Stocks skidded Tuesday after a weak consumer confidence report amid job market fears. Investors weighed another batch of disappointing earnings results against stronger housing: The S&P/Case-Shiller Home Price index posted its first month-over-month gain in nearly three years for May, though prices were still down sharply from a year earlier. Read and listen to what the experts had to say...
Don’t Expect a W-Shaped Recession
The economy is unlikely to experience a double-dip recession, says Paul Mortimer Lee at BNP Paribas. “We’re bouncing up—some of it might be temporary—but a lot of it has to do with the housing," he said. "When the U.S housing market turns as it has, then typically the economy turns. But it will be quite difficult to make profits grow from here.”
Cautiously Optimistic on Markets
Steve Gold of Turner Investments is cautiously optimistic on the markets. “The recent run in the market, we’ve seen large cap companies and some better quality companies starting to lead the market and we think that is encouraging,” he said.
Economic Uncertainty to Weigh on Stocks
The current rally is liquidity driven and it is unclear whether the market can sustain the upward momentum, said Stephen Koukoulas from TD Securities. "We've got to be realistic here and have an assessment on just how strong is the economy," he said.