Stocks Having Down Week; Bull Market Waning?

Matt Nesto analyzes the morning business headlines.
2:49 | 03/23/12

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Transcript for Stocks Having Down Week; Bull Market Waning?
Live coverage of the opening Dallas ABC news now wringing about putting this morning Erin -- -- under VIP shopping finds. -- -- -- they were flat ahead of the bell this morning still those stocks on track for the worst week. In now three months so joining me to discuss all the business headlines along with some of that. Manifesto co -- to break out on Yahoo! finance not to Maurizio good morning -- -- stocks have been down the past three days in a row in fact it was some good numbers on the jobs front so any correlation there. Well it could be you know I mean it exists and there's a lot going on right now we know we've had this great rally mentioned it's the first. The worst week that we had in about three months time -- -- not even -- it's not even 1% as we go and our Friday trade. So we have had a great run up so there's a lot of nervousness in terms of do you take money off the table nets are watching it very very closely. Whether turns into a four day rally or not it's not -- big long streak -- -- fact of the matter is we have seen some weakness creeping. Into the market on that week -- -- could say mix in terms of economic data. In closing and the end of the quarter as well. No art it was that we've got some breaking news coming in the president is nominating a Dartmouth College president to head -- the World Bank there. Jim Yong Kim. What do we know about this nomination how big of an impact -- this economy. Well it's going to be interesting because has been -- push back from some of the smaller members in the World Bank to have to take away that sort of right of the US to have the president. Of the World Bank be an American so reassuring to see and that gains any traction that right now the smaller economies. Have been growing -- -- seen the growth in discussions of the group called the G-20 which includes some of the middle tier economy is take more center stage -- more influence the negotiations the growth of the break economies -- -- -- so the World Bank is certainly going to be you know something that they want to have a saying in terms of you know loans and mediating trade. Disputes and things like. Actual watches -- -- nomination process goes what bond rates when he -- market from a bond rates they've been -- the ten year note in fact hitting a six month high. What's the driving force on that. Well over a lot of things you know there's a general -- -- risk off if you will people have been moving out of treasuries watching stocks go higher. We have the scene and some economic data improving which would suggest that the economy may be can handle a rate increase even though. Ben Bernanke -- said he will not raise rates for a long time but mind you we've gone from about one point 8% of the beginning of February to about 2.4. We hit the middle the week so. That doesn't seem like a lot to the average person but in terms of the bond market is a pretty. Sharp move. Whether will be allowed -- continued is you know debatable but probably -- -- it were to move. Too far too fast Ben Bernanke would certainly. Move in and -- talked about a quantitative easing QE3. To try to stem the rise of rates have been did go too far but in that many circles it is seen as a good indicator. That the economy. Is loosening up a little bit that -- can handle rising rates but also there are concerns about the effects that rising rates have. Particularly mortgages which are also rising alongside of them. It's Doug -- on -- mortgages and we've got some new home sales numbers are going to be coming out at 10 o'clock what are we going to be looking for in this is that going to be a strong number. I doubt that you know I mean relatively speaking I think it's probably got a bounce along this 300 and well you know thousand level that we've seen pretty much for -- the you know last few months. Which is way down and understandably so from where we were into the peak and we may never see that -- again. The thing that really look at -- this number is kind of the second tier number which is gonna be that. The change in price is also we saw with housing permits were strong earlier in the week. Which is usually a pretty confident indicator -- builders they're pretty confident a lot not necessarily always the best. Gauge of of of their Handel on the economy but more -- -- -- hopes. And then lastly one look at the inventory levels we saw that earlier in the week with the existing homes -- number which is a much larger. Number and important in its own right we saw the inventory go up in the prices go down and as we say. That's not a good thing and you can't think at all also stain on this housing topic -- Bank of America announced that they are testing out a program. Where homeowners who can afford their mortgages is opposed to go into foreclosure the bank will actually take that house but allow them to rent. Other -- stand their home what are your thoughts on this analysis the pilot program. Yeah -- -- it is done. You know is unheard of a -- on the scale of Bank of America you know one -- largest banks in the country it's notable. If they actually do it you know it's there's a lot of alternatives a lot of things out there that are being proposed right now one of which was to bundled these things. Up -- billion dollar blocks and -- hedge funds buy them. There have been a lot of people who have been pushing back on that idea and they don't think that that is necessarily -- you have a third party come in. This is more interested in a trade if you will -- actually owning an asset that you know people living and working on -- it said Iraq. So you know it's you know I don't think it's a bad idea. It certainly we need a lot of solutions and -- they're trying to do something there was general pershing said do something right even of the wrong thing that's about it. Just make a move hitting other banks are gonna follow through on president -- impact crater yeah. I do I do all right I think -- that we will see all kinds of different solutions. As the thing is the a foreclosure moratorium. You know -- Any airline industry US Airways is making a bit of a play for American Airlines American Airlines were filed for chapter for for bankruptcy rather in the fall what do you see happening them with this potential. Well. It's interesting -- -- -- this is an industry that has just had so many bankruptcies and mergers it's hard to keep track anymore. You know Bloomberg is out with this story it's the wrong they -- had -- -- -- the US Airways. Was actually briefing some of the bond -- some of the creditors for American Airlines and saying you know we did this you know this is how work is what you would get. The truth of the matter is with -- AMR under bankruptcy protection right now they're going to be talking to those creditors. Many of you know including. The labor unions. Which can either make or break a deal so. You know if they can get those concessions -- marking get the concessions on their -- through the bankruptcy process that they need. Then to be taken out of the middle that process would be you know frustrating you presumably. If you were to critic Ben diagram -- -- of the airlines industry you're just gonna eventually into one big circle all right -- -- and I'll believe it goes right back to Kevin Bacon it's a very weird thing I'd. -- you play Angry Birds. Yeah I can't stop Oregon right now in fact no one likes to have an Angry Birds space -- I'm here is not going to be available on Windows Phone that seems like it was in a huge market. Well I guess you would think right windows of the you know whatever but -- and we know there's still money. A big player in the mobile phone market something that they're working hard to change but. The story that I read on it -- Rovio which developed the Angry Birds franchise. Basically said that the tables have turned. And that from their standpoint it's not necessarily. Worth the cost time and expense. To develop a product for -- windows operating system phones just not that many phones there. That could change they could change is ever so -- have kind of a slap at Microsoft just sort of reminds people you know where they are in the pecking order. Of the big you know cell phone. Operating system providers issued almost be illegal to deny those a lot of people they -- -- fling birds had -- it takes you really should this law. The SEC are also taking a look at the business of rapid fire trading very very explain rapid fire trading -- oh I like that. -- FT we know normally call -- HFT high frequency. But it's the same it's -- same darn thing you know maybe the we're talking about. Certain types of firms certain types of individuals that literally have direct electronic connection to the exchanges. That -- trade. A hundred times per second Andy you know it's supposed to be an orderly market plays not only get to want -- -- But the truth of the matter is as a -- going on with the SEC. Into certain. Firms and exchanges that handled these tried to see whether or not it was -- manipulating. A fair pricing and a lot of people will say yes the sheer volume. That these high frequency or rapid fire traders -- -- -- still is about 50%. Which is. You know. That was up from nonexistent. Just a decade ago so -- they're definitely going to look into it it's gonna -- you know difficult to prove. And you -- you wonder -- you're getting 1100. Of a penny. And price improvement right and selling enemy -- motive is really the question there but ultimately you always is about money is next for -- Has -- been thrust into the headlines after Mitt Romney's -- of his campaign -- and says something about and to sketch and about. Being able to use it to shake it hit the reset button on the campaign from the general election time. Hot commodity now I mean I think the sales are up like a 150% something crazy like that what do you think is -- time out to buy you hear people's labelled let's get in the Ohio arts. He had no I have not thought he would have to be out of your mind a good thing that the you -- gaffe on the campaign trail is gonna you know suddenly. Make this hundred odd year old company. You know a billion dollar in a rival Hasbro or -- like that the stock you know did hit about a ten year -- got north of ten bucks a -- doesn't really trade much volume at all ever. So it's you know it's interesting it's quirky but from investors -- -- the market value even at this inflated level now. Is about eight. Point four million dollars trades of what's called the pink sheets -- which is you know for small small small cap companies that are thinly traded so yes. They are public -- -- I think toy street Bryan Ohio right now fund the look at them probably tell. And spiritual art let's take one last look at the boards through -- ago Matt. Taking -- there the Dow down about twelve points at thirteen 1034 Matt messed up from Yahoo! finance thanks so much and have a great weekend so you to see assume.

This transcript has been automatically generated and may not be 100% accurate.

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