Markets closed lower on Tuesday as Wall Street fretted over a weak start to earnings season. Sam Stovall, chief investment strategist at Standard & Poor’s, shared his market outlook.
“I don’t think [Alcoa’s earnings] is like the January barometer,” Stovall told CNBC.
“This time around, it’s a company-specific story…So with [Alcoa's] stumble, I don’t think it necessarily paints a negative earnings picture for the overall quarter.”
Speaking on the economy, Stovall said it is unlikely that the Fed will raise rates until at least the second half of 2010.
“Unemployment will stay above 10 percent for all of this year and as a result, inflation is likely to remain low,” he added.
Stovall expects a second bull market year to continue. Although the rally may not be as great for the markets as in 2009, investors should not worry about equities until 2011, he believes.
“The second year is always less than the first year, so I think we worry starting in the third year, not necessarily in the second year,” he said.
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No immediate information was available for Stovall or his firm.