Strategist Bob Doll: Don't expect a 10% stock market correction unless earnings tank – CNBC

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Don’t expect a stock market correction unless earnings begin to tank, closely followed strategist Bob Doll told CNBC on Wednesday.

A possible market correction “is always the case, obviously,” said Doll, Nuveen Asset Management’s chief equity strategist. “But we still have incredible earnings growth, we still have [an] S&P 500 yield [that] is not much different from a 10-year Treasury. We still have central banks around the world that are accommodative. Layer on top of that, a pro-growth tax bill.”

“As long as earnings are OK, we’re not going to get a big pullback,” Doll, who says he’s still fully invested, told “Squawk Box.” At the moment, “earnings are just too powerfully strong” for a 10 percent correction, he added.

Stocks were little changed Wednesday after U.S. equities finished in the red on Tuesday. Investors were keeping an eye on Washington as they waited for details of a Republican-led tax bill.

Doll said the GOP “could have crafted a better” tax bill, but added, “it’s not all bad.” He also mentioned the recent shift in leadership of sectors.

“Do we own a few more financials than we did? Yes,” Doll said Wednesday. “Do we own a little less tech? … but I’m not saying tech is over. I think tech will come back on. It’s just not going to be the only leader.”

Also on “Squawk Box,” strategist Lou Brien says a possible new tax bill has benefited the market, but there are other reasons stocks “have been solid.”

“We’ve been trading to kind of the rhythm of the tax legislation, and the drama of whether it’s going to get through or not,” said Brien, of DRW Trading Group. “But tax legislation, like other things, is just the latest news.”

— CNBC’s Fred Imbert contributed to this report.