Stocks were mixed on Thursday—well off their lows for the day—as investors greeted a downturn in the markets with yet another round of buying. The market digested economic reports a bit better than expected as signs developed that the market was ready to take a breather from its violent five-month surge off the March lows. Read and listen to what the pros had to say...
Recovery Could be False Dawn
“The improvement in economic data feels like a real recovery, but some of it is just a bounce back from an absolute plunge," said said Tapan Datta from Hewitt Associates. "There are issues about final demand going forward to 2010.”
Oil Heading to $66
The price of oil is set to extend its recent slide toward $66 a barrel, said Clive Lambert, director at FuturesTechs. “The market’s struggling and we’re seeing some weakness coming in—we’re seeing that volatilities have tightened up in the last few weeks…and momentum is running out of steam to the upside,” Lambert said.
Market Dips are Buying Opportunities
Any dips in the stock market are buying opportunities, said Fredrik Nerbrand from HSBC Private Bank. Nerbrand said he doesn't see any evidence of a double-dip recession. “Very near term, there’s probably more consolidation to come,” he said. “[But] ultimately, with all the money being printed, it’s going to fuel asset prices than consumer prices, which leads us to be buyers of risk over the next 12 months.”
Stock Rally to Continue
"We’ve had a tremendous rally in the last 6 months…so I fully expect that a year from now, stocks will be higher," said Bernie McGinn of McGinn, McKean & O'Neill.
- Stop Fretting and Move Toward Risk: Barclays
“In the meantime, I wouldn’t be surprised to see a little bit of a pullback, but I think that we’re getting set up for a pretty continued constructive stock market.” McGinn said bad news from the government, such as state budgets, has the possibility to cause concern and pullbacks.