Pros Say: S&P 1,200 Still Possible This Year
Stocks rebounded off a lower open on Tuesday after a report showed the sharpest jump in pending-home sales in 7 1/2 years.The major indexes kicked off the month with a 2-percent rally amid signs of strength from China’s manufacturing sector and relief that General Motors finally entered bankruptcy protection. Read and listen to what the pros had to say...
Rally Can Carry on Another 10-15%
There is still some recovery left in this rally, said Andy Hartwill of Quasar. “We’re not in the beginning of a new bull market, but the rally can carry on for about another 10-15 percent,” he said.
Counterpoint: 15 to 20% Correction on the Way?
Expect Further Economic Contractions
We’re still looking at a contraction in the economy, but the worst of the decline is behind us, said Scott Brown of Raymond James. He told investors to beware fluctuating numbers in the markets that may signal false starts. He said investors have to be cautious and on their feet.
Recession to Bottom Out This Summer
The recession is slowing down, but we need to see some more strength in consumers, and we need to see housing stabilize, said Frederic Dickson of D.A. Davidson & Co. He said the recession will bottom out this summer and that the stock market has another 10 to 15 percent to go off the initial bull market thrust.
Credit Markets 'Leading Us From Doldrums'
“The credit markets have really been leading this market out of the doldrums,” said Maury Fertig of Relative Value Partners, saying that the stock markets have rallied 40 percent from their March 9 lows. He expects a 5 to 10 percent increasein the foreseeable future.
S&P 1,200 ‘Not Entirely Out of Sight’
Byron Wien of Pequot Capital said he is bullish on the markets and expects the S&P to go over 1,100. “The beginning of the year forecast was 1,200 and that’s not entirely out of sight either,” he said. On the consumer front, he expects retailers to have one of the best years this Christmas.
Strategist Worried by ‘No Wall of Worry’
We might have gotten ahead of ourselves, said Bernard McSherry of Cuttone & Co. “There’s some underlying tension in the markets,” he said. “The fact that there is no ‘wall of worry’ worries me,”he said.
GM ‘Modestly Encouraged’ by Auto Sales
Fritz Henderson, CEO of General Motors, said consumers should feel comfortable buying a GM car even as the automaker battles its way out of bankruptcy. He said the company was “modestly encouraged” by its May auto sales: “May was up versus April and the best month since December last year.”
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