Good news may still be bad news—at least for the first few months of 2014, according to Barclays' Barry Knapp.
Knapp, the head of U.S. equities at Barclays Capital, told CNBC on Thursday that markets are vulnerable to the Federal Reserve's looming interest rate hikes, adding that subsequent financial tightening and limited borrowing could affect equities.
While the Fed isn't expected to raise rates until 2015, a better-than-expected December employment report Friday could raise concerns about the pace of rate hikes, Knapp said.
Though such concerns wouldn't disrupt long-term economic recovery, he said, the first half of 2014 could be difficult if lending slowed.
"We think the market is vulnerable to a pullback related to tighter financial conditions—a long-winded way of saying good is going to be bad tomorrow," Knapp said on "Squawk on the Street."
(Read more: US claims slide as expectations brighten)