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-- news Wall Street hoping the bullish momentum from today's rally.
Carries over into the after hours session as we await earnings from both Yahoo! and apple.
Numbers from Dow components Coca-Cola IBM helping fuel a buying spree in the regular session today.
Adding to the optimism indication from Washington that a compromise agreement on cutting the deficit.
And reason the debt ceiling may -- in the work.
So with earnings season heating up -- a spending deal in Washington potentially on the horizon.
How should you position your portfolio with -- Stuart Friedman chief equity strategist at Wells Fargo advisors and -- it's great to see you.
Now you're looking at great numbers today I think.
IBM accounted for some seventy points of the house gains because.
I think and came out -- back up numbers yesterday after the bell companies are doing pretty well how -- -- position portfolio.
In what appears to be better times at least -- equity standards.
I think we're you know -- -- -- -- later mid cycle period for the economy right now earnings growth and it looks good but it is slowing and -- just both of the year and in the next few year over year numbers are.
Expectations earnings will be up 7% next year.
So the biggest thing really right now I think is what happens in the macro environment what happens with that I think the most important thing for the market today frankly was.
President Obama coming out saying that you know he was endorsing perhaps a plan that might work to raise the debt ceiling so.
Second best for the -- housing starts and third was earnings and so far earnings are up 74% better than expected we expect I think that by the end of the season will be 67%.
Better than expected that's what will we has happened last couple quarters so.
Good many analysts have got a lot better at it hitting on those numbers since the recession over the last.
Three or four quarters.
We're we're recommending investors stay pretty balanced view we're very heavily cyclical early in this India.
In the recovery and right now we're actually we're overweights in utilities but we're also overweight industrials.
We're overweight Telecom services kind defensive.
But were overweight material in we're in -- overweight materials as well so.
We're a little bit underweight health care and Staples still because we think that.
This continuing recovery is going to help you more appears typically little bit more is typically a bias.
Yes still it is and Liz -- I've just been marveling -- marveling personally at that resiliency of this market you can -- that you can throw.
The kitchen sink at it to -- the -- and the -- in this market seems to be hanging in pretty well but.
Are you concerned when you look under the hood of corporate earnings that you're seeing some things -- not quite like I'm not talking about the tech sector.
I'm talking potentially about the banking sector and talking about those companies that and sectors that still.
You know got five I'd been putting themselves and I look at the long of the government's subsidy are you -- under the -- -- the earnings are you seeing things are not -- Well we're still seeing -- slowly we're seeing things look better in the financial sector.
But it is a sector that says that it's still lagging and in the market still pulling that sector along -- markets still moving with with a little bit less.
Excitement from that sector I think in order for us to get that the second leg up a strong second leg up in this.
In this cyclical recovery which we think we well.
-- to loan growth picking up a little more and us on the numbers in the financial sector doing little better I think that is a key for the second leg in this recovery.
Today we saw Harley-Davidson.
Up killing it on on earnings and so you look at a name like that.
With the Tiffany and a Coach where the products -- rather expensive but people are still spending that money but financials of the and that one very cloudy area you just referenced them.
Are their names are the people might start picking up at -- sort of more bargain rates because they're still isn't a lot of visibility on the horizon.
Well we really you know I really not in the in the business of talking about the individual.
I'm not asking you if there -- I'm not asking you to I know that for years that you don't do that I'm just saying overall.
Are there opportunities.
And should should -- only are we going for those lesser operative what appear to be sort of still weakened nebulous areas.
I think you know right now if you looking forward a couple years that a lot of financial stocks in and number different sectors within the financials.
Our interest seeing as investments if you're looking ahead a couple of years through and we had eighteen to 24 months -- right now there's still some out of favor of -- there are opportunities there do I let it sit tight we have.
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