Investment committee, josh, steve brown, we begin with the markets, stocks continue to stage their rebound, rise in bound yields giving relief there. You finally can take a little bit of a sigh of relief that yields have stop going down, maybe they bottomed and stocks did too. I feel like were in one of those moments and we have had them off and on over the years it remind message a lot of that risk on, risk off kind of market environment that we had previously spent months in different years throughout the recovery 2011 stands out. We probably did this in 2015 too. Where you have days is obvious, today is a risk on day, and so they sell off all the bond proxy, defensive sec ttors, and lasts a di or two days, and find yourself in other days, theyre taking up consumer stable stocks and utilities and Everything Else gets dumped i dont know that were definitively in that for a long time, but we have definitely been in that the last week or so maybe thats the way it has to be until we get
Until he got on the board that he tried to leave the company in a position to recover starting with securing that Financing Deal last week. He told me he thinks they have excellent management and now an excellent board and that the investment was simply taking too much time that if shares could double t wouldnt move the needle enough to remain in the stock. Our josh brown was up tweeting about what he called the valeant depockal. What do you make of this story as we watch it unfold . Anyone who runs money will tell you the market gods do not like it when other traders take joy in the pain or the misery of someone who has just blown up or had a bad trade. I feel people who are in it and im sure they will be fine and it is a really, really bad loss. It is a debacle of a stock. It has been for some time, but, obviously, thats accelerated. Some will say as we look at this and ackman told me yesterday he didnt understand the issues at valeant and others say the writing was on the wall and i
Stocks. Bullish stocks. You short the tenyear. Where are you today . The same. I think were at a secular bull market that began in march of 2009. I believe we hit Double Bottom in bonds, and were going to it would be nine bare market in bonds with 5 year bull market in bonds and its over. Some who say theres nothing thats attractive. I think the word cautious is the one that overrides almost every part of the conversation weve had. Here is david tepper, who was on with us. I want you to react to it on the other side. David tepper. Margins that may be under pressure because of wages and now the dollar seems to be getting stronger again. It would be okay and then you have to deal with the election. You know, generally speak, you know, pretty cautious on the market. Certainly not alone. David costa takes out their s p 500 earnings forecast. Secular stagnation. Peaking margins. Are they missing something . No, i it think i mean, look, david tepper is one of the great investors, and i think
Positive, europes are slightly in the red and we are watching crude and gasoline on news of the pipeline explosion yesterday in alabama. The first trading day of the month after that red october, more earnings. The election, the jobs number and the fed meeting all on tap for the markets. It is one week to go until election day. New polls and investigations are moving the markets every day, including today. Well have the latest. And a spinoff for kfc and taco bell. Yum and yum china begin trading as separate companies this morning. First up, though, a lot for investors to digest into november as we head into the first trading day of the month. A jobs report is coming on friday, the election is next week. All three major indices were in the red for october, posting their worst performance since january, although to be any worse than january would have required a lot more selling, jim. Look, theres theres just a major change underneath. What we saw were a lot of health care companies, big
168 points to the down side. At the lows we were down about 185, 186 points. So were off the worst levels of the session so far. But an interesting carry through from yesterdays trade when it was all about the fed minutes and the idea. The possibility of a june rate hike from the Federal Reserve and that really drove markets kind of a little bit more towards the volatile side. Today, most is to the down side in terms of moves. You can see theyre off by 1 for the s p 500. Utilities and staples have taken up the lead if can you call it. That up about a quarter to a third of a percent. Theyre showing signs of life here in this particular down day. The financials are interesting to focus on because so many of them, including regional banks, were such big gainers in yesterdays trade. On the idea that Interest Rates could rise on the longer end and the shorter end and maybe expand the yield curve and give them a profit margin. The net interest margins, youll hear traders talking about financ