kind of -- may be put a tourniquet on the hemorrhaging. Ry well Michael -- -- -- I don't wanna do this in front of Wall -- that I wanted to take my business Friday not wanna do this on my own terms of the scrutiny of this street every time actor report -- earnings. With HP there was that kind of a -- awhile back but earlier this month they did come out and say that that wasn't the route they were looking ago. They also had some tough words for -- in terms of the struggles that they space pretty critical of their decision. So in terms of what the company is saying it doesn't seem that that is anything that would be on their -- they've been very public about their turn around and said hey this is what we're looking to do this is what you know you can knicks back. -- -- -- -- Suffering at pain right in front as investors. Now Yang and forged a very public display there consumer spending obviously not that strong for a lot of retailers Wal-Mart -- a preeminent one. Not happy with its latest quarterly sales are blaming the government. On this. Yeah well this is something that we're hearing from -- more companies that we get a little bit more time -- our belts and -- payroll tax. Cut expired so there was a holiday on payroll tax cut that was something that was opposed it impact average Americans by giving them more money in their pocket that it expires -- that -- -- day in terms of the fiscal -- deal this was part of the agreement. So people's taxes average folks have seen a little -- and their paychecks at what apple amount to over the year. For the average person making 65000. Dollars -- household. Year annual income will be docked thirteen hundred dollars this year so. Pay eighty big picture you're not gonna notice it too much -- your paycheck is twenty dollars last but if -- Wal-Mart if your Burger King you're worried about the pinch that -- customers are feeling this is something that both of those companies and Kraft Foods have also complained about their trying to make some adjustments in their businesses having some lower item. Foods that they're touting as opposed to their price -- ones shrinking package sizes to to keep those costs low. Because they are concerned that their customers -- -- feel the -- and this holiday expiring payroll tax cuts are what fund social security and it just. What's on the chopping block in fiscal plea deal was always a holiday -- today you know quite frank. So the bottom line -- eight are -- I'm boards and the parties got and sometimes the -- -- still every stock is there are some out liars. -- -- there sales reports have been coming out Abercrombie & Fitch has a pretty good numbers right. They did have some pretty good numbers they are closing forty stores I was a little bit of an -- package that they did. Deliver earnings at the street lights and and and there was some upside there this morning. That Katrina Abercrombie & Fitch and a Wal-Mart of course -- a teen retailer in nice to be nice to cover this space say it in retail analysis saying and that teens know what money they have in their pocket so they know how much they had to spend so. You know they're gonna spend ten dollars on that -- -- it's a little bit of a different situation and a customer Wal-Mart that. Is managing -- household figuring out you know the essentials that they need so. Apples oranges in terms of comparison but Abercrombie did have a great quarter at a chance illicit act calling yet -- it will be interesting to see how promotional they work and in terms of the payroll tax. Expiration we -- know how that's impacted them because of course they reported for last quarter in this. Tax holiday just expired in January -- ago that latency and act there. Oh yeah it's it's an image in the psyche of the -- of the consumer for both of those -- stores because I would initially were thinking that the fact that it's the price point difference obviously. We don't Wal-Mart price points much lower than that semi luxury retailer like Abercrombie expertise and is with a mindset of the shopper that's going to -- those stores. Full -- if you're teen you know if you have that money your pocket that may be all disposable income that -- that you're going to the mall and shot you're not worried about putting food on the table for your family. So I do think it's a little bit of a different mindset there. All right gas prices everyone affecting whether your -- or whether you're shopping for an entire family obviously have been hitting a lot of people it's gone up fifty cents just in the last month. Now gas prices usually in the wintertime don't see that kind of a spike I mean are we thinking possibly five dollars by summer. On and -- you really didn't client cannot just act on nothing have to pinpoint and number but I just want to get an idea for where we should be bracing for potentially. Yeah. Five dollar -- Sunday that -- Ollie hears so much about going into sent is doing a little bit of research going up how much of people been always talking about this and every year it's the same thing we -- see a five dollar gas I don't have a crystal ball and doubling not to claim. Claim that I can see what's what's in the future but now is looking into it in some cities an -- they carried out -- dollar A gallon gas in terms of if we're going to be seeing now on a broader scale. I'm not -- sure but. You know in terms of the gas prices that are rising now it is. Unique in winter you don't typically see gas prices on the upswing like -- parents and tightening of supplies and refinery issues that's. What reportedly is striking -- prices. Actually if you look back maybe we're seeing a little bit of a trend because last February. Prices were on the rights to use -- may be that conventional wisdom that in winter gas prices don't rise hey maybe that's going to be gone out the window. Maybe next year will now three years now that's may be -- friend LC. -- -- the -- question always drive you guys not doesn't it because we always ask that question because everyone wants to know if they need to prepare for some an unfortunate there's -- -- -- really. Essentially making accurate prediction right. Well I think that anybody that's trying to look at it there is a -- did he -- answer is is is set themselves up as they get Iran right and it's bond. That -- right exact that or they own a gas station themselves right Kate Snow. They had during during the recession a lot of bank CEOs took some serious. They took some -- obviously for their salaries and their bonuses and there's -- to be a backlash they seem to cut a lot of what they were taking home. Now -- scenes the trend is changing a little bit though. Announced yet he -- here and there obviously let's just start missile conversation by saying that they CEOs make a lot of money compared to the average person and I mean average -- single -- we'll dreamed -- -- daylight bank CEOs have ended that year. But we have seen some numbers from Citigroup reported their CEOs I think -- -- what eleven point five million dollars which is different because last year. The board didn't -- that kind of a -- for the CEO at that time. The mixed -- because look at Jamie down you know he had apple London -- trading lots and so the board docked his pay was cut in half this year still. From 23 million down to around eleven so we still had a great payday but if you compare that to pre crisis. It it's a bit of a cut you know CEO then Jamie Dimon is making thirty million dollars before the crisis now -- down to eleven so. Time and I hear you can't even see -- straight face it's been a good record. Now I can't I can't a lot of you know get the -- back when I think we're seeing really what. Trenton let's say well let's look at that neighborhoods ago it up about 63 points at thirteen 1944. -- -- Lester from Yahoo! finance -- have a great weekend. Thank you to --
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