On Friday, caution was the watchword on Wall Street with investors sending the S&P lower, spooked by a dismal jobs report; many people took the results as a sign the economy was in trouble.
Looking at the data, according to the Labor Department, the economy added only 54,000 jobs in May, far less than expected. Earlier in the week, regional manufacturing also triggered chatter about economic softness.
However if you’re placing bets largely based on these data points, the Fast Money traders think you may be missing something.
The pros feel that economists can only tell you what happened in the past and not what will happen in the future. “We’re listening to guys who have no idea until it’s in the rear view mirror,” comments trader Steve Grasso.
And that’s a reason, adds trader Zach Karabell, to pay attention to what companies are saying on the ground. “Pay attention to rising iron ore prices," he counsels. "That shows real world economic activity that’s been priced without financial speculation.”
Pete Najarian sides with Karabell and suggests investors almost seem predisposed right now to wallow in the negative and ignore the positive.