The Tepper Rally Tickles Stock Market Bulls
An informative and entertaining look at the must-see CNBC moments that will sharpen your business edge today, tomorrow and beyond. What follows are some notes and quotes from the biggest stories covered on CNBC on Tuesday, May 14.
The Tepper Rally?
Stock market futures had pointed toward a negative open, but it seems bullish comments by hedge fund titan David Tepper turned things around. The futures climbed after Tepper, founder and chief investment officer of Appaloosa Management, told CNBC's "Squawk Box" that the economy is recovering nicely and that he sees investment opportunities in almost every corner of the market. Stocks will push even higher once the Federal Reserve begins to wind down its bond-buying program, he added.
"The economy is getting better. Autos are better. Housing is better. It's continuously improved. They can't find enough people to work. And housing is the only thing holding [the economy] back right now," Tepper told Squawk Box."
"Everyone has been waiting for a pullback. Everyone is waiting for gaps to be filled. Everyone thinks that when a stock goes up on good news and then goes up further, that it's gotta come back in. What Tepper's saying is it's just not going to happen this time. But the Fed better cool things eventually and when it does, it's going to be even better," host Jim Cramer said on CNBC's "Squawk on the Street."
Up, Up and Away!
As stocks soared to record highs in trading Tuesday, traders and market observers alike discussed whether the rally can continue. The bulls largely dominated the conversation, with a market skeptic hard to find.
"We're in a rip-roaring bull market, where not only do we have every central bank easing now, but essentially you have cash coming back in the U.S. that we didn't expect there and it will go into the equity market," professional trader Stephen Weiss of Short Hills Capital said on CNBC's "Fast Money Halftime Report."
"There is no reason for the market to pull back as aggressively as all of these naysayers have been saying," Joseph Greco, managing director of Meridian Equity Partners, told CNBC's Sue Herera on "Power Lunch" from the floor of the New York Stock Exchange. "They've been saying it for 250 points on the S&P, so even if there were a modest pullback in the market here, we've also outlasted any void of buy side that would fill in. At this point, there are a lot of people who have missed this runup, who are eager to get back in."