Stocks plunged more than 2 percent Monday as traders cashed in on some of the gains from the four-week rally. Earlier, the New York Fed reported its measure of manufacturing activity in the region moved into positive territory—signaling growth—for the first time since April 2007. Read and listen to what the experts had to say...
Dollar-Yen to Drag Stocks Down
The correlation between the dollar and the stock market is still there, said Chris Zwermann from Zwermann Financial. He sees the dollar-yen falling to 90 and pulling stock markets lower this week, with the Dow falling below the 9,000 mark.
Stocks to Rise Again Once Summer is Over
“We are in a summer lull. [Market] volumes aren't that strong. You can sense that the appetite has really faded away now that we've got through the majority of the earnings season," said Stephen Pope from Cantor Fitzgerald Europe. He expects to see stocks moving higher again once summer is over.
Pullback: A Normal Late-Summer Activity
Expectations have gotten a little bit ahead of reality as to where consumer spending will be post-stimulus, said Frederic Dickinson of D.A. Davidson. He said late August and early September are normally difficult months, especially when the markets went through a rally earlier in the year. “We were looking for the market to have about a 3 to 5 percent pullback and we’re getting that now,” he said. “But all in all, it’s normal late-summer activity.”
Hedge Funds Stage Rebound
Hedge funds have made their best start to a year in 10 years, with investors flocking back to traditional investment strategies, according to new research. “It’s a trend that we’ve been seeing,” said Karsten Schroeder of Amplitude Capital. “Outflows have certainly slowed down already in the first quarter of 2009, supported by a strong performance of the overall hedge fund sector.”