Stocks continued their slow march higher on Monday even though investors seem to be unsure about the outlook for the rest of the year.
Amid all the uncertainty, what should you be watching?
Strategy Session with the Fast Money traders
LAND OF CONFUSION
Next 12M High Low Current
S&P 500 1,400 900 1173
10-Year Yield 6.5% 2.5% 3.9%
Crude Oil $110 $62 $82
Gold $1,800 $800 $1110
USD/EUR $0.75 $1.53 $0.74
Source: Strategas Research Partners
Here’s how I’m looking at the world, says Brian Kelly of Kanundrum. I’m looking at 4% and ultimately 5 1/2% in the 10-year yield, I think crude goes to $90, gold goes to $1350 and the euro/dollar goes to 129. That’s how I’m looking at the world right now.
Looking at the S&P, I expect an acceleration in the second quarter, says Anthony Scaramucci. But if you’re worried about a pullback, look at IBM and Johnson & Johnson right here, he says. Both stocks are safe defensive names.
Into earnings, I’m watching JPMorgan, says Pete Najarian. It’s been lagging for the most part. I think it will be a pivotal ‘tell’ early on in the cycle.
I agree that JPMorgan is a bellwether name, says Karen Finerman. I expect to hear good things and it should bode well for the big banks.
I’m concerned that domestically we’re ahead of ourselves, says Joe Terranova. Going forward I'd establish long positions in stocks that are tethered to emerging markets. That's where I think massive rising demand comes from. I’d go global and look at shippers, coal, copper and other commodities names.
It seems like every day somebody raises estimates on Cliffs because of China demand, says Pete Najarian. At 10 times earnings or less I think this and other names are cheap. And I'd also look at railroads, he adds.