 The morning markets pick off With your host Tommy O'Brien Everybody I'm Tommy O'Brien comedy live from TFN and headquarters in St. Petersburg, Florida 830 a.m. On Wednesday one hour to go until they had opening bell and we got markets in positive territory So far looking for a positive open right near record territory if we open where we are right now You have S&P futures up almost 14 points at 3333 Nasdaq futures up 60 at 92 30 Dow futures up about 75 points trading at 29254 Ten-year yield excuse me 1.77 percent as we start things off and we're gonna jump over to the VIX this morning as you would expect The market positive territory the VIX back under 1250 to 1243 got a little bit of a spike yesterday and some negative action in the market above 13 that having to do with the Coronavirus the first victim unfortunately the first patient I should say in the US that climbing to 13 But it doesn't take long for the market to get back to record territory as the Dow looks to open at almost 100-point sire and we have the S&P's up about four tenths percent Nasdaq right now up almost Seven tenths percent in the green. We'll start things off. I'm gonna kick it off with the indices There's your dial 30 put things in context. There was the falloff yesterday when the first reported patient in Washington state and contracted the coronavirus which had been isolated to China prior to this. It's now six different countries I believe that that virus has spread a little bit of fears reverberating the market trades from 29,000 245 down to almost 29,100 but as you can see it doesn't take long the market finishes up at about 29,150 and Overnight we climb higher some of that having to do with earnings IBM with strong numbers Netflix with strong numbers as well We'll get into those numbers briefly Dow 29,246 right now Nasdaq 100 quite a Rebound a little bit of a different chart here as you can see there's your falloff to correlate to where we were in the Dow But boy oh boy talk about climbing higher than Nasdaq 100 above 92 40 briefly currently trading 92 28 There's your S&P's as well eclipsing where we were yesterday looking to open at record territory Actually made a high of 33 36 we get above there Yeah, 33 36 the high print on the S&P futures at about 10 30 last night just under that level of 33 31 Crude oil backing off a bit some volatility in crude yesterday. We got up to about 58 67 crude trading lower with the market as well And you know what let me get a yes, we're all set crude oil now under $58 trading at $57.75 cents Goal contract 1554 you see the action yesterday for gold pretty much just under where we were as of yesterday Afternoon and the euro US dollar just under 111 the euro trading 110 87 Terms of what else it is earning season Netflix after the bell last night a much anticipated number and by all intents and purposes They had some volatility last night, but it looks like they delivered as Netflix shares trading higher a bit this morning Netflix added 8.8 million subscribers. We'll get into the numbers down here So they have earnings per share a buck 30 revenue 5.47 billion not bad for 90 days right versus 5.45 domestic 550,000 versus 89,000 international there's your number 8.33 million versus 7.17 million that what the market is especially liking now domestic I believe that speaks to North America so US and Canada in the US it actually added about 420,000 subscribers for the first quarter in 2020 Netflix expects to report earnings of a buck 66 on Revenue of 5.73 billion that's compared to estimates of about a buck 20 and 5.76 so a beat there in terms of earnings buck 66 what they're looking for in the first quarter and guidance the gum the company also Expects to add 7 million paid subscribers in the first quarter, but that is short of the 7.86 million company reported negative free cash flow of 1.7 billion that was a negative for the quarter and expects to see negative free cash flow of about 2.5 billion in 2020 Netflix reiterated that it's cash burned peaked in 2019 and said it's now moving slowly toward being cash Free cash flow positive in the future pretty remarkable on those types of numbers 5.7 billion dollars in 90 days They are spending that much money on production of content that they are actually negative in cash flow We're on a glide path slowly towards positive free cash flow Netflix CEO read Hastings said on the earnings call We're excited about that, but that's not coming from shrinking back our content spending that's coming from increasing the revenue and Operating income and to jump over to Netflix shares and see where we're trading at this morning a Little bit of a decline actually since I last checked on it So we closed yesterday at 338 11 and we're within $1 of that price right now at 338 97 This is a 15 minute chart for a little bit of a shorter time frame There's your five minute chart talk about some volatility when they first come out with that number You were anywhere from a high and this is in the first five minutes We traded up to a high of 352 a low right now a low on that bar of 331 You got a brief spike now. I'm not sure. I mean that looks like it almost could be just a one-print spike to 367 the remarkable thing here thinkers from platform. They have that one day expected move Which they take from the volatility priced into the options at the money puts and calls Netflix was looking for about $25 of movement. So a call was gonna cost you at the money about 12 to $13 a Put was gonna cost you at the money a similar 12 to $13 if you were on the other side absorbing that premium Boy, oh boy, Netflix looking to open almost flat this morning on those earnings numbers Terms of what else jumping around we had IBM numbers as well They beat rising as much as 5% on strong strong earnings report Revenue grew slightly in the quarter, but that's a big one because they had five quarters of decline So first quarter in five that they have revenue actually growing Morgan Stanley had cut IBM last week There are the numbers for IBM earnings 471 a share. They were looking for 469 Revenue 21 point seven seven billion the number was 21 point six four billion that analysts were looking for Revenue grew slightly on an annualized basis IBM said after the statement Excuse me said in a statement after it had fallen five quarters in a row after the conclusion of an upgrade cycle for its Z14 mainframe computer the company has been shipping a new model the Z 15 Looking at the quarterly revenue you can see I mean the trend they might have grown for the first time in Five quarters, but boy. Oh boy. If you look for a trend there since 2011 2012 There's really no uptick just yet in terms of guidance IBM said that for 2020 expects 1335 earnings The number was looking for 1329 for estimates pretty close to what they were looking for it implies a 4% increase from the prior year IBM's revenue will go up year over year in 2020 the CFO Told analysts and conference call after the call the stock was up 3% Checking in on IBM shares this morning. We got some volatility last night as you may expect and again these spikes That could just be one trade two trades firing off. There's some volatility for you on five minutes So we closed yesterday at 139 17 we spike as high as 147, but still up about $5 right now trading at 144 49 for IBM big blue up about almost four to five percent so far this morning Stay tuned folks. I'm becoming back. We'll look at what else we have going on the market this morning earnings today on tap We'll be right back folks If you're in the CD market and looking for a secure investment the Tiger first mortgage program may work for you The security for these first mortgages are building lots in the tax opportunity zone in st. Petersburg, Florida The tax act of 2018 set up tax-free zones across the country where you can build and hold for 10 years and pay no tax On the profits which makes these lots valuable the investment is anywhere from 30,000 to 75,000 The interest paid is 7% yearly paid on a monthly basis according to bank rate calm The best rate for a four-year CD in the country as of February 20th is 3.1 percent a $50,000 investment at a normal four-year CD rate of 3.1 percent would give you income of 1550 per year or 6200 over the four-year period that same $50,000 investment in a tiger first mortgage program would give you 3,500 per year or 14,000 over the four years what should you prefer? 6200 or 14,000 of interest on your investment if you'd like more information about the tiger first mortgage program You can call me at 877-518-9190. That's 877-518-9190 The gold market has taken off top side in a large way in 2020 if you want to take advantage of this sector now is the Time to subscribe to my gold report the gold report took profits in four of its equities in the gold portfolio in the first week of January for a combined profit of 99.2 percent with two positions left in the portfolio That have a profit of sixty seven point five percent as of January 7th The gold report is a comprehensive look at the metal sector as well as the markets that move gold Which is the currency and bond markets new subscribers get a 30-day money back guarantee So you have nothing to lose every Monday morning. I published a gold report with coverage of gold silver bonds the XAU HUI GDX as well as more than 30 different mining equities To see for yourself the types of profitable trades that are recommended within the gold report sign up now by visiting FNN.com don't miss out on the next great gold trade sign up today Are China a shares hot or not if you trade China a shares now may be time to take a closer look trade CHAU or CHAD Directions daily CSI 300 China a share bull and bear ETFs China a shares in either direction Visit direction investments calm today an investor should consider the investment objectives risks charges and expenses Of the direction shares carefully before investing the prospectus and summary prospectus contain this and other information about direction shares to obtain a Prospectus or summary prospectus Please contact direction shares at eight six six four seven six seven five two three the prospectus or summary prospectus should Be read carefully before investing an investment in the funds is subject to risk including the possible loss of principal The funds are designed to be utilized only by sophisticated investors such as traders and active investors distributor four-side fund services Don't forget you can listen to TFNN live on your mobile device 24 hours per day Go to TFNN.com then hit watch Tiger TV That's TFNN.com then hit watch Tiger TV for the latest market information Back folks checking in on markets Dow futures up about 67 S&P's up about 12 Nasdaq futures up about 58 terms of what kind of news is shaping the day out here pretty interesting in terms of opposing views Jamie Diamond out here says his one big worry negative interest rates You have the CEO the biggest and best bank out there in the world You could say says that negative interest rates are one of the only things that concern him in a market That's otherwise in a quote-unquote Goldilocks place The only thing I have trepidation about is negative interest rates QE in the diversion between stock prices and bond prices and yield And stuff like that diamond set on CNBC's squat box Of course, you have Davos world economic forum president Trump out there with a speech between about 6 a.m.. And 7 a.m.. This morning It's kind of one of the great experiments of all time, and we still don't know what the ultimate outcome is I would agree with that myself Negative interest rates have been used by central banks in Japan and Europe to try and stimulate their stubbornly stagnant economies Economists are divided over their effectiveness to reignite economic growth And some feared negative rates can keep growth subdued rather than lift it There's just commentary from CNBC, but interesting they have been used in conjunction with quantitative easing in the U.S. And abroad where central banks purchase at assets like t-bills I think it's very hard for central banks to forever make up for bad policy elsewhere Diamond said that puts them in a trap. We're a little bit in that trap today with rates so low around the world I would never buy a negative rate bond not unless I was forced diamond added in history whenever you've seen anything like that it doesn't necessarily and Well the CEO of the biggest bank in the world saying that he with their money would never touch a negative interest rate bond and Fundamentally folks right think about it Why are you gonna loan somebody money if they're gonna give you less money back when you go to school, right? You have consume or save if you consume You get gratification now if you save you get more gratification later you save that money grows You get more that's the incentive to save if you're saving and that money is gonna go down because you have a negative interest rate Where does that rely? It's almost the foundation of everything that goes into the economy. So I say that because In the next sentence you have President Trump saying that our GDP would be near 4% and the Dow could be 10,000 points higher if it weren't for the Fed basically meaning that our interest rates are too high Keep that in context of what we just heard from the CEO of the biggest and best and most profitable bank in the world JP Morgan you have President Trump said the US economic growth will be close to 4% if it weren't for lingering effects of the Federal Reserve Rate hikes, but we had Boeing we had big strike with GM We had things happen very unusual now with all of that had we not done the big raise on interest big raise on interest folks Keep this in context I think we would have been close to 4% and I could see 5 to 10,000 points higher in the Dow folks We just came off a 30% year in 2019 Interest rates. I believe the 10 year. Let's get it up 1.77 That you are paying on a 10 year US Treasury as of this morning And you have the president talking about that interest rates are way too high And it's the only thing holding back our economy and then you have the CEO of the biggest bank in the world Talking about that the only thing he fears is that interest rates actually go too low go negative and that that messes with the economy We have going on President Trump told CNBC on Wednesday US growth would have been close to 4% if it weren't for those rate hikes That was a big blip that should not have taken place. It should not have happened But it's one of those things we had Boeing we had the strike with GM We had things happen the president also suggested the stock market would be even higher than it's already record setting highs If the Fed hadn't raised rates so quickly before cutting them three times in 2019 now with all of that Had we not done the big raise on interest I think we would have been close to 4% 4% is kind of this magical number that likes to be touted out there We got it briefly when we had the tax cuts last year keep in mind those tax cuts have added trillions of dollars to the national debt For a brief rise in the GDP which now seems to Kind of stem back not much investment in terms of capital expenditure, which seemed to be the touted Reason for that you cut corporate tax corporate tax rates, right? Those companies take that money invest in capital expenditure that grows the economy that grows the base that's going to be paying taxes None of that has happened folks the debt keeps rising And I could see that five to ten thousand points on the Dow Well, you make your own decisions folks, but pair that with what you have on jayme diamond saying this morning I find that pretty interesting other news out there Airline stocks united airlines profit surge nearly 40 percent on cheaper fuel and strong demand United posted net income of 614 million during the fourth quarter up 39 percent from a year earlier period on revenues Of 10.89 billion Revenue is almost 4 percent higher than a year earlier and slightly above estimates the carriers per share earnings Came in at 267 compared with 265 the chicago base carrier reported earnings on revenue tuesday that narrowly beat the estimates We went in 614 million United expanded capacity in the fourth quarter by 2.6 percent That's a big number to expand their capacity when you're talking about an airline that is so mammoth lodge already United is one of the u.s. Airlines along with american and southwest that bowing 736 that has the bowing 737 max planes in its fleet those planes of course grounded bowing dealing with their own woes We're getting into that chart in a moment because yesterday They came out with the fact that while they the regulators that they're not going to be flying until maybe june or july At least this year bowing's new timeline is far later than analysts were expecting and presents another headache for the airlines united being one of them So united executives holding an earnings call 10 30 a.m. This morning jumping over to the ual chart to see how they are faring so far There's your action on united closed yesterday at 85 79 you see the earnings coming out about 4 15 We trade actually lower at one point, but this morning right now looks to be up about a dollar at 86 75 for united Johnson and johnson also out with their earnings this morning beats wall street expectations on profit but missing on revenue Litigation expenses a number of these companies talking about litigation this uh this earning season 264 million compared to 1.29 billion a year ago pretty remarkable the amount of money that lawyers make for these corporations As they continue just to plow through the legal system to get what they want Here's what the company reported adjusted earnings per share buck 88 versus a buck 67 Revenue this is 90 days of revenue folks 20.74 billion just a hair under the 20.8 that they were looking for We delivered strong underlying sales and earnings growth in 2019 driven by the strength of our pharmaceutical business Accelerating performance in our medical devices business and improved profitability in our consumer business chairman and ceo Alex gorski said in a press receive press release J&J's pharmaceutical business posted revenue of 10.54 billion 3.5 increase year on year The consumer unit which makes broody beauty products such as neutrogena They generated 3.5 billion in revenue up 0.9 percent and the medical device unit reported 6.63 billion That's down half a percent and there's your litigation 264 million compared to 1.29 billion and despite the litigation J&J shares have increased more than 2 so far this year the s&p's climbed about three checking in on j on j shares this morning There's your action and you know what we hurt we were higher, but that is a brief reprieve Earnings out at about 6 30 Gotta love the thinkorswim platform you can see exactly when that earnings call began at about 50 minutes ago 8 a.m. Eastern time Johnson and Johnson closed at 1 49 27 turning 1 47 47 stay tuned folks. I'll be coming back to finish up the show We'll talk about earnings today on tap. We'll be right back I'm certain you are or strive to be one of the best of the best at everything you do in life It's the most common trait that we tigers and tigers share If you're looking to become the best of the best when it comes to managing your money Let me teach you to do what most wealth managers tell you can't be done Which is how to time the markets I'm steve rhodes author of mastering probability and for the last 12 months timer digest has been tracking my newsletter signals Which have earned me the ranking as their number one market timer in the nation for the s&p 500 for the last 12 Six and three months timer digest also ranks me as the number one market timer for gold as well The fact is markets can be timed and I'll teach you the exact set of tools that I use That has transformed me into one of the best at what I do Sign up for mastering probability today by clicking on the newsletter tab on the home page of tfnn.com And get immediate access to workshops where I take you step by step How to use an extraordinary set of tools as well as provide great market calls to sign up today If you haven't checked out the newsletters page of tfnn.com What are you waiting for all of the tfnn newsletters are informative up-to-date Affordable and a must-have for every trader looking to gain a competitive Informational edge in today's markets tfnn newsletters cover every aspect of the markets to offer you the very latest in market news Plus new subscribers get to test drive our newsletters risk-free for 30 days From all aspects of the markets including stocks bonds metals commodities and tech There's a newsletter to fit your needs exclusively from tfnn Stay informed each day you trade and get the competitive edge that will help you stay ahead of the game Visit our newsletters page by going to tfnn.com and click the newsletters button near the top of the page tfnn.com educating investors You know what's cool taking something that's good for you something specifically formulated to help with weight loss Better sleep stress reduction and the need to detox nico our hunter and gatherer ancestors found all their nutritional requirements for health In their wild environment, but today our food sources no longer contain the vitamins minerals and nutrients our bodies need to stay healthy and strong That's why we need primal edge daily nutrition It includes a special blend of ionic soil based vitamins minerals baddie and amino acids and an easy to use liquid form Primal edge is powered by highly concentrated folic and humic acids nature's preferred delivery system They've been called miracle molecules because like sunlight air and water life cannot exist without them That's right page. They ensure we receive all the nutrition we need to be healthy and thrive We take it every morning primal edge formulated and approved by nico and page of living a primal lifestyle I yet today for just eighty nine dollars click on the primal edge banner on the front page of tfnn.com Don't forget you can listen to tfnn live on your mobile device 24 hours per day go to tfnn.com then hit watch tiger tv That's tfnn.com then hit watch tiger tv for the latest market information Welcome back folks. We got s and p futures up about 11 points Just hanging out where we've been for the whole half hour gotta mention it tesla quite a day yesterday tesla becoming 100 billion dollar company That puts them above volkswagen now the second biggest car company in the world only behind toyota Which I believe is about 198 billion, but boy, oh boy just charging higher overnight as well now looking to open at 574 dollars closed yesterday at 547 we mentioned bowing Bowing there's your headline from yesterday does not expect regulars to sign off on that 737 max until mid 2020 Just pulling up that chart because boy, they just continue to face the woes There's the slide yesterday on that news looking today to open a little bit lower at 3 10 10 In terms of what else going on? earnings today on tap alaska air after the market we've gotten some of these before the market already We had abbot as well jumping over to abbot shares abt Out with their earnings looking a little bit higher on their numbers. There's the number Let's see what they came in with 95 cents a share the estimate was 91 cents a share I believe they'll have their earnings call at some point and A reminder check out the front page of tfnn.com a morning market recap I'm doing these every morning this morning lots to talk about out there whether it's netflix Whether it's ibm So there's your netflix numbers. There's your ibm numbers You also have the cdc confirming the us the first us case of the coronavirus weekly mortgage applications We didn't talk about that but pulling back slightly after a strong start to 2020 You got the united airlines numbers. There's your chart along with everything happening this morning whether it's gold Oil the vix back under 13 and your notes and bonds and as we wrap it up Don't forget folks right after this program larry pesavento He's going to be coming up live with trade what you see and check it out a week from today Fibonacci 24 7 larry's going to be in there with subscribers for 90 minutes from 4 till 5 30 He'll be talking about many different topics. Check it out in the front page of tfnn New subscribers get a 30 day money back guarantee can't beat that I appreciate you joining me. I'm back here every day 8 30 till 9 stay tuned folks We got larry pesavento coming up right now. Have a great day