Stocks pared their losses Friday after a report that showed consumer sentiment came in better than expected. Art Hogan, director of global equity products at Jefferies, shared his market outlook.
“We had the worst May in the stock market in 40 years, so that’s going to have a spillover effect in consumer confidence and consumer spending,” Hogan told CNBC.
“It’s going to be choppy.”
Hogan said the options market is signaling an overall bearish sentiment in stocks.
“If you look at how expensive it is to buy protection right now, that signals that the bearish sentiment has increased remarkably over the last month or so—which typically is a good time to get into the market and not out of it,” he said.
These are three factors that investors should focus on before getting into the markets, said Hogan:
1. Resolution in the Gulf of Mexico
2. Euro stabilization
3. Better economic data—especially non-farm payroll numbers.
Meanwhile, Hogan said he likes American Eagle Outfitters and has a “buy” rating on the stock.
Scorecard—What He Said:
- Hogan's Previous Appearance on CNBC (Jun. 4, 2010)
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No immediate information was available for Hogan or his firm.