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-- and that way.
Tina -- -- Adams is an institutional equity strategist with Wells Fargo securities she joins us now you have a -- call on the S&P don't you I dare I think stocks might correct.
-- -- from here we've in my view we've been in a bit of an oversold bounce since the middle of November we got two incredibly oversold levels in the two weeks following the election.
We've been in a bit of a bounce.
As there really hasn't any near earnings cash NL the boils down their earnings -- know we've been completely captivated by the activity in Washington and what's happening in the fiscal cliff but.
-- -- stocks -- tend to follow the earnings trajectory.
Through the third quarter earnings season we had pretty massively negative news and that really weighed on stocks.
Just the lack of that negativity I think has allowed us to have this -- a bounce back but reality.
The economy continues to flow earnings are probably gonna continue to slow for the next couple of quarters and that probably pulls us back to reality in an extensive.
He's at 1450 -- your call for thirteen sixteen you say it has a lot to do with earnings because.
While business investment slowing right are we gonna see -- kitchen sink quarter.
-- superstar sandy blame China -- fiscal cliff gives me right to have bad numbers have probably.
We probably did see a pretty rough.
Fourth quarter and general the question for me is looking past a fourth quarter when we see in the first quarter of next year because investors are gonna start positioning for 2013 as a whole.
And our 2013 Collins -- very slow growth and earnings not 3% growth in earnings next year I think one big game changer could be unfortunately this fiscal policy after.
-- a fiscal policy ten.
Act to reinvigorate confidence reinvigorate risk taking in the economy -- -- accelerate becoming when we expected 2013.
But the longer we delay them more real economic impact he had and that's starting to -- on our earnings.
Your clientele is mostly.
Pension funds hedge funds institutional investors one of those guys saying what are they saying about what's gone on.
I'm trying peel away all the different data points coming -- and I think it's really difficult to get a retail as you mentioned on fourth quarter because out of the hurricane right.
There is and generalized improvement in housing the nobody's really sure how long -- -- improvement might be if the economy is really decelerating in the short term.
So I'd say we're trying to get a feel for where we're headed in 2013.
Investors are loans to avoid equities because the Fed is clearly backstop right from a monetary perspective.
But at the same time -- somewhat afraid of what could happen at the -- -- you haven't them you're having them move into more defensive sectors in the S&P but does that mean then you're saying takings now while taxes or some monster in.
And move yourself into sectors like health care things like that.
Generally I think the defensive sectors offer a much better -- much better prospects -- 2013 from our earnings models suggest that.
Health -- and utilities Staples consumer discretionary even some of -- more are defensive oriented names in the index are probably gonna have stable growth in the -- thirteen.
Which looks pretty gut -- comparison to the technology industrials energy materials some of the high flyers in the index where earnings are still the celery -- levels and that -- -- Lauren Adams Wells Fargo securities it's not distracted thank you sheriff thank you.
All right well instead of cutting government spending ahead of the fiscal cliff President Obama wants to raise it by billions of dollars -- does taxes spend book.
Gerri Willis will help us break it down have a feeling and what -- -- yet.
Really -- but first let's take a look at some of today's winners and losers on the S&P five times as we head out to break -- practically flat right now.
Advanced Micro Devices up almost 5% and caught.