Transcript:
Tom Vaughan:
Hello, everybody, welcome to Thursday, the S&P 500 is down point five 4% today, and really a whole bunch of interesting things happened at the beginning of the day the stock market was up based on the gross domestic product report came out fourth quarter was a lot higher than expectations. For the whole year of 2021 is the best year we’ve had in gross domestic product growth. Since 1984. We’re having great earnings growth. Of course, we had Microsoft the other day that just went bananas and still going up today, even in a down market went up yesterday in a down market. Apple just reported their earnings to nearly $124 billion worth of sales in one quarter, and $30 billion worth of earnings, which is a record for them. So they beat expectations. We’ve got all Intel, Tesla, all these companies beat expectations, some of those companies still go down, at least in the short term based on the guidance that comes after the earnings reports come out. That could happen Apple today, too. It’s up about 2%. Right now, after hours, we’ll see what happens. But really, you know, kind of an amazing timeframe for earnings. And we’ve had now the seventh quarter in a row, where majority of the companies have beaten expectations, which is pretty unusual.
So Wall Street is discounting the amount of earnings that companies are making on a pretty consistent basis in this environment. And I think we’re sort of seeing that in the stock market. And that’s one of my key thoughts is that the stock market is ratcheting its way down. Because of these expectations that things will happen with the Federal Reserve, which will ultimately intact earnings. And yet companies continue to come out and make the earnings, we’ve had inflation for a while now we’re still getting great earnings coming out, we’re still getting higher revenues coming out, I do think you have to pick and choose the companies love companies that can kind of you know, control their own destiny to a certain degree, like an Apple or Microsoft, for example, I think semiconductors fit into that category too, just because of the demand story that’s out there. And so that’s what’s happening right now, I think it’s a really interesting timeframe. You’ve got gross domestic product, growing earnings, growing, unemployment dropping today with that number also, in the stock market coming down. Those are key issues, you know, for me, that just tells me that, you know, we need to be patient, we need to kind of hang in there, see how things are going to go as far as that goes, try to take advantage of this, you know, doing some rebalancing, but really kind of understanding what’s going on behind the scenes.
You know, don’t get too concerned about what’s happening with the stock market until you start to see some erosion in the economy. And definitely, you know, we’re not seeing that we’re not seeing that in the leading indicators and all those different types of things. So, you know, at the moment with this is a stock market correction, which has been overdue, haven’t had anything in the neighborhood of 10% for you know, a long time now. So that’s this is going to be okay, as far as I’m concerned so far. We’ll keep watching it and see what happens as far as that goes. But look forward to seeing you tomorrow. If you get a chance you can join my show at 1215 to one o’clock. I do a summary of the market, you can send in questions during the show. So if you have something you’re curious about, that I’ve been talking about here and you want to, you know, bring it up on the show, that’d be great too. And look forward to seeing you then. Thank you