How to Trade a Nervous Market After Boston Marathon Attack
The stock market and the economy will move past the Boston Marathon attack "relatively quickly," but there may be some "lingering impact" in terms of investor sentiment, Ameriprise Financial Chief Market Strategist David Joy told CNBC on Tuesday in an interview from Boston.
Stock futures were pointing higher in premarket trading Tuesday after the Dow Jones Industrial Average ended down 1.8 percent, or 265 points Monday to 14,559, and the S&P 500 closed down 2.3 percent to 1,552. Gold plunged 9.3 percent to $1361.10, its biggest one day drop since 1980.
"The sell-off on Friday and then again on Monday is re-assessment of global growth," Joy told "Squawk Box" before the open. "It's important to point out that most of the weakness yesterday was already in the market when the bombing took place."
"I think the market and the economy at large will move past this relatively quickly," he said, "You may see a little bit less of a risk appetite going forward."
Bob Iaccino, chief market strategist TopstepTrader.com, said, "It's a pretty sick feeling trying to figure out what to do with your positions and switching back and forth between to sort of watch the tragedy that's going on." He said that was the reason for the spike in volume right after the bombings and the accelerated sell-off into the closing bell.
"The excess selling that happened yesterday probably is causing the rebound this morning," he argued. "You have to believe in the short term it's a buying opportunity."
But Iaccino added, "You'd be hard pressed to get even 50 percent of [the decline] back in say one day. There has to be some sideways movement before anyone comes in with any buying power at all."
"You would expect this kind of sell-off if this was going to be the correction ... that people are calling for," he said. "I think that's what everyone is looking for to make decisions. And I really think the move after that is lower."
"I'm sticking with what I've said all year," he added, "that we're going to be up high single digits, low double digits at the end of 2013."