Stocks held onto gains on Thursday after a slew of economic data, including an encouraging report on manufacturing. Additionally, Chinese stocks, which had dragged down global markets earlier this week, rebounded 4.5 percent. US stocks had initially opened lower, after a surprise jump in jobless claims. Read and listen to what the pros had to say...
Deleveraging is Not Over
"There's tons of money out there, especially in money-market funds," said Alexis Dawance of Global-Cap, adding that systemic risk is currently off the table. However, he said deleveraging is not overand as a result, he remains cautious on the markets.
Market Tone ‘Surprisingly Good’
Low market volumes are “clearly an issue," said James Bevan of CCLA Asset Management. "But the underlying tone is surprisingly good, both in terms of the corporate numbers and in terms of the economic backcloth." He sees reversal of market leadership, as better quality companies will be re-rated in the second half of the year.
Are Banks Back on Track?
Many banking stocks have had the worst-case scenario priced in, but that scenario really hasn't been the case, said Robert Pavlik from Banyan Partners. “It’s surprising that the banking system didn’t collapse like everybody was expecting…There was a lot of fear in the market last year, but the government did the right thing,” he said.
Depending on a Global Demand Comeback
The consumer in our country is not going to come back for 2 or 3 years,said Sarat Sethi of Douglas C. Lane & Associates. “So unless we see global demand come back, especially driven by the emerging markets, that’s going to affect us even more,” he said. “For us to go forward, we need the global markets and demand to keep on growing.”