Title: Barry Armstrong discusses market downturn

" Lot of major financial news in the past few days the market was down last week down for the month with us joining us is to -- very Armstrong most of money matters and WPIX and financial advisor for securities America a very good morning. So we have the market we also -- this morning a little bit of news CIT declaring bankruptcy the government and you and I have about two and a half billion dollars in this company. Looks like we might not get it back what what impact if any is that gonna have on."

" On normal regular people this morning I don't know they don't have a lot of impact unless you hold bonds and many consumers held bonds in the CIT group. They'd been sold by Charles Schwab and many other companies to either individual clients. About two weeks ago those bonds are selling at 40% discount. This morning they'll be no market for them and effectively what you'll see over the next several months is the bondholders will take over that company. In the bonds will be re struck."

" We did have a guardrail and crash that's a good thing but the Dow was down in trending down last week down about two and a half percent. Two or fifty points on Friday flat for the month so we'll you know what what do what do you see as we look into it November the -- months -- the year --"

" Well you've got the FOMC meeting this week and I think that's gonna remain neutral the FOMC being -- The organization that sets interest rates. There are certainly not gonna do anything to indicate that they're ready to raise interest rates. The big data that's coming out though from my perspective is the unemployment number that comes out on Friday I don't expect a lot of market movement on the upside -- the downside to get to that data on Friday."

" Now would you would ever what do you expect is going to happen with with one do you have a sense because we've we know that it's gonna continue we think that it's gonna continue to -- that's the conventional wisdom wouldn't think."

" I tend to be in the minority I do not think it'll exceed 10% I think we could be at either nine point we're at 89 point B right now we could go to nine point nine on Friday. Conventional wisdom tells us that it's gonna go to ten maybe 11%. I don't think that's gonna happen because so many people are falling off of the unemployment rules that don't count anymore. And so I think you'll see it stay at nine point nine or less I don't think it'll get 10% and I hope I'm right. -- we have earnings season and we have some earnings this morning what are things -- and so far well that's a thing that's been ironic you you look the market correction and it was all due to psychology and economic data such as Consumer Spending consumer sentiment drove the market down but when you look at corporate -- been exceedingly strong it's one of the -- certain seasons that we've seen. This morning we had a company Ford. They auto manufacturer. They hit the cover off the ball -- earnings were about 26 cents -- expected to lose thirteen cents so. The automobile sector at least Ford in that sector has made a nice recovery and we've seen that across the board with companies. Exceeding their earnings by a dramatic -- that's why we saw the stock market run up. Over the last several months. Wall Street knew this was going to happen at least they were betting that this was going to happen now we're having a tough time keeping hold our gains because a lot of individual investors and institutional investors say. They can't maintain this pace of earnings -- so is that why the market started to trend downward last week. It is because as strong as the earnings have been Michael it's been. Due to cost cutting efforts. And do not do to top line revenue growth some companies have grown top line revenue but not not many. Most of the earnings that have occurred have been based on cost cutting and these companies are stashing enormous good record setting amounts of cash. So again between now and the end of the week what you believe we're we're waiting for the unemployment numbers is is not going to be a big -- up or down I really don't think so you could have a 300 point swing. On Friday if we get a very disappointing number what we get a very bullish number we can have a 300 point upside. But I think the market be relatively. Stable during the course of the week until we get Friday all right we'll see very thanks for being here thank you."