GO
Loading...

Second Quarter Outlook: Analyst Sees Strong Tech, Soft Consumer Sector

Kevin Divney, chief investment officer and portfolio manager for Putnam New Opportunities Fund, told CNBC’s “Squawk on the Street” that he believes there will be some second-quarter earnings surprises.

“I think management has been much more cautious over the last three years,” Divney said Monday. “…I think in technology, [forecasts will] be a little under, but in consumer, they’ve been bearish and that could be right.”

Overall, earnings grew about 10% in the first quarter, and the second quarter estimate is for earnings to grow about 7%.

Year-to-date, the Dow Jones Industrial Average has gained 7.59%; the S&P 500 has gained 6%; Nasdaq has gained 7.78% and the Russell 2000 is 5.85%.

Divney said he likes National Oilwell Varco because the long-term outlook is solid for equipment used in exploration and development of energy.

He also likes Nike, because it’s a strong brand and the company has the ability to increase cash flows by cutting manufacturing costs.

Symbol
Price
 
Change
%Change
NKE
---
NOV
---

Featured

Contact

  • Showtimes

    United States
    Monday - Friday 9a ET
    Europe
    Monday - Friday 15:00 CET
    Asia
    Monday - Friday 21:00 SIN/HK
    Australia
    Monday - Friday 23:00 SYD
    New Zealand
    Tuesday - Saturday 01:00 NZ
  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • “Squawk on the Street” Co-Anchor

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.