Stocks showing ‘remarkable resilience,’ one of Wall Street’s biggest bulls sees blockbuster earnings driving gains

One of the market's biggest bulls is urging investors to concentrate on fundamentals instead of the noise associated with geopolitical risks.

Oppenheimer's John Stoltzfus notes stocks are showing "remarkable resilience" in an environment that bodes well for gains.

"Stocks have gotten through this period in relatively good shape considering we've had two separate 10 percent pullbacks with a short recovery pace in between," the firm's chief investment strategist said Friday on CNBC's "Trading Nation."

Stoltzfus was one of the first Wall Street strategists to enter the year with a S&P 500 Index year-end price target of 3000. With the index essentially flat for the year, that equates to around a 12 percent gain over the next 8 months.

Despite the gap between current levels and his price target, he contended blockbuster earnings and market fundamentals could breathe new life into stocks.

"We think that what it'll be is continued improved earnings, improved revenues, and an economy that shows sustainability at a level around 2.5 percent to perhaps better," Stoltzfus said, with that dynamic bolstered by "the effects of tax reform as it begins to flow into the economy."

In the beginning of April, Stoltzfus told "Trading Nation" uncertainty would be swept away by a strong first quarter earnings season.

He believes a bullish catalyst next week could be "FANG" technology stocks, a group that's been hammered recently over a government regulation threat. A blowout number by the group, which contains names such as Alphabet [Google], Facebook and Amazon, could further drive gains, according to Stoltzfus.

"We'd like to think earnings season has to be enough for now," Stoltzfus said.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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