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Special to CNBC.com
This is the week the market will make its big push, as positive earnings surprises will send it higher and carry it through the rest of the year, said Marc Pado, US markets strategist at Cantor Fitzgerald.
"As these companies get an incremental amount of more production, it's going to be more profit, and that's what stocks trade off of," Pado said. "[It's] not about the economy, not about employment — in the long run those are important, but right now it's about profits."
Pado said the market will experience a "very playable" pullback early next year from people buying on rumor and selling on news. Still, it won't drop back down to its March lows, he said.
"That was a false low that was put in," he said. "That was panic."
More Investor Intelligence:
But Andy Bischel, chief investment officer at SKBA Capital Management, said he thinks a slew of economic surprises, including GDP growth for the next four or five quarters, will help the market maintain its gains through 2010.
To play the swing, he said investors should buy into the New York Stock Exchange (NYSE Euronext [NYX
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], which has maintained a "pretty clean" balance sheet and has the opportunity to expand its loan book and gain market share.
CNBC Data Pages:
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Companies Reporting Earnings This Week:
General Electric [GE
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Intel [INTC
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JPMorgan Chase [JPM
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Goldman Sachs [GS
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Bank of America [BAC
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CNBC Slideshows:
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Disclosure:
Disclosure information was not available for Pado, Bischel or their companies
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