Halfway through corporate earnings season, there is still a soft spot investors should note, Deutsche Bank Chief Equity Strategist David Bianco said Thursday.
"I would tell you that earnings season – it's not a disaster but certainly not inspiring enough for us to raise our target," he said.
Bianco, who held a year-end target of 1,675 for the S&P 500, said that he expected the index to decline below 1,600 before heading up around 1,750 in the near-term.
"We still have an earnings season that I think analysts need to digest and appreciate that what's still soft in the environment is business spending," he said. "If you look at S&P sales, it's been lagging U.S. GDP nominally for five quarters now."
On CNBC's "Fast Money," Bianco added that capital expenditures were important.