00:00Let's start, you know, with Goldman was the one that we were concerned about on pre-market
00:05prep.
00:06It was trading down, still a lot of the banks were trading up.
00:08The reason we were saying, you know, that it was trading down was that they said trading
00:12revenue, they saw it falling 10% next quarter.
00:16We talked about that.
00:17So, Goldman was already looking weak.
00:18It was trading down $3.
00:19It actually opened up and opened right at the high tick and then they just came in slamming
00:24it.
00:25JPMorgan, then you have coming out and you had the CEO, you had COO Daniel Pinto, JPMorgan
00:34talked about net interest income at an industry event saying $89.5 billion was not very reasonable
00:41in light of interest rate forecasts and he thought their NII would be lower.
00:45So basically, you know, cautious comments from JPMorgan as well.
00:49So you got Goldman with cautious comments the night before.
00:53Then you have the Basel stuff and they all rip on the Basel stuff.
00:57But then you have JPMorgan come out the next morning with cautious comments.
01:00Then you have Ally come out and Ally just harpooned everything with their commentary
01:06because this was the comments, I'll read it from you, from yesterday, trying to grab it
01:11here actually, A-L-L-Y from the pro, the CFO flags consumer stress and underperformance
01:22and he says, the CFO noted intensifying credit challenges among borrowers.
01:28That's not what you want to hear when you are primarily an auto lender, that you're
01:32having intensifying credit challenges among borrowers.
01:36So that's telling you what we have been telling you on this show is that the US consumer and
01:42you know, consumers around the world for that matter are still consuming.
01:47But the big ticket stuff isn't selling as well as it was.
01:50And I think that is what is happening.
01:52We've seen it with Tesla.
01:53Tesla deliveries have not been great.
01:55The reason Tesla stock is holding up is because they got a lot of other things coming.
01:58But we know, you know, General Motors and Ford had pretty good numbers, pretty good
02:02numbers with stocks.
02:03You know, look at the stocks yesterday, selling off and not really responding and trading
02:06low PEs.
02:07I think, you know, it's tougher times ahead.
02:09Now, interest rates coming down are going to help these stocks, but are they going to
02:12help them immediately?
02:13That's the concern.
02:14The banks just completely reversed yesterday, the most vicious reversal I think I've ever
02:21seen to go from JP Morgan trading up 2% in the pre-market to trading down at 1.7% yesterday.
02:28That's the biggest turn that I've ever seen in the banks, other than, you know, maybe
02:31the financial crisis.
02:33You know what?
02:34I mean, it's so weird, too, because I close my eyes and I'm like, OK, I'm going to bring
02:40up Co-America, right?
02:42Look what that did yesterday.
02:45Look at that.
02:46I mean, that had a great day.
02:48It was so different.
02:50The Wells Fargo didn't have a good day.
02:52There was a couple other banks, I think Bank of the Ozarks, a Nate Tobik favorite.
02:57No, that got hit, but came back.
02:59I mean, you know, it was kind of not that good.
03:02I mean, not interest income, lower interest rates.
03:05It kind of makes sense.
03:07And you got all the news.
03:08But man, JP Morgan, I mean, that's really what's sobering the market.
03:13I believe it was around 10, 10.30.
03:16It was.
03:17Yeah.
03:18Wicked.
03:19Absolutely wicked move on that.
03:21Holy mackerel.
03:22Very wicked move.
03:25And I mean, you know, what does this mean?
03:27Like obviously the Ally stuff hit General Motors hard.
03:30You know, and you can see General Motors trading down 3, 4% yesterday, and 4% trading down
03:35as well.
03:36You know, some people in the chat saying, well, you have to have cars.
03:38So you know, people are going to buy cars no matter what.
03:41I'm going to be an example for you.
03:43I have an F-150.
03:44I typically trade it every three to four years.
03:47You know, I just like having a new car.
03:48I can afford it.
03:49I like having a new car.
03:51I go and I look at the price of new cars and I'm like, I'm just going to keep driving my
03:55other two cars.
03:56So right now I'm driving a 2017 and a 2018.
03:59This is about as long as I would ever go, but I'm not going in to buy a new car because
04:03you know what?
04:04And it's Canadian money here.
04:05I paid, I think 68,000 for my F-150 in 2018.
04:09That same F-150, Joel, is 110 now, 110.
04:14I can't stomach, like I could afford it, but I don't want to stomach going and paying $100,000
04:21for the same damn truck.
04:23So I'm just like, nah, you know what?
04:25I'll just drive it.
04:26I'll just drive it longer.
04:27And that's what the consumers will do.
04:29If the ticket prices are too high on the stuff, they'll get them fixed.
04:33They'll drive the cars a little bit longer.
04:35And that's where the problems start for these automakers.
04:38And I think we're starting to see that.
