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Power Play: What to do when the U.S. economy bounces back

A trader works on the floor of the New York Stock Exchange.
Adam Jeffery | CNBC
A trader works on the floor of the New York Stock Exchange.

Durable goods orders and retail sales have been disappointing since the beginning of the year, but two market strategists tell CNBC's "Power Lunch" on Tuesday they expect the economy to do better in the second quarter and in the second half of the year.

"The economy will pick up in the second half. We saw a first quarter anomaly mainly because of bad weather. Q2 earnings are going to be much better," said Paul Dietrich, CEO & CIO at Fairfax Global Markets.

Read MoreWall Street's mystery: Where's all the economic growth?

Julian Emanuel, U.S. equity and derivatives strategist at UBS, says it usually takes about nine months for lower gasoline prices to boost consumer confidence.

"When the public starts to feel better about investing in U.S. equities, health care will see an expansion. It has traditionally been viewed as a defensive sector, but that mindset is changing because of M&A activity, consistency of earnings and the demand tailwinds created by the Affordable Care Act," Emanuel said.

Health care is higher during trading and is up eight percent year-to-date.