Stocks are taking a breather Monday, but the direction of the Dow toward 10,000 continues. How long will it be before the level is broken and what will that mean for stocks going forward? Craig Peckham, equity trading strategist at Jeffries & Co., and Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, shared their market and investment insights. (Scroll down for their stock and sector picks.)
“I think we’ll see [10,000] before the end of the year,” Cuggino told CNBC.
“We’re going to continue to see momentum in earnings growth in the third and fourth quarters and that’s going to propel stocks further.”
Cuggino said the markets may be in for a volatile ride since they have come a long way this year, but he believes economic trends are “ones of growth” and will propel markets to rally further.
Peckham agreed and said the Dow will reach 10,000 in a few weeks.
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“My bigger question is that when we see earnings results in the third quarter—the bar has been raised pretty dramatically and the expectation is for a much more significant improvement in the topline from corporate America," Peckham said.
"So it’s imperative that we have a real good sense of where expectations lie going into the third quarter, relative to stock prices.”
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Peckham said he expects the dollar to continue to be under pressure “as investors take on more risk and as the market reflects a continued pressure in the U.S. balance sheet for some time.”
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No immediate information was available for Cuggino or Peckham.