This transcript is automatically generated
Now for more on today's markets -- often what we can expect from the markets.
Ted Weisberg is the president of Seaport Securities a veteran New York Stock Exchange or broker He is one of the icons the Wall Street and it's -- the white and -- -- -- thank you.
This market are today the volatility.
-- taking again what's going up well.
I wish there was well one hard answer for you.
But the volatility is clearly breathtaking I've been a member of the exchange 43 years the last couple of weeks last -- particular I've never quite seen anything like it.
-- and -- we are right back into it again this week.
There's a lot of reasons for it but clearly there are there are fundamental problems out there that just refuse to go away.
And I think the market is simply adjusting if you will.
To to the downgrades to the GDP number that we had that was the end of July right which was very disappointing and then the lowering of the previous number.
I mean the fact is -- our economy is just.
Stalling and I think the market was expecting to better second half and now the analysts are ratcheting everything down for the second happened.
The market in in one sense is reflecting that.
Away from the traders investors for just a moment and and focusing on the business -- the national media.
It's almost as though the entire quarter's earnings were dismissed they were -- they were -- positive strong.
And they are dismissed we have much in this economy and the and the underpinnings seem to be basically sound.
And yet there is -- negativity in the atmosphere if pervades our media.
It pervades what should be leadership in Washington I don't think we should describe particular about labels sometimes to those that are.
What is going on in in your judgment.
It in terms of the external for this market well.
I think the market quite simply is hostage to the politicians at the moment.
Unfortunately because you are right the fundamentals the corporate fundamentals this.
Just a second quarter earnings yes and 500 about seventy the companies that reported in the S&P beat.
They're earning just -- their their balance sheets are flush with cash now that's.
Probably good and bad -- -- you know -- in great shape but there in great shape because they probably don't have a lot of confidence.
About where they are and off you during they're not investing.
And no one seems to including the -- United States.
They're not articulating any path forward into a future.
And no one is even be even thinking about describing their future for the American work force and the American investor.
Well in terms of the stock market it is the worst of all worlds because so much -- stock trading is psychological.
There is a complete lack of confidence I mean I think there's lack of confidence of the corporate level therefore.
The that the treasuries -- her -- that money progress corporations just are afraid to spend the consumers saving -- -- he's afraid to spend and that.
And the investor is now scared to death because there's no clarity going forward.
Let's come from 30050000.
People are but we are here told tomorrow.
What do you expect in the market very quickly well I think we're gonna see a follow through from today.
But because we have another element which we haven't talked about which is as high frequency trading.
-- trading -- -- program right computer driven trading which really is has nothing to do with fundamentals it's all about momentum.
-- the momentum is on the downside right out of issued then chances are we're gonna see you know the downdraft if we get lucky and we get some decent news overnight which I don't know we're gonna get that but anything.
Anything is possible that perhaps we'll go the other way -- the one thing we can be certain of is that this volatility that we dealing with which is.
Very distracting for investors everywhere is not going to go away anytime soon no longer science fiction.
The machines have taken over -- -- so thanks very much Ted Weisberg.