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Employment Numbers Hamper Market

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    FBN’s market experts discuss the factors driving the current market moves.

  • Duration 5:08
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It's as close thanks -- Larry so let's bring in our market panel perfect timing here joining us now Peter to KD Cantor Fitzgerald managing director.

Along with Scott freeze street one financial president OK Scott you're hearing more of a cautious bear -- -- What are the reasons besides the obvious I we all know about the fiscal cliff we know about.

All kinds of gigantic question marks when it comes to earnings but what insist -- give us some.

Unknowns at this point.

I think it did just comes down to the employment numbers that came out and you saw that nobody believes -- -- -- Even with the revision came out this afternoon saying there wasn't anyone state but that -- the market that hurts people's investing.

-- I think it takes confidence away from from the market itself you have -- -- -- towards the earnings season.

You know you were there's still a complete mess and the what he believes the unemployment numbers of the trade deficit even -- So even if the employment numbers were good as they said that they where there's still too many other factors that are hamper growth.

Peter by the way the Labor Department just coming out with a statement saying quote.

There's accumulation of claims that are likely submitted over a period -- several weeks but not process -- until the turn of the quarter.

Apparently the state in question this is the state.

The supposedly under reported the number of unemployed forgot to include that stockpile -- -- process claims of their tally for this week.

We should see some sort of catch up.

So Peter is -- our Ali is this going to be eventually balance out.

Or are we gonna see this kind of playing with numbers right up until Election Day.

Well it's certainly easy to.

Deposit.

Conspiracy theories here.

I'm not about to do that but you know -- going back to the payrolls number.

When you look at the payrolls number he saw was a weak number internally it was mostly due to.

To temporary workers and that was the reason for the drop in the unemployment rate.

So that labor situation in my mind despite the better than expected number today which obviously is questionable.

And -- payrolls number the labor situation is not much better.

At all OK so are investors are just dying for somebody to tell them what to do so Peter it what is -- Best investment idea right now with all the question marks floating -- room.

Well -- like gold I I think that that central banks globally have had no choice but to continue to print Fiat currency.

And in particular the Federal Reserve the United States has the most ability to do that and today's the US dollar.

And so I like buying dollar denominated gold and -- -- we're also -- health -- up -- what -- where do you see the opportunity there.

-- like health care because -- I'm not a health care specialist but I see a good demographic.

But demographically favorable trend in health -- the US population is aging much like many of the other mature economies in the world.

And for that reason there's it's going to be a need for goods and services and health care sector.

Now -- we had real would you coming out today with its IPO did it extremely well 25% above the initial IPO.

You say though that home builders are or are kind of tapped out right now -- so.

Yeah we think that the the homebuilders face particular is already -- -- -- -- in.

Yeah we just don't think that if if the economy continues to weaken and we have the fiscal cliff issues coming up.

We think that the homebuilders are going to be that the ones that are going to be -- they've already had the run up on what people expected to -- -- numbers.

And we think it's gonna turn around do you do you get out now do you do you sort of count your blessings and add -- profits absolutely you never went broke taking profits.

Okay but it would you do that without -- I mean that -- apple and and we've talked about this before.

You know apple the problem that we see with that was that it is 20% of most of the the indices -- -- TS mutual funds to cover.

NASDAQ and technology let's explain to people what that means that means that fund managers have to have it in there if they are mimicking certain -- that's right correct and it has been -- to be 20% of the portfolio.

So apple have a nice pop -- that the Samsung lawsuit which was one throughout the entire world that apple actually one.

And then the iPhone 5 release and that the -- iPad.

But we see too much competition for apple we don't see any more any new innovation we see other people coming in to take their market share.

We frankly think that it's overpriced here and the fact that it's -- so heavily in the indices we think is going to be a drag so even if everything else goes up apple still gonna.

Right Peter -- a big question here how does the US avoid recession.

If the rest of the world seems to be slip in and -- direction.

Well I think it's very difficult frankly -- -- the question earlier from from Liz about you know what -- the unknown risks.

The funny thing as is that the most obvious risk to me is a US recession.

And it's going to be very difficult to avoid that with all -- with the slowdown we're seeing in Europe most of Europe is in session recession with perhaps.

The exception of Germany Germany is teetering.

Asia is slowing very very quickly we see it in Australia's numbers as a result and we -- Japan factory orders last night so.

Very difficult for us to feel like we're an island in an -- of recession.

With the S&P 500 1718%.

Of revenues dependent on exports which is why Peter likes gold so my truck -- yeah guys thanks -- -- thanks got a feeling jumping off a cliff -- --

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