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Motley Fool Hidden Gems Investing

Retail Report Card and CES Innovations

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 11 January 2019

⏱️ 40 minutes

🧾️ Download transcript

Summary

Costco and Target report big holiday numbers. Macy’s tumbles on disappointing December sales. Bed, Bath, and Beyond goes above and beyond. Activision Blizzard loses control over Destiny. And Taco Bell goes on a health kick. Analysts Aaron Bush, Andy Cross, and Ron Gross discuss those stories and weigh in on Ford Motor, Constellation Brands, and Interactive Brokers. Plus, analyst Rex Moore joins us from Las Vegas to talk self-driving cars and other cutting-edge technologies at CES. Thanks to LinkedIn for supporting The Motley Fool. Go to linkedin.com/fool and get $50 off your first job post. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Thanks to LinkedIn for supporting this week's Motley Fool Money, find the right people for your business this year at LinkedIn.com slash Fool and get $50 off your first job post.

0:10.0

That's LinkedIn.com slash Fool Terms and Conditions Apply.

0:14.0

Everybody needs money. That's why they call it money.

0:22.0

From Fool Global headquarters, this is Motley Fool Money.

0:33.0

It's the Motley Fool Money Radio Show. I'm Chris L. Joining me in studio this week's senior in Los Andy Cross. Aaron Bush and Ron Gross. Good to see you as always, gentlemen.

0:41.0

Chris, we've got the latest headlines from Wall Street. We'll get a report from the consumer electronics show in Las Vegas.

0:46.0

As always, we'll give you an inside look at the stocks on our radar.

0:49.0

But we're going to begin with the big macro. The government shutdown is now three weeks long with no signs of an end site.

0:56.0

We've got more evidence of an economic slowdown in China.

1:00.0

Ron, obviously we are business focused investors. But how should we be feeling about the big macro stuff these days?

1:07.0

No, this furlough, it's a human story, but there are real economic implications here.

1:12.0

Just the paychecks that are being foregone right now represent a loss of more than $2.2 billion in consumer spending.

1:19.0

So you're had housing, transportation, food, health care, all getting hit. And that will reverberate through the economy for sure.

1:28.0

Andy, we're seeing more and more CEOs come out. Maybe not as strongly as Fred Smith at FedEx did a couple of weeks back.

1:37.0

But more and more CEOs coming out and talking about their ability to plan in 2019 is getting harder and harder.

1:44.0

Yeah, I think it has to. When you start thinking about a government shutdown, the trade issues continue to be forefront for so many of the global companies wondering what is going to happen with the trade issues.

1:54.0

So this uncertainty, CEOs and chief financial officers don't like planning because it's so difficult to do when they don't know what's going to happen over the next few months.

2:04.0

So when you start thinking about where interest rates are going to go and all these uncertainties for them, they start saying, hey, listen, we can't plan as aggressively as we would like to.

2:14.0

The largest uncertainty to me is less than the US and more just what's going on with China and the slowdown there.

2:19.0

I mean, we saw Apple a week ago, lower its guide and so that was a pretty big deal. But I think there's a chance that that might just be the first step of many.

2:29.0

I mean, if you think about Nike Starbucks, Tesla, like all of these big consumer branded companies that also operate in China, they could get hit, especially if a lot of those companies' growth stories are dependent on China in some way.

2:43.0

And I don't think the news about GDP growth rates or any of that really is the biggest existential deal. But when you pair on trade tensions and even thinking about a story this morning in which another Huawei executive and Poland was detained, I can totally see how those pressures could escalate and how at some point China could retaliate even harder on companies operating in China.

...

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