1. Welcome to Defender Capital Management

2. AGENDA: Welcome, pray Roll call Economist Report
Portfolio Manager Report
Industry Reports
Group Discussion
Closing Remarks/Questions
Oversee meetings & club operations

3. Economy Report
February 7, 2019

4. FED to Hold Interest Rates
Slowing global growth-China
S & P responds
To hold between 2.25 and 2.5%
S & P increases by 8% in January, 2.5% in final two days largely due to this decision

5. How did the shutdown effect the economy?
800,000 government employees not receiving pay
Airlines
7% employee absence, up from 3% average
Costs Southwest $10-$15 million, Delta $25 million
Housing market slows
Overall, stock market was not effected
Larger players effecting the stock market than the shutdown

6. PG & E Bankruptcy Largest utility company in California
Liabilities from California Wildfires
Declared for bankruptcy Jan. 29
Stock surges Jan
PG & E Bankruptcy
Largest company to declare bankruptcy since CIT in 2009
To blame for the cause of the several of California’s devastating wildfires over the last three years
Declining customer base in the past decade
71.4 billion in assets, 51.7 billion in liabilities-> 6th largest bankruptcy ever
Investors hopeful, are more sure what the future holds after filing confinmed

7. Chinese impact on US stock market
Intel expects slowing demand for data-center chips
Caterpillar, Nvidia, Apple, McCormick among many reducing outlook
Apple cannot sell iPhone, may need new plan for China
Chances of recession are rising
Strong dollar worrying for growth

8. Positive Q4 results Substantial growth after releasing
Starbucks sales grow in U.S., China
Railroads expect increase in volume (CSX, Union-Pacific)
Boeing sales to increase 10% in 2019
BP, oil companies profits increase
60 % of companies had substantial increase in stock price after releasing results
Starbucks sales surpass forecasts, overall earnings and revenue beat expectations, same store sales growth of 4% in U.S. Markets
Promise to continue to buyback shares and increase dividends
Railroads expect growing shipments of grain, oil, and e-commerce packages to offset worries of trade policies and volatile stock markets
Railroads are a good indicator of economic health as they show movement of both raw materials and finished products
Oil producers resort to trains in U.S.-> more expensive than pipelines, but pipelines cannot keep up with demand
Exxon-Mobile, Chevron, Royal Dutch among those lifting profits in 2018, benefiting from their newly streamlined operations

9. Job Market Added 304,000 in January, unemployment rises to 4%
Markets responded positively
In January Report

10. Other news Tesla (Musk) appoints new Financial Chief, Zack Kirkhorn
Ford Motors faces cash-flow pressure, junk credit potential
Papa Johns appoints new CEO, plans to invest $200 million in struggling chain
Superbowl not viewed as much as expected, largely due to the score of the game
Lowest viewing since 2009
Robot ads rule: Sprint, Michelob Ultra, Intuit, Simplesafe among those to use robots in ads

11. Sectors Blackrock economic outlook 2019 Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
REIT
Telecommunications
Utilities
Blackrock economic outlook 2019

12. UPCOMING MEETINGS
February 21
March 8 PM w/ Kristen Sanhurst