TAMRO Capital's Tim Holland Talks July Jobs Report And Fed Policy Before Friday

Tim Holland, portfolio manager and partner at TAMRO Capital

, gave CNBC Squawk Box he thoughts on Friday's upcoming employment report and how it'll effect the

, on Tuesday morning. During the discussion, the effect of Fed policy on the markets was also connected. "I think people are just spooked about what happens when the Fed…isn't as accommodative. So, you saw the big backup in rates that killed the home builders -- it killed anything tied to the consumer, tied to the big ticket purchases and people all ran to the other side of the ship and then they realized maybe they ran a bit too far," said Holland. "But that's the big question: Can the market handle some sort of resetting of rates and the yield curve? And if it can, we'll be fine. If not, my guess is we'll have a lot more, ah, sort of 'Junes' before we figure this out."

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Holland believes that the world "can handle marginally higher interest rates." He said that it all ties back to the consumer and housing. He gave housing credit for getting the market going in a better direction. "I think it won't be maybe an uneventful muddle, but I think we can muddle through this sort of resetting and if we can, then I think what's working will continue to work, and a big part of that is the consumer and domestic facing companies," said Holland. He said that a big part of is still the question: "What do marginally higher borrowing costs mean?" He said that thus far they've been "manageable." "If the ten year runs away, which I don't think it will, then that's a different conversation, but this sort of steepening of the yield curve is also on balance, a good thing for the banks long-term and hopefully speaks to you not just to the Fed pulling back, but maybe some decent underlying economic fundamentals," said Holland.