Good news is still bad news for the stock market, but there is a silver lining to Friday's strong jobs report

The S&P 500 fell 3% at its lows on Friday after the strong jobs report.

Friday's stock market action reminded investors that good economic news isn't good news for the stock market, as it shows the Federal Reserve's stance towards interest rates. Louis Navellier says there is a positive conclusion from the data.

He said that the economic strength should lead to a better earnings season. As they prepare for third-quarter results later this month, investors will likely cheer corporate earnings resilience.

The Labor Department's report showed the US economy added 263,000 new jobs last month, which was ahead of expectations and helped push the unemployment rate back down.

Some investors are waiting for a drop in earnings expectations before buying stocks, as the impact of higher interest rates and quantitative tightening ripple through the economy, Navellier said.

It's difficult for investors to understand the mix of rising rates and the reduction of the Fed's balance sheet at a time when the economy is still strong.

Navellier thinks GDP will be positive in the third quarter. Multinational companies will be hurt by a strong dollar on international sales and profits. Real estate and auto companies are hurt by higher interest rates.

According to Navellier, "companies with solid earnings in an inflationary, rising interest rate economy will be the only safe ground for the next couple of quarters."