Power Lunch

Monday - Friday, 2:00 - 3:00 PM ET

Power Lunch

Power Play: New highs not a sign of a market top

Pedestrians walk by the CBS headquarters building in New York.
Scott Mlyn | CNBC

The and Nasdaq are hitting new highs again this week, with the S&P up 17 percent since the lows of February 11. Despite these gains, PNC Asset Management Chief Investment Strategist Bill Stone tells CNBC's "Power Lunch" on Wednesday he does not think this is a sign of a market top.

"Certainly one should be less enthusiastic about stocks relative to February, but current valuation by no means spells doom," Stone said.

Read More What Wall Street got right this earnings season

He believes earnings and low interest rates continue to support stocks. "Interest rates matter for stock valuation. S&P 500 still has a dividend yield (2.1 percent) higher than the 10-year Treasury ( 1.54 percent)," Stone said.

A company Stone likes in this environment is CBS Corporation. "CBS owns quite a bit of sports rights, which helps insulate [it] against digital video recorders," Stone said.

CBS is higher during trading and is up 10 percent year-to-date.