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Stocks Are 'Reasonably Priced' in These Sectors

Stocks bounced back Friday morning after a report showed new-home sales soared last month. David Joy, chief market strategist at RiverSource Investments, and Doug Sandler, co-founder of Riverfront Investment Group, discussed their market insights.

“Fundamentals have improved, whether it’s economics, earnings, CDS spreads or spreads in the bond market,” Sandler told CNBC.

“Stocks are reasonably priced, especially versus alternative assets.”

Sandler said he likes the cyclical areas such as consumer, health care and technology.

“We’re avoiding the commodity complex—we’ve trimmed down on energy and materials,” he said. “We don’t like the true defensives like utilities and telecom.”

In the meantime, Joy said he likes the technology sector.

“We’re in the early stages of a refreshment cycle…we think this has legs and is a 3- to 5-year refreshment cycle, especially in the business community,” he said. “So we have a lot further to go in tech.”

In particular, Joy said that although Microsoft’s topline numbers disappointed Wall Street on Thursday, it’s still a “good buy.”

Counterpoints:

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CNBC Data Pages:

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Friday's Dow Leaders (as of this writing):

American Express

Caterpillar

Home Depot

3M

Alcoa

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Disclosures:

No immediate information was available for Joy or Sandler.

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