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Pros Say: Market Has 10-20% More Upside

Stocks were lukewarm Wednesday following a disappointing jobs report from ADP and cautious outlook from Dow component P&G. ADP said 371,000 jobs were cut from private-sector payrolls in July, more than the 335,000-loss expected. This came after Challenger, Gray & Christmas reported that planned job cuts jumped 31 percent last month. Also in the mix: a Senate vote on extending the "Cash for Clunkers" program could happen as early as today. Read and listen to what the experts had to say...

10-20% Upside for Equities?

There should be another 10 to 20 percent rise in the Dow—so go long and ride out the rally, says Sani Hamid of Financial Alliance. “When we look at the historical recoveries, they last about 3 to 6 months …I think for now, we have at least a nice 2-month window where markets will pile on [gains],” he said. Hamid sees the Dow reaching up to 10,500.

Pace of US Decline Slowing

The pace of decline in the U.S. economy is slowing, said Paul Donovan of UBS. “We are definitely past the very worst of the U.S. economic growth. The first half of the year was clearly the low point,” he said. “We were a little bit ahead of ourselves in June, but markets are now reflecting that there is going to be a recovery—but a fairly slow recovery.”

It's a Bear-Market Rally; High Volatility to Last

"We've had a massive fall in the last couple of years. We've had quite a significant bounce, that's fully in tune with what we could expect in a normal bear-market rally,” said Charlie Morris of HSBC Global Asset Management. “I think it is a bear-market rally. I think we peter out fairly soon. And I think we'll have continued high volatility for the years to come."

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Markets to Correct After Summer

"We are seeing more confidence return to the market," said Joseph Dryer of Heritage Capital. He expects to see a significant correction coming once the summer is over. "There's still value to be had in credit markets in the coming months," he added.

More Job Cuts Ahead

Planned job cuts announced by U.S. employers jumped 31 percent in July. “It does say that the job cuts have not disappeared,” said John Challenger of Challenger, Gray & Christmas. Although "we are not at the levels we were at least year… it doesn’t say that the cutting of jobs in any way has stopped. This economy is still under pressureand that means many employers are still being forced to push people out the door.”

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