Tom Lee, Fundstrat world advisors, joins ‘Closing Bell’ to debate the place traders ought to put their cash amid the markets sell-off. For entry to stay and unique video from CNBC subscribe to CNBC PRO:
Uncertainty a couple of new rising coronavirus pressure might proceed to spook markets, simply as Friday’s employment report and different information within the week forward present the economic system has been getting stronger.
Shares and different threat property had been slammed within the post-Thanksgiving session Friday on reviews of a brand new variant in South Africa, and traders sought security in Treasurys. Preliminary reviews on the variant present it might be extra transmissible than the Delta variant, and scientists are finding out how efficient vaccines are in opposition to it.
The Dow was down 905 factors, or 2.5% Friday in its worse day since October, 2020. The S&P 500 tumbled 2.3% Friday to 4,594, giving it a 2.2% decline for the week.
“I feel that’s going to override what else we’re going to see,” stated Peter Boockvar, chief funding officer at Bleakley Advisory Group. “It’s a heavy information week with the ISMs and definitely payrolls, however I feel this new variant goes to freeze habits till there’s extra readability.”
Economists count on a powerful payroll report Friday, with 500,000 jobs added, after October’s 531,000 payrolls. They count on the economic system has shaken off the results of the slowdown linked to the Covid delta variant, and development within the present quarter might be far stronger than the third quarter.
The Institute of Provide Administration manufacturing survey is launched Wednesday, and that ought to present enchancment.
Scott Redler, associate with T3Live.com, stated many merchants had been caught off sides within the shortened session Friday, often a constructive one for the market, and there are key ranges the market should maintain within the week forward in an effort to stage a yearend Santa rally.
“Proper now, the market misplaced some momentum, nevertheless it’s not damaged. It might be simply effective and refuel if the 50-day transferring common on the S&P 500 holds subsequent week. It’s all very fluid,” he stated.
The extent he’s watching is 4,571. The 50-day is a widely-watched momentum indicator, and it’s mainly the common shut of the final 50 periods.
The market had already been shedding momentum this previous Monday with a bearish reversal, he stated.
“On Wednesday, the market absorbed the weak point and gave merchants a false sense of safety which is often a pleasant simple holiday-shortened session Friday,” Redler stated.
Sam Stovall, chief funding strategist at CFRA, stated the S&P 500 sometimes positive factors 7% between its October low and year-end shut, however this 12 months it had already gained greater than 9%.
“We’re forward of the sport and due for some kind of digestion,” Stovall stated on CNBC.
The Dow dipped greater than 1,000 factors in Friday buying and selling. Riskier property had been down much more, with the Russell 2000 off 3.7% Friday. West Texas Intermediate oil futures plunged greater than 12%, and bitcoin was down 7.5%. Some traders started to reverse bets within the futures market {that a} sturdy financial rebound and inflationary pressures would pull the Fed off the sidelines sooner-than-expected.
The ten-year Treasury yield, which strikes reverse value, fell under 1.50% from Wednesday’s excessive of 1.69%.
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i wished i had tom lee's crystal ball
Would any of these worthless shills EVER advise SHORTING stocks?
Powell ftw
I can see most people here in the comment section has no idea Tom Lee predicted this dip two weeks ago on CNBC.
Hey Tom Lee have you ever seen the market this overvalued this is worse than 99,2000's
American are not spending this holiday season & know this listen to Amazon
Tom knows what he is talking about.
Form experience you should only buy stocks if you are comfortable holding on it for another 5 -10 years. You can never time the market it is a fools game.
Stop you’re killing me roflmao
Why is he S W E A T I N G?
Can't know how I bumped onto this. Anyway GREAT clip 🙌🙌. I also watched those rather similar from mStarTutorials and kinda wonder how you guys create these stuff. MSTAR TUTORIALS also had cool info about similiar money making things on his vids.
Buying the dip!!! Just like, hold the line!!! Sounds familiar?
Tom is always wrong.
Don't you feel like pinching his cheeks
An asteroid slams into earth creating a dust cloud that covers the earth for years, Tom Lee "Buy the dip!"
Bitcoin gets outlawed by every country, including Vatican City..Tom Lee " we'll be at 100,000 in no time!"
Corona virus mutates into a disease that causes the Zombie apocalypse, Total lockdown, Zombies eat all mail and package carriers
Tom Lee " buy the dip"
Thanks for this educative video. You all have to know that Growth is hard, but you have got to choose what you want for your life! Rather be stuck in the same place for years. Meet Maria Martinez. for your investment growth!!!.
👆👆👆
Dude legit has the best service out there,he helped me
🖕🖕 really appreciate you for your helping I got my account unbanned you are a pro
Tom is the best.
Where is he now