Technology, Healthcare to Lead Market Higher in 2016 - Wells Fargo

The stock market will rise next year as earnings growth expands, according to one market watcher, who expects percentage gains for the major indices will be in the mid-single digits. ‘My guess is that you see earnings begin to pick up because the economy around the world is getting better,’ said John Manley, Chief Equity Strategist with Wells Fargo Funds. ‘The market can do well. We probably have one more kick. We haven’t seen the exuberance we usually see at the top.’ Manley said even after the recent interest rate increase by the FOMC, the Federal Reserve isn’t trying to stand in the market’s way. ‘Janet Yellen wants to normalize the short end of the yield curve. She still wants to encourage economic growth. She doesn’t want to do anything that would make that growth more questionable,’ he said. Manley said several sectors look compelling heading into 2016, including selective oil stocks. ‘I tell people to buy the big international, old seven sister companies, the integrateds right now,’ said Manley. TheStreet's Rhonda Schaffler has details from New York.