Stocks struggled for gains Friday, a day after the had a record close, but some investment pros believe the market is heading higher.
Kenny Polcari, director at O'Neil Securities, told CNBC's "Power Lunch" it was a little disappointing that there was no follow-through on Thursday's rally. However, he expects stocks to break out next week.
The market is "playing games with your head. It's trying to make you think it's going to back off and then when everyone expects it to back off, it's going to do exactly the opposite and move forward," the veteran trader and CNBC contributor said.
While strategist Jeff Kleintop thinks valuations are slightly above average, he also expects the market to head higher thanks to corporate activity.
"The same buyer is still in the market that has been driving stocks higher for five or six years now. That's the corporations," said the chief global strategist at Charles Schwab, which has $2.55 trillion in assets under management.
Corporate stock buybacks have been boosting the market, and M&A activity is now picking up, he added.
In fact, April was the second-largest month in 15 years for deal volume, Kleintop noted.
"There's still a lot of fuel out there and when you're in a low-growth environment and being able to buy earning per share by doing a merger deal, buying a smaller competitor or a peer, is an attractive way to put that cash to use. I think it will continue," he said.
Scott Clemons, managing director at Brown Brothers Harriman, believes earnings have been driving the market.
"I still expect the market to move higher but really only in line with pretty modest earnings growth this year," he said.
He also believes a September interest rate increase by the Federal Reserve is already baked into stocks, noting that a hike by 25 basis points is still not tight monetary policy.
Meanwhile, both Clemons and Kleintop like emerging markets.
With those markets at or below long-term averages, they are one of the few areas still attractive on a valuation basis, said Kleintop.
"They're also generating some earnings growth right now. It's one of the few areas where we're actually seeing earnings turning higher and that's important here in an environment of generally sluggish global growth," he added.
Clemons said he is a selective buyer of emerging markets, finding the best opportunities in China, India and Brazil.