NEW YORK (TheStreet) -- U.S. stock markets were trading lower on Monday, after China's finance minister dampened stimulus hopes and U.S. home sales unexpectedly declined in August.
The Dow Jones Industrial Average
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Watch the video below for a closer look at how U.S. markets are doing in midday trading Monday:
Banyan Partners' chief market strategist Robert Pavlik said although the S&P 500 is up about 8.8% for the year, the market hasn't yet reached a top. In the short term, there's still more room to run, given that many investor uncertainties have been alleviated. Such uncertainties include soft, historical trading patterns for September, geopolitical issues, the Federal Reserve's medium-term policy outlook, and selling associated with investors freeing up cash for the Alibaba IPO, Pavlik said.
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Although some worries about an early rate hike are creeping back in and impacting certain sectors such as utilities, consumer staples and telecoms, Pavlik said in the long run a higher interest rate environment will be good for the economy; it would encourage banks to lend more and spur consumer action.
"For the remainder of 2014 I'm still optimistic and I continue to position my client's portfolios with a focus on growth that will arrive as the U.S. returns to a more normalized interest rate environment," said Pavlik.