Dow 17,000 still likely in 2013: Siegel

Friday, 16 Aug 2013 | 1:50 PM ET
Dow 17,000 still likely in 2013: Siegel
Friday, 16 Aug 2013 | 12:40 PM ET
After a rocky five to six weeks, the Dow Jones Industrial Average will see better days, Jeremy Siegel of the Wharton School of Business says.

After a rocky period that could last through next month, stocks will see better days, Jeremy Siegel of the Wharton School of Business said Friday.

"It's going to be choppy over the next five or six weeks," he said. "I mean, we know rates are going to move higher. Now, what we hoped was when rates moved higher, we're going to get a stronger economy, so we're going to get some earnings boosts. That's what we need."

On CNBC's "Fast Money," the professor of finance remained bullish on the stock market.

(Read more: Gold 'ridiculously oversold,' fund manager says)

"I certainly wouldn't throw in the towel. I'm still projecting Dow 16 to 17,000 by year end," he said. "I think we could have a very good fourth quarter. But we're going to have a challenge over the next five to six weeks."

Top three trades
In today's top 3 trades, Jos. A. Bank is trading lower after reporting disappointing revenue, Pandora touches its highest level since its IPO, and Nordstrom is down after 2013 guidance. Also the play on the home builders space, with the FMHR crew.

Midday, the Dow Jones Industrial Average was on track to log its worst weekly drop since April – and the first back-to-back weekly loss since June.

"What happened yesterday was the worst possible world," Siegel said. "We had a strong labor market report with jobless claims, and we know the Fed looks at jobs for the tapering. And of course we have the weak guidance from the retailers."

(Read more: Jeremy Siegel bullish on earnings growth)

Siegel cited the rise in the U.S. Treasury yields but saw a robust demand for equities beginning in the fall.

"It hurts when it goes up," he said. "Now we're going catch 3 percent, I'm sure, on the 10-year – a little indigestion on the stock market."

"But if we can get some strength in the economy, people will look past that to a much better third and fourth quarter, and that's when buying starts in stocks."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

— CNBC's Stephanie Landsman contributed research to this report. Follow her on Twitter: @StephLandsman.

Trader disclosure: On Aug. 15, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long TLT; Josh Brown is long AAPL; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long FSLR; Enis Tanner is long GS; Enis Tanner is long NUE; Enis Tanner is long CF call fly; Enis Tanner is long SPY Puts; Enis Tanner is long DXJ; Enis Tanner is long UUP; As of /15 Michael Murphy is long BAC; Michael Murphy is long C; Michael Murphy is long MSFT; Michael Murphy is long LEN; Michael Murphy is long TOL; Michael Murphy is long F; Michael Murphy is long INTC; Michael Murphy is long CAT.

  Price   Change %Change
US 10-YR
S&P 500

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.