Market is sending a clear message about Trump's presidency, Mohamed El-Erian says

El-Erian: Market embraces pro-growth elements of Trump policies

There is a sense from the market that President Donald Trump is going to enact policies that will be good for stocks, noted investor Mohamed El-Erian told CNBC on Friday.

However, that's not the only signal the market is sending.

"There's a very clear message form the market. It embraces the pro-growth elements of President Trump's policies — tax reform, deregulation, infrastructure, and it is concerned about the protectionist tendencies," the chief economic advisor at Allianz said in an interview with "Closing Bell."

Trump, who was sworn in as the nation's 45th president Friday, has promised to curb regulation, cut taxes and spend on infrastructure.

However, he struck a populist tone during his inaugural address, pledging to put "America first" and repeating campaign pledges to push companies to return jobs to the U.S.

"We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs," Trump said. "Protection will lead to great prosperity and strength. I will fight for you with every breath in my body and I will never ever let you down."

Stocks rallied before the inauguration but then waffled after Trump gave his speech. They ultimately ended up, but off the day's highs.

Adam Parker, U.S. chief equity strategist at Morgan Stanley, is optimistic that there are "plenty" of opportunities to be found in the market right now.

"There will be much more earnings growth because of the policies, eventually," he said. "The question will be does the price-to-earnings ratio offset that a little bit."

Parker told "Closing Bell" he's bullish on the growth prospects in biotech. He also likes oil services companies and thinks utilities look attractive.

However, he's cautious on consumer discretionary stocks, because he feels multiples can contract, and on infrastructure stocks, which have run up "a ton" since the election.

— CNBC's Patti Domm and Jacob Pramuk contributed to this report.