This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Buy in July?

Stocks in this article: CRUS STX PFE PRSS SPY ^GSPC ^IXIC ^DJI

NEW YORK ( TheStreet) -- This week will go a long way toward determining if Buy in July has any legs as a new market mantra.

After the major U.S. equity averages roared back to levels unseen since early May late last week -- rendering toothless the last two-plus months of churn -- Sell in May is looking a lot less prophetic in 2012. But a snap-back could very well be looming if the next round of stimulus the global markets are now counting on either doesn't arrive or is less aggressive than desired.

This week, of course, features the results of the Federal Reserve's latest policy meeting on Wednesday, the conclusion of European Central Bank's own confab on Thursday and the July employment report on Friday.

Much has been made of similarities between the market's swoon this summer and the pattern of the past two years. Steven Wieting, an analyst at Citigroup, offered up this commentary on Monday, positing that while stocks may be holding up better this year, the macro situation could turn out worse.

" M arkets seem less worried about the routine mid-year slowing in 2012, perhaps with the insight gained from the policy and market outcomes of the past two years," he wrote. "Even so, 'rally season' might still have room to run before any late year panic over the U.S. fiscal cliff or some other source of risk aversion. Yet despite the more robust market performance thus far in 2012, the underlying pace and durability of the U.S. expansion seems at least slightly more challenged now than in the past two years."

Wieting is hopeful the July employment report could be much stronger than the current consensus view for job creation of 100,000, but that's where his optimism ends.

"We expect a 140,000 increase in non-farm employment in July, closer to the six-month average than either 1Q or 2Q extremes," he said. "But recent signs of moderating growth in consumer demand, profits and investment should raise concerns about the underlying pace beyond."

As befitting a presidential election year, Wieting sees the federal government as being front and center in how the rest of the year plays out.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs