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-- -- So what are they -- jobs report it was good not great not a great June for job creation according to Scott Wren senior equity strategist at Wells Fargo advisors.
Positive news he says can be found in the may revisions -- more.
Non farm in private payrolls added and -- manufacturing jobs lost god joins us now.
To explain how that jobs report as having an impact on this market.
And where we go -- as far as two years out it's good to see against Scott thank you for joining us on this day after the holiday.
Sure Adam how are you today I am good so leg can you explain to me why we saw that big drop in the Dow and now we have recovered what's actually going on what's driving the -- -- the ball on volume so like that this is really a throw away day.
Well I think I think volume is light but I think right now the market.
-- on a couple of data points and reports we saw last week you know what what was bad was good in other words bad economic data means the Fed's.
Probably not going to taper good economic data.
-- maybe they will I think right now the markets battling with and today on this than volume is the other the number of -- you know as you mentioned was good not great.
And so I think the market rates today -- -- going back and forth between -- a really good employment number lessens the chance that the Fed is going to not taper.
And a lousy employment number -- we've seen -- 140 or something like that.
That the market thanks tape the Fed's likely to just keep things add up is let's I think they're gonna do anyway and what you think did.
A lot of people both of us are kind of up over this -- -- but the fact is today you really -- -- gonna do anything regardless of numbers.
That's that's been my view and I and really -- I'll tell you why you know when you have falling inflation and you have an economy that is growing you know we -- point 4% in the fourth quarter we saw one point in the first quarter the second quarter -- going to be you know maybe 1517.
Somewhere in there.
Know that those are not.
The types and numbers.
Where I would think that the Fed would take their foot off the -- -- accelerator now certainly they are going to taper.
And it might be splitting hairs to say well -- do they do it in the fall or do they do it -- you know the first or second meeting in 2014 it probably is splitting hairs but the market's obviously focused on that.
Well and are we seeing an inappropriate would rise in -- since the yield on the ten year treasury or should be even going higher.
Well you know my opinion you know I'm an equity -- to give you my opinion I think the treasury selloff as is overdone here.
It wouldn't surprise me over the next couple months to see.
To see rates work their way lower so so in my mind you know treasuries are overdone here and I and I just think that that you know.
It -- economic fundamentals but don't warrant a total normalization of rates.
Plus from what we've seen in Portugal -- things like that.
Who knows this European problems may come back divide us as well in the near term but -- equities you're kind of well not no doubt about it too bullish I mean you expect the S&P 500 to be trading approximately 60% higher than current levels by the end of 2014 sounds good to me.
-- you know really I think the bulk of the gains are in for this year I think we'll probably end up a little higher than where we are now.
Something like that I think you wanna be in the cyclical sectors that are sensitive to the economy but when we look out that year and a half to the end of 2014 and granted you have to do a little bit of -- work to get there 185019100.
That seems reasonable on the S&P 500 as you mentioned you know that's 151617%.
Higher than where we are right now so you know one of my main jobs -- to try to get our clients.
Who were sitting on too much cash.
Invested in this market expecting that kind of return over the next eighteen months Scott -- thank you very much for joining us from wells -- advisors -- well.
All right thanks have a great afternoon.
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