Record highs for the stock market are within reach this year as shaky earnings results show bad news is already priced in, Fundstrat says

• The stock market could hit record highs by year-end as disappointing earnings fail to spark a big sell-off, according to Fundstrat.
• Investors prepared themselves for a barrage of bad news, and that's great for the stock market.
• "Investors are punishing [earnings] misses to a far less extent," Fundstrat's Tom Lee said.

The stock market could hit record highs by the end of the year as investors have already priced in a lot of bad news, Fundstrat's Tom Lee said in a Friday note.