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KATHERINE [00:00:00]
Boeing smashed market expectations on Wednesday and I'm wondering what does this mean for other companies who have exposure to China.

KATE WARNE [00:00:06]
I think it's actually good news and we've seen this from some of the other industrial companies as well. They talked about how the trade tensions and higher costs have hurt but I think everybody's built that into expectations already. And to the fact that Boeing actually came in better than expected even with some of the impact of trade tensions. I think it's actually really good news and now companies and investors are both looking forward and saying there should be less of a problem in the future.

KATHERINE [00:00:33]
Apple also impressed the markets Tuesday night, and that's after Wall Street kind of baked in disappointment. How is that going to affect other tech earnings?

KATE WARNE [00:00:43]
I think that has less impact because the apple issues really seem to be much more specific to Apple itself. So I don't think there's a read through for anything in general from Apple. And I think it be really low expectations rather than something where that was better than expected. So yes it was better than the low expectations that they had said just a couple of weeks ago.

KATHERINE [00:01:06]
We've also gotten reports from Allergan Amgen and Pfizer. How is the health care sector looking to you guys?

KATE WARNE [00:01:12]
We actually like the health care sector. We think it's going to hold up quite well. And we've seen companies come in OK and the health care sector. I would say some misses some beats. But there's a lot of adjustment there and there's a lot of moving parts. So overall that's one of the sectors I think we'll actually do well this year but it's less on this earnings and more on a general sense that these are companies that are able to grow without having to depend on the economy and without worrying so much about what's happening with the rest of the world.

KATHERINE [00:01:42]
Now I'm sure that this is a question you've asked a lot. But is there a recession on the horizon?

KATE WARNE [00:01:47]
We think not. We think that this is a lot of worry about the fact that growth is slowing whenever economic growth slows everybody just sort of extends that line out and says oh it has to go negative. Well economies don't slide into recession. And just because this is a long expansion, expansions don't die of old age. And I think investors really need to keep that in mind when we hear about slower growth especially in the first quarter. Fourth quarter growth looks pretty strong but as we see that slowdown there'll be a lot of recession predictions. We actually think those are overblown and that this is actually a good time to be investing because the economy will do a little better than people are expecting. It's that solid base in economic and earnings growth that will keep stocks rising. But it will be a bumpy road ahead.

KATHERINE [00:02:31]
Kate, thanks for joining me. Thank you.

Boeing (BA - Get Report) smashed Wall Street expectations Wednesday, Jan. 30. 

The company is Real Money's stock of the day

The company said earnings for the three months ending in December came in at $5.48 per share, a 79% increase from the same period last year and smashing the Street forecast by more than $1 per share. Group revenues were largely in-line at $28.34 billion.

Looking into 2019, Boeing sees record commercial airplane deliveries of between 895 and 905 aircraft, the company said, up from 805 last year. while group revenues will like hit a range of $109.5 billion to $111.5 billion, well ahead of the consensus forecast of $106 billion. With margins improving to at least 10.5%, Boeing hinted, earnings should come within a range of $19.90 to $20.10, firmly ahead of the Refinitiv forecast of $18.30 per share, reported TheStreet's Martin Baccardax. 

Kate Warne, investment strategist at Edward Jones, spoke to TheStreet about what the Boeing earnings mean for companies with exposure to China, how the tech sector is doing after Apple's (AAPL - Get Report) earnings and how healthcare is looking now that Amgen (AMGN - Get Report) , Pfizer (PFE - Get Report) and Allergan (AGN - Get Report) have reported. 

Apple and Amgen are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL and AMGN? Learn more now.