Credit Suisse sees tech stocks rising in second half but is cautious on market short term

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Credit Suisse is neutral to slightly cautious on the broader market for the next three months, but remains constructive in its long-term predictions, according to its second-half outlook.

The firm's analysts were most bullish on technology, industrials and health care, slightly bullish on energy and financials, and bearish on retail and consumer nondurables as fear of Amazon "incursion" continues to loom over most subsectors.

Markets in the first half of 2017 have been largely positive, with the S&P 500 up 8.5 percent so far.

"There are many bottoms-up drivers to the technology sector — including the iPhone Super-cycle, continued growth in Cloud, artificial intelligence, [and] autonomous driving," said Credit Suisse analysts. "[W]e continue to see the overall prospects of information technology as positive with IT substitution and penetration in the economy more likely to accelerate than moderate."