Fundamentals Quite Solid for Stocks: Morris

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April 23 (Bloomberg) -- TIAA-CREF's Dan Morris discusses the outlook for U.S. stocks, corporate earnings and bond yields with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Been seeing over the past few weeks, is that over now?

It seems to be.

There was a question of whether that was indicating there was something we needed to worry about.

We don't think that is the case.

It did seem to be concentrated in the stocks that did quite well.

We don't think they told us anything about the broad market.

What are the fundamentals?

It is a relatively benign market or benign environment for equity.

You have low inflation.

We have slow but steady improving gdp growth.

We don't really see any big rights in terms of the macroeconomic environment.

The environment where u.s. corporations can focus on increasing profitability.

That will support equity prices for the rest of the year.

Were some of the sectors the victim of their own returns?

That is what happens.

You one of its time to take those profits and invest them in somewhere else.

When reason we did not think this was a more broad-based selloff that was behind this was that come even when we did have these good returns, valuations weren't stretched.

You still had earnings growth behind it.

If you had a role fundamental believe in that case, it might be an opportunity to put out more money on it.

This has been a pretty good earning season area why are the expectations for the quarter so modest?

It does not turn out that you're going to get a lot of growth for this report.

The changes for the rest of the year.

It will be a bit of a dance for the market.

You have probably too high earnings expectations for the rest of the year.

Are they going to come down?

They're going to come down.

You still going to get recently strong earnings growth.

Broad trend up with some volatility around it.

We are coming towards the end of april.

Has anything that has happened in the markets thus far surprise you?

Not really.

What we were looking for -- the weather, we expected things to be modest returns for the year.

We do like the general requirement and you don't see anything that will give you a big catalyst or change in the market.

That is fine.

At that has been an environment we would like to keep going.

Valuations are good.

We don't want them to go up too much and get stretched because you will have to reverse that.

Let's switch to the federal reserve.

Tapering is continuing on its present course.

Economic indicators are showing growth.

How long can yields stay down?

That's a bit of a mystery.

Why they are as low as they are.

If there is a risk for us to get a paper quick up -- that has not happened.

That could be something the market would have a bit of a difficulty adjusting to.

The best way we can describe it is halting in europe.

What happens if the european central bank does not deliver on quantitative easing?

You're going to see that in the old -- in the yields.

You have a store close and portugal.

The lowest it has been in years.

Given that they are so low, it won't be too difficult.

There are at rates that will hopefully reflect upon the metals.

We have about 30 seconds left.

In your opinion, where do you see the biggest threat to global markets coming from this year?

There is always the question of what's going on in china.

We just got the numbers from the china gdp.

They look good, but people don't believe they are accurate.

It is there something going on that we are not necessarily aware of?

It seems to be ok.

Dan morris from tiaa-cref.

Thank you so much.

This text has been automatically generated. It may not be 100% accurate.


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