Stocks slipped Monday as worries about a record $200 billion in Treasury auctions this week and lowered outlooks from Honeywell and Aetna cast a shadow over the market. In the meantime, new-home sales rose 11 percent to an annual rate of 384,000 in June, well above the 360,000 economists had expected. Read and listen to what the pros had to say...
S&P Could Rally Another 10-15%
There is more upside to come for the S&P 500 and the index could rally another 10 to 15 percent, said Anko Beldsnijder of MainFirst Bank. “Most of the market participants are relatively defensive,” he said.
“And most of the fund flows in the equity side were equity trading within the sector — and we haven’t seen money moving from out of money markets or bonds into equities, which should trigger markets to go higher.”
Play Rally for Another 5-10% Before Stepping Back
"We think the current rally will not be sustainable," said Ad van Tiggelen from ING Investment Management. The S&P 500 index may test 1,000 or 1,050 before falling back, he added. "You may play this recovery for another 5 to 10 percent, but then you should take profits."
US Economy to Grow in H2
This could be the final quarter where the U.S. registers negative economic growth, said Thomas Harr at Standard Chartered. He said he expects positive growthin the second half. “We think the dollar is on a medium term down trend and the key factor is that the global economy is stabilizing and risk appetite is returning, which is bearish for the dollar,” he said.
Stocks Have Perfect Recipe for Bull Run
Current economic conditions are perfect a bull market and stocks are poised to rise much higher from here, said Roger Nightingale from Pointon York. “You’ve got good profits from earnings, extraordinary low inflation and extremely low interest rates and you have exceedingly easy money,” he said. “This is the perfect recipe for a bull market.”