Market Shifts Focus To Interest Rates From Earnings: Analyst
Peter Kenny, managing director at Knight Equity Markets, told CNBC’s “Squawk on the Street” that the market has shifted its focus to interest rates from earnings.
“Short-term, I think we may see a little downdraft in the market if the ten-year (bond) approaches the 5.25% mark,” Kenny said Monday.
He said the market’s narrow focus could create turmoil in the future.
“Anytime the market looks exclusively at one particular piece of data, it tends to overreact,” Kenny said. “That’s primarily what we’re seeing now. We had a major washout in the market last week. I think Friday’s bounce was somewhat tepid given the fact that volume was so low.”
Nevertheless, Kenny said he remains bullish for at least the next three to four months.
He likes transport and marine stocks.
“That’s a sector that should continue to outperform the market in a big way, primarily because it is based on international trade and globalization,” Kenny said.