Overheard On The Street
Here’s what they’re saying at mid-day:
Alan Ackerman, Executive Vice President
and Market Strategist, Fahnestock & Co.: “The market looks a little bit
like Alice In Wonderland. Good news is bad news, and bad news is bad news. The
employment data today looked good, but nonetheless, many traders fear that the
Fed may move to increase interest rates as a result of the low unemployment
number. The market generally remains nasty and negative. Sentiment is sour. Many
portfolios are being purged of problem stocks, and corporate earnings
disappointments have already taken a big toll. There may be more disappointments
ahead as we enter the earnings season full bore.
“The market is being dominated by uncertainty, and we now have four Es
that seem to be playing a major role: energy, the euro, earnings, and now the
outcome of the election. We’re at a juncture in the market where the market is
looking for new leadership, and a tug-of-war continues between those who believe
the place to be is value as against those who believe the growth area is still
promising.”
 Rob Cohen, Head of Listed Stock
Trading, CS First Boston: “There’s been a tremendous number of
pre-announcements, and I think that people are still very worried that third
quarter earnings and fourth quarter guidance are not going to be very positive.
In light of that, investors are very nervous and there’s not a lot of
conviction, and that brings in a lot more volatility than we have seen in the
recent past. I’m starting to get a sense that we’re getting close to a low, but
it doesn’t feel like we’re there yet.”
John Roque, Vice President, Arnhold and
S. Bleichroeder: “Here’s what usually happens at bottoms: Volume soars,
there are unusually high put/calls, bonds strengthen, stocks begin to ignore
negative news and/or embrace good news, and indexes move above their 50-day
moving averages. Here’s the skinny so far: Nasdaq volume has risen, put/calls
have risen, but not unusually so, the 10-year T Note is strong, the Nasdaq has
not yet moved above its 50-day moving average, and stocks have not yet begun to
ignore negative news and/or embrace good news. Therefore, caution is still
key.”