CNBC Stock Blog
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Retail Earnings and Sales to Improve in Q4: Analyst
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- 3 Software Stock Picks from Lazard's Senior Analyst
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
- S&P to Hit 1,200 by Year-End: Chief Investor
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- Garlic Price Rises Surpass Gold, Stocks in China
- Ritz-Carlton ?Struggling? in the US: President
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- S&P Stocks Trading at New 52-Week Highs
- The Executive Job Search
- Judge Erases Couple's $525,000 Mortgage Payment
- US Plans to Reduce Emissions By 17% Within Next Ten Years
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Where Do Pardoned Turkeys Go?
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- S&P Stocks Trading at New 52-Week Highs
- AIG, Ex-CEO Greenberg Reach Pact to Settle Disputes
- Bank of America CEO Search May Extend Into 2010
- 'Cancer of Fraud' Permeates Health Care System: Critics
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Judge Erases Couple's $525,000 Mortgage Payment
- For Many in US, It Will Be a Scaled-Down Holiday Season
- Where Do Pardoned Turkeys Go?
- Jobless Claims Below 500,000, Durable Orders Slip
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
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CNBC News Associate
Stocks opened slightly higher on Tuesday after a report showed a rebound in housing starts from record lows. Tuesday's data were brighter: Housing starts jumped 17.2 percent in May, mostly due to a surge in multifamily construction, after sliding 12.9 percent in April. New building permits, a gauge of future building activity, rose 4 percent, the biggest gain since last June. Read and listen to what the experts had to say...
5-15% Market Correction Coming
The markets are headed towards a correction, said Hugh Johnson of Johnson Illington Advisors. "The market is ahead of itself. It is effectively overstating the strength of the recovery that's coming in the third or fourth quarter. So a 5- to 15-percent correction or decline in stock prices from current levels is what I would guess."
No Economic Recovery Yet
“The news from the economic front is still very, very patchy,” said Vasu Menon of OCBC Bank. “The economic storm is clearly receding,” but he doesn’t see an economic recovery yet. Markets were oversold in the first quarter of the year and he expects a correction soon.
Green Shoots—Weeds or Flowers?
James Tisch, CEO of Loews, said the economy is in a recovery, but it is going to be “very, very tepid.” The major problem that still exists in the economy is debt liquidation, which could take 5 to 10 more years to solve. “Normally coming out of a recession, you expect 40 to 60 percent growth year-over-year — I think we’re going to be lucky to get 1 to 2 percent growth,” he said.
Markets May Have Hit the Bottom
“The bounce back from March to yesterday reflected we’re making some sort of bottom,” said Gary Kaminsky, former managing director at Neuberger Berman. However, he said if the recovery gets pushed into 2010, the stock bounce was premature. Securitization has not returned despite government efforts and “while we are delevering, it’s going to take much longer than it has in previous downturn cycles.”
Expect More Financial Regulation
Expect more regulation than what we had before, said Michael Darda of MKM Partners. “The tricky part is not going too far and not doing it in a way that will suffocate innovation,” he said. In the meantime, he said the markets are lined up for a recovery and, by 2010, “will be more robust than widely believed.”
Aerospace Industry Stronger in Long-Term
Nick Fothergill of Nomura said the aerospace industry is “still pretty tricky” in the next six months. But he said the industry will eventually recover. “If you’ve got a two to three-year view, this is probably the period that you should be looking,” he said.
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CNBC's Companies in the News:
Morgan Stanley [MS
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General Motors [GMGMQ
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Citigroup [C
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Adobe [ADBE
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Apple [AAPL
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