With markets higher for three straight trading sessions, is this a summer rally and should investors put their trust in it? Ned Riley, chief executive of Riley Asset Management, and Jeffrey Saut, chief investment strategist at Raymond James, discussed their outlooks and best plays.
“I’m not convinced that the lows for the year are in, but I think we’re in an upswing here that will last through the balance of the earnings season,” Saut told CNBC.
Saut said he favors the IT sector as companies gear up for a corporate refresh cycle. He said firms such as Microsoft are poised to benefit.
“You’ll get a whole upgrade cycle of not only software but hardware as well,” he said.
In addition, Saut also likes Wal-Mart .
In the meantime, Riley noted that although the markets in March produced a negative mindset about the second quarter, 83 percent of companies that have reported earnings so far have beaten estimates.
“So this is setting up for the rest of the year,” he said. “This economy is going to be growing slowly, but companies are still going to produce a very good response.”
Riley agrees with Saut about opportunity in the technology sector.
“I’ve never seen growth so cheaply priced in my life,” he said. “I don’t understand why people don’t want these stocks.”
Riley’s tech sector picks include IBM , Apple and Microsoft.
______________________________
Scorecard—What They Said:
______________________________
Market Views Across the Board:
______________________________
CNBC Slideshows:
______________________________
CNBC Data Pages:
______________________________
______________________________
Disclosures:
No immediate information was available for Riley or Saut.
______________________________
