"The rally is going to go higher than most people think," Saut said. "This thing has caught most money managers flat-footed."
The stock market's rally this year has been helped in no small part by continuing economic stimulus from the Federal Reserve. The U.S. central bank began buying bonds in January 2009 and is still purchasing $85 billion each month in Treasury bonds and mortgage-backed securities. That has kept interest rates near historic lows, reducing borrowing costs and encouraging investors to move money out of conservative investments like bonds and into stocks.
The Nasdaq composite advanced 9.72 points, or 0.3 percent, to 3,232.09.
The yield on the 10-year Treasury note, which moves inversely to its price, rose to 2 percent from 1.94 percent.
Among stocks making big moves:
— PetSmart fell $4.37, or 6.6 percent, to $62.18 after the company reported its fiscal fourth-quarter earnings. Profits for the pet store chain rose but its forecast for this year disappointed investors.
— Pier 1 Imports fell 96 cents to $22.28 after the home decor company issued an earnings forecast that was below Wall Street analysts' estimates.
— Supermarket chain Kroger rose 89 cents, or 3 percent, to $30.25 after the company's fourth quarter profit handily beat Wall Street expectations.
— Gap rose $1.41, or 4.1 percent, to $35.68 after the clothing retailer said a key revenue measure rose more than expected in February, helped by sales at its Gap and Old Navy stores. The company had been scheduled to release the sales figures after the market closed, but put them out after a transcript of its recorded sales call appeared on the website seekingalpha.com, halting the shares.