On Friday, for the first time since being elected, Barack Obama held a press conference. Although the Dow closed higher, immediately after the speech it started to pull back.
What Didn’t the Market Like?
Most Wall Street watchers agree; Obama said "we only have one president at a time," and until next Jan. 20, the current administration is in charge. According to Maria Bartiromo traders on the floor felt Obama was basically saying I’m not the president yet. When I am, I have plans in place. Until then, you’re on your own.
That quote really struck me too, adds Karen Finerman on CNBC’s “Closing Bell’. In essence he was saying there’s one president and right now its Bush.
Strategy Session: Retail
In addition the market received some sobering news this morning on the jobs front.
Another 240,000 jobs were cut last month as the jobless rate zoomed to 6.5 percent, that’s a 14-year high. What does that mean for the retail trade?
"Normally I love to trade retail because it’s easy to understand," explains Finerman. "But because job losses will probably grow, the way to play the space is to avoid it."
Strategy Session: Infrastructure
Barack Obama has also promised increased spending on infrastructure. And as a result stocks in the sector have jumped. However, Finerman doesn’t see a momentum play here.
“I’m concerned that it will take too long to implement a big infrastructure plan so in the near-term I would be fading any big rally in the materials sector.”