GO
Loading...

Jobs Likely ‘Not Too Hot, Not Too Cold’

The week's U.S. jobs report will likely clock in at the right point to keep the Federal Reserve's easing policy going, David Gerstenhaber of Argonaut Capital Management said Thursday.

On CNBC's "Fast Money," he said that consensus was around 180,000 to 190,000 new jobs added to the economy.

"That's a number that's sort of not too hot and not too cold for the Fed at this point," he said. "It'll keep them in play with their easing policies and keep the juices flowing for the equity market."

Gerstenhaber added that the effect of the sequestration had been "pretty minimal so far," noting improvement in auto sales and housing.

"There's a lot of excess capacity out there at this point, and there's not a motivation to build new capacity in the United States other than perhaps in petrochemicals as a result of cheap natural gas and things of this sort," he said. "And so how you get those jobs moving is unclear, but housing picking up is one way that you're creating jobs."

Gerstenhaber said that the equity market was "OK" and may still have a correction ahead.

But the Fed's monetary policy was still a large factor.

"We're unlikely to see any monetary tightening," he added. "So I think that's fuel for the equity market."

Gerstenhaber also said that better returns might be located outside of the United States, such as in Japan.

"We have come to the point where there's a serious attempt at reflation being made in Japan right now," he said, noting the Bank of Japan's recently announced doubling of bond purchases.

But he added that looking for opportunities abroad wasn't because other economies appeared stronger but because they looked weaker.

(Read More: BOJ Throws In Kitchen Sink in War With Deflation)

Japan was one example. "I find that fascinating because they've been in a bear market, both in property and in the stock market, for an extended period of time, and it wouldn't take a whole lot to generate a more favorable outcome there," he said.

Trader disclosure: On April 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Jon Najarian is long VXX CALLS/SHORT PUTS; Jon Najarian is long BAC CALLS; Jon Najarian is long JNPR CALLS; Jon Najarian is long FBHS STOCK/SHORT CALLS; Jon Najarian is short EEM Puts; Jon Najarian is long WFC CALLS; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long PLC; Karen Finerman is short SPY; Karen Finerman is short IWM; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long HPQ; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is funds long AAPL; Steve Grasso is funds long EMC; Steve Grasso is funds long T; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report

  • Bill Nygren, Oakmark Fund, explains why Apache, Bank of America and Google will be winners in 2015.

  • Nick Tiller, Sustainable America founder and chairman, tells CNBC's Kate Kelly oil prices are poised for a tradable rally. Tiller likes the Brent ETF and energy sector.

  • Discussing interesting trends contributing to the market's rally into year's end, with the FMHR trader Josh Brown and Dan Greenhaus, BTIG.