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Stagnant Outlook for the Markets

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    Dow Jones Columnist Al Lewis argues stocks are not going anywhere in the near future.

  • Duration 4:21
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I joining me now for more on the markets and the economy Dow Jones columnist Al Lewis Al -- if you like information exchange is now I think.

What let's start this manufacturing report it was a surprise even if you don't watch the markets on a regular basis because we had seen steady you know sure but steady growth in manufacturing but all the sudden it's contracting.

What's going on.

And is this a new trend.

-- I don't find this surprising at all Larry I mean frankly got a slowdown in Europe.

We've got a slowdown in China we've got a slowdown in many other parts of the world and guess what the dollar is actually higher right because nobody wants to be in the Euro anymore.

All of these things are going against manufacturing.

And frankly when you have a slower economy -- to make Europe goods.

I suppose and -- by surprising is.

In your view out do you think this is firm evidence that the slowdown in China as well as the troubles in Europe are making their way onto the US -- now.

But this is one report and it's one data point -- at at what I will say is that we've been and a -- that crisis since 2008.

We like to pretend the economy's getting better we like to say while we're not in a recession there might be a recession.

The word recessions really irrelevant here we're right moving debt around the board.

And you know this is just another sign you know that that it's now working out so well.

You know I think you can go up -- will -- allowing was up 2% from this very low base.

But analyst and the nature of economic reports for the last four years the overall trend -- economic reporting though you have to -- -- there's been a consistent.

Downward.

The -- if you will factory orders the jobs report the consumer sentiment consumer spending we're gonna get another likely weak -- support at the end of this -- so.

DT.

We're stalling and the final print right on -- first quarter GDP was sub 2%.

And that's certainly not a recession but it's nothing to write home about.

Absolutely not and you know what we would choose this economy with 0% interest.

They did.

Congress the Fed and -- -- these unprecedented steps.

And what we are finding out is that this economy does not well unless there is some kind of QE3 -- -- and I won't do anything as yet -- haven't really get so bad that yeah we're waiting for the economy get worse so that we -- night.

-- it get better from another from another fad.

Quantitative easing from -- -- that why the stock market largely climbed back today basically closing flat but still well off the lows of today.

You know nobody really knows what the stock market -- -- mean you've basically got trillions of dollars being moved around by computers.

But basically -- LC gonna put money.

But the stock market I mean an -- and that's actually.

What's gone on -- says it disconnect between global economies in the US equities market were what 8% in the first happening here.

Well that money has to go somewhere and where's it gonna -- when interest rates are basic well lot of money's going that's my got a look at interest rates.

Well yes they're going to their -- they -- for safety.

But -- -- making a big spread there any you have yard you know imply to make a lot of money you gotta be in the stock market and that's outlets in the stock markets at twelfth five.

I -- it fell from 145.

You know.

Four years ago so it really hasn't recovered and he basically when they say it's a bull market this -- is a bull market from.

You know when -- was sixty finally group right.

If it's it's it's a stuck writes I think pretty prick did the president -- look at the broader picture of course look at it based -- as a trader based on one -- performance you know there are some pretty good days.

There's some great trading opportunities do you see album why is it that this an indicator -- economy yet any -- and and you say is it catalysts are catalysts for the markets IDC ending more bullish or bearish.

-- -- I CS stay in this trading range for a long time when I say that somewhere between.

You know 111000 in May be yet 125 I don't see.

The market going up much over twelve by the even at that that comes out to mountains guess what we're gonna do a QE3.

You know what what's to get excited about other Dan we have this artificially.

One economy.

You know that depends on low interest rates and an artificial stimulus from central banks.

I guess we'll leave it there.

Thank you outside -- more positive about all this you know if you watch the headlines this is what they say yeah.

We will -- -- Debbie downer don't worry Al Lewis.

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