Tim Seymour Says Economic Data Takes Backseat To Coronavirus News
Data released Thursday from the National Association of Home Builders was "catastrophic," while retail sales "weren't terrible," but investors are more focused elsewhere, Seymour Asset Management's Tim Seymour said Thursday on CNBC's "Worldwide Exchange."
Seymour Says Investors Unsurprised By Bad Numbers
Investors had known for several weeks that recent economic data points would be quite bad, so poor readings aren't much of a surprise, Seymour said.
Instead, investors are keeping a close eye on any estimation of when the U.S. economy can start to reopen, he said.
Meanwhile, Germany is easing some quarantine and other measures as early as Monday, Seymour said this is "more important for markets."
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'Market Bracing For' Quarantine Changes
Major U.S. banks have so far reported "OK" earnings, but their outlook and guidance were consistent if not slightly worse than what was seen during the financial crisis more than 10 years ago, Seymour said.
More important is any update on the trajectory of the coronavirus and signs of easing conditions, he said.
"That's what the market is bracing for."
Seymour On What's Next For The Market
Economic data releases are likely to continue being "awful," and there are no signs that earnings declines are close to bottoming, Seymour said.
The only thing investors can do moving forward is look for companies that are bringing cash flow as much forward as they can and have a balance sheet strong enough to navigate through a six-to-nine month period of ongoing volatility, he said.
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