textron did not do a ppg.rry is that we are going to see preannouncements and negativity and you have nobody to blame but the freight. >> i think it is a buy ahead of next week's earnings. they have a fantastic buyback. i know we have to buy them when nobody likes them, hence the airlines. csx wasn't bad. it just ran to 75. >> alcoa is having a nice day. >> how much did you see that theygained from tariffs? 27 million. >> their net loss was 41 million, 22 cents a share, excluding special items. revenue is 3.4 billion. generally, jim, a positive -- there it is. positive response in the market today to these numbers. >> the one company that was supposed to be not so hot was great. the one that was supposed to be great is struggling to find a buyer because it bought a company involved with an aerospace where they overpaid. >> you are talking about iconic where there are reports of private esquity. >> it would be a large deal for private equity requiring a club deal. the equity check is too large for any one. alth

tomorrow i will be addressing the weakness in textron. it has four main tuitions, company makes jets you know them as cessna. they have a business that includes anything from drones, simulation, and training products the company looks to be a major beneficiary of the armies new spending priorities. then on monday, this is a high quality company. textron stock is down 11% from its highs. the company reports tomorrow morning. this stock go clobbered on a good quarter last time but then quickly bounced back. that will allow you to get a better price than you got it right now. number four is kind of a cheat united continental many of these names have been clobbered this year, ual has surged higher. these guys are doing well because the company has worked relentlessly to understand and connect with its investors those vinvestments are paying off. raised the quarter forecast. third earning boost in a row help of course by today's plunge in oil making it the number one performer in this sector and when a stock is up that much on a down day like

plus more with the ceo of textron, "squawk on the street" will be right back don't go away. >>> we'vengs from bank of america you can see what the spdr has been doing let's get over to wilfred frost for more on the earnings >> banks have for the most part delivered decent earnings so far this quarter bank of america today had their strongest net income number ever eps came in at 66 cents ahead of 62 cents estimate and this was down to strong core performance in their retail bank loans up 3%. deposits up 4% and credit quality remaining strong however, despite positive absolute loan growth, the number was a little behind consensus. if we look at the bank that have reported, the sector-wide loan growth is around 2% which is underhill wi underwhelming. however that hasn't been accompanied by falling credit quality which does encourage bulls out there. over two days since the banks have begun reporting j.p. morgan performed worse. why? well, their revenue while up 5% year over year fell 2% quarter over quarter and they are the ones with the most premium valuation on a price-to-book multipl

, textron missed on the top and bottom line. we heard grangeer comment, bottom line is this, folks, margin pressure. overall from a group -- a series of individual influences, weaker foreign currencies, tariffs, higher raw la bo costs as well as pockets of demand, weakness in autos in china for for example and europe as well a lot for the markets to deal with >> bob, thank you for. that you mentioned those dplents ecb head mario draghi contributing today in the trough dylan marks has more. >> reporter: what we heard people should stick to the budget if they don't, it seems to be clear, to the italians, they submitted a draft budget plan earlier this week. the commission immediately said they have concerns about it. in just the last hour the commissioner of affairs in europe he has been talking in rome, specifying what is the problem with this expansery spending plan i want to bring you his comment. it's higher than the mar joan, anything they've seen before a failure of half to the 130 debt gdp ratio. that's to fund things like

take a look at shares of textron. so heavily oriented through defense business we're going to talk to the ceo of textron he'll be here in orlando we'll talk to him at 10:00 a.m. about this deal and what's happening in the defense business will we see more consolidation, how it might impact textron. all of that come up at 10:00 back to you. >> phil, thank you for that. is that nicer than your wheels >> yeah, i did have a -- phil, i can't believe this is the biggest merger ever. >> it was. it was 20 years ago when macdouglas did it. >> reporter: it was 20 years ago, joe >> it doesn't seem that big compared to those mergers in aerospace. >> reporter: i understand what you're saying. >> good. what is that behind you? did you mention it >> reporter: that's the cessna longitude. if you got a cool $24 million, joe, it's yours. >> that's all you need a citation all you need, andrew unless you have a lot of friends. well, you might. >> it's harder to land the big plane in aspen >> that's what i'm saying. a citation ten how muc

textron, down 7.2%. they put up a big mess on the top and the bottom line. they also have weakness in their aircraft segment. here from seales down-- sealed air corp. 7.6%. bank of america has cut their writing to a neutral on those shares, and finally, united rentals beat, but those shares down 6%. they also boosted the outlook. the reasoning there has to do with pricing and margins. the shares are down 30% since the last tie back in september. the industrial group is reagan we sit -- is weak in recent weeks. vonnie: as earnings season continuance on pace. we also have concerns in china. the country's stock market and currency have been taking a hit --my and -- amid on growing taking a hit amid ongoing trade tensions and slow consumer growth. it seems like china has a plan for its currency and his -- is executing that plan anyway. >> the last announcement or lack of announcement takes the takes the off -- pressure of protecting the currency. we were just starting to see the u.s. dollar not be the main driver of msci emerging market'' relative performance. f

when we see netflix up 30 on earnings, gave it all back in a day, see things like textron, snap-of on, whirlpool yearly lows, all housing-related stocks at yearly lows, i think market is flushing out something. markets are flushing out next several months, earnings head south and decelerate as well as economy. i think that is the problem here. charles: by the way, folk, coming into the studio, 262 of the s&p 500 names were down for the year, to gary's point, more loseers than winners. are we flushing out something here? >> we're flushing out my portfolio, charles. charles: we kind of knew coming into the last couple weeks comparison would be tough. >> right. charles: so that is not the news. what's new? what's new in the last three weeks or action in of itself? >> the new we're finally recognizing rates are really going up. the rates are the fact we have convergence of all geopolitical issues you brought up before. fortunately i pick stocks. i don't try to trade the market, i just pick stocks in the market, i have to be honest with you guys, i may be the last bull standing or only bul

industrials that you cover, look what is going on, sealed air, textron, they're talking about higherweaker foreign currency, tariff issues, all of this generically translate into margin pressures you can see what's going on with industrials, they're all being hit. we've had record margins on the s&p 500 that we have seen. it has been holding up really well they have been able to pass on some costs now they're getting louder concerns are how much higher are costs going, and how much longer can they pass that on. margin pressure is an issue. >> this is another way at the divergence question, isn't it? you point to ford in china, this is china's problem, but maybe it is becoming ford's problem you talk about the costs and tariffs, well, maybe that's the pain caused by the policy starting to show up in corporate balance sheets up to this point the u.s. market has seemed to shrug things off how far a dip before we reevaluate >> i think it is happening today. this is one of the reasons i think the market is down so much if you have 1% revenue growth and then you have 2% growth in costs, yo

we have the ceo from textron who is, has committed to 22,000 opportunities to train workers in the aviation. thank you very much for that commitment. ford motor company is committed to providing 55,000 new jobs an opportunities in the automotive sector. at&t has committed to 200,000 new jobs an opportunities. and ipc, john, the ceo, thank you so much, of this association that represents electronic assembly industry whose members commit ad total of one million new jobs and training opportunities. incredible. >> stand up please. >> please, yes. [applause] >> so the headline is you're up to? >> we're up to 6.3 million new jobs. >> which is incredible. [applause] >> and if you think about that in context that represents 5% of the current workforce. so it is really, really remarkable. this is really that call to action, to the private sector to invest in the current and future workforce and, we're going to continue to have the private sector sign our pledge and agree to making this type of investment. with that, while the last event, last time we were here announcing announcing the launch of the

i get that textron missed some of the others are throwing everything out and that's why i'm saying go back to fundamentals stay calm, pick your prices. they will rally back when the market calms itself down >> and the reason -- >> in the process of trying to do that. >> the reason the stocks get sold down is investors are saying we think there's a recession starting right now caterpillar -- >> 115 times earnings? wow. >> a way of saying we don't think they'll earn $13 a share next year. we think they'll earn $6 it's a referendum. >> i'll get your thought right after this break i know you have a good one michael farr, options traders betting against one stock seeing a slide of 8% in one month unusual activity with pete is just ahead the sector check michael farr's thought on the other side of this quick break there you go there's the s&p down 35. i am an independent financial advisor. for our firm, it's about trust and transparency. trust that we do what's right for our clients, without the constraints imposed by the traditional brokerage houses. transparency in the way we're compensat

>> as you take a look at shares of general dynamics, the parent company of gulf stream as well as textronn mind that these companies tend to move more with the defense stock. there is no doubt their commercial -- or business jet aviation business, that whole industry, that will increasingly feedin . >> we are going to go to the floor of the new york stock exchange power lunch is back. dow is up almost 500 td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ frmg welcome back to power lunch. sources saying that the financial times report is inaccurate and not true seasoned that it's business as usual and negotiations are still underway. it was a fluid situation as we learn more we'll bring it to you >> thanks. >>> a huge rally taking place right now. the dow is up by more than 500 points all major averages on pace since march. art,

stock down 8% last friday four worst projector stocks in the market industrial names, united rental textron you need to watch going forward. and that is what makes me nervous valuations are not that cheap across the board. >> what do you do then if you are watching this market trade -- invention he inventionly cash a place to hide. >> favorite ticker symbol cafh i roifl a tick a company with that symbol our hedge products sitting over 15% in cash luckily went into this downdraft with a fair bit of cash, now we are looking to selectively deploy that after companies lower miss lower take numbers down configurement hopefully get to a level you think okay that is a number i can kind of believe but semiconductors we would completely avoid until march quarter you've got inventory you need to work through at the same time demand slowing down. >> you like a couple names though. >> i do. >> putting money into chinese companies you like google. >> yeah i mean with china let's be clear i think pretty much every company in china is going to cut lower numbers because their economy is slowing down so i a