Stocks Start Up For Second Straight Day

Alix Steel explains what's sending the markets higher.
8:07 | 10/14/11

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Transcript for Stocks Start Up For Second Straight Day
Investors may have a little more money to spend -- weekend Dow futures were up this morning. -- -- -- discuss the business headlines is Alex steal from thestreet.com -- Alex. Happy Friday happy Friday so let's start out with retail sales numbers for September's came out about an hour ago they are up. One point 1%. What should we be making of this figure. If this really -- knew this is kind of anti recession indicator. And it was -- definitely better than expected and excluding auto sales retail sales were still up six tenths percent in September again -- better than we thought. -- -- -- get another read and the consumer later around 10 o'clock with the Michigan consumer sentiment index and that's expected to be around sixty another positive signs. -- interesting I was reading a note from a portfolio manager and sadness at Pimco yesterday. He said basically that the three week moving average for jobless claims has now onto its second lowest level in six. Months that perhaps there is the last deterioration in the labor market and I have to say I think the retail -- -- to support that. Now because consumers are still spending we don't know where -- spending or how much that they are spending and that's very optimistic. So are those are certainly good signs the markets at least taking back to hard at this in the first few minutes of trading here are -- some more headlines today in the Euro debt crisis today Spain I understand is in the spotlight with its long term debt. Getting a downgrade what more can you tells about fat. Here again the rating agencies strike again this time Standard and -- cutting Spain's long term debt rating citing weak growth prospects and risks facing the -- I also read that perhaps -- might have problems meaning at 6% deficit reduction target. Country perhaps under estimating the reforms it really needs to put into place. In -- to get its finances in a better situation. -- just putting more damage done Europe -- -- -- fits but five European banks on rating watch negative Goldman Sachs. Cutting 2000 -- -- per share estimates for European banks. Just adding to the pilot bad news in the pressure for banks -- sort of coming under under pressure to you know take more haircuts for Greek bonds and Democrats also having to raise more debt really putting -- -- -- Earnings. Are -- Treasury Secretary -- sort of a related note magnet Geithner is in Paris today for meeting of the G-20. What are we expecting him to say at the table. Thinking you said before in Ireland act fast store up your -- system let's go guys began to move basically. -- the finance ministers Central Bank governors meeting in -- it to start meeting today and get -- -- -- -- is here at Kennedy how to really sure of Greece. It's gonna be how to recapitalize. Banks it's -- -- be about expanding the powers of the European bailout signed -- parent. Perhaps even boosting the fire power the International Monetary Fund. Which by the -- kind of bring in external countries like China Brazil Russia South Africa Japan. And forced then to also cutting out bail out Europe. Dead certain idea that countries could wind up buying bonds from the -- and basically look -- IMF money which -- then lend money to a year European countries -- perhaps banks. Perhaps there could be service special purpose vehicle -- -- -- could run funded by the countries within the IMF the and these are very controversial ideas are now trying to pick up steam. I don't courses that recapitalization and they can't -- where the up front and center I'm hearing things like three to six months they got shore up capital and Credit Suisse said that about 66. 66 European banks it would -- -- a stress -- -- they ticket right now and they're gonna have to raise about 220. Billion Europe's. In three to six months I mean that that's you have to sign that that European bailout fund that's staggering -- a. Act saying it just seems like they're throwing everything out on the table at this point trying to get any tool that they had to fix the situation in euros -- Affecting the US as well. All right let's switch gears and talk about earnings Google came out with some critics -- -- impressive earnings yesterday and now trying to take on apple wants the full story there. Yesterday -- from bad news -- He had big news here yet so -- African that's actually that Google is in talks with. A record label industries. -- basically launch and keep three. Music store yet they take on the and I -- -- -- is who is -- now -- it's all about apple product I -- -- thanks her neck at about what that -- yeah so I think that that's another sign that Google is trying to diversify. Its products and really try and take share and lots of different spaces. Bush served them really well on its -- and its quarterly announcement here that can't be -- nine dollar 72 cents a share that was -- -- about 27%. Revenue jumped 37%. To seven point 51 billion. This is primarily driven by adds a surgeon Kate Clinton but -- -- -- will -- about search just a bouncer to set. They had about 100 million of its 800 birds have been activated globally they said it Google plus which is sort of competitors -- -- has forty million users. That was just launched in September in face that had 800 million users as well. That that's not too -- here the flip side we stop reading operating expenses and marches. Also rose at Wal-Mart and actually weren't that hot -- operating expenses rose between cents. And that's because there are expanding and they're hiring a lot mark they did see some kind of slowdown in Western Europe they did -- say that North America is relatively stable but I read -- -- -- today. That's it you know what they're diversified it lots of different countries and products -- count offset any weakness that they would see in Europe so really positive quarter. And the stock was up 8% in after hours trading. Interest saying all right everybody is talking about the iPhone four has coming out today Alex. How does apple have to gain or lose with this product launch especially in light of this Steve Jobs is -- Sure it really seems like they had everything to gain right now I mean it goes on -- -- worldwide here. And is expected to beat its sales of the iPhone four which was released last year some estimates say that apple could sell as much as four million units this weekend. The iPhone four only sold one point seven million units. I think the reason why this is really important is when the iPhone four as was announced it was colonel lukewarm response -- ever was kind of hoping for the iPhone -- And the question -- is this souped up iPhone four really enough to bring people who don't -- I -- it into the market. And isn't enough to have consumers replace their old iphones and right now that's saying yes and that's a really big deal especially because as the first lines after received. That's passing -- the lines in front of the Apple Store is any indication I think it's gonna do all right. All right we know that stocks have been rallying a -- -- the last couple days your specialty Alex's gold how does that and treating these past few weeks it's always interesting a look at where -- trading. It is and it's really Dicey I have to say it's perplexing a lot of experts they're -- saying hagel I don't know and the reason I don't have. It is -- is living with stocks and is a big reason for that first of all if we get some kind of firm European plan. To help banks and to help the sovereign debt issues in Europe that's -- Stotts to investigative feel better able to buy stocks. It also is -- support the -- which by the way will pressure the dollar. Which we'll support goal because golden dollar mid adversely to each other so -- how -- -- legal -- what's there really confusing. A lot of experts -- kind of think we have more downside here that we could see that 78 merchants of some consolidation before another -- higher which means. We could see trading -- giving up seven point five probably down to 1440 we're trading -- 1680 right now. Pretty wide bent -- what I'm hearing universally is that nothing really has changed -- -- -- 10% decline. But at the end of the day we still have currency issues. Not one plane is going to solve all the problems in Europe and we Central Bank behind me an idea that message -- independent research consultancy -- owned by Thomson Reuters said. Since amazed -- by well over 300 turn this year -- that's a big deal so I think investors and it can take a while -- independents see those fundamentals takes center stage again. That remaining -- safe haven for now Alex steals from thestreet.com let's take Wal-Mart look at the numbers before alleging go wow the Dow up a 109 points right now what do you make of it I make up retail building do. Absolutely. Retail sales and Google's. Alex DL street -- come have a great weekend Alex thank you think you.

This transcript has been automatically generated and may not be 100% accurate.

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