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Strong GDP report may relieve investors' Fed worries

A strong GDP report could lower investor concerns about possible Federal Reserve policy changes, according to one strategist.

An economy that better supports a rate hike may lead to better support in the stock market, said Jeff Kleintop, chief global investment strategist at Charles Schwab, speaking from the firm's Impact conference. For one, a good GDP number could lead to improved earnings growth, he said on CNBC's "Power Lunch."

According to the CNBC/Moody's Analytics Rapid Update, economists now see third-quarter GDP growth tracking at a median rate of 3 percent, which would be the best rate in two years. Their actual forecasts are slightly lower at 2.9 percent.

"If that's the case, then you're likely going to see maybe better-than-expected profit growth and that would hopefully translate down into higher multiples and better stock prices, especially since you have the headwinds of the election," Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, said on "Power Lunch."

Kleintop agreed and said individual investors who have been sitting on the sidelines are likely to get back into the market once the dust clears from the presidential election.

— CNBC's Patti Domm contributed to this report.