Market Excels -- Against Low Expectations

Wednesday, 25 Apr 2007 | 4:33 PM ET

Alec Young, equity market strategist for Standard & Poor’s, told CNBC’s “Closing Bell” that beating low expectations moves the market higher.

“We think the momentum in the market is looking really good,” Young said. “We know earnings growth is slowing a little bit from the pace of the last few years, but nevertheless the market was priced for 3% earnings growth this quarter. We’re coming in at double that rate.”

Dow 13,000
With the Dow passing 13,000, a look at where the market is likely to go next, with Alec Young, Standard & Poor's equity market strategist and CNBC's Dylan Ratigan

Many analysts overestimated how much the economy would slow, making positive economic news rocket fuel to propel the market higher.

“The market definitely priced in one big theme earlier in the year, and that was a slowing economy,” Young said. “So today’s news on durable goods coming in well ahead of expectations was a positive surprise. But even when we get bad news on the housing front like we did (Tuesday), the market is able to look through it.”

Young likes healthcare and financials, especially investment banking and brokerage stocks.



  • Showtimes

    United States
    Monday - Friday 3:00P ET
    Monday - Saturday 21:00 CET
    Tuesday - Saturday 03:00 SIN/HK
    Tuesday - Saturday 05:00 SYD
    New Zealand
    Tuesday - Saturday 07:00 NZ
  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is an on-air correspondent, reporting across CNBC's business day programming. She is co-anchor of CNBC's "Squawk on the Street."