ECB a Focus for U.S. Investors Next Week: Ellis

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Aug. 29 (Bloomberg) -- Green Square Capital's Lincoln Ellis discusses the outlook for U.S. stocks and the European economy with Trish Regan, Matt Miller, Olivia Sterns and Michael Regan on "Street Smart." (Source: Bloomberg)

Still here with me.

Michael reagan, no relation, joining as well.

For straight weeks of gains, will it change when everybody comes back from vacation?

I think that it will.

Last week we spent a lot of time talking about the fed and next week we will spend a lot of time talking about the ecb.

This can spark some sort of traction in the fourth quarter that could begin to turn that economy around.

It seems as though there is some hope for europe, given that mario draghi seems to be embarking on a pretty aggressive qe program.

That could make the euro a lot weaker.

Which would be good news for europe.

With which be huge news for the exporters.

Of course, is not sure that they will do much lower than a dollar 30. our member when it was $.85. look at how expensive it has gone to go in that european vacation.

If that changes, that should be some good news for europe.

I don't know what it means for us as we try to deal with our own recovery here at home.

But mark is driven by the european companies are slightly different.

-- the european markets are slightly different.

Germany's trading a lot with france.

Our export markets and the benefit we get from lower dollar costs come in the form of labor cost which we have seen.

That has a net positive that isn't a detractor from our trading partners.

Click general motors mean jobs back.

They just announced yesterday from mexico to the u.s.. they are building computers and virginia.

What are economist for dipping for next week's job report?

I think the big thing we will look at is the ecb and i wonder how much of the moves we have seen already priced in.

Is her chance for disappointment.

The jobs data is obviously slow and steady recovery like we have seen in the last two, how much of the market you think -- hopefully we see with 200,000 again.

When you talk to economists, investors over in europe, they say there's is nothing that is going to drive down the euro.

It would be impossible for mario draghi to deflate the euro.

It would be useful if they did something.

And of all of the facilities and programs and all of the things they have done over the last two and a half years, they have fought very few bonds, they have let very few dollars and they have actually not embark on any tank that looks remotely like qe.

They don't have the political license today that.

This will be pretty valuable for us to be, this is the one thing that yellen keeps pointing to.

It should give us some insight into thinking.

Whether or not they will hike by a quarter point.

. if we get another friend, i -- will that be enough for her?

The real issue and came out today in the wages and savings numbers that wages aren't keeping pace and they are not back in terms of trend line the kind of wage growth that we saw in we have a lot of ground to make up not only in lost real wages but real savings will.

The kinds of jobs we continue to produce are not the kinds of jobs that are going to be stimulating is this actual change?

We are going through a lot of technological advances.

A lot of jobs are being replaced by technology and companies are doing increasingly more with less.

Which is why, in high school you had tall hurdles and small hurdles.

This is a small hurdle to get over for you get over some of these larger hurdles.

This will not hold back the rate increase which we think will start in march of 2015 but it will certainly reconfigure how that rate increase is message.

You have to wonder, are the new jobs we are creating, by those the kind of jobs that inspire people to want to buy homes?

Of the look at the durable goods numbers, while home price affordability continues to be very high on a relative basis, our wages aren't keeping pace with the kind of prices that we are seeing and so you have seen an interesting piece in the income numbers today which is that the rental income is at almost an all-time high from the post recessionary.

They are holding back home purchases as well because the more you spend paying your rent, if you are paying $3000 for a one bedroom apartment, which people do.

People up here do.

That means you cannot save up enough money.

You have to be saving a lot of money to pay that kind of rent.

So, that is not helpful.

That is why consumer discretionary is the worst performing sector in the s&p. the defensive part of all of the major indices across the developed economy that have been the best performers have been on the defensive side.

The things that are paying back dividends to investors and will weather storms and whether they be geopolitical or a minor hiccup, most better than our growth rate.

Orbitz, a stock that we are watching here in after hours.

Just before the close, they recent agreement to continue to offer american airlines and u.s. airways flights on all of its sites.

The shares jumped at the close.

You can see a big sigh of relief.

I actually love this.

American airlines had thrown a temper tantrum with orbits and said it was not going to sell its flights.

That killed the stock.

American airlines was selling its flights on orbits is missed.

United was still getting its flight revenue from orbit.

It had not told them.

If you are really angry, are you going to book this all at one time?

Could did hurt them more?

I don't know, do people use them a lot?

I think there are a lot of people.

You -- it is a novel idea but sometimes if you want an american airlines flight, you can get it from american airlines.

They made a point that they have their own website event.

Isn't there usually a fee associated with orbits or expedia?

Yes, amazingly, the airlines are not focusing on their own websites.

It is surprising.

It is surprising.

I like to find the prices on expedia.

If you use expedia as a travel agent, if you want to change her ticket, you have to have expedia and have them change it.

Then you call the airline and then they say, you have to change your ticket through the travel agent.

I would rather look it through the company directly because he wants to deal with that?

Hotels of the same thing.

So, you do a search and you figure out what you need.

Absolutely.

Or whatever the william shatner website is.

That is priceline.

Website drove my truck everywhere.

We will leave it there.

I am flying north.

There you go.

Coming up, everyone.

This text has been automatically generated. It may not be 100% accurate.

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