Power Play: A stock that works in this market

Verizon's Boston Destination Store.
Pat Greenhouse | The Boston Globe | Getty Images
Verizon's Boston Destination Store.

Stocks are rallying for a second straight session, with the Dow posting another triple-digit gain. But the move on Wednesday only brings the Dow back into positive territory for May.

James Investment Research President Barry James tells CNBC's "Power Lunch" ennui seems to be settling in as the markets appear to be treading water.

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"The risks are almost evenly divided, but not nearly as positive as in February. After a strong run in stocks, it is not unusual for the market to digest those gains and then try to figure out the next phase," James said.

He believes it is wise to reduce equity levels, while still keeping a healthy portion of the portfolio in stocks.

One of James' top picks now is Verizon. "It has $21 billion in free cash flow to support 4.5 percent dividend yield and [the] utilities/telecom sector is one of the least correlated to the stock market," James said.

Verizon is higher during trading and is up more than 7 percent year-to-date.