Morgan Stanley at Deutsche Bank Conference Notes

Andy Saperstein – Co-Head of Wealth Management

No fee compression in a holistic relationship

“So far just empirically, we’re not seeing fee compression. Clearly, the trends in Wealth Management — the trends in many other aspects of financial service clearly, the trends such that we have to be concerned about decompression. But the reality is that our clients come to the advisors not to buy specific products for a price, but they come to advisors for advice around their financial well being and helping them to achieve their goals. So when we talk about what we’re selling, we talk about the value proposition. When we talked about the value or advice what an advisor brings, we’re careful to make sure that we continue to define it as advice to help a client meet their financial goals. So what you’ll see coming out of our organization going forward is a lot of moving towards, I briefly touched on the goals based planning and making sure that we’re always delivering that holistic type of Wealth Management advice to the client, because that really doesn’t have any fee compression on, if anything, that kind of a price point is quite acceptable. As soon as you start thinking about selling a particular product, there for a product, then that’s when the fee compression starts to kick in.”

Recruiting and attrition is at an all time low

“So attrition levels are at an all time low, I think that’s probably roughly true in the industry. And so much is what I said earlier is that recruiting has come down over the years and is also at an all time low. And so I expect that attrition will remain low for the foreseeable future as well.”

Goldman Sachs at Deutsche Bank Conference Notes

David Solomon

Client activity has remained subdued

“No, look you know that we don’t provide inter quarter detail and so I’m not going to provide that. I did just make the comment that volatility, client activities which were more subdued in the first quarter kind of in these first two months have continued in a comparable fashion in the second quarter. There are obviously four more weeks left to go. You know and we know the stuff can ebb and flow. So I leave my commentary at that and we’ll see as the quarter plays out.”

CEOs have to move forward, they can’t just sit around and wait

“They have to, I mean, look we can talk about tax reforms, but I’ll tell you just in January talking to CEOs, it was less about tax reform, more about what is Donald Trump mean and very quickly CEOs got to the point where they said the administration, yes the administration might mean some different things, but we have got to move forward. If you think about the average life of the CEO, you don’t get a number of years to sit around waiting for policy changes to kind of move their growth trajectory forward. And so CEOs by nature has to act they have to move forward, they don’t spent a lot of time waiting, they take the current environment and they figure out how to do what they need to do strategically in that current environment.”

There is no question there’s a tonal change from the new administration

“Look, it’s very hard to know exactly how this will play out. And so I don’t like the idea of predicting, but there is no question there is tonal change with the new administration. The whole industry is benefits from that tonal change. And regulations are very, very important in this industry. And we can kind of understand how we got here. We had a very, very deep crisis. There was a massive amount of regulation that was really focused on safety and soundness of the system that’s good and that’s important, but it all happened quickly. It came together very there were lot of rules. And now we’re eight years out and it’s very appropriate to kind of look at all those rules and say okay what matters for safety and soundness.”

Lowe’s 1Q17 Earnings Call Notes

Robert Niblock

Consumers have favorable view of the national economy

“Our most recent Consumer Sentiment Survey revealed that homeowners have an increasingly favorable view of the national economy and their personal financial situation. Rising home prices are continuing to encourage homeowners to engage in more discretionary projects in addition to ongoing maintenance and repair spending, and we believe that this trend will continue. As well over half of homeowners we surveyed, believe their home values will continue to be increased. Also nearly half of the owners we survey indicated that they intend to engage in a home improvement project in the next six months and home improvement spending is expected to continue to outpace overall spending”

Toronto Dominon FY 2Q17 Earnings Call Notes

Bharat Masrani – CEO

Greg Braca

*We’ve seen some slow down in commercial markets

“I would just also call out that Q1 and Q2 we’ve seen some slow down in general across all commercial markets, a couple of things have been going on higher interest rates, we’ve seen clients staying on the side lines or hitting the bond market and retiring bank debt that we’ve also seeing less CapEx spend. And in the U.S., we’ve decidedly seen a lot of our commercial clients sitting on the side lines for the last couple of quarters with a wait and see attitude with everything from decisions on taxes to infrastructure spend and the rules of the road in the U.S. with the new administration”

Mark Chauvin

You can’t have lower losses forever

“Now, I’m not looking for major increases, but you can’t have really lower losses for the extended period of time. So, I would look for the modest increase maybe in next quarter, but from a quality perspective I prefer to look at loss rates. And we’re really in the current economic environment and borrowing a significant change in that, we’re looking at the loss rates in the U.S., staying relatively consistent to what we’re seeing for the — in this quarter and for the balance of the year.”

Mike Pedersen

Deposit beta has been low but rising with Fed rate increases

“Now, I’m not looking for major increases, but you can’t have really lower losses for the extended period of time. So, I would look for the modest increase maybe in next quarter, but from a quality perspective I prefer to look at loss rates. And we’re really in the current economic environment and borrowing a significant change in that, we’re looking at the loss rates in the U.S., staying relatively consistent to what we’re seeing for the — in this quarter and for the balance of the year.”

Toll Brothers FY 2Q17 Earnings Call Notes

Douglas Yearley – CEO

Best spring selling season in 10 years

“Solid and improving demand and the financial strength of our affluent buyer base are driving our growth. This was the best spring selling season we have had in over 10 years. The number of contracts in fiscal year 2017 second quarter was the highest since 2005’s third quarter and the number of contracts per community was the highest since 2006’s second quarter.”

West is great in all regards

“Bob, the West is great in all regards. We had significant order growth in Arizona, Colorado, Idaho of course is new to us and doing very well. Las Vegas, Reno, the only place that was down in the West and it’s strictly mix because we love the market was Seattle and we have more opening coming, so we’ll make up for that, but the West was absolutely fabulous in all regard. We’ve course now report California independently, which is as west as we get and I have the same comments for all of California as I just made for our Western region. It’s just fabulous.”

Raising price faster than cost but not by a huge amount

“Mike, this Doug. It’s certainly better in some reasons and it’s worse in others. California and Seattle have had — we’ve had the ability to raise prices the most. For the quarter, we on average nationwide we raised prices a little more than $5,000 per home. We had cost go up about $2,500 per home. So, we continue on a national level on average to outpace cost increases, but not by a whole lot, by $2500. But when I focus on those areas that have been strongest on you look to where we sold the most homes this quarter and that’s Southern Cal, Northern Cal, Seattle, Northern Virginia, New Jersey, Las Vegas, Reno and Michigan.”

We don’t see an overheated market in CA

“We don’t see overheated market. We don’t see investors. We certainly all know mortgage money is not easy. The percentage of foreign buyers has stayed stable and they have been quite easily been able to finance their homes or get cash into us to purchase their homes with truly no issues. I’ve checked with our mortgage company. I’ve checked with our California teams and it has been business as usual for some time now with that foreign buyer. ”

Bob Toll – Executive Chairman

Housing starts still half of previous peak

“Thanks Marty. We believe our strong results are being supported by the release of pent-up. Single family housing starts rose to 835,000 in April. However, that is still just half the previous peak of 1.72 million in 2005. Many factors are bringing buyers off the fence right now. These include low interest rates, urgency created by the limited supply of resale and new homes and improving personal balance sheets and credit profiles. Our luxury buyers are further benefiting from a solid employment picture, strong consumer confidence, a robust stock market and increasing equity in their existing homes.”

Microsoft at JP Morgan Conference Notes

Chris Capossela

We are not focused on trying to be the cool kid

“I would say that for us, the most important thing is to really get people to understand that Microsoft is not really focused on trying to be a cool kid. We are not focused on some of the things that I think our tech competitors focus on. We are really about empowerment. ”

We market what we have instead of any visionary future

“we try to market what we have as opposed to any visionary future. I am never a huge fan of marketing stuff that people can’t that can go use. And so it’s one thing to do a sexy demo or give a speech that you have some far-off vision that people get excited about. But I don’t think you market those things. I think those are used at important moments in time. The marketing has to be about telling how companies can do better than they are doing today using your stuff. So we really try to focus on what’s possible today.”

We know how to deal with enterprise

“I certainly think that the track record that we have in the enterprise plays well to Microsoft’s strength. The account teams that we have calling on large enterprises. The fact that most are running their email through our cloud and email, believe it or not, has become just this incredibly important line of business system and we have many, many CEOs telling me, hey, I can deal with an SAP outage, I can’t deal with an email outage for a second. So you have to have, 99.999%, five nines isn’t enough for your email system. I think having that track record and that relationship where customers trust us, they know there are going to be mistakes made, but they trust us to respond to those mistakes really well”

Customers want balance between MSFT and AWS

“I also speak to lots of companies that are on AWS and they tell me the today 90% of my spend in the cloud is AWS and only 10% of it is on Azure and I already have a goal to make that 50-50. And that has actually nothing to do with, they believe in us more, they literally just want balance of trade. They literally just want the ability to sort of say, hey, it’s going to be better for my company if I use multiple vendors here and obviously a given that Amazon is in the top spot and we are in the same spot, we have a lot of headroom from simply playing balance of trade across the cloud.”

Halliburton at UBS Conference Notes

Jeff Miller – CEO

Greater rig productivity means fewer rigs for same production

“Yes. I think I certainly feel like I was a little high on my number. 800 feels very busy. And it’s happening like we thought in terms of the rig efficiency is there, which is driving substantially more completion activity. Fewer rigs drive more completion activity. We’re seeing that today not only in terms of number of stages, but sizes of stages has also compounded the level of activity. We’re up about three times what we were in 2014 in terms of sand volume, just pure volume. And so the demand is there and it’s driven off again, as I said, that lower rig count. And I don’t know that that it makes – it’s going to continue to move up, but it’s simply going to drive more and more activity.”

Momentum around pricing continues to move up

“I mean the momentum around pricing continues to move up. And so very positive. It really started in Q4 of last year where we really tried to probe the market to see if there was room to move. We saw some green shoots, but I’d describe it as a bar room brawl. It absolutely was brawling in Q4 last year to see if prices would move. As they started to move, that’s what precipitated our move in Q1 to accelerate reactivation simply as our team on the ground started to get a better sense of customer urgency, which ultimately drives pricing momentum. We were able to react very quickly then.”

*International going to tread water for a bit

“Look, I think international is going to unfortunately tread water for a bit. I don’t know that it needs to come back. We’ll continue to trim cost internationally. That team is working very hard. That team knows how to execute kind of in any market and I think will be effective. The infrastructure that we’ve built out doesn’t go away, but we will certainly scale that back as we look at markets that either have a – look at the timing form coming back. Some may never come back just given the producing power of the Middle East, North America and probably Russia will likely be more dominant. So there are some marginal markets that may not come back, but by and large, we manage in that every day in terms of where to be.”

Anyone that thinks they’re a commodity probably is

“anyone that thinks they’re a commodity probably is”

General Electric at Electrical Products Group Conference Notes

Jeffrey Immelt – Chairman and CEO

Look, nobody like how the stock has traded this year

” Look, nobody likes how the stocks traded so far this year, but it’s up to us to execute and that’s what we’re committed to doing. This is the world, I think you’ve heard this week kind of the business outside the U.S. is quite strong. U.S. gets a little better each day, still the ability to get defilation we see in our markets.”

Oil and gas stabilized but off a low base

” I would say the oil and gas market stabilized. We see orders improving, but it’s off a low base. So I still think we have to underwrite caution in that space.”

New portfolio is power, healthcare, transport and resources

“So look we’ve done a ton of work around the portfolio. I would make a couple points here. We are big and what I recall four big equal systems. We’re big in power, healthcare, transport, resources, we’ve got leadership positions, diversified positions across all those. We’ve really try to I’d say narrow the scope of the company. We’ve launched a couple of things that I think are going to give us bigger pools from a profitability standpoint.”

We have divested $100 billion worth of businesses

“What I would say to you guys is look I know this is about unlocking value versus creating value and all that shit really. But really it’s just hard for us to say really and I have come down here a long time we divested more than $100 billion worth of businesses, right. We did plastics and NBC, insurance and capital. And did we get them all right, maybe not, but we got more right than wrong. And so what I would say Rob, look we’re always going to be fast on our feet and trying to create shareholder value and if we are not good at a business, we are going to sell it.”

Williams Sonoma 1Q17 Earnings Call Notes

Laura Alber – President & CEO

Amazon coming into the furniture market

“Great. There is more competition coming in, particularly at the low end and there is still the big box retailers who have been offering furniture for a lot of years and we’ve just learned that Amazon is going to come into the furniture business. We believe that actually Amazon will take more market share from the mass retailers than anyone else; and we will continue to carve out our specialty niche with our edited inspirational assortment and decorating ideas for our customers. We know that our stores are a competitive advantage because they are experiential and they are the first expression of our brands and as I just said it earlier, we offer our shoppers an integrated experience across channels and our retail stores help drive e-commerce sales. Retail traffic is down nine, we all read those numbers; our traffic is down a lot less and we believe there is a huge interaction between our online and our stores obviously, and we’re going to continue to maximize that opportunity. So I’d say that yes, it’s definitely competitive, we don’t see the promotional environment going away and as Julie said, we see a lot of people liquidating a lot of inventory; and we believe that we are going to outperform because of our sustainable profitable model”

PVH 1Q17 Earnings Call Notes

Manny Chirico – Chairman, Chief Executive Officer

*I feel confident that a border tax is not going to occur

“I feel more confident today that the likelihood of the border tax, particularly the way it was initially drafted is not going to recur. And I don’t have a crystal ball. I have been in Washington. My entire career, before this year, before this last 12 months, I think I have been in Washington three times. In the last 12 months, I have been in Washington multiple times. And I don’t know if it’s six, seven times meeting with different members of Congress and meeting with the administration when possible to really try to take a leadership position on this topic because I just think it’s so bad, not only for our industry but I think it’s just so bad for the economy in general. Since the consumer represents two-thirds of the economy, I think the last thing we want to do is put an import tax and start picking winners and losers as a country as we go forward. So I really tried to be front and center about it.”

Inventories in excellent position. Outlet has become more promotional

“Inventory levels globally are in excellent position in just about every market. I am not going to micro manage into each one. But overall, when you look at international inventories, fantastic shape. When it comes to the United States, I think it’s a little bit more mixed. But on balance, I think you are seeing is with the contraction of open to buy dollars that has well significantly exceeded the negative comp store trends that I think on balance inventories are in good shape in the channel. A lot depends in the next couple months, how we see the Father’s Day and how we see that will progress, but there is not bi callouts right now about any inventories in the channel. Outlet, in general, our inventories are in fine shape. I would say that’s become a highly promotional channel today and I think because there has been such contraction in the open to buy dollars, there is a lot more availability of merchandise in the outlet channel which has put pressure on margins overall.”