Antics in Washington, D.C., have stolen the headlines, but a "stealth recovery" may be taking root at the state and local level and hiring is expanding — all of which bode well for stocks, according to Bob Doll, chief equity strategist at Nuveen Asset Management.

Doll said in his weekly commentary that stocks are the best asset class, presuming the Federal Reserve begins to remove stimulus when economic fundamentals get stronger.

"Equity valuations are now neutral in absolute terms, but we believe stocks compare favorably relative to bonds and short-term rates," he wrote.

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"Importantly, the slow-moving economic expansion and lagging central banks mean the window of opportunity for equity gains will stay open and a further re-rating is possible."

Doll noted there has been a simultaneous easing in three main "reflationary" measures — the dollar is lower, Treasury yields have fallen and oil prices are lower, which is "reducing the drain on consumer and business purchasing power."

FactSet data show almost 50 percent of Standard & Poor's 500 companies have reported third-quarter earnings, and 75 percent have posted profits above the mean estimate.

Doll said purchasing manager surveys are showing gains and imply better future growth, while hiring plans and layoffs continue to move in a positive direction even though the latest jobs report was weak.

"U.S. economic data will likely be somewhat uncertain over the next few months due to the impact of the government shutdown and subsequent startup. We expect the underlying firming trend to persist once the fog lifts," he predicted.

Two other well-known market prognosticators also sounded a note of optimism this week.

Sam Stovall, chief equity strategist at S&P Capital IQ Equity Research Group, wrote on Twitter that the annual calendar looks favorable from here. He said that since 1945, the S&P 500 has gained in price 78 percent of the time from November through April.

"Investors are aware of the adage 'Sell in May.' But how versed are they on the S&P 500 results during the other 6 months?" he tweeted. His answer: "Since '45, S&P 500 rose an avg 7% from 10/31 to 4/30 vs 1.3% from 4/30 to 10/31."

Veteran technical analyst Ralph Acampora of the New York Institute of Finance believes the current stock market action looks positive.

"Use any hesitation as a buying opportunity; the 4th quarter is expected to be strong along with secondary leadership," Acampora tweeted.

"Value stocks are coming back into vogue, another sign of healthy rotation," he also tweeted. "Rotation is the life-line of a secular bull market; thus, the recent activity is adding to the longevity of this secular bull."

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