Pros Say: Recovery Has a Lot More Upside
Stocks opened slightly higher on Thursday after reports showed jobless claims fell by 24,000 last week to 601,000 and retail sales ticked higher in May. Bond yields will also be in focus today as the results of the government's 30-year Treasury auction are due out at 1pm ET. Experts weighed in on the above and more. Read and listen to what they had to say…
Bond Yield Surge Concerns
We don’t know what’s been driving the bond yields, but the rising will undermine certain aspects of the economy such as the housing market, warned Roger Nightingale of Pointon York. “It is hard to forecast a strong recovery in housing by output or prices unless we get a little bit of relief,” he said.
US Investor Confidence On the Rise
U.S. investor confidence is on the rise, said Clive Hyman of Hyman Capital Services. There’s been a jump in the stock market, and the automotive industry “is in the tank,” he said, "which is why they’re having to increase rates to drive the sales away." He said he is concerned that the U.S. government isn’t moving as quickly as it said it was going to.
Economy 'Pretty Good' in 2010
“Business is getting better [and the economy is] coming back to some normalcy,” said Mario Gabelli of GAMCO Investors. He said the U.S. economy will pick up slowly but surely — and 2010 and 2011 will be “pretty good.”
Short-Oil and Energy in Long Term
The world is short-oil and energy in the long term, said Malcolm Graham-Wood of Hanson Westhouse. “The IEA have a poor record for forecasting,” and said OPEC is consistently more accurate predicting where oil prices will go, he said.
'Long Ways to Go' on the Upside
We’ve calmed down the healthy players that were frozen with fear, said James Paulsen of Wells Capital Management. “So the 91 percent who have a job throughout the crisis are beginning to spend again,” he said. More green shoots are expectedthroughout the summer as government policies start to take flight. “We are really early in this recovery… [and] have a long ways to go on the upside,” he said.
On Obama’s Health Care Initiatives
The president has been talking about the fact that we can’t any longer sustain the health system that we have, said Health and Human Services Secretary Kathleen Sebelius (D-Kan). President Obama is expected to speak this afternoon in Wisconsin about his proposals to spend $1.5 trillion over the next decade to cover uninsured Americans.
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