Jobs Report a 'Win-Win' Situation: Stock Picker
Stocks were mixed Friday as investors digested the implications of a weak jobs report. Bill Spiropoulos, chief executive of CoreStates Capital Advisors, and Chip Cobb, senior vice president at Bryn Mawr Trust, shared their outlooks. (See their equity recommendations, below.)
“This [employment] report was going to be a win-win regardless,” Cobb told CNBC.
Why so optimistic? Cobb explained:
“Had they come in even weaker, you would have seen much more of a reaction towards a greater influence towards QE* from the Fed,” he explained. “Conversely, if we moved towards a much greater number, it would have given a better credence that the economy is improving.”
Cobb said unemployment numbers are going to continue at the current levels until “well into 2011,” because businesses have little incentive to hire.
In the meantime, Spiropoulos said the employment report was neither bad nor good.
“It was expected and I think that [outlook] will probably continue until next month,” he said.
*QE: Quantitative Easing, i.e., Federal Reserve actions to pump more money into the financial system.
Procter & Gamble
Johnson & Johnson
Industrials: 3M , Caterpillar
Utilities: "Typically well managed and dividends appear secure...but expect minimal growth."
Scorecard—What They Said:
- Cobb's Previous Appearance on CNBC (Aug. 2, 2010)
- Spiropoulos' Previous Appearance on CNBC (Sept. 30, 2010)
More Market & Econ Views:
CNBC Data Pages:
No immediate information was available for Cobb or Spiropoulos.