When The S&P Blows Past Oppenheimer's Year-End Target, It's Time To Raise It

Oppenheimer Asset Management's John Stoltzfus was bullish on the S&P 500's prospects heading into 2017 and estimated the index would close the year at 2,450. Now that the index has already breached his end of year target is he calling for further upside or merely expecting the market to trade flat during the bottom half of the year?

Stoltzfus bullish stance remains unchanged and expects to crunch the numbers again and "likely" raise his end of year target on the index in the coming days, he said during a recent CNBC "Trading Nation" segment. But it is unclear now how much higher the index can run and is dependent on a few factors.

First, there hasn't been much support from the White House and any new stimulus from President Donald Trump's administration will "make us more enthusiastic," he said. Also, earnings have been "getting stronger" this year but consensus estimates are calling for a "slight weakening" in second quarter earnings which calls into question the likelihood of a 2–2.5 percent economic growth for the year.

Nevertheless, the stock market's strong performance so far with no signs of a reversal could prompt many investors sitting on the sidelines to move into stocks, the analyst added. Meanwhile, the Federal Reserve is not going to raise rates "exponentially" but will do so in "very small increments," which will also be supportive of the bullish story, although perhaps at the expense of bonds which will "feel some effect" as rates rise.

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