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Morning Radio with Phillip and Dave – February 14, 2020

February 14, 2020

– Good morning everybody. Hey, welcome to Friday. Hey, Valentine’s Day right? Happy Valentine’s Day. Glad you’re able to join us today. Not only is is Valentine’s Day, it is a foggy Friday. And I wanna thank you for
joining us here today. I hope that your week has been great and you’ve got great
plans for the weekend, as we head into that. Hey, we’re gonna talk about Tesla today. We’re gonna be talking
about a little downturn in the market yesterday and
what that means for today. I hope that you’ll stick
with us for a little while, and as we, kind of, brief you
before the weekend starts. Remember, if you’re in that
retirement danger zone, what is that? That’s the 10 years prior
to your retirement date, 10 years after your retirement date. Any time in that 20 year window of time, it is crucial that you don’t
make a misstep in retirement. It can cost you significantly. Give us a call. Let’s go through our financial x-ray to make sure you’re on the
right track, 863-382-0037. Hey Dave will be with us
in just a few moments. Standby. – [Dave] I’m Dave, were at 8:40
now, lets check in on money and see how Wall Streets
treatin’ ya this morning. Ya know yesterday was no great shashe and it looks like today
might turn to be a, well, not a whole lot better than that. Lets head downtown to the offices of Statler Financial Services, where Phillip isn’t in the office because its foggy. He’s operating out of the house today. Phillip, how are ya? – Hey man, I am– I will say I’m fogged in today, but it is foggy so I decided
to let it clear a little bit before I head to the office. – [Dave] Can’t say I blame ya in the least we were saying before
we went on the air that ’bout 45 minutes ago on our end of 27, I couldn’t even see
across the parking lot, its lifting a little now but we’ve been yelling at drivers for heaven’s sake, leave your low beams on ’til you get to the office this morning, ’cause just because you
think you an see out doesn’t mean that the other
drivers can see you driving out of the middle of the cotton balls. Drive carefully, alright? Well, we started the morning
out with a replaying yesterday, it was down day on Wall Street, but you and I were nervous
it could have been worse. DOW was 128 down, NASDAQ down by a little under 14, Standard and Poor’s down
by about five and a half. We’re solidly in the
nosebleed territory here, I’m not overly concerned about that, if it isn’t the beginning of a trend, Phillip, how ’bout you? – Well, yeah, you know, its, so we did get some data out today that seems to be effecting the futures, ’cause when I first got up, I’m thinking, hey its gonna be a great
day again on Friday, were gonna bounce back but, ya know, data’s come out and that is not necessarily the case this morning. – [Dave] It does sound that way, the driving data appears to
be the retail trade figures and the January figure isn’t all that bad. Basically, three tenths
of a percent growth about what the market was expecting, but then came the revisions
and when you start messin’ with retail numbers from December, the market tends to get into
a bit of a funk, don’t they? – Yeah, they really do, ya know, when we reported and
talked about December, everyone was excited ’cause retail sales jumped a half a percent. Well, they’ve come back
and revised that number down significantly, now and so they’ve revised December to only being up two tenths of a percent. And Dave, I gotta tell ya, that’s a pretty big adjustment,
when were talkin’ about three tenths of a percent,
that’s more than half of what they originally
came out with, and so, I think when those number
came out, we started to see the futures switch from being
green to being even to red. – [Dave] Yeah, when you look at three tenths of a percent change, half the increase gone away, now you add on the fact that
were talking about December, the most critical month in retail. I don’t know that there’s
gonna be a lasting effect on the market but it certainly
didn’t impress the investors one tiny little bit, did it? – No, it did not and we’re
definitely seeing some retreat from the futures earlier this mornin’. – [Dave] Absolutely, the other bit of macro data that came out for this morning is import prices
and its another one of those things that, okay, fine, import
prices were flat last month, I figured that was good news but the market actually expected
them to decline that quickly. – They did, they expected import prices to be down two tenths of a percent. So, ya know, flat sounded good, right? Until you see what the
economists expected it to be based on the data they were lookin’ at. Down two tenths of a percent. So that’s not as good,
I think that’s weighing on the futures, also. – [Dave] Yeah I can’t call
that unrealistic expectations. I mean, we just barely kissed
and made up with China, the tariffs weren’t all off yet and they aren’t all off completely, yet. I’m happy with zero, but nevertheless, the market wanted better than that and we’re kinda payin’
a little bit of a price because I’ve got a
delayed quote system here and it’s still showing slightly green, but as you say they’re starting to turn into at least pink
ink for the moment, right? – Yeah especially the DOW. And the other two are
giving away every minute. – [Dave] Not what we had in mind. Now, we do have some household names to report today from the quarterly reports and I know one of them is gonna be Expedia ’cause its right toward the top of my big winners list this morning. – Is it? Well, it did have a good quarter. They came five cents ahead of estimates. Revenue was essentially in
line and so they’re not, and they’re not coming in and reporting their full year outlook either. Because of the Coronavirus, right? They just know these travel
companies wanna really try to figure out what that’s gonna mean for them going forward. And so we look at Expedia
and when I looked over here, they were up significantly, if I can find the right
button to push here. Here we go. So Expedia is up 12 point
six percent this morning. – [Dave] That’s even better that I had, I was showing on my delayed
system 11 point seven, but maybe we’ve got this and maybe we’ve got the tickets there. If you got a business
like the travel industry they could be effected by the Coronavirus, were seeing stocks get beat up. Just don’t offer guidance at all and you end up benefiting
from a decent quarter. – Yeah, it definitely
seems that way, ya know, because there’s so much
uncertainty, so many unknowns, ya know, it could resolve itself quickly and not be an issue, it could drag on for the rest of this year
and be a major problem – [Dave] Absolutely, and
it a big, big question mark on virtually every
business involved in travel or anybody that does business with China. Got some other indications from the quarterly reports out there? – Well, ya know, I always
like to talk about this, with new brands because when I look at it, I always have to figure out who they are. Ya know, they are the company, they do a lot of different stuff, especially when it comes
to writing utensils, like Parker Pens, Papermate, Elmer’s Glue. The Sharpies, they are big in the– Coleman, they own Coleman, Bubba Cups, and then, like, Yankee Candles, WoodWick, so there own a lot of different stuff. They had a good quarter, they
beat by three cents a share. Revenue beat the full forecast also. But, ya know, another one of those things, their four year guidance came in below what everybody expected. They’re basically saying its gonna be flat down two percent and the analysts weren’t expecting that today, Dave, and so they’re trading down
the one point one percent. – [Dave] Ouch. Guidance is gonna be the
guiding factor for this quarter, I can tell that, back of the whole thing. – I think so, Mattel, ya
know, we talked about Mattel. Earlier in the week,
we talked about Hasbro. Well, Mattel actually reported
not just giving guidance. They beat by 11 cents a share. I’m sorry they came out 11 cents a share, they beat by a penny a share, it’d be nice if they
beat by 11 cents a share. But revenue came in below
what was forecasted, and so they’re trading,
well they were trading up. Yeah, they’re trading up about a third of a percent this morning. Which, for Mattel, lets
face it, it’s not bad. – [Dave] Absolutely, generally you and I look at the toy
industry as being zero sum. One reports it as a good quarter and you almost assume the
other one is going to tank. This is one of those rare times that both toy manufacturers
are doing okay. – They did. Hey, another famous, ya know, a lot of us are using this
now for our homes is Roku. They predict, I think
I saw the number that half the folks out there
will be cutting the chord by 2024, I think was the number. And using things like Roku, Firelight, those type of things for
Amazon’s Fire stick program. But Roku came in, they
lost 13 cents a share. Which was better than expected. And so they are doing well this morning. They should be on your big winners list, eight and a half percent this morning, up. – [Dave] That’s a hell of an increase. I learned something
interesting about Roku, that I can use them
instead of a cable box, for my extra TVs around the house too, so I’m actually looking
at becoming customer now. The streaming concept is
just completely taking a mix master off of the
video industry, isn’t it? – Yeah, it really is but
you know what its gonna ’cause, Dave, its gonna cause
internet pricing to go up. – [Dave] Yeah, yup, its because the high speed connections are getting to the point where
its dang near impossible. – Well, and you know the guys like the internet providers, right? They’re gonna be losing cable, right, they’re losing subscribers, so they’re gonna get
it one way or another, so they’re gonna be jackin’
our internet pricing up. – [Dave] Understood,
yeah, supply and demand, it just gets there if you need, ya know, a hundred megabytes worth
of speed per second, you’re going to end up
paying for in the future, instead of just the basic. What else do we got on the list? – So, we got Nvidia,
the graphic chip maker. They beat by 22 cents a share, so that was a pretty big beat for them. They gave current upbeat
guidance for the current quarter, which is, like you and I say, that one of the things they look for. And so its up almost 7
percent this morning, Dave. – Wow.
– Yeah. – [Dave] Some of the other business, we’re getting a whole
collection of different little off-beat businesses, this morning, that everybody’s heard of. – Yeah, we do and so, lets talk
about one that kinda missed, and that’s Yelp. And Yelp, you and I have talked before, they’ve had some issues. Still haven’t got ’em fixed, I guess, ’cause they missed their
earnings by two cents a share. Their revenue fell short
also, they’re just, they’re just having some problems. They are tryin’ to buy back
stock, to help their price, but they’re trading down
nine percent this morning. – [Dave] Youch. – [Phillip] Yeah that’s
a pretty big number. – [Dave] Absolutely. Got time for one more
before we wrap it up. – Alright, lets talk
about Royal Caribbean. Now they didn’t report, but
they gave some guidance. They canceled 18 cruises in
the Southeast Asia Pacific Zone because of the Coronavirus. And they say that’s gonna
impact their four year results. They’re talkin’ about they could be impacted, like, by 65 cents a share. They are trading down, not bad
considering the news, right? They’re down about three quarters
of a percent this morning. – [Dave] Things could be worse. Resetting the table for the morning, everything was pretty well red yesterday but not really a brilliant shade of it. 128 down on the DOW,
which sound like a lot except for 29,423 is the number. UNASDAQ down by just under 14, Standard and Poor’s
down by five and a half. 45 minutes before we
start trading, Philip, what do the trends look like? – Well, they’re goin’ the
wrong direction, Dave. Let me just tell you when
I woke up, this morning, the DOW was up 120 some points. It is now negative, down
17 and a half points. Which is, based on the value, its flat. Same thing with the SAP 500,
its down less than a dollar and the NASDAQ is down 11 dollars, about a tenth of a percent
right now for them. And so, ya know, expecting a little bit of a rough start this morning. If we look at gold and silver, silver’s trading up three
quarters of a percent. Gold’s trading up a quarter of a percent and we got crude oil movin’ back up, Dave, I have one percent this mornin’, 51 dollars and 95 cents a barrel. – [Dave] I was liking
those prices under 51 too. World Market’s Asian rim
was mixed at the close earlier this morning. Europe is, got a tinge of green but its lookin’ pretty flat so far, half way through their day. How do I make contact with
you to insulate myself from all this upsy downsy
stuff these days, Phillip? – Ya know, Dave, folks that are in that retirement danger
zone, what is that? That’s 10 years prior to retirement, 10 years after retirement. If you do any kind of misstep
in that 20 year time period, it could have a big
impact on your retirement. Get a financial x-ray by
callin’ us at 863-382-0037. Do it right now, and then catch us online
at Join us this weekend for the
Statler Financial radio show, 6AM and noon on Saturday,
10AM on Sunday mornings. This week, we’re talkin’
about the new Secure Act that was passed January
first effective date so, tune in for that. – [Dave] Alrighty, we’ll be ready for you and back here again on Monday morning. Phillip, thank you so much,
you have a great weekend. – All right buddy you
too, have a great one. – [Dave] You too, its 105.7 Lite FM and Statler Financial
Service’s Phillip Statler. – Folks, thanks again
for joinin’ us today. I hope that you’ll have a great weekend, and I look forward to speaking
to you again, on Monday. Bye now.

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