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Volatility hits the markets, but jobs report may give comfort

Friday, October 03, 2014 - 03:37

With U.S. stock and bond markets both rattled by protests in Hong Kong and the threat of the Ebola virus, Friday's jobs report may provide comfort that economic growth is on track

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This was one wild week on Wall Street that third quarter went out with a whimper and a fourth quarter started out with a bang. -- the -- stocks were hit with some heavy selling. More range from concerns about the global economy protests and Hong Kong at a new Ebola case. In the US. We're at the point now on the Dow and the S&T where. If if you get a sizable. Well -- a normal sized declines of somewhere in the area of five or six or 710s what's on averages is about what you get. That it's your triple digits on the Dow and that it's everyone's attention so I think we're just gonna have to get used to the fact that. Triple digits on the Dow might be something we need to get used to. But Friday those concerns abated stocks skyrocketed is the important monthly jobs report. Showed 248000. New jobs were created in the US. Believe our participation rate was -- -- 36 year low JPMorgan private banks senior economist Jeff Greenberg isn't encouraged by the data. Those bad factors in the -- our report oftentimes make -- encouraged about. The length of the expansion. The fact that the Fed is not going to be any. In any place to need to -- quickly and so you can get have a good reading out of those those were some factors. Now investors are wondering whether I can continue into next week. What area of the market. Right for bargain hunting small cap stocks. The Russell 2000 tumbled seven point 7% in the third quarter its worst performance in three years. Despite this broad weakness but manager David Miller is finding some opportunities. His small cap insider buying fund. Buy shares are attracting interest from company executives and other insiders his portfolio includes Carbo Ceramics. In no real farm -- and who cart which launched an IPO this past spring. They're about seven executives all buying it's true -- the same time it's really a perfect example of a situation where IPO came out we too cheap relative to what is really worth insiders that your car recognize that. And they were buying into big way in the market started realize that the company deserves a much better valuation and where they came public. Meantime it's not just stocks that are experiencing about a volatility. It's -- market was rattled last week on news that bank investor Bill Gross was leaving a long career Pimco to work -- Janice. This week I -- moved in a very wide range. -- investments stinky and says investors had been pushed to risk assets insert should. -- if you look at the US bond market in the context of global bond markets the US is high yield -- particularly amongst the develop market and it is the highest fielder in the safe haven market so it will continue to be well supported. And well didn't argue. And another money managers said there could be more selling ahead in junk bonds. Which offer bond investors are higher rate of return. You can't argue that. High yield was cheap right now on any measure it's kind of stretch. Again the fundamentals are supportive so it doesn't mean that you're expected default rates to jump at all what you do see more people are saying aren't you know I got to think about what we have in this ethics class. And you start of the season -- articles and I think you're gonna see little little signs of more up close and -- you know by the end of the year. And this week marked a milestone in the markets the US dollar hit a four year high. I'm Rhonda schaffler or investing to outline.

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Volatility hits the markets, but jobs report may give comfort

Friday, October 03, 2014 - 03:37