Page 14 - Wealth Effect News Today

Market. the wealth effect that your guest was just talking about. there is a huge disconnect. the bulk of the country, bulk of americans, not invested in the stock market. their biggest asset is the home, and the home prices are depressed or underwater. meaning they owe more than their house is worth. one trader is skeptical about jobs numbers as far as strong recovery going on, but the triple digit gains in numbers i have to say, they are a good sign, carol. >> yes, they are lets look at the gl...

Lets go to the new york stock exchange, check in with alison kosik. what do you expect to see when the markets open at 9:30. >> get ready for the bulls to run. could see the dow hit another record today. could be an historic day for the s & p 500. all pointing to it taking the s & p above 600. that gives the momentum that your guest was just talking about. the wealth effect keeps going. a found a critic, a trader i talked to a short time ago, skeptical about numbers, look, you look at the econom...

It is a good indicator for the wealth effect were seeing in the market as well. the market moves by this technical levels. it is giving more oomp to the rest of the market. >> unbelievable. thanks so much. lets head to new york city. im going to pick my computer up. there you are. look. switch back to me so we can see. the drudge report has a big smiley face. and i show that because it is unusual because the drudge report is a conservative website. doesnt have much positive things to say about...

Investors wonder if the markets will continue the winning streak after the s&p ended april at a record high and the nasdaq closed at the highest level since 2000. alison kosik, will the streak continue? >> thats a good question. at this point it looks like the winning streak for today is up against a wall. the stock futures are flat to slightly lower right now. the dow has been riding a five-month rally. the s&p 500 and nasdaq have been on a winning streak six months. here is what is driving the...

Number two, home prices, up 9.3% over the past year. best yearly gain since 06. more importantly, home prices in each of the 20 big city areas studied went up. nowhere did prices go down. so you add it all up. what youve got is, ben bernanke, printing a lot of money, raising stocks, raising home prices and hoping that theres a wealth effect. we all feel better off. so we go out and spend. and we improve the third pillar of the financial well-being which is your job. bill: inflation is kept in ch...

Its a pretty simple equation. thats whats going on. >> gretchen: yesterday, wasnt there -- or two days ago, wasnt the fed going to print money and not change the rates? >> right. listen, the fed is like the old china watchers, they figure out what the chinese government was doing. here is the thing, theyre going to change it at some point. thats when the average investor has to worry about. when the fed changes direction, when they give any hint, you really do have to get out of stocks because t...

But, yet -- yet we see records being broken here on wall street. why is that? well, one of the big reasons because the fed has its hand in billion of mortgage backed securities and treasury bonds. whats that is doing is moving interest rates lower. and investors are saying im not going to make any money in the bond market, the best game in town is the stock market. youre seeing investors move into stocks, moving their money, creating this wealth effect on the big board today. >> thats a good thi...

Small business growth, of hirings growth, they are worried about tax, abouthealth care. >> eric: wall sthreet -- look the dow jones is shooting through the roof there. yet, at the same time, a lot of people out of work, under employed, not worked enough, not paid enough. its a struggle. so why that dichotomy. >> eric: a lot of times, wall street is an indicator of the economy. i am not sure that that is true. but we have two good things going for us. wall street and the housing market. the housi...

I say only, compare that to february. 14,000 government positions lost. and in january 9,000. yet to see the full impact of those spending cuts. so this today, on the plus side. wall street, the plus side, the fed expected to continue with stimulus money, pouring into the market, pushing investors, trying to create the wealth effect, at least after today, but interesting going from a jobs reading in february, where we struggle to find anything bad in that report, to a reading in march that doesn...

Would actually answer the question in an educated and informed way and not go for the jugular. the only answer is yes and no. >> thats definite. >> of course the stock market benefits everyone through their 401(k) plans that theyre invested in, through the wealth effect, through improved corporate profitability, through the consumer confidence numbers. yes, the rising tide does lift all boats. but if it was only that simple. unfortunately, you know and i know even if ali velshi doesnt know, it i...