Third quarter earnings and the economy

Welcome back to Mornings on Tune. Today's dollars and cents wrapping up third quarter earnings. There is mixed reaction to Apple's report. And even though people across the country are struggling financially, some of the big travel and leisure companies report a positive outlook. Joining us now, financial advisor Chris Markowski. Good morning, Chris. Good morning. Let's start with Apple and the tech stocks. Is this a case of good but not as good as Wall Street wanted? What are you seeing in the tech sector? It's been pretty volatile. Oh, absolutely. But again, you got to take a look at where many of these companies have come from over a period of time. And we've discussed this before. There's nothing wrong with having some asset rotation in your portfolio where you take some profits and you move to other areas. Apple's situation is interesting because. And they were smart enough to actually see this coming, the fact that their input costs are going to be much, much higher, which is going to obviously squeeze their margins to some degree. They have built up a considerable amount of chips and inputs so far, but that is going to dwindle little by little. Their prices have risen on many of their products, without a doubt. Revenues were fantastic, but they're starting to see, okay, hey, listen, we're getting less growth. In regards to services and the app store and other things. So they're going to look to see, obviously, where else they're going to grow. The new CEO of the company, he is a hardware guy looking to put out some new items. The new flip phone there is selling very, very well, despite some of the, you know, the misgiving. Some people like it. Some people don't like it. But I would expect some more product innovation going with Apple forward. But they do have a very, very high multiple at this point in time. Yeah, that's what everybody looks forward to. The cool new gadget from Apple, right? That's what usually drives that. Talk about the travel stocks. I was looking at Marriott, for one, reports higher revenue. It's raising its outlook. Is this more of an example of wealthy Americans are doing just fine, like their higher luxury resorts seem to be doing well while a lot of people are struggling? Marriott's interesting. I think Marriott, to some degree, has kind of shifted almost to somebody. Yeah, they have their high-end properties, the Edition and the W, but they seem to be focusing more on the middle-of-the-road type of it, like a middle-of-the-road, almost like not even a middle class, but almost not a super high-end experience to that much degree. And that is a pretty good sweet spot to be in right now. You know, you're taking a look at many, you know, places to visit, you know, in particular cities that are squeezed. Good luck finding a hotel. I was just in New York City this past weekend for anything less than, you know, $700, $800 a night. I mean, it's just the reality. And, you know, they're trying to get into that kind of spot right there where there's like the ultra high end and then there's like the step below. And I seem to think that they're feeding well into that. Okay. Some people still need to and want to get away. So good to have some more affordable options. Before we let you go, anything surprising to you in the quarterly earnings and what you might be watching out for in the fourth quarter? What I would tell people to do is obviously, we've got the midterm elections that are coming down now. I try to avoid all of the noise, all of the static. Again, we're getting into holiday season. We're going to have the peanuts. Again, I'm dating myself. Thanksgiving special, Christmas special. Remember the adults? Wah, wah, wah, wah, wah, wah, wah. That's when adults would speak. Kind of think of that as a lot of the noise surrounding everything that's going on. Never bet on the end of the world it's going to only happen one time. I think people probably feel like that with election day, too. We've had a lot of that as well. Chris Markowski, thank you so much for weighing in. You've got to have a great day. You too.