Stocks are likely to remain rangebound for months because second quarter earnings will likely come in relatively weak, portfolio manager Ed Keon said Tuesday.
The Quantitative Management Associates manager said he believes Greece will stay in the euro zone, but ongoing negotiations are increasing market uncertainty. At the same time, U.S. equity valuations are higher than normal and earnings growth will be close to zero this year, he said.
"After being very bullish for many years, we have been slowly pulling back," he told CNBC's "Squawk Box." "With relatively weak earnings growth and a little bit premium valuation, I have been more close to benchmark in my asset allocation portfolio than I have been for the last several years."
S&P 500 earnings are projected to fall 4.5 percent from the same period last year, marking the first year-over-year decline since the third quarter of 2012, according to FactSet.
While the stocks looks fairly valued overall, pockets of the market are still seeing earnings growth of 10 percent or more, said Monica DiCenso, JPMorgan Private Bank head of U.S. equity strategy. Those include health care, technology and financials.
"We think you want to focus on those specific themes, single stocks and stories rather than saying the overall market is going to run significantly," she told "Squawk Box."
DiCenso said JPMorgan believes investors will see a pickup in earnings. "Expectations are very low going into the quarter, and so, when you look at the impact of the dollar and of oil this quarter, it's actually very similar to Q1. So we think we're actually going to see a nice beat through the second quarter that could give you a little rally through August."
Keon noted that earnings have come in above estimates every quarter for roughly the last 30 years. For that reason, it will be no surprise if third quarter earnings are good.