Although US stock markets opened strong on Monday on high hopes, reality set in as stocks descended into choppy trading later, said Art Cashin, director of floor operations for UBS Financial Services.
Investors’ hopes were pinned to three things: a solution to Libya’s political turmoil, movement on the issuance of euro bonds and positive news from Federal Reserve Chairman Ben Bernanke. But Cashin said investors are beginning to realize that "at least two" of those hopes are not going to pan out.
Matthew Cheslock, managing director at Cohen Capital Group, said investors should temper their expectations ahead of any announcement by Bernanke.
“He’s not going to come out with anything amazing or anything that’s going to save this market by any means, and I think the market shows that,” Cheslock said.
Cashin added that the markets are still being driven by what’s happening in Europe.
“It doesn’t look like we’re going to get any leadership on either continent to move the U.S. out of this morass, and I think that’s what the markets are telling you,” Cashin said.
Cheslock echoed this opinion regarding Europe’s effects on the markets. He added that there is currently "just not a real impetus to buy," and that investors should keep an eye on the political scene before they start ramping up the buy side.
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Disclosure information was not available for Art Cashin or Matthew Cheslock.