Wall Street Expecting 10% Earnings Growth in First Quarter

Wall Street is expecting at least 10% earnings growth in the first quarter, Sandy Lincoln, chief investment strategist for Wayne Hummer Asset Management, told CNBC’s “Squawk on the Street.”

“I think the market has at least 10% baked in,” Lincoln said. “If we don’t get that increase in earnings, I think you’re going to see a market correction. That’s an aggregate number.”

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Lincoln said he expects earnings of 11% to 12% in the first quarter and warned that, unlike most years, the bulk of 2007’s corporate earnings may come in the first half.

“We’re not going short,” he said. “We think there are some strong earnings coming.”

Lincoln said he’s over-weighted in healthcare and technology.

“The rationale on the tech side is that there are a lot of new launches coming this year, including companies like Adobe and Microsoft,” Lincoln said. “Coupled with the new launches, we think there’s a desire on the part of corporate America and individuals to upgrade to new versions. We think this offers some good prospects for the (technology) sector and it’s not all that expensive by historical standards”