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Market Commentary

American Consumer Extremely Confident

By Charles Payne, CEO & Principal Analyst
5/17/2019 12:42 PM

Market Observations

Americans are growing more confident about the future, and it’s the best news.  I always say a large percentage of economic success is self-fulfilling, and right now, consumers are looking for greatness down the road.   Consumer Confidence Headline of 102.4 climbed 4.5 percentage points to highest level in 15 years carried by a surge in Expectations of 7.7 percentage points.

 Michigan Consumer Sentiment

United States Consumer Sentiment

It should be noted that the latest salvo in the trade war came after this survey and those mentioning tariffs declined to 16% from the high of 35% last July. This will surely bring the next report lower, but the main point is without those issues, the American consumer is  extremely confident.

The news gave the market a shot in the arm.  Although selling resumed, it points out there is an abundant amount of money eager to buy dips despite the uncertainties over trade saber rattling and weekend tweets.

IPO Parade

Pinterest (PINS) is getting hit on its first earnings release as a publicly traded company hasn’t deterred investors’ appetite for three initial public offerings today.

Luckin (LK) is the most hyped in part to the mystery surrounding this upstart that has seen meteoric growth in less than two years.  The Chinese coffee company is taking on Starbucks in China. 

China’s Coffee War

Years

Stores

Pick-Up

Sit-In

Cities

Employees

SBUX

 

20

3,789

2

3,787

150

50,000

LK

 

17

2,370

2,261

109

28

16,645

Fastly (FSLY)

American Technology Company specializing in content distribution.  

FSLY

Revenue

Loss

2017

$105 million

$32 million

2018

$145 million

$31 million

1Q19

$46 million

$9.7 million

Avantor (AVTR)

Chemical maker providing a variety of biomedical products for the life science industry.  Company raised $2.9 billion, making it the second largest amount in 2019. 

Have a great weekend. 


Comments
But do they give Trump the credit he deserves for this economy and will they vote accordingly?

Bill Leather on 5/17/2019 1:22:44 PM
This is a stream of thought that came as I watched your show yesterday on socialism vs capitalism. It was terrible. The young woman spoke of kids who were homeless but no one asked WHY they were homeless, who made them that way. Because it wasn't society that started them done that path it was the family that did that. None of you spoke of how communal/socialism was tried in early colonial and failed. No one really pushed back on the professor using China being used as an example of socialism. It is a dictatorship masked as one party rule. Where the government has stolen huge amounts of ideas from the US and other countries instead spending years on R&D to produce what they have. The now pollute like we used to, no EPA regulations. The professor talked about Germany and their law to have 49% workers on the board. That still left the company with the majority with 51% to carry whatever they thought was best. Do workers have good ideas for day to day, yes? But not many see 5 years in the future of a business market. One good from Cain was he pointed out that the socialist side would not talk about cost or risk which is always borne by the capitalist. No one asked when socialist get involved in a company, meaning who comes up with the idea and the money to start it. Or do they want in after it becomes successful and it's making tons of money. Worst of all you did not have ONE person on the capitalism side who was successful with a high school or some college and worked their way in jobs. People who are what we call middle class. Or others that worked during the day and school at night to increase their skills. Skills that the young woman said that the low income couldn't achieve, why. Because they go home prop their feet up and watch TV instead of spending the next 4 hours learning college courses. Last why didn't you, Charles, point out the millions in India alone that have been brought out of poverty by capitalism over the last 30 years? It was an irritating segment to watch at best because socialist could not give one example of how socialism would work and your capitalist side had nothing but old rich or TV people.

Kirk on 5/17/2019 3:47:15 PM
Charles, Nice try to get the the scumilist to listen & talk like polite people will do. The profess & the girl that got fired were so far out of touch with their thought process I has to pull the pin. Charles these libs were Soros puppets looking to start some S**T. Thanks, Fred

fred wiese on 5/17/2019 6:40:45 PM
Charles PAYNE, & FBN, thank you for airing the first of hopefully a series of Capitalism vs ( college sunshine's DEMS) Socialism a COMMUNIST REGIME PROPAGANDA. EVERYONE should promote the talks, so FACTS about failure of ALL THINGS SOCIALISM IS AND NONE THAT HAS NOT BEEN AT GUNPOINT DICTATORSHIPS. As for the others comments, the show needs a series of hrs, since 8yrs of indoctrination is NOT cleaned up in 1 hr, but actually real debates on FACTS will, costs, ALL freedoms, & even asking the socialist college A student "would you take a F, to give your 4yrs college ALL credits to someone who just DIDN'T FEEL LIKE Studying?". Thank you Charles PAYNE &FBN. Thank you president Trump. Also China will feel it worsening , Huawei & ZTE, are NOW BEING CUTOFF by GOOGLE, INTEL, XLNX, BROADCOM. ALL USA Companies are completely compliant with president Trump, and the national security, banning sales to Huawei &ZTE, With China looking at a $15billion, from offshore asset sale on yuan, to buy USA BONDS. Life is great INVEST long.

J on 5/19/2019 11:54:09 PM
 

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