Tags: Analysts | US | Stocks | Europe Woes and Rally

Analysts: US Stocks to Shake Off Europe Woes and Rally

Monday, 12 Dec 2011 08:08 AM

U.S. stocks have taken a beating this year thanks to the European debt crisis but that's going to change now, as a stronger U.S. economy begins to shield U.S. equities markets from their volatile European counterparts, analysts note.

"I think the U.S. data getting better will help the U.S. stock market. I think the better data in the U.S. has a little more legs," Larry Kantor, Barclays Capital head of research, tells CNBC.

"Coming into the fourth quarter, we saw a big drop in inventories in the third quarter. Relative to sales, inventories looked really low. That means you're going to get some production and that's going to help GDP."
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Markets are currently digesting a recent European Union summit, where almost all countries agreed on a pact to adhere to greater fiscal coordination.

wallstreetbullap200v1.jpg
(Associated Press photo)
Should investors feel confident European policymakers are at least on the right track to containing the debt crisis, expect a rally in the coming days, say Bill Stone, chief investment strategist for PNC Wealth Management and PNC Institutional Investments.

"Our thinking on the EU decision has been that we expected this kind of two steps forward, one step back. We haven't gotten two steps in a while. It was more of a 1-1/4 step forward and one step back. I do believe we got our full two steps at this summit," he tells CNBC.

Skeptics, however, say the pact may be good down the road but doesn't address dealing with the situation now and whether the European Central Bank will step in and buy bonds issued by troubled European countries.

Despite healthy U.S. earnings, European fears overridden optimism this year and will continue to do so.

"Stocks are bad — sell them," says Jim Russell, equity strategist at US Bank Wealth Management, according to the Associated Press.
"It doesn't matter if you blow out earnings."

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U.S. stocks have taken a beating this year thanks to the European debt crisis but that's going to change now, as a stronger U.S. economy begins to shield U.S. equities markets from their volatile European counterparts, analysts note. I think the U.S. data getting better...
Analysts,US,Stocks,Europe Woes and Rally
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2011-08-12
Monday, 12 Dec 2011 08:08 AM
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