Is it too late to join the market rally? Morgan Stanley's Slimmon weighs in and names stocks to buy

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The S&P 500 and Nasdaq reached new highs on the back of Tuesday's inflation data. 'There's just been too much froth,' says Andrew Slimmon.

Markets rallied on the back of cooler inflation data released on Tuesday , with the S & P 500 and the Nasdaq reaching fresh 13-month highs. Now, investors may be wondering if there will be a correction or if it's too late to get in on the action. Andrew Slimmon of Morgan Stanley Investment Management says a "meaningful" correction may not happen right now. "People are still on the sidelines, kind of waiting for that elusive pullback to get more involved.

The consumer price index , which measures changes in a multitude of goods and services, rose just 0.1% for the month, bringing the annual level down to 4% from 4.9% in April. "But it's premature and the stock market is right now feeding off … those lower inflation month to month price," Slimmon added. Stock picks Nevertheless, there are pockets of opportunity in the market right now, according to Slimmon.

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