Trader Talk with Bob Pisani

Bob Pisani

Bob Pisani
CNBC "On-Air Stocks" Editor

A CNBC reporter since 1990, Bob Pisani has covered Wall Street and the stock market for nearly 20 years. Pisani covered the real estate market for CNBC from 1990-1995, then moved on to cover corporate management issues before becoming Stocks Correspondent in 1997.

In addition to covering the global stock market, he also covers initial public offerings (IPOs), exchange-traded funds (ETFs) and financial market structure for CNBC.

In 2013, he won Third Place in the National Headliner Awards in the Business and Consumer Reporting category for his documentary on the diamond business, "The Diamond Rush."

In 2014, Pisani was honored with a Recognition Award from the Market Technicians Association for "steadfast efforts to integrate technical analysis into financial decision making, journalism and reporting."

Prior to joining CNBC, Pisani co-authored "Investing in Land: How to Be a Successful Developer." He and his father taught a course in real estate development at the Wharton School of Business at the University of Pennsylvania from 1987-1992. Pisani learned the real estate business from his father, Ralph Pisani, a retired real estate developer.

Follow Bob Pisani on Twitter @BobPisani.

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  • After a wild open, a funny thing happened: stocks stabilized almost immediately. Widely watched market indicators (VIX, TRIN), also came off their extreme readings.

  • Stocks sold off heavily at the open but quickly stabilized and are now well off their lows. Despite uncertainty about exactly what is happening at the nuclear reactors, Nikkei futures which trade at the CME have been rising for a good part of the morning and that undoubtedly helped.

  • While the S&P 500 is down 1.8 percent, it has recovered over a quarter of its losses.

  • The Nikkei was down 10.5 percent again last night and is now down almost 19 percent in the past 4 trading sessions. While some have been calling the markets decline "irrational" (the Nikkei has moved almost one annual standard deviation in three days, FTalphaville has noted), the unstable situation at the nuclear plants is a real X-factor that justify caution.

  • Barclays noted that global insurance and reinsurance companies are facing serious losses in the last 12 months — and the Japan quake is just the icing on the cake.

  • Losses to reinsurers will undoubtedly be large, but it will be mitigated by the realities of the Japanese earthquake insurance system. Consider this simple fact: only 18.5% of Japanese households have earthquake insurance. In an earthquake-prone country, how is that possible?

  • Various companies in the food chains of autos and semiconductors are also down. Polypore International, for example, which makes membranes for lead-acid and lithium batteries, is down 5 percent. As there were damage to many plants, a few semiconductor names outside Japan are trading up.

  • Remember the trade: stocks have held up well even as oil has moved up 30 percent in the past two weeks because traders were assuming that the rise in oil would be a short term phenomenon, and that the global growth story was intact.

  • Partly, of course, this is on concerns that oil will stay elevated longer than expected, but there are additional concerns about sovereign debt in Europe and slower growth in China.

  • The oil trade has faded a bit, but the sovereign debt trade has returned with Moody's downgrade of Spain's credit rating (with warnings of further downgrades), saying that the cost of cleaning up the banking sector will be more than expected.

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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