>> susie: stocks are up so far this year, but adam parker expects the markets will close flat for 2013. he's chief u.s. equity strategist at morgan stanley. so adam why so gloomy so, many strategists are much more positive than you are. what is your thinking? >> well, look, we have a more cautious earnings outlook than i think some of our peers. the macroeconomy is not that strong right now. and corporate earnings aren't growing that much. i think that is the root of our near-term caution. >> susie: on earnings also you're not so upbeat. are you looking for them to be flat-to-down 1%, again conscientious. up 11 percent. the distect-- disconnect? >> look, i'm pretty certain the conscientious estimates are too high this he have been too shy for a year now. we saw the worst quarter in the third quarter this cycle on the revenue side. and i think that will continue. i think the question isn't are the consensus earnings too high t is will the stock market care. because the last year the s&p total returns basically

here now is one of the respected names adam parker. thank you for coming out here. do google beat good add numbers. stock up after hours trading. that tells me that the economy is doing better. what is your take? >> i think the economy is more mixed. it seems to me, google hot today and obviously a great tech story and also an advertising tostory. friday, general electric. kind of told us that world economic expectations might be better. is the world better? >> i think it is possible that the eearnings are going to be better. if you look at the bottom of estimates, they were $114 for the s&p -- i'm sorry $120 they are coming down. we suspect they are going to continue to come down. we suspect the corporate earnings are going to come down. i want to add economic stuff to this. today, existing home sales 12.8% above a year ago. existing home sale prices plus 11%. that is progress it was falling at 4%. last week, manufacturing up, capitol goods up. are he ewe estimating the econo? >> clients are asking me about upside risk. nobody is asking about upside risk. i think t

adam parker, from morgan stanley, joins us. always good to have you.e to you. i remember congratulating you on basically naili ining 2011. >> that's kind. the interesting thing, carl, is that in 2011, when we looked at our portfolio, december 30th at 3:00 p.m., 2011, the market traded a forecast on gen-1. in 2012 we outperformed by 280 basis points. i think the reason is the kind of stocks that work in a big uptake, were very atypical. higher quality, larger cap. in 2012 i said we would have a market up mid-teens, you would have picked machinery, well services, so i think that's the interesting dichotomy of coming to great call, bad call. i think the key in 2013 is thinking about the stocks that outperform independent of the mania. >> big things you're pointing out for this year, get longer china, right? >> yeah. longer china. we added an increased position on two, three months ago to industrials. we think that a lot of negativity is in the market in terms of u.s. stocks with china exposure. some of that's really started to work over the last few weeks

parker, couldn't have said it belter at all. thank you very much. great to have you on the show. >> you're welcome. adamashington. all day long on fox business network, peter barnes breaking down the deal by income. at the top of the hour, you heard from him on what the deal means for people who make between $75 # ,000 and $100,000 a year. the next report is at 1 p.m. eastern, and he's going to look at what it means for people who make between $100,000 and $200,000. if you missed the earlier report, see it here on fox business and foxbusiness.com. a not so happy new year for apple's flag ship paris. a million dollar heist. cheryl: the timing of it better. why car sales are about to kick into high gear. yep, getting numbers out today, but, first, take a look as we go to break at the ten-year treasury. ♪ [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the righ