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Morgan Stanley Smith Barney Chief Investment Strategist David Darst on how the rising price of oil is impacting the economy and markets.
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I had Hewlett guys again -- -- -- -- you seat rotating through the S&P and oil prices watch it but and now we're about 78 point eight cents away.
From 10 wait for the aftermarket session so with oil prices approaching -- 120 dollars a barrel right now.
Is there any easing in -- and is that causing at least one very Smart market watcher and involve person.
To be a little more bearish he's David -- -- -- steadily -- party chief investment strategist one point seven trillion in assets under management.
In a first on Fox Business in -- -- that's that's a really stunning price at this point is and it couldn't bring the markets down.
There's no question about it it's hitting the consumer you see it all over the radio all over your show all over the media.
People are aware it's taking money out of their pockets it's as if a tax increase is being imposed on the consumer.
It's as if the Fed were raising interest rates it is -- day opener.
So you've got to watch these oil prices that would be for us a red light for the market right now.
There's a Green light for the market which was announced earlier today as the new jobless claims came in -- 351000.
Well below 400000.
So people aren't laying off as much they're not hiring.
But they're not laying off as much right so that's -- system with the recovering job -- that's correct -- -- -- -- -- -- certainly so Green light Green light jobs the new jobless claims red light don't oil and the yellow light Liz will come out.
Next Tuesday which is the case Shiller home price index for December November minus one point 3% shocked the market.
Down three point 7% year over year that was one point 3% decline month over month.
Three point seven year over year and it's down 32 point 9% from the -- don't forget in the Great Depression house prices only fell 31%.
So we've had a greater fall.
International house prices that we had in the Great Depression 19201930s.
So -- -- -- polar -- -- -- -- right now we are -- nervous nervous bowl and we.
Cautious defensive side so if you had to put us in one -- -- the other we'd be on the bearish side right now.
There's a great nonchalance -- -- a French major remember the word nonchalance comes from them.
French -- -- wow how are Cadillac health Niagara not warm OK right and so there's a low vick's.
There's lot of bullishness in the American Association of Individual Investors bull bear survey.
It's about 46%.
It was 52 but long term averages 39 point sorry what Charlie -- Six down 4% -- -- general is certainly an indication that they're still complacency correct marketplaces she nonchalance so the -- -- up a lot one thing we're watching Liz is these transportation stocks you've highlighted this before.
They have had a rugged month.
Oil prices hurt real -- -- hurt airlines it hurts to hear.
Delivery companies -- parcel delivery companies in your careers I would think it helps railroads if anything out of any of the oil prices being high -- people could ship more but if they they you lose -- -- -- diesel and they use bunker to to transport him to drive these -- so -- They -- the month of February the transportation stocks are down 4%.
Where is the industrial.
Average is up 2% so the Dow Jones transportation index is only up 2% -- -- -- a big day averages it did I love it now here's the one your picture which we saw the big dip of course in September and October when there was so much bearishness and fear in the markets.
And now we've moved way up higher than that -- pulling back today all right David -- is is coming bearing gifts OK as in fifteen different stock names.
Thank you -- could name them.
