CHARLES: WE KNOW THE ECONOMY IS
ON ABSOLUTE FIRE IN A WE ARE
HEARING ABOUT TARIFFS IN PLACE.
IN FACT 200 BILLION, 10% BUT IT
HASN'T IMPACTED US SO FAR TO BE
LEARNED ON FRIDAY CONSUMER
SENTIMENT WE HAVE THE WIND AT
OUR SALES HEADING INTO THE
FOURTH QUARTER AND WE HAVE STORE
AFTER STORE IN BUSINESS AFTER
PRESIDENT TRUMP TELLING ALL OF
THIS ON TWITTER BUT HE DID ISSUE
A STRONGLY WARNING.
IF THE DEMOCRATS TAKE CONTROL
KISS HER NEWFOUND WEALTH TO BUY.
LINDSAY DELL CFR A RESEARCH
STRATEGIST.
LINDSAY LET'S START WITH YOU.
FIRST IS BREAKING NEWS.
10% TARIFFS ON $200 BILLION IN
IMPORT GOODS AND A
20 BILLION-DOLLAR TAX.
LAST QUARTER U.S. CORPORATIONS
DERAIL THIS LOCOMOTIVE WE HAVE
WILL START TO FEEL THE IMPACT OR
THE FIRST $50 BILLION IN TARIFFS
THEY WENT ONTO STEEL AND
ALUMINUM AND LUMBER IN THINGS
LIKE THAT.
THINGS THAT YOU SEE THAT ARE
GOING INTO MAKING PRODUCTS THAT
HIT THE CONSUMERS.
THESE ARE DIRECTLY AND CONSUMER
PRODUCTS THAT WE WILL START AT
TAILBACK.
THE CONSUMERS MAKING MORE MONEY
AND FEELING EXTREMELY CONFIDENT
WITH HIGHER PRICES TO AN EXTENT.
LET'S SEE WHERE WE GET NEXT YEAR
AND 2019 WHEN THE 10% TARIFFS
TURNED TO 25%.
CHARLES: THAT'S ONE OF THE
REASONS THEY ARE COMING AFTER
LAST MONTH IN AUGUST THE FIRST
TIME IN HISTORY THAT CARS WERE
LESS THAN 30% OF TOTAL.
PEOPLE ARE PAYING FOR SUVs,
SPEND THAT MONEY.
>> I THINK THAT'S HIS POINT IS
EXCELLENT.
WE HAVEN'T EXACTLY FELT IN THE
THE CONSUMER HAS TAKEN THE LAST
10 YEARS TO REALLY GET THEIR
HOUSE IN ORDER AND THAT LEVEL IS
THE LOWEST THEY HAVE BEEN IN THE
LAST 10 YEARS.
ACTUALLY THERE'S A MUCH BIGGER
RISK FACTOR WITH CORPORATE.
YOU LOOK AT CORPORATE THAT'S A
COMPLETELY DIFFERENT STORY.
SO YOU WILL FEEL IT NEXT YEAR.
CHARLES: SO THEN WHAT ARE YOU
CONCERNED ABOUT WHAT THIS MARKET
IF ANYTHING?
AS WE ENTER THE FOURTH QUARTER
WERE DCS GOING?
>> AGAIN I DON'T NEED EARNINGS
ARE GOING TO BE REAL THINGS.
THINK IT'S SOMETHING THAT COMES
OUT OF THE BLUE.
THIS IS A MATURE MARKET AND YOU
IT'S GOOD, PEOPLE ARE SPENDING
BUT THAT CATALYST COMES INTO
PLAY.
COULD BE TRADE AND IT COULD BE
SOMETHING THAT HAPPENS IN AN
EMERGING MARKET.
WE ARE SEEING A LOT MORE
DISRUPTION ACROSS THE WORLD AND
HOW THAT TRICKLES HERE.
CHARLES: WHO COULD FORGET THE
OR WHATEVER THAT WAS.
LINDSAY WOULD BE CONCERNED ABOUT
AND HOW DO YOU SEE THE REST OF
THE YEAR PLAYING OUT?
>> BARACHA IF ONLY A COUPLE OF
THINGS WE HAVE TO KEEP OUR EYE
ON BECAUSE GROWTH IS GOING TO
SLOW NEXT YEAR BECAUSE SIMPLY
PART OF IT IS BECAUSE YOU ARE
COMPARING YOURSELF TO 20% PLUS
EARNINGS GROWTH FOR 2018 OR
2019.
WE WILL GET ABOUT HALF OF THAT.
THE TAX EFFECT IS GOING TO HAVE
WORN OUT AND YOU'RE GOING TO SEE
-- SPENDING REDUCED.
THE STOCK MARKET I THINK IT'S
OWNER S&P 500 TRIED -- PRICE
TARGET.
WE ARE ABOUT AVERAGE.