Stocks snapped a four-day winning streak on Wednesday after a trio of weak economic reports tarnished the shine on recovery hopes. This morning's ADP jobs report showed U.S. private employers shed 532,000 jobs in May, fewer than the upwardly revised 545,000 jobs lost in April, but more than 520,000 expected. Experts commented on the above and more. Read and listen to what they had to say...(UPDATED)
We're Due For a Market Pullback
A market pullback is coming, said Rick Bensignor of Execution LLC. He said he is not negative on the dollar, despite bearish sentiments.
Meanwhile, Dean Curnutt of Macro Risk Advisors said massive liquidity provided by the Fed is forcing investors back into risk assets and there will be significant economic challenges in the long-term.
U.S. Autos Can Cut It
It’s been known for a long time that there were too many domestic dealerships and it was a struggle, said Herb Chambers of Herb Chambers Companies. He said American companies are now producing high-quality cars that can compete with Japanese cars.
GM/Chrysler Bankruptcy Was Inevitable
Austin Logon of CarMax said while auto makers' bankruptcies were unfortunate, it was an inevitable processbecause it was the only way that GM and Chrysler could get out of dealer networks that generate unnecessary amounts of cost that’s added onto the vehicles.
Do Not Expect a ‘V-Shaped’ Recovery
Didier Borowski of Societe Generale Asset Management said he does not believe that the recent rally has been based on fundamentals. As a result, he expects disappointing economic data ahead. “While there seems to be a stabilization, there is no reason from a fundamental standpoint that we’ll see a V-shaped recovery,” he said.
GDP Growth of 1.5-2% in Q3
“We’re on our way to an economic recovery — the recovery could be here by summer’s end,” said John Lonski of Moody’s Investors Service. Whenever jobless claims numbers decline for two consecutive months, it signals the end of a recession or a beginning of a recovery, he said. He predicted a 1.5 to 2 percent GDP growth in the third-quarter.
Counterpoint: ‘Sub-Par’ Recovery... Next Year
“We have some significant imbalances we have to work with and the consumer savings rate has to go up,” said David Rosenberg of Gluskin Sheff & Associates. Although there will be a “sub-par” recovery, it will not take place until next year. “It tells me to be cautious in investment strategies,” he said.