Analyst Watch: Buy Up These 'Cheap' Stocks

U.S. stock index futures edged lower ahead of the open Monday in the wake of a strong close for Wall Street on Friday and ahead of fresh data on the housing sector.

Here's what guests on today's Squawk on the Street are watching before the opening bell:

In the near term (over the next few weeks), the market will continue to trade higher, Jeff Saut, Raymond James Chief Investment Officer, says.

"If you're a long term investor - good things tend to happen to cheap stocks," Saut says. And there are lots to choose from. He prefers:

Microsoft below 23

WalMart "under 50 is cheap" and the company is buying back stock

If you're a trader:

Saut's ETF pick: Dividend S&P

Saut's stock to buy: Cenovus


What to watch: event of the fall for the market will be mid-term elections, Saut says.

"If taxes are cut, stocks could stage year-end rally," he says.

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