CNBC Pro: Goldman Sachs Asset Management singles out a corner of the U.S. market with ‘great opportunities’
A Goldman Sachs Asset Management strategist has named a segment of the market that could be poised for a comeback this year.
James Ashley, head of international market strategy at Goldman Sachs Asset Management, also pointed toward research that showed these types of companies tend to outperform when inflation is high but falling.
— Ganesh Rao
Zions shares fall after earnings
Shares of Zions Bancorp fell more than 2% despite the regional bank beating earnings estimates for the fourth quarter. Zions reported $1.84 in earnings per share, above the $1.65 expected by analysts, according to StreetAccount. Net interest income also beat estimates.
Noninterest income was lower than expected, however, and deposits fell 13% year over year to $71.7 billion.
Shares of Zion gained 2.27% in regular trading on Monday before its earnings were released.
Stocks need to notch this key level to potentially be considered rallying, Dawson says
Stocks rose on Monday, but aren’t quite high enough to be considered a true market rally, according to Cameron Dawson of NewEdge Wealth.
“We have to get through the most critical level of 4,100,” Dawson said on CNBC’s “Closing Bell: Overtime” on Monday. That’s because 4,100 is the S&P 500’s 65-day high.
The S&P 500 never hit the key moving level in 2022 because it was in a downtrend, Dawson said. If stocks break through this level, it may indicate that the rally has potential to move into a new bull market cycle.
Technicals and positioning can only get stocks so far, she added, before a fundamental shift is needed to really give stocks forward momentum.
“We’d need to see a change in fundamentals to really think this rally will continue,” she said.
She cautioned that stocks upside will likely stay capped until the Federal Reserve fully pivots and stimulates the U.S. economy again.
“It’s unlikely we can go back to pre-pandemic multiples without help from the Fed,” she said.
If stocks are able to rally and break the 65-day high, it would also likely lower the probability of the S&P 500 retesting its October lows, Dawson said.
Stock futures open little changed
Futures opened little changed on Monday evening after solid gains for stocks during regular trading hours. There were no large cap earnings reports after the bell to spark major moves in the futures market.
— Jesse Pound
Nasdaq, chip stocks led the way on Monday
Stocks enjoyed a broad rally on Monday. Here’s a look at some of the key numbers from the trading session.
- The Dow gained 254 points, or 0.76%, to close at 33,629.56.
- The S&P 500 gained 47 points, or 1.19%, to close at 4,019.81.
- The Nasdaq Composite gained 224 points, or 2.01%, to close at 11,364.41.
- Nvidia had the largest impact on the Nasdaq, adding 36 points.
- The VanEck Semiconductor ETF (SMH) rose 4.72% for its best day since Nov. 30.
— Jesse Pound, Christopher Hayes