As market hits new highs, experts predict the momentum will continue

The U.S. stock market ended the first trading day of 2018 higher, and trader Peter Costa thinks that's a trend that's going to continue for a while.
"We'll have some minor, minor pullbacks, but until we have something that actually is a game changer, I don't think there's much in the way of this market going higher," he said.
Bespoke's Paul Hickey thinks with the economy doing well, investors should stick with the market.

blob:https://www.cnbc.com/ab0e7118-4d7a-4ea1-af12-b2a636f4f4dd
The U.S. stock market ended the first trading day of 2018 higher, and trader Peter Costa thinks that's a trend that's going to continue for a while.

"The momentum in the market is such that it's going to continue going up," the president of Empire Executions told CNBC's "Closing Bell" on Tuesday.

"We'll have some minor, minor pullbacks, but until we have something that actually is a game changer, I don't think there's much in the way of this market going higher."

The S&P 500 closed 0.8 percent higher at 2,695.79 on Tuesday, notching intraday and closing records. The Nasdaq also hit record highs and closed above 7,000 for the first time.

The strong start to the year was a continuation of the action seen in 2017, when the S&P 500, Dow Jones industrial average and Nasdaq gained 19.4 percent, 25.1 percent and 28.2 percent, respectively.

Costa, a CNBC contributor, also sees good news in the rally in the Dow transports, which he thinks is indicative of more new highs to come.

"That just tells you that the economy is still growing and that there is … definitely more room on the upside," he said.

Paul Hickey, co-founder of Bespoke Investment Group, believes investors should stay the course because the market ultimately cares about what the economy and Federal Reserve are doing, not seasonal expectations or concerns about corrections.

"The economy is continuing to do well. We're seeing leading indicators of the economy continue to show strength, and the Fed isn't showing any real signs of becoming overly aggressive," he told "Closing Bell."

"Until one of those two things [changes], I think investors will be best served to stick with their plans and stick with the market rather than reacting to headlines or becoming more cautious because we're due for a pullback."

— CNBC's Fred Imbert contributed to this report.

https://www.cnbc.com/2018/01/02/as-market-hits-new-highs-experts-predict-the-momentum-will-continue.html?recirc=taboolainternal