Convergex Chief Investment Strategist Nick Colas talks with Bobbi Rebell about trading on the first day of the month, and why he is paying a lot of attention to tech stocks right now.
Stocks recovering from Iraqi morning here at war Nicholas his chief market strategist at converge at great to have you thank you are so it is you want first day of the month. What's your take on markets well I think we had a pretty rocky start that day but we've. Kind of healed with the has gone on for two reasons. The first is that the first of the month has committed to see new money inflows into US stocks over the course of this year. So expectancies and kind of left office this happened open. The second reason is these fitness. By the Fed Beige Book looks pretty good and indicates the markets' basic take on the Fed is right which is it June or July rate increase. And as the markets get used to that concept its entry rally into it. Speaking of that we did get a mixed bag of economic data and disappointing data from China. But then part of the reason the market turned around with a little bit more optimistic manufacturing here in the US what's your take on that data and will it matter at all to the Fed. You know it probably doesn't matter very much the Fed they feel they've got the information to go ahead if I could labor market picture that got a good inflation picture. And that's enough for them. The international condition they're worried about his oppressive vote coming up a week after this next meeting and that Hollywood pushes off the decision that they're gonna make until July. Oil prices have been a focus after we hit fifty dollars a barrel. Now coming off that what's your take on the energy markets for you have fifty's been that magic number that oil just can't seem to push through an hole and I think they're still quite a bit of concern about whether or not this level is enough. To sustain companies in the US and economies around the world. And the bottom line here is the global economy still fairly week. Even though the US is doing pretty well Europe's still quite sluggish in China is still slow and so. We don't think it oil prices have much more room to go higher. Well stocks do still seem to have a bit though and that's an area we think it's so pretty attractive it's interesting. You also talk you had a note out this morning focus the tax factor. Talking about back with you a bit interesting take kind of unusual here at tech had a really nice run in the back half of last month and impartially through the reasons why it wasn't money flows ETF money flows. For technology TS are actually negative pretty resoundingly for the month of may what appears to have happened is that growth stock investors you typically pay health care attack. Or retail saw that carnage going on in recounts a Texan better bet that's he began to see a list and they hallmark names like apple as well as the index as a whole systems to be a rotation. Out of retail is a growth idea into it happens really helped tech and Mike may. Looks to be going to be opened in June as well OK so. Investors should definitely be looking at checking your mind what else where the other best opportunities are new electric energy and also it's a contrarian bet because it's been very choppy Booth financials I think. Looked pretty good this month going through this fed rate increase. And hopes from one normally you'll grow over time it would definitely help financials are thank you so much thank you. I think seeing it Telus chief market strategist accurate Vertex had Bobbi Rebell this is Reuters.