A Market Rise in the Low Double Digits

That's the sort of gain S&P's Kenneth Shea expects to see the S&P 500 and Nasdaq chalk up by yearend

The stock market may be showing some softness now, but it should end the year with low double-digit gains in both the Standard & Poor's 500-stock index and the Nasdaq. So says Kenneth Shea, managing director of S&P's Equity Research Services. Information technology is a sector that S&P believes will outperform the 500 this year, Shea says, despite the fact that it has been lagging so far because of profit-taking after last year's big gains. S&P recommends overweighting info tech, he adds, and lists as among S&P's tech buys Microchip Technology (MCHP ), BEA Systems (BEAS ), Flextronics (FLEX ), Vishay Intertechnology (VSH ), and Sybase (SY ).

To continue reading this article you must be a Bloomberg Professional Service Subscriber.