Yesterday, the US markets ended lower. The Dow Jones industrial average ended down 120.79 points, or 0.93%, at 12,822.57. The S&P 500 Index closed down 13.85 points, or 1.01%, at 1,362.66.
In an interview to CNBC-TV18, Richard Ross, Auerbach Grayson says, it is a pretty disappointing finish to an otherwise strong week. "It is a sloppy finish to an otherwise strong week. I think there are still signs of optimism as we head into next week," he adds.
Below is the edited transcript of his interview on CNBC-TV18.
Q: We had some strong days this week in the US markets. What on Friday?
A: It is a pretty disappointing finish to an otherwise strong week. Yesterday, macro fears out of Europe resurfaced. You see the Spanish index down almost 6%, you see those Spanish yields testing the highs that we saw in June, testing a high that goes all the way back to 1996. That’s the type of high you don’t want. The euro broke down to a fresh multi-year low, you don’t want that.
We have already gone through the earnings picture. There is no need to beat that drum again. But the reality is it is a sloppy finish to an otherwise strong week. I think there are still signs of optimism as we head into next week.
Q: What do you make of earning season in the US so far?
A: We have had a mixed bag. The expectations have been managed lower. By and large, anecdotally speaking, I think the earnings are coming in somewhat better than people expect. Ofcourse you are going to have your downside surprises. We have also seen some high profile misses from companies like Nike, these global brands that are widely influenced by the slowdown in China and in Europe.
But we have seen some nice numbers out of bellwethers like General Electric, IBM, even Microsoft, Google for that matter. So, it is somewhat of a mixed bag. But I think it is a mixed bag with a more positive tone.