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Sterne Agee chief market strategist Sharon Lee Stark weighs in on the economy, interest rates and unemployment.
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-- at Nichols said stocks are selling off today up because of this morning jobs report all previous round of contract and -- the red.
Our next guests as well we can expect more of the same going forward joining us now.
She finally start chief market strategist for Sterne Agee.
Is it because even numbered just wasn't bad enough.
If the number was worse the markets would be some up and down saying QE3 is right around the corner.
I think that's part of -- there -- said disappointed because.
All during the week estimates had been increasing for a hundred plus increase in payrolls.
An 80000 just doesn't cut it but you have to look at the bright side it is.
An increase it's a steady increase and I think it's likely to continue.
But it's it's.
Off right week we you know it it's like a big tease via the ADP number that seem like it was going to be -- little -- positive even Goldman Sachs goes down raises their estimates a little bit.
-- and then we get we get chopped up at the knees again is this what's gonna continue to happen that's pretty much through the rest of the year.
I think if we continue to be much more optimistic that we should be the reality is.
The world economic stage is weakening you have Europe you have China you have Brazil all weakening.
And the United States pretty much on hold with very little getting done on the fiscal side so.
I think expectations for QE3 are still warranted in fact I would expect the Fed to act along with the other world central banks.
This fall following the economic summit at Jackson Hole.
To initiated another round of quantitative easing which they'll purchase probably longer term treasuries again.
And mortgage securities -- to make sure that interest rates stay of -- but.
There alone now that's not -- housing market all we've actually seen refinance applications fall so amount what are we doing -- scratching our debt and potentially passing it on to our kids.
Well I think that interest rates.
Even though their low -- and right now you're not seeing a significant increase in housing you are seeing some improvement in that how home sales are -- And I think a lot of the hesitated C.
That you see out there related to spending is because a lack of confidence in certain day.
You know what -- medicine the jobs number this morning was that temporary help jobs increased and they think that's a sign that there's enough demand out there.
That managers need to hire more people but they're -- not confident enough.
To make them permanent jobs if that demand continues in this sustained.
You'll have more job growth right because we were just talking about earlier in the show those temporary jobs are not turning into full time jobs which is typically what happens.
Let's about China gonna -- you brought it up.
China have very important part of our manufacturing economy our manufacturing numbers here in the United States were not good.
Spoon China's slowing down as well.
That could be part of the reason to that this economy's going nowhere fast.
I think that's a good a good reason why -- of the main reasons why Europe yes it's.
12% of our exports but China is a huge consumer and I think that on top of the problems in Europe.
Just creates more.
2% growth perhaps GDP.
But I don't expect to start recovery until we get some sort of action out of Washington -- the fiscal stimulus I guess that's the only good news today is that that means.
Clients -- easing part three is on its way Sharon least act of Sterne -- thanks to take Amitabh have you with us thank you -- me.
