Week Ahead: Trader Trio Offers Market Predictions

Friday, 11 May 2007 | 4:08 PM ET

What do the markets have in store for next week? "Power Lunch" featured a troika of trading experts, who weighed in on market-moving factors including energy, mergers and acquisitions, and the Federal Reserve.

Markets: the Week Ahead
Analysis of the impact of energy on the markets and whether they'll continue to climb, with John Miller, Nuveen High Yield Municipal Bond Portfolio Manager; Raymond Carbone, Paramount Options; Bill Nichols, Bear Stearns sr. managing director of equity trading and CNBC's Sue Herera

Bill Nichols, senior managing director of equity trading at Bear Stearns, noted that the market doesn't go "straight up" -- but said "the path of least resistance is higher." He told CNBC's Sue Herera that stimuli such as stock buybacks and big M&A activity are shrinking "the pie" available to investors -- and thus driving up the market.

Nuveen Investments' John Miller, manager for the Nuveen High Yield Municipal Bond portfolio, said he expects the Fed to maintain its "relatively hawkish tone," as people are still dissatisfied with inflation being over 2%. He believes that underlying trends indicate the economy is weakening -- and rates will drop in the longer term.

Raymond Carbone, a trader at Paramount Options, said, "it's all about gasoline here at the Nymex" -- especially over the last few days. He's seen a "big, big move in gasoline to the upside," and expects a "relentless march higher." Carbone doesn't see the traditional seasonal peak forming just yet -- thanks to a much tighter global market.

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  • Sue Herera is a founding member of CNBC, helping to launch the network in 1989. She is co-anchor of "Power Lunch."

  • Tyler Mathisen co-anchors CNBC's "Power Lunch." Mathisen also co-anchors "Nightly Business Report produced by CNBC."

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Kenny Polcari