CNBC Pro: Wall Street pros name the biggest risk to stock markets — and reveal how to trade it
The stock markets are largely green this year, but there is uneasiness over the recovery, with several risk factors still affecting the market.
How should investors trade the market? Wall Street professionals weigh in with their best ideas.
Pro subscribers can read more here.
— Zavier Ong
An hour ago
CNBC Pro: Goldman Sachs adds 3 stocks to its conviction buy list, giving 100% upside
Fri, Mar 3, 2023 4:06 PM EST
The major averages close higher
Stocks closed higher on Friday, pushing the major averages to a winning week.
The Dow Jones Industrial Average rose 387.40 points, or 1.17%, to 33,390.97. The S&P 500 gained 1.61% to 4,045.64 and the Nasdaq Composite rose 1.97% to close at 11,689.01.
For the week, the Dow ended at 1.75%. The S&P added 1.9% and the Nasdaq rose 2.58%.
– Tanaya Machel
Thu March 2, 2023 6:45 PM EST
A weaker job market can lead to trade risks, says David Rosenberg
David Rosenberg, chief economist and strategist at Rosenberg Research, believes the stock market will see a sustained rally as the labor market begins to contract in three to four months.
“Right now you have a situation where the equity markets and the credit markets seem to think they have more time to buy before the boom really wears off the economy,” Rosenberg said on CNBC’s “Fast Money” Thursday.
“There’s no doubt that the economy is not strong, but it has to weaken sharply. Unemployment has to start coming down… I think that’s where you’re going to find the risk on trade,” he added.
The employment picture started 2023 on a surprisingly strong note, with nonfarm payrolls posting their biggest gain since July 2022. The Federal Reserve could reverse its tightening policy when the labor market shows weakness.
– Yun Li
Fri, Mar 3, 2023 10:14 am EST
Brent oil prices fall on reports that the UAE is considering an OPEC exit
Relations between Saudi Arabia and the United Arab Emirates are becoming more tense, according to a report from the Wall Street Journal. Citing Emirati officials, the report said the UAE is debating whether to leave OPEC.
News of the potential breakup of the oil cartel put a chill on Brent crude oil prices. At one point in Friday trading, prices were down nearly 3% before recovering. Recently, the global benchmark fell 0.85% to $84.03.
The two oil-producing nations have been jockeying for influence and disagree on the direction of the Yemen war, according to the report.
See the diagram…
Oil prices fell nearly 3% before recovering on a report that the United Arab Emirates may leave OPEC.
—Christina Cheddar Berk