3 Sectors Will Ride Market Rebound: Strategist
Stocks opened higher on Tuesday, led by energy and industrials, after ending lower in Monday's trading session after Moody's cut Greece to junk status. Jeffrey Kleintop, chief market strategist at LPL Financial, and Beth Ann Bovino, senior economist at Standard & Poor’s, shared their market outlooks.
“Overall, we see the U.S. economy holding up,” Bovino told CNBC. “It’s going to be a lazy U[-shape].”
But expect economic headwinds going forward, she added.
In the meantime, Kleintop said although recent negative reports from Europe have been “sapping the strength” in the U.S. markets, the news hasn’t done much fundamental damage so far.
“We’ve seen earnings revisions moving up in recent weeks," he said. "That creates an environment of value and some investors will be able to step in and take advantage of that in the coming weeks."
“We're looking to small-cap US stocks—they are very attractive as an asset class and I think it’s going to be one of the leaders to the upside,” he said.
In terms of sectors, Kleintop advised investors to look at business spending-oriented sectors over the consumer-oriented ones.
“And look at commodity-driven sectors,” he said. “Materials, industrials and technology look to be the winners on the rebound.”
Scorecard—What They Said:
- Bovino's Previous Appearance on CNBC (Jun. 3, 2010)
- Kleintop's Previous Appearance on CNBC (Jun. 10, 2010)
More Market Views:
- Equities 'Safe' Again; Focus on Cyclicals: Strategist
- Double-Dip Risk Is Rising in the Euro Zone: Roubini
- Bearish Sentiment Indicates Good Time to Buy: Art Hogan
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Cramer's 12 Stocks to Play the Recovery
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No immediate information was available for Bovino or Kleintop.