Fund manager: This could give stocks a needed boost

New highs for the market?

Earnings have done stocks no favors recently, but they may lift a sluggish market later this year, one fund manager said Monday.

A tough first-quarter earnings season is wrapping up. Through Friday, earnings had fallen nearly 6 percent from the prior-year period, according to S&P Global Market Intelligence.

But facing easier comparable numbers later this year, companies may soon boost markets with quarterly results, said Allen Bond, co-portfolio manager of the five-star rated Jensen Quality Growth Fund.

"We think that comps get quite a bit easier as we get through the year and earnings growth could actually be a positive catalyst," he told CNBC's "Power Lunch."

Stanley Druckenmiller speaking at the SOHN Conference in New York on May 4th, 2016.
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Bond said an oil price drop and stronger U.S. dollar held earnings back at the end of last year and into this year. With U.S. crude up nearly 7 percent this year and the dollar down 4.5 percent against a basket of global currencies, those challenges have dissipated somewhat, he said.

Markets could use that kick from earnings. The S&P 500 has climbed modestly this year.

Stocks will likely stay "sideways" within a longer-term bull market until the earnings outlook improves, Wells Fargo Securities strategist Gina Martin Adams added Monday on "Power Lunch."