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Interest rates could quickly rise to 3 percent: Bob Doll

Interest rates may still be low right now, but don't be surprised if they rise quickly, Bob Doll, chief equity strategist at Nuveen Asset Management, told CNBC's "Closing Bell" Thursday.

"There's no question that interest rates have come down a lot more than most of us thought coming into the year," he said.

The 10-year Treasury is signaling there is something wrong, and it is probably concerns about Europe, he added.

"If in fact the bond's market is saying, 'I'm from Missouri, show me better growth before I move down in price and up in yield,' we could get a fairly quick move up back towards 3 percent."

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Bob Doll, chief equity strategist, Nuveen Asset Management.
Adam Jeffery | CNBC
Bob Doll, chief equity strategist, Nuveen Asset Management.

Doll also thinks the market isn't doing bad, even though it has not changed a lot.

"If you analyze year-to-date gains, add two points for dividend yield, we're knocking on high single-digit total return for this year and after 30 last year, I'm not sure that's a bad year," he said.

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He also expects the economy to grow. In a recent market commentary, Doll wrote that he thinks the second-quarter gross domestic product growth will exceed 4 percent.

"We need a little bit more real GDP because the marginal profits that come from a little more top line are huge, as we've witnessed in recent quarters and years, and I think we'll get a slightly better economy," he said Thursday.

Liz Ann Sonders, Charles Schwab chief investment strategist, also thinks "a pretty decent number in Q2 is probably in the cards." While she's seen some estimates as high as 5 percent, she told "Closing Bell" she believes 4 percent "is doable."

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—By CNBC's Michelle Fox

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