Quick Take: Stocks Trading at Right Level, Says Seaport's Weisberg
NEW YORK ( TheStreet) -- After Friday's nonfarm payroll report beat expectations, stocks shot up and then fizzled out. Now what? TheStreet's Jeanne Yurman asked Jason Weisberg of Seaport Securities.
Most of the traders who came into work this morning waited for the jobs report, saw the upbeat bias, covered any short positions and have now gone home, according to Weisberg. He added that the anemic volume in the markets today -- and usually around other holidays -- contributes to larger-than-expected reactions to data points and global or domestic events.
Stocks ripped higher this morning when it was revealed that 195,000 jobs were added to the economy last month, 30,000 more than economists had expected. However, it did not take long for those gains to fizzle out as the market returned to "normalcy," he said.
So where do we go from here? Weisberg says the next big catalyst for equity investors will be earnings. While he does expect a slight upward bias, there will always be volatility surrounding such events.Add in geopolitical tensions that continue to rise and it's no wonder traders wanted to go into the weekend flat. Although the markets have been shrugging off tense global events of late, they still have the ability to raise uncertainty, he said. However, one certainty remains clear: The expectation for tapering from the Federal Reserve. Weisberg added that he and the rest of the investment community would like to see the economy stand on its own two feet. While the Fed stimulus program "was a necessary evil," the recovery is finally on its way -- just not at the pace we'd all like to see, he concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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