Investors are keeping their eyes on earnings and Dow 10,000—so what does it mean for your portfolio and how should you position yourself now? Jim Lacamp, portfolio manager and advisor at Macroportfolio Advisors, and Craig Peckham, equity trading strategist at Jefferies & Co., weighed in.
“For those investors who are looking for ways to participate in the upside from inflation globally, equities are a logical starting point,” Peckham told CNBC.
Peckham said he expects positive earnings results over the next few weeks, and more companies will report positive revenue surprises.
In the meantime, Lacamp said the Dow will reach 11,000 by year-end, but underscored that breaking into new highs on volume is more important for the market.
CNBC Data Pages:
“I don’t think [Dow] 10,000 is technically significant,” he said.
“We’ve been looking at 10,000 as a psychological barrier but really we’re watching the volume and the leaders have been good. We haven’t seen any signs of a break in the market yet.”
More Market Intelligence:
- Citi, BofA, JPMorgan: What Options Traders Say
- GE Earnings: Will It Kill or Save Stock Rally?
On the earnings front, Lacamp said that the current rally is driven by liquidity and stocks could rise further because of companies that are cutting costs.
“But I don’t think the topline’s going to come in at all,” he said.
Lacamp Likes:
S&P Technology
DJ Gold Sil Plat
DJ Pipelines
Peckham Likes:
S&P Technology
S&P Energy
S&P Materials
______________________________
CNBC Slideshows:
______________________________
______________________________
CNBC's Companies in the News:
Ford
- Ford, UAW Reach Tentative Deal
CIT
- CIT Says CEO Peek to Resign; Bankruptcy Looms
Wal-Mart
Cisco
- Cisco to Buy Starent Networks for $2.9 Billion
Bank of America
______________________________
Disclosure:
No immediate information was available for Lacamp or Peckham.
______________________________
