Stocks slipped Monday as worries about a record $200 billion in Treasury auctions this week and lowered outlooks from Honeywell and Aetna cast a shadow over the market. In the meantime, new-home sales rose 11 percent to an annual rate of 384,000 in June, well above the 360,000 economists had expected. Read and listen to what the pros had to say...
S&P Could Rally Another 10-15%
There is more upside to come for the S&P 500 and the index could rally another 10 to 15 percent, said Anko Beldsnijder of MainFirst Bank. “Most of the market participants are relatively defensive,” he said.
“And most of the fund flows in the equity side were equity trading within the sector — and we haven’t seen money moving from out of money markets or bonds into equities, which should trigger markets to go higher.”
Play Rally for Another 5-10% Before Stepping Back
"We think the current rally will not be sustainable," said Ad van Tiggelen from ING Investment Management. The S&P 500 index may test 1,000 or 1,050 before falling back, he added. "You may play this recovery for another 5 to 10 percent, but then you should take profits."
US Economy to Grow in H2
This could be the final quarter where the U.S. registers negative economic growth, said Thomas Harr at Standard Chartered. He said he expects positive growthin the second half. “We think the dollar is on a medium term down trend and the key factor is that the global economy is stabilizing and risk appetite is returning, which is bearish for the dollar,” he said.
Stocks Have Perfect Recipe for Bull Run
Current economic conditions are perfect a bull market and stocks are poised to rise much higher from here, said Roger Nightingale from Pointon York. “You’ve got good profits from earnings, extraordinary low inflation and extremely low interest rates and you have exceedingly easy money,” he said. “This is the .”
Time to Be in Markets
Now is the time to be in the market, said Hugh MacNally of Private Portfolio Managers. “Holding your assets in cash is an awful long-term strategy and so you’ve really got to be invested in the markets at this sort of time,” he recommended. “Relying on market timing is a very difficult strategy [but] if you’re a long-term investor in quality stocks, then the returns are far higher.”
Markets are Overbought
"The markets are way too overbought," said Minho Roth of FiveT Capital. "Stocks are like human beings and at some point need to take a breather." He sees the market pullback taking place this week. “People are rushing to buy stocks based on earnings numbers, but this is an unreasonable move because the topline number is going down and earnings are not great,” he said.
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CNBC's Companies in the News:
Berkshire Hathaway
Verizon
Honeywell
Boeing
- Boeing Downgraded by Analyst Due to 787 Cost Overruns
Citigroup
- Citi Public Exchange Offer Gets 99% Shares
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