let's bring in erin gibbs. erin, i have to toss to you. do you agree with the assessment by mike?rease is extreme. i understand the argument that there are certain overvaluations in the tech rally which have been dramatic in the past week one thing we do see when there comes to credit tightening and banks looking at reassessing their deposits and balance sheets is that companies with good free cash flow do well. those tend to be a lot of technology companies in particular, software and services i think in this case, saying it is all about valuation or recession or slowing growth and that type of thing is missing part of the story. i think there are companies that could still do very well and have seen their bottoms. >> all right something to watch there, erin i want to ask about the opec production cut we are seeing rbob up 3% this morning. wti, u.s. benchmark, up 5% does this increase oil prices which could get up to $100 a ba barrel does that change your thesis with portfolio management? >> i think avoiding energy companies is a good thing. i think they are too volatile. we have

joining us now is erin gibbs. always great to see you. we knew this would be a difficult one. ything that stands out to you? stands out in different sectors you are watching? erin: overall, we are looking at a profit contraction. the communication services, materials, real estate's, those guys are expecting double-digit contractions, we are talking 20% , 30% from last quarter. any positive surprise going forward, that might be an opportunity. the one thing that is really bright, the one bright spot for q1 is airlines. they are looking at a 74% profit increase. i know these stocks have had a big run-up. delta already came out, those guys really need to hit their numbers. with that kind of positive expectations, we want to see that guidance going forward. shery: we have seen this concentration, especially with valuations being run up with some of these growth stocks. this month it seems value was trying to catch up. do you have a preference? erin: they are trending closely. it has been part of this lower volatility period. we have seen the markets come down. we have seen smaller

main street asset management ceo, erin gibbs. erin, talk a little bit what we've seen so far.his happens all the time. estimate as year ago were 13%, then 10, five, comes down to pretty low level. we jump over the level. you have two camps that i always find. people write it off, they were lowered anyway, people say that is good. should we be pretty happy with what we've seen so far? >> well, actually, no. so we haven't seen quite as many beats as we might normally like. that is because the financial sector is always the first group to report. so that is sort of 14% here. and they obviously, banking first quarter, not so good for most banks. so they have been a little disappointing so what we really want to see, when we see the 200 companies that report this week or 200 or so, other 100 next week that majority of s&p 500 are those companies able to beat and offer good guidance going forward? even though we have pretty low expectations, we're at lowest of the low expectations for first quarter, will we see them coming obama now that we have really all the bad news out of the wa

next main seat asset management ceo, erin gibbs. getting married soon we learned at top of the show. congratulations. delta is reporting a loss of $364 million in the first quarter. the stock is up because they're seeing record booking for the summer. means the consumer is strong. the consumer also buying premium seats. why delta is saying this summer they want every single airplane that they fly to have a premium section. >> yeah. it is interesting, we understand that there is, taking a loss because they have to shift their business model. used to be all about corporate travel. we know that they're still down about 15% compared to corporate travel but the consumer has picked that up. the consumer has proven that they're willing to pay for those premium seat. so, the airlines now have to offer basically everything, from the cheap seats in the back for those, obviously the premium travel and what is impressive is that their operating margins are expected to be same when we had had healthy corporate travel but we're looking at 33% pro