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They're experimenting with alcohol I'm in favor -- okay the Dow bouncing off the lows of the day but.
For the week the markets are actually relatively flat with a busy week of earnings and the majority of them beaten expectations so it wasn't enough to have the market celebrating we got Sam Stovall chief investment strategist at -- capital IQ joins us now.
And what do you think via S&P is headed from here and you talk about a new catalyst being needed.
Hey Dennis well absolutely I think that we're going through a bit of a consolidation right now mainly because we got very close to that 17100 century mark.
And I find that any time you come up to a century mark to market tends to pause.
Because it acts as -- rusty door and so it's gonna require several attempts before finally breaks open.
And -- were looking for some sort of a catalyst may be getting better than expected.
Second quarter GDP next week may be getting better.
Payroll data could help we'll just have to wait and see.
So the second quarter GPW this is the first after it.
Coming out right on GDP so it in -- Wall Street would just say -- backward looking number we don't care that actually might be enough to get some people.
Possibly I mean right now the bar's set very very low only one half of 1%.
So if we end up with a number that's still.
Equal -- less then -- we got in the first quarter.
One point 8% I think a lot of investors are gonna say.
You know maybe we're gonna see the Fed started tapering program in December or maybe even wait until the beginning of 2014.
Which as you remember -- really sort of sparked the markets activity in the beginning of this month when the expectation was delayed a bit.
Right now stocks had a -- tactic.
First half up fifteen -- point percent.
Second half no way we're gonna write another fifteen to 20% so where do we go in the second half how much higher can -- go.
Well you brought up a good point a lot of people like to say what we did really well in the first half so as a result we can't do well in the second half we just you're gonna run out of steam.
Well actually history says the opposite -- that on average we end up with a about a four point 2% gain in the second half regardless of what happened in the first.
But if we ended up with a strong first half -- 10% or better.
We ended up gaining about seven and a half percent in the second half.
And the frequency that we saw an advance.
Went to three out of every four years vs two out of every three for all year so you have momentum feeds on itself yeah and yet.
I've been waiting for that momentum to take over really catch fire.
And yet so many people out there are still so pessimistic that a new survey coming out you -- I -- people do not like stocks are just too afraid.
Well that's good for the you know for the bulls for those people who believe that the market will continue to work its way higher that's positive have you have.
Everybody who is optimistic who's left to -- Who's left to support her even propel share prices of course we don't want it to go too high because then we end up.
-- prices that are well beyond what the fundamentals don't support but right now we're still looking at valuations on a trailing.
Or on a projected bases that are at double digit discounts to the median over the past quarter century.
Okay gals of -- up 151500.
Or so now where is it finished the year act.
Well obviously I'm with S&P capital IQ -- -- focus more on the S&P.
Our belief is that we probably could end up moving up toward the 71730.
Before we start to stumble a little bit from exhaustion.
So our year end target is 1730.
Are twelve month target is 1780.
All right -- and had a lot thanks for the specificity.
Have a good weekend -- stove all appreciate you.
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