Bob Doll, chief equity strategist at BlackRock, has a mildly positive outlook for the stock market and a strongly positive outlook for technology stocks.
Second-quarter earnings reports have looked good so far, he told Bloomberg. But the encouraging news “isn’t widespread yet,” he said.
“We don’t move from a horrible economy to a great one overnight, but … slowly but surely the less bad news seems to be giving way to actually some good news,” Doll said.
The key issue is whether the Standard & Poor’s 500 Index can trade through its recent range of 850 to 950, Doll said.
“It will take some good news to get us there,” he said. The index stood at 932 Thursday.
The economy is still a drag on stocks, he said. “We don’t expect a vigorous recovery because of the headwinds of credit issues, debt pay-downs and de-leveraging,” he said.
As for technology stocks, they have been a market leader and may well continue in that position, Doll said.
“Technology stocks have performed pretty well in this recession compared to other recessions. They are protecting their businesses far better,’’ he said. “You have a sector that has more cash on the balance sheet than any of the other nine sectors.”
Others agreed with Doll that the stock market is at a pivotal point.
“This week will be one of the most important in terms of determining the market direction for the rest of the year,” Jack Ablin, chief investment officer of Harris Private Bank, told The Wall Street Journal.
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