‘Not Where Bull Markets End’: Pro
A couple of factors near the beginning of earnings season suggest that the stock market has room to run, Josh Brown of Fusion Analytics said Tuesday.
"The new leg in the bull stool is now they're saying Europe is going to turn its back on austerity, so that's the new thing we're looking for for the next leg higher, whether or not it happens," he said. "But here's the truth: You got a 73 percent beat rate. We're about 20 percent through S&P 500 earnings, on top of which you had a 16 multiple. It's not the 12 multiple we were at three years ago, but it's certainly not where bull markets typically end, which is more like 17 or 18."
On CNBC's "Fast Money," Brown also said that he wasn't concerned about questions about a developing head-and-shoulders pattern in stocks.
"These things have been resolving to the upside," he added. "The market seems unfazed."
Stephen Weiss of Short Hills Capital was more skeptical of continued upside.
"It's a glass-half-full market, for sure, and it's going to continue that way," he said. "The negative side's not being focused on. Sure we had some industrials beat, but let's not forget that GE, in their core businesses, they were down mid-double-digits in the teens."
Weiss said that he preferred financials, especially with Spanish and Italian yields heading lower.
"You still have to be extremely careful about what sectors you're in," he said. "You have to be in the defensive stocks."