Next Week: Stocks, Bonds & Oil
The stock market brought a dramatic end to a chaotic week on Wall Street. CNBC talked to the experts about how to play stocks, bonds and oil into the weekend and upcoming week.
Investors should stay on the sidelines going into the weekend and wait for the financials to stabilize, said Dave Rovelli, Canaccord Adams managing director.
"It's just too risky," he said. "Until the financials stabilize and oil comes down, there's really no reason to jump in."
Next week will bring a lot of catalysts to the market, including the consumer price index, the producer price index and earnings reports from investment banks Merrill Lynch and JPMorgan Chase , he said.
Bonds: Fannie Mae and Freddie Maccaused a selloff in bonds, on the idea that extra supply that could come from the mortgage lenders would be picked up by the government, said John Brady, MF Global senior vice president.
"It's been very volatile, very choppy, with some very good downside price action," he said of the bonds market. "I think the government continues to have challenges out and beyond the financial sector and agencies."
Issuance will likely go up next week when inflation data and retail sales are released, he said.
The weak dollar and financial troubles raised the price of oil, but they didn't have the biggest effect, said Mark Solazzo, president of M. Solazzo Trading.
"Overnight, I think, is what really got the crude oil off and running with the Israel training session over Iraq," Solazzo said. "That definitely pushed the market higher this morning."
Tonight's cancellation of the Nigerian cease-fire will bring a big question mark regarding oil's future price, he said.