The round number celebration continues - first Dow 13,000 and now this: the S&P 500 closed today at above 1500 for the first time since September 2000.
The index is now up a whopping 93% from its bear market low set in 2002. This market is acting like it doesn't care about anything but going up these days.
But a crucial jobs report from the government looms tomorrow.
Deutsche Bank Chief U.S. Economist Joseph LaVorgna joins the panel for a preview what’s expected.
Dylan Ratigan asks “Can this number stop the stock market from continuing to go up?”
Absolutely, LaVorgna replies. Housing permits have dropped dramatically suggesting construction jobs will be lower. Consequently tomorrow’s jobs number could be weak on housing.
But won’t the market look past weakness in housing, asks Dylan. That’s what’s been happening, recently?
They may, LaVorgna replies. But at some point the other shoe has to drop.
He suggests the economy could become weak later in ’07 and in ’08, because of delayed effects from housing. He doesn’t think the stock market has fully discounted that.
Eric Bolling says if the market turns down tomorrow – investors can’t blame the jobs number. This market is just due for a correction. Eric believes any pull-back will stem from money flows – "Eventually the money will flow out."
Tim Strazzini adds that the weaker dollar is bringing in revenue from offshore and that’s counter-balancing the effects of a slowing domestic economy.
Dylan asks how do traders profit from this information?
Eric says go with what’s working and he recommends investors buy Chevron (CVX). Guy Adami agrees – he likes the defense sector. Tim Strazzini prefers chip stocks. Jeff Macke says buy Activision (ATVI) and play with the game console while the jobs number is announced, because it’s not going to matter.
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On May 3, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke owns (SWY), Strazzini owns (JBLU),(VZ); Bolling owns (DIS, (TSO) Puts,
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