Stocks were mixed on Friday as investors were encouraged by a pair of better-than-expected manufacturing readings but dismal economic data out of Europe and weak U.S. retail reports capped gains. Read and listen to what experts had to say...
Worst Seems to be Over
Alan Gayle of RidgeWorth Capital Management said the worst of the economic downturn seems to be over. He said it is critical for companies to have good cash flow and low debt.
Recovery a ‘Slow Ride Up’
“This recovery is not going to look like a ‘V’ — but a 3-year-old’s drawing of a bad ‘U,’ said Kevin Giddis at Morgan Keegan. He said it wouldn’t be until 2010 before a significant turn in the economy. “It’s going to be a slow ride up,” he said.
Climate Change Bill Woes
We’re concerned about the Obama administration’s climate change bill, said Jack Gerard, CEO of American Petroleum Institute. He said that according to reports, the budget calls for $400 billion tax increase on the gas industry, which could lead to a negative impact on the economy.
Government vs. Economy
Former GE CEO Jack Welch said the government has taken advantage of the economic crisis to get a tighter grip on the U.S. economy, and this does not bode well for businesses. “There are so many things that bother me right now,” he said. “Over the last few weeks, things have really gone south in the government's relationship” with the economy.More IPOs Expected
Scott Cutler of NYSE Euronext said with five IPOs raising approximately $1.5 billion dollars in May alone, he sees the “first green signs of spring.”He believes there are opportunities in the Chinese and other emerging markets — and he expects many of them to look at the U.S. market as a place to raise capital.
Labor Markets: Slowest to Recover
“Things are turning around and we’re pretty much on track,” said Edward Lazear, professor at Stanford University and former chairman of the Council of Economic Advisers. He said the problem that the economy now has to face would be the labor market, which will be “slow to react to the turnaround.”
Philanthropy Prevails Despite Recession
Women Moving Millions, a charity organization comprised of some of America’s wealthiest women, donated $176 million this week to various causes. Swanee Hunt, founder of the organization, said donating is a “sense of responsibility” and that the campaign attempts to shatter the “glass ceiling in philanthropy by and for women.”
CNBC's Companies in the News:
GM to Cut 1,100 Dealerships Across the US
Bank of America
Gov't Pressuring BofA to Revamp Board
HP Looks To Stay Steady In Down Times