“Massively oversold” stocks rebound but trend seen “terrible”

Markets rose sharply on Wednesday.

The S&P 500 rose 1.1 percent, the STOXX Europe 600 jumped 1.7 percent and the Nikkei 225 surged 2.2 percent.

Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company, said that “we’re back to looking at the fundamentals, which are very attractive”.

Tom Essaye, president of the Sevens Report, said that the “shock of last week’s earnings disappointment is behind us”.

Tom Lee, managing partner at Fundstrat Global Advisors, said that “we are massively oversold” and that “we would be aggressive buyers”.

Martin Fridson, chief investment officer of Lehmann Livian Fridson Advisors, noted that the high-yield bond market is not showing signs of cracking.

“Perhaps the high-yield market did not pick up recessionary vibes sooner than the stock market did because there were no such vibes,” said Fridson.

However, Jeff deGraaf, chairman of research firm Renaissance Macro Research, called the stock market rebound “uninspiring”.

“These are bounces in terrible trends, and are high probability failures in the near-term, but whether days or weeks is hard to say,” he said.