Wall Street and corporate America are continuing to execute even though the economy is growing at a subpar pace, said Alan Gayle, Senior Investment Strategist for RidgeWorth Investments. 'Companies have managed to adjust expectations and they are stepping over a low bar,' said Gayle of second quarter earnings season so far. Gayle said he was encouraged by the steady progress in the U.S. consumer, reflected in continued job and income gains, strong auto sales and increased housing activity. He added that labor market slack appears to be abating, wages have improved and confidence is higher. Regarding the volatility in China and its potential impact on the U.S. stock market and economy, Gayle said China is basically 'trying to rebuild the airplane while it is in-flight.' 'They are trying to reorient it from being an export-led economy to a consumption-led economy and what happens is that the destructive end of that tends to come first,' said Gayle. 'That’s putting a lot of downward pressure on commodity prices, but to a great extent a lot of that is benefit of the U.S. consumer.' Gayle said he is currently keeping his allocation to commodities low despite the lower valuations. He said he will likely raise his allocation to energy and mining stocks once demand returns in full.