IT IMPACT THE U.S.?
THE PRESIDENT AND FOUNDER, MARK
AVELON.
>> GOOD MORNING.
MARIA: DOES IT IMPACT THE WAY
YOU ALLOCATE MONEY FOR THE U.S.
OR EXPECTATIONS FOR THE U.S.?
>> CONTINUATION AND THEY WILL DO
WHATEVER THEY CAN TO KEEP A
STRONG ECONOMY NOT ONLY TO STAY
IN POWER BUT RIGHT NOW THEY WILL
DO IT SO THEY HAVE MORE LEVERAGE
AND STRONGER POSITION AGAINST
PRESIDENT TRUMP AND TRADE TALKS.
I THINK THE CHINA MOVES
SHORT-TERM IN FOCUS, THEY'RE A
NET POSITIVE FOR STOCK, THE
STRONGER THE CHINESE ECONOMY,
THE STRONGER THE TRICKLE IN
MERGING MARKET AND VALUABLE
TRADE PARTNER IT IS FOR US.
SO FOR STOCK INVESTORS IT'S
ALWAYS GOOD SEEING CHINA DOING
THIS, LONG-TERM WE ARE NOT SURE
HOW IT ALL PLAYS OUT.
MARIA: WE ARE SEEING THE MARKETS
REACTION, ANY TALKS OF TRADE
DEAL OR IMPACT ON THE ECONOMY
THERE, DO YOU THINK WE WE WILL G
THERE, DO YOU THINK WE WE WILL T
A TRADE DEAL AND DO YOU THINK
THAT WILL MOVE MARKETS?
>> I THINK WE WILL GET A DEEP,
WE DON'T KNOW HOW DEEP OR
MEANINGFUL IT IS.
PRESIDENT TRUMP AND CHINESE
COUNTERPARTS WANT A DEAL.
THE CHINESE WANT THEIR ECONOMY
TO PICK UP.
PRESIDENT TRUMP WANTS A VICTORY
IN A BIG WAY SO I THINK WE WILL
GET A TRADE DEAL BUT WHAT
HAPPENS WITH THE RUN-UP IN
STOCKS IN JANUARY AND FEBRUARY,
FIRST IT WAS A FEDERALLY WHEN
POWELL BACKED OFF A LITTLE BIT
BUT THIS LAST LEG OF THIS 2019
BURST IN STOCK MARKET HAS BEEN
BECAUSE OF OPTIMISM ON TRADE,
THE RISK NOW TO TRADE IS TO THE
DOWNSIDE, IF THE MARKET DOESN'T
REALLY LIKE WHAT COMES OUT OF
TRADE TALKS, I THINK THE
POSITIVE NEWS IS BAKED INTO THE
NUMBERS AND THE RISK NOW IS A
LITTLE BIT TO THE DOWNSIDE.
MARIA: DOWNSIDE.
LET'S TALK ABOUT A RETAIL FOR A
MOMENT, TARGET, COMPANY EXPECTED
TO POST EARNINGS OF 1.52,
REVENUE OF $22.98 BILLION,
KOHL'S, ALSO OUT TODAY IN AN
ABOUT, RETAIL GIANT EXPECTING
REVENUE $6.58 BILLION, 2.18
CENTS, MARK, CHARACTERIZE WHAT
WE HAVE SEEN FROM RETAIL SECTOR
SO FAR AND WHAT YOU MIGHT BE
EXPECTING TODAY AND HOW THE
CONSUMER IS DOING?
>> WELL, FIRST OF ALL, THE
CONSUMER IS DOING GREAT AND WE
DON'T HEAR ENOUGH ABOUT THAT BUT
CONSUMER, HOUSEHOLD DISPOSABLE
INCOME IS UP, STRONG WAGES, THE
DEBT-SERVICE RATIO THAT
HOUSEHOLDS DEAL WITH, THE LOWEST
IN OVER 40 YEARS, CONSUMER
BALANCE SHEETS ARE STRONG AND A
LITTLE BIT OF STOCK MARKET
EFFECT, PEOPLE ARE SAVING AND
ALL IN RETAIL SECTOR AND WHAT WE
ARE SEEING COMPANY BY COMPANY
BASIS, WHO IS EXECUTING, AMAZON
AND WAL-MART.
ARE WE GOING TO HAVE A BIG 3, IS
TARGET GOING TO JOIN THE LIST OR
ARE THEY THE LEADER OF THE ALSO
RED AND THE DETERMINATION IS NOT
RENEW GROWTH, WE KNOW TOP LINE
WILL BE STRONG, WHAT ARE THE
MARGINS, WAGE COST THAT THEY
HAVE TO INCUR HIGH, IS THEIR
PRODUCT MIX HURTING MARGINS, WE
WANT TO SEE WHAT THE
PROFITABILITY IS TO GO ALONG
WITH INCREASED REVENUE.
MARIA: MARK, YOU WANT TO PUT NEW
MONEY TO WORK?
>> IT'S TOUGH, I THINK WE WILL
HAVE POINT TO POINT, WE WILL
WIND UP WITH MID-SINGLE DIGIT
MARKET, A LOT OF VOLATILITY
ALONG THE WAY.
I THINK PEOPLE SHOULD REALIZE
THAT STOCKS ARE FAIRLY VALUED
HERE AND WITH SINGLE-DIGIT
EARNINGS GROWTH FOR THE YEAR,