CNBC Guests Discuss Why the Market Rally Ended
NEW YORK (TheStreet) -- Guests on CNBC's "Closing Bell" Monday discussed why the market closed lower today, despite the recent rally streak, as the Dow Jones was down 0.42% to $77.79, the S&P 500 was lower 0.3% to $6.55 and the NASDAQ was down 0.05% to $2.53 at the end of today's trading session.
Stuart Frankel's Steve Grasso noted the under performing energy stocks but did not place complete blame on that sector dragging down the market.
"Oil is in oversupply. You have Nigeria coming back online, you have Libia coming back online. Canada coming back online. So if you're looking for oil to be bit up, you're probably looking in the wrong direction as far as a proxy to the market," Grasso said.
Grasso pointed in the direction of today's mergers, such as the Verizon Communications (VZ) - Get Report $4.83 billion acquisition of Yahoo (YHOO) which was announced this morning.
"That's a bigger indication of where the market's going. I think people are worried about being caught short in a perspective M&A takeout story so that'll keep the market a little bit on its heels. Having said that, there's a lot of people who don't want to buy the market at all-time highs, hence you get a lot lower in volume and a lot lower in the participation rate among investors," Grasso explained.
What also may have contributed to today's declining markets is the Federal Reserve's upcoming meetings on Tuesday and Wednesday when they will once again vote on interest rates, R.J. O'Brien John Brady stated.
"The Fed may reintroduce themselves and a possibility of a rate hike between now and December," Brady commented. Higher interest rates will add pressure to the market.