Profit Shocks Provide a Jolt to Bull Market Run

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July 25 (Bloomberg) -- Julian Emanuel, U.S. equity and derivatives strategist at UBS, discusses how string profits in corporate earnings reports are driving the bull market to new heights. He speaks on “Bloomberg Surveillance.”

Is shaping up is quite good.

It is as good as it has been sent 2011. we are happy about that.

Stocks do seem to be discounting them.

It is the rest of the year that is a bit more challenging.

The expectations are very high.

Growth is over 10% factored in.

We may not get there, but we will stay strong.

We will talk in a bit with mr.


Olivia, the word is synergies.

Is that just cost cutting?

Are corporations simply tougher on cost?

That has been the story since 2009. corporations have to find a way to survive.

Revenue is starting to pick up.

The economy is starting to pick up slowly.

That was my question.

To your point, to what extent can this continue to be germ by cost cutting?

--driven by cost-cutting?

It seems to be a great quarter, but not on the top line.

It is good, it is improving.

We do not want to get carried away.

If we think about where we were in the first quarter, gdp printing down 2.9% -- and we look at where we are now, it is a steadily improving scenario.

We assume that was all weather related, correct?

We should be clear.

There were issues with spending on health care.

The government has inflation.

That was a large part of it, no question.

Here's my concern.

This is from the technical analysts.

Only 20% of stocks right now are at 20 day highs.

The rally that we are seeing is getting narrower.

Your target is 1950. what do you do when you are through your target?

You stay optimistic.

We have said all along that if things went right, you could go to 2050. our concern in the short term is that the market feels it is discounted, lots of good news.

You have geopolitics out there, you have that set up there.

You talk to 50 people all day.

When will you talk to olivia sterns?

She does not have a for a one, because she is too busy.

If she's going to go into a 401(k), how does she go into a market now?

You have to think long-term.

Look at her.


Think long-term.

Basically, one year out, two years out.

All of the conditions are in place.

It is just the short term where we seem to be not paying enough heed to things that could go wrong.

What are the sectors i want to be in?

We continue to favor technology.

I know technology a strong.

Old tech, new tech?

We like tech with cash.

When you look at tech and health care, those are sectors with lots of cash.

And cash, we are in the midst of an m&a boom.

Please stay with us.

We have the bank of switzerland.

Ubs, i love to say that.

Someone else -- rupert murdoch is on a tear.

He is going after 21st century fox.

He unloaded italy and germany last night with the transaction of $9 billion.

Guy johnson us to explain from london.

How big a deal is this really?

I was taken by the number $9 billion.

Is that a deal or a rounding error?

I think it is not a rounding error.

It is going to give him a lot of opportunity to change the direction of that time warner

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


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