Companies Plagued by Dollar, Oil to See Improvement in Second Half

Despite the fact that many companies are beating analysts' earnings expectations this earnings season, David Lebovitz of J.P. Morgan (JPM) Asset Management doesn't believe investors should get too excited. Lebovitz explains that companies' revenues are being hurt by the stronger U.S. dollar and lower oil prices -- challenges that he expects to dissipate in the third and fourth quarters. That's when he believes companies will start to see improvement in their quarterly results. For now, Lebovitz says he's maintaining a tilt toward more cyclical sectors like technology and the financials -- sectors that should benefit from an improving economy and a rising stock market. As far as oil goes, Lebovitz says it's too soon to call a bottom, although we've seen some stabilization in prices.

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