joining us now is "squawk" market master jeremy siegel. iversity of pennsylvania wharton school of business, and chief investment strategist at rbc. jeremy just with what we've seen, you heard the discussion, and you know that the gdp backdrop is just positive enough to allow for low interest rates, and some growth at companies but are you at this point looking at the stock market saying, it's not acting that well internally, and maybe we'll have a little bit of a respite? >> well, you know, jonathan mentioned about the defensive stocks. telecom, you know, is doing well. utilities are doing well. but i think that's a yield story. i mean, yellen gave us the green light last week if i ever saw one that, you know, she is in no hurry to raise the rates. and that's why the so-called defensive sectors have done well because hey, i've been a buy yield if there ain't going to be yield anywhere else. i don't see that as an internal sign of weakness in the market. >> jeremy, okay, we got low interest rates. but you look at the vix, the volatility, yo

. >> then you have jeremy siegel on yesterday, who said valuations are not stretched right now. that is likely to grow 3%, three .5%, inflation is still low, interest rates are also low. to see a rally? >> it may be a question of timing. i think we are due for some sort of correction the second half of the year, but i don't think that would he rail the bull market. i think maybe we can push this another three, possibly even five years. there is still a lot of slack in the economy. right now, a little too much complacency. more of your liquid money. ok, you have certain sectors that you like. alix, you have their calls on cyclicals. >> not everyone agrees with the basically earnings estimates are pretty high. sensitivity toa fed policy, among the highest in the s&p, and they are slowing .rowth financials and discretionary, they have a lot of domestic exposure, are the worst off. like cyclicals, though. >> yes, i do. probably we will see 3.5% growth in the second quarter. over the second half of the year we will see a similar number. i think the household sector is well-positioned

the dow hasn't even hit 17,000 yet, but famed finance professor jeremy siegel says janet yellen and the light for 18k. that caused all the buzz on wall street. is it hot enough for the "hot list"? we'll tell you next. and who will take the coveted state for business award this year? scott cohn is in an undisclosed location with the first clue. you don't want to miss it. he'll reveal the winner right here tomorrow on the "closing bell." careful... careless... with our bags. and the room they gave us -- it was... beautiful. a broom closet. but the best part but the worst part was the shower. my wife drying herself with the... egyptian cotton towels... shower curtain... defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. [ male announcer ] with millions of reviews, a visit to tripadvisor makes any destination better. yeah, citi mobile. pay the dog sitter? [ male announcer ] with millions of reviews, and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app. could help your busin