Two Things Could Rock The Market
This week is as important as it could be, Oppenheimer chief market strategist Carter Worth on CNBC’s “Closing Bell” because "info coming out is arguably the most influential in a decade.
Not only will investors hear election results, but a highly anticipated payroll report comes out, as well as expected interest rates cuts from the EU and the bank of England."
How will the markets react?Two things could rock them.
1) The first is a McCain victory. That’s because the market has priced in an Obama win. Even though Republicans are considered the party of business, if McCain wins at the 11th hour it will bring uncertainty back into the equation and markets don’t like uncertainty.
2) The second is the jobs report. If employers have eliminated far more jobs than anticipated the market could land in a tailspin. “The market is ready to hear payrolls shed about 250,000 jobs. But if the number is 350,000 or 400,000 then the market will have a problem.”
Short of that, “the rebounding action that we’ve seen over the past three weeks should continue,” Worth says.
What's the bottom line: Short of a McCain victory or an unexpected jump in lost jobs, "investors are best served by being long, not short.”
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CNBC.com with wires