Stocks bounced back on Tuesday, closing up after Monday's sharp selloff. The market continued its recent pattern of shrugging off certain economic data and continuing in whichever direction it intended to go for the day. Housing starts dropped 1 percent in July after an upwardly-revised 6.5-percent jump in June, falling well short of expectations. Meanwhile, a gauge of inflation fell more than expected: Producer prices dropped by 0.9 percent last month, compared with a 1.8-percent gain in June. Read and listen to what the experts had to say...
S&P to Fall to 900-920 in ‘Tactical Selloff’
"We still have a little bit more to correct on the downside," said Bill Strazzullo from Bell Curve. "But the good news is the March rally overall is still intact," he added. He sees the S&P 500 falling to 900-920, then rising again toward 1,100-1,150. But "we don’t see this as a multi-year bull market," he said.
Stocks on Their Way Down
"It's natural we're going to get nervousness now because you really can create two views for which way we're going to go next," said David Crawford from Octopus Investments. “We may move down—the biggest problems have been the mining stocks." According to Crawford, investors have their eyes on Chinaand the East, rather than the U.S. market.
Still a Time to Be Cautious
Investors have turned cautious for the first time in quite a while, said Jeffrey Saut of Raymond James. "Even if they try to rally here, it’s still a time to be cautious," he said. "I’m not moving to the sidelines, but we’re taking gains off the tables. I think after some kind of pause and or pullback, you’re going to get an add-on rally and I think the markets will be higher by year-end."
401(k) Contributions on the Rise
Fidelity Investments reported that for the first time in three quarters, employees increased their savings levels in their 401(k) plans. "In all the data that we analyze, we’ve seen some positive indicators…Investors who took a long-term point of view with their 401(k) account balances are starting to be rewarded by that," said Scott David of Fidelity.
Water Scarcity Becoming an Issue
The issue of water scarcity is beginning to take effect, as rapid population growth over the past 50 years has seen water withdrawals triple. “We desalinate water," said Neil McDougall of Modern Water. "We have an interesting technique to reduce the cost of desalination. We reduce the energy consumption of water.”
- China to Consider Resolution on Climate Change
______________________________
CNBC Slideshows:
______________________________
______________________________
CNBC's Companies in the News:
Apple
- Apple Probes Reports of iPhone Explosions in Europe
Sony
BB&T
Qwest
- Qwest to Shut Off Wireless Service Oct. 31
Novavax
- Novavax Reports Progress on Swine Flu; Shares Jump
______________________________
