2-6-18 4:38 PM EST | Email Article

Shares of manufacturing and transportation companies rose as analysts said a stock-market correction that was particularly hard on cyclical stocks would likely be shortlived.

"Most true bear markets tend to roll over, not crash," said Craig Birk, executive vice president of portfolio management at wealth management firm Personal Capital. "While there is never certainty, a sharp drop in a matter of days is more indicative of a correction than the end of the bull market. To keep everything in perspective, treasury yields have ticked up, but remain at historically low levels."

Similarly, Scott Clemons, chief investment strategist at private bank Brown Brothers Harriman, said the stock market could continue higher alongside interest rates, as long as earnings growth also sustains its upward momentum. "The tradeoff between higher interest rates and the pace of earnings growth is the fundamental question for equity markets in 2018," said Mr. Clemons, in a note to clients. "As long as corporate earnings continue to grow, the equity market should be able to withstand higher interest rates."

--Rob Curran, rob.curran@dowjones.com


(END) Dow Jones Newswires

February 06, 2018 16:38 ET (21:38 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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