Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Rabbitt, President,
RabbittAnalytics.com: “We are continuing our bullish scenario. We expect
some sloppiness this week but believe a bottom will be found within days, if not
sooner. Our long-term argument is intact. The economy is above trend, but last
week’s inflation indicators were tame. Profits are coming in at around 22.5% in
the S&P 500, down slightly from the first quarter, but are still very good.
“This week the Employment Report on Friday will shed important light on
the future Fed attitude. High employment could raise fears of wage inflation. A
big stock offering calendar will keep supply up and smaller companies will
dominate earnings news. Our conclusion: Stocks are locked in trading ranges,
oversold, and due to bounce. We would buy into the uncertainty.”
Brian G. Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “The market is likely to endure
additional downside over the short-term, especially during the next two to three
weeks. Stock and market analysis are already under a likely macro
transformation, i.e., fundamentals do matter, and the market will continue to
reward strength and stability and punish fluff and failed promises. Therefore,
the days of heavy indexing, like just buying MSFT and GE, will likely subside
greatly. Stock-picking will be the key.”
Paul Desmond, President, Lowrys’s
Research: “The market decline of the past two weeks has been very intense
in some sectors industry groups. But, with the evidence currently available, it
still appears to fit with the normal parameters of a short-term correction in a
basic, albeit unusually selective, uptrend pattern.
“Approximately 45% of NYSE-listed stocks are still above their 30-day
moving averages, showing that the correction has been about as selective as the
preceding rally. The reactionary lows in April, late May, and June all ended
with about 40% to 50% of stocks above their 30-day moving averages.”