Markets opened higher on Wednesday as a drop in inflation at the producer level helped fuel the momentum. Do stocks have further room on the upside? Charlie Smith, chief investment officer at Fort Pitt Capital Group, and Jeffrey Phillips, chief investment officer at Rehmann Financial, shared their insights. (Scroll down for Smith's stock picks.)
“We might break out from here a little bit,” Phillips told CNBC.
“We’re going to see some strong earnings numbers coming out at the end of the first quarter—we’ve got some momentum that is going to continue to carry us on the domestic side and we are excited abut the international equity side as well.”
Phillips said he likes technology, specifically the software sector.
“The efficiencies are what’s being added to the bottomline earnings numbers, and that’s what we’re seeing being played out here,” he explained.
In the meantime, Smith also expects the earnings surprises to continue and added that tech spending will increase.
“The refresh cycle for the Windows complex is just beginning,” he said. “The tech sector—it’s the driver of the productivity improvements that are allowing the earnings gains and that’s where the capital spending is going to happen.”
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No immediate information was available for Phillips or Smith.