Better earnings reports expected ahead
Traders work the floor at the New York Stock Exchange
TEXT OF INTERVIEW
Steve Chiotakis: All right, we're going to talk to Bernard Baumohl, the managing director at The Economic Outlook Group. Mr. Baumohl, let's talk about these economic reports.
Bernard Baumohl: Overall, yes, the retail sales numbers were disappointing. However, I think we've got to keep in mind that the market's numbers were higher than January, and February itself was revised upwards as well. So I think we just have to take it as one month as bad, but this month, the month of March, should not be interpreted as a significant setback for the economy.
Chiotakis: Let's talk a little bit about that positive news that you were mentioning. We're getting good news on the earnings front this morning, Johnson & Johnson with better than expected numbers. Yesterday it was Goldman Sachs. Where's the love on Wall Stret there?
Baumohl: Well, you know I think right now, the market's probably reacting initially to the retail sales numbers. But I would expect by the end of the week, we will get some better earnings report and the most important sector that Wall Street will be watching, of course, will be the earnings in the financial sector. And you're right, we had yesterday some surprisingly good news and profits from Goldman Sachs. This week, we'll get the Citigroup and JP Morgan Chase. So everyone's going to be keeping an eye on these companies. Keep in mind that it was only about a month or two ago when people were worrying that the government's going to have to take over a lot of these financial institutions. And now, things seem to have turned around to some extent, and we're actually seeing these financial companies begin to register some profits. And that is, you know, the first stage of a recovery for the financial sector. So we may get some good news later this week, and I expect the market to react accordingly.
Chiotakis: All right, Bernard Baumohl, managing director at The Economic Outlook Group. Thank you for joining us this morning.
Baumohl: Any time.