Jan 8, 2013|
The First Look - Andy Cinko, Bloomberg News
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
916 here at the financial exchange jocks on -- filling in for Barry Armstrong. With June night and we are joined now by any cinco from Bloomberg News and the did you get to catch the entirety of the national championship game yesterday by any chance that. I'm a -- -- I petered out before the end of the game. We'll be honest the game was over about five minutes and so he talked about it all so. I don't think humans -- box let's let's get into this what happened in the markets yesterday -- -- markets. I'm slightly yesterday was this religious consolidation of last week gains at this point. Yes and certainly and this is what happens to market and don't go up in a straight line we get these little -- -- Michael. You know after a big rally in. Alternates have been reading from the tactical last analysts keep paying the same thing nothing to worry about. No real change in terms of the tenor of the market and no real selling to speak out. Absolutely and and looking now what we have coming out today the big news Alcoa is kicking off earnings season. What our expectations for them I know this is accompanied has struggled over the last several years are things looking a little bit more optimistic for them now. You write about it being struggle because this year if you look at the entire year a -- expected report point 4% for the against the entire year. For the fourth quarter forecast that extent now for the entire year earnings are expected to drop 66%. And last year. Meaning 2012 vs -- -- and then eleven and again part of that has to do with that drop in the price. Aluminum and and based. Product that goes into making aluminum. And of course lower demand worldwide yet problems in Europe -- problems in China yet palms here in the US. You know so cyclical like Alcoa and its struggle now we look at it and it is this year to about thirteen -- to -- both -- pop. Rising 167%. Or more than doubling in terms of their earnings from one year to the next. Though it you know that's one gyrate around a lot shut in is not a Bellwether for the market just. If it happens to be one that we spoke at because that happens to be the first large yes -- -- the company to report its earnings. You know -- we closed the quarter so he I think what you could look at those terms about code whatever comments that make about the global economy will the state. But the trend. Improvement in China and what they have to say about. Especially US demand we're we're really expecting them to perhaps increase. -- -- it's always interesting to see how much importance. Folks' place on something like alcoholic just because it comes first it's almost like the New Hampshire primary where you say it's this tiny little state and it carries so much weight to some people so yeah it'll be interesting to see what they actually say. About where things are going this year but. Moving -- now to take a quick look at the tech sector. -- did have news that came out today that the the new Samsung galaxy phone is beating iPhone sales just by itself which we we've seen for awhile now that. Apple has been losing the overall market share battle android but is this a little bit of a concern a single phone is now beating them. Probably not. And the reason that they that is once again the web site that heated up with discussions of what kind of phone. Phone apple is testing there was talk of whether it was an iPhone six the weather might be an iPhone 5 at. We know that there's a new element being tested in the apple. Headquarters you know based on the you know these -- -- if you will. And you know to Apple's certainly got something up that leave and we'll have a new product out within the next few months -- it normally does. And so I don't think -- -- you've got company that it. Trying to integrate more completely the. Apple ecosystem from you Mac two years iPad two you are. On and so long that does more of that analysts they're fairly certain that apple will hold onto its market share continue to grow and of course don't forget. China is a huge market and an apple is only just begun to tap that market -- the CEO of apple. Is in China again for the second time that many months that they build up more stores. Yeah I do find it interesting that he's all the way over in China at the same time that the Consumer Electronics Show is taking place right now yeah what does that tell you certainly he doesn't seem to threaten -- at this. So that is sticking with -- FaceBook obviously has that -- rollercoaster ride since its IPO last may the stock now which rallied about 70% since its lows earlier this year is there anything in particular driving the movers -- still just investor speculation. -- there is the actual. News from analysts about what is going on here William Blair earlier this month was talking about. Checking in with advertising agencies and they say that the FaceBook exchange partners and market they're all coming back and they're being more positive. On this system not a FaceBook exchange what you put out advertisements. Over the FaceBook. Network and that seems to be more rapidly being adopted by advertisers. And if that's the case then FaceBook should be able to have higher clickthrough rates has more impressions which of course turned into actual revenue. Or FaceBook and in the last couple of days that the new comment about about the mobile -- FaceBook and -- -- seem to be picking up pace though. You know exactly together suggest that perhaps FaceBook is it on a winning combination sports business model that'll be yet. That'll put out believable and and regular profit that that people can bank -- -- -- stock of that 67%. There is a lot of expectation built into. The companies of course earnings will be key to this one and we could have either aren't huge Popper he's declined but I think what he took them. -- definitely something left to keep benign and -- have to ask you one last question are you gonna be watching any of the any of the football games this weekend now that you're giants are unfortunately Al. Of the playoffs. If there's a giant is no football right that's what I told the kids great once once the kind don't make it. That's that's -- and it over. That's there's no crying in football not know giants in football snow and the place. It was kind of like you know a weird it may be like below the -- question Andy and if it was kind of an agenda to that question. -- -- Andy and I had the baseball yankees don't make it that. -- even though. Andy and I had an ongoing battle last year that the loser had to buy a mr. potato head dressed in the opposing teams collar. -- so unfortunately we lost not one but we'll have to see what happens this year with. Big game for the patriots this weekend and yet you wanna thank you for coming -- -- this again appreciate the insight is always. All right that was Andy -- from Bloomberg News coming up we are going to be joined. By Peter Anderson from congress asset management that's coming up after this break on the financial exchange.