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

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

The S&P 500 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.

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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.