video transcript

It's been a bumper quarter for earnings with more companies reporting beats. Watch out for storm clouds on the horizon the amount of firms giving pessimistic outlooks is the worst in over a decade. Thomson Reuters -- -- Mars has -- around 80% of the S&P is reported already what's behind the beats. What's that this earnings season as that companies can no longer continue to cut costs increased the bottom line. So they're running -- -- as possible so what's truly driving the growth this North American demand which is helping to offset the weakness in Europe. So I was before already we've seen an increase of 84% of companies beat. Earnings estimates and consumer discretionary sector and 71%. Industrials. Now if you industrials what's behind that. Well the US consumer prove to be more resilient than initially anticipated for the first water. They went out and they shot for Apple iPhone how Bledsoe and candles. And this stuff we help companies like Amazon and apple smashed their earnings estimates. Which -- for the -- Forward looking at the next quarter just how bad is the outlook. Well the -- -- to positive -- is currently 3.3 percent and this is stronger than the long term average of 3.2. That has prevailed since 1995. Incidents so what this is telling us is that there is -- increase and negative -- this is -- To higher commodity prices and unfavorable exchange rates bad -- -- seeing higher fuel costs. Procter & Gamble already warned that because of unfavorable exchange rate expect net sales to be down. Reduced by 10% negative vibes and thankfully through. Our thanks did you -- -- I'm Fred Katayama and this is Roy.