Can investors trust the stock rally and what should they be watching for in the economy? Peter Costa, president of Empire Executions and CNBC market analyst, and Jonathan Corpina, senior managing partner at Meridian Equity Partners, shared their insights.
“Markets are back to pre-Dubai levels—we’re above 1,100 [on the S&P 500] and we have to keep looking at the S&P as we get to this 50 percent retracement level of 1,121,” Corpina told CNBC.
Corpina is watching the unemployment number and the latest jobless claims data expected on Thursday.
“I continue to focus on [unemployment] because it affects everything,” he said.
Costa agreed and said the market has gotten a little ahead of itself.
“There are a lot of things that are going on that we have to be worried about—and unemployment is the number one thing,” said Costa.
“When you have 10 to 11 percent of the population not working, the residual effect is another 25 percent that’s on the cusp. So you have to be very careful of how much stock you put into this rally.”
"That’s what I’m worried about: falling back into a recession because we can’t get away from unemployment,” he said.
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Disclosures:
No immediate information was available for Corpina or Costa.
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