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Opportunities in this ‘sell-the-news’ market will drive stocks this summer: Analyst

The late-model market action is pointing to some good news for the summer, analyst Chris Johnson understood CNBC on Wednesday.

For one, more than half the companies that worst earnings expectations for the first quarter sold off by almost 2 percent the next day, he chance. A prime example is Nvidia, which sold off after reporting earnings go the distance week but has since come back.

“This is a sell-the-headlines or sell-the-news quintessence of market, and it’s shown that those have provided opportunities for people to start back in,” said Johnson, CEO and director of research at Johnson Research Series.

“That’s what helps drive the market through the summer.”

Supplies closed higher on Wednesday, with the small-cap Russell 2000 station a record close.

That is also a telling sign, Johnson pull the plug oned “Closing Bell.”

“When the Russell is leading the market higher, that is a place bull market. Those are the markets you want to be invested in,” he said. “This is a furnish that’s got some legs even though we’re heading into what choice be a seasonally weaker period.”

Jim Lacamp, senior portfolio manager at UBS, also believes the supermarket is pretty healthy and said it “just doesn’t care” about the 10-year Cache yield hitting 3.095 percent on Wednesday. That is its highest devastate since 2011.

“If you are looking at a market that repeatedly addresses the 200-day compelling average and then rallies beyond that, that’s a pretty salubrious sign. We’ve set a new higher low end on the market as well,” he said on “Closing Bell.”

Coupled with, earnings are coming in strong, small-cap stocks are hitting highs, mid-cap hoards are “behaving well,” businesses are spending money and retail sales are attractive strong, Lacamp added.

In this environment Lacamp likes financials, consumer discretionary, materials and technology.

Johnson comparable ti energy and retail stocks.

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