stu schweitzer is glal markets stratest at jp morgan private bank. stu welce back to "nightly business report". >> always a easure. >> jeff:ou know, i n't know you've sn the headlines or not these days but things loo rather bad out there, so w the optimism? well, you know when -- when people feel that there's no, no potentiafor things to d better, when all you hear is bad news, then i start think that mayb it's pretty well priced in. admittedlyhe market mod awfully far, aully fast the month of july but i think after meetback here while we wait for third-quarter earnis that the market will endupoving sowhat higher in the balance of theear. >> jeff: stu, if theconomys bottoming he, what's dring this growth or at least this botting process? if the consumersre not still spending, whois doingthe bung out there? >> wl, for sure, the conmer 70% ofthis economy and the consumer is not read tostart spenng yet, not until the j market comes bac, but compani have been underproducing a ar long. they've en producing fa ss than people have been selling and that mea

stu schweitzer is global markets strategist at jp morgan private bank. stu welcome back to "nightly business report". >> always a pleasure. >> jeff: you know, i don't know if you've seen the headlines or not these days but things look rather bad out there, so why the optimism? >> well, you know when -- when people feel that there's no, no potential for things to do better, when all you hear is bad news, then i start to think that maybe it's pretty well priced in. admittedly the market moved awfully far, awfully fast in the month of july but i think after some setback here while we wait for third-quarter earnings that the market will end up moving somewhat higher in the balance of the year. >> jeff: stu, if the economy is bottoming here, what's driving this growth or at least this bottoming process? if the consumers are not still spending, who is doing the buying out there? >> well, for sure, the consumer is 70% of this economy and the consumer is not ready to start spending yet, not until the job market comes back, but companies have been underproducing

. >>> let's say hello to our guest host, stu schweitzer. , it's great to see you here. >> great to be back. >> we have watched a huge run in the markets over the last five, six weeks. and it seems even when the markets get disappointing news they manage to power through it. yesterday down but not by a whole heck of a lot. you're still talking about the s&p above 1,000. so you think things have certainly bounced off the bottom but are we really seeing a recovery here? >> i think we're seeing a temporary recovery because we're going to get this inventory related push to growth in the second half of the year. factories have to start back up just because there aren't enough things on the shelves or on the dealer's lot. we'll get more production. i think with costs having been slashed to the bone, profits should drop. any increase in revenue should drop straight through to the bottom line. we'll have a good run on profits, i think. question is, what happens after that? do we get any hiring? that will be the key question. >> what do you think? wil