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Analyst: Leading Indicators Show Possible Market Turn

CNBC.com
Wednesday, 4 Aug 2010 | 5:47 PM ET

Is there a turn in economic indicators that could suggest economic slowing in the second half? And should investors reconsider the value strategy that did so well in the first half of the year? Possibly so, according to Russ Koesterich, head of investment strategy at Blackrock Scientific Equities, who sees mixed data as an indicator of a murky outlook.

Talking Numbers: Mixed Data, Murky Outlook?
Discussing why investors need to pay attention to the data, with Russ Koesterich, BlackRock scientific Equities head of investment strategy.

Wednesday's monthly report from ADP showed that private sector jobs increased by 42,000 in July, just above expectations of a 39,000 gain. While the data indicated that the US private sector has stopped firing workers, there are no signs that big hiring is underway either.

The government report on Friday will include government jobs, and those figures are expected to show a loss of 60,000 jobs, made up mainly of furloughed census workers.

Meanwhile, manufacturing expanded in July, with the ISM's nonmanufacturing purchasing managers' index rising to 54.3 in July from 53.8 in June. Readings above 50 indicate expanding activity.

Of concern to Koesterich is the fact that the index of leading economic indicators is slipping. What could that mean for your investments in the second half of the year?

See what he has to say about how investors should position themselves in the video, above.

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