CNBC Pro: Goldman Sachs Asset Management singles out corner of US market with ‘huge opportunities’
A Goldman Sachs asset management strategist has named one area of the market that could make a comeback this year.
James Ashley, head of international market strategy at Goldman Sachs Asset Management, pointed to research that has shown these types of companies do better when inflation is high but falling.
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– Ganesh Rao
Scions shares fall after earnings
Shares Zions Bancorp Earnings for the fourth quarter fell more than 2% despite the regional bank beating estimates. Zions reported earnings of $1.84 per share, above the $1.65 expected by analysts, according to the Street Account. Net interest income also beat estimates.
However, non-interest income was lower than expected, and deposits fell 13% year-on-year to $71.7 billion.
Shares of Scion rose 2.27% in regular trading on Monday, ahead of its earnings release.
– Jesse Pound
Stocks should be considered to rally around this key level, Dawson says
According to NewEdge Wealth’s Cameron Dawson, stocks rose on Monday, but not by enough to be considered a true market rally.
“We need to hit that critical level of 4,100,” Dawson told CNBC’s “CLOSING BELL: Overtime“Monday. The S&P 500 hit its 65-day high of 4,100.
The S&P 500 hasn’t reached a major moving point in 2022 because it’s been in decline, Dawson said. If the stock breaks this level, it may indicate that the rally has the potential to move into a new bull market cycle.
Technicals and positioning can only take the stock so far, he added, before a fundamental shift is needed to give the stock forward momentum.
“We need to see a change in fundamentals to really think this rally will continue,” he said.
He warned that stocks will remain upside down until the Federal Reserve fully stimulates and re-stimulates the US economy.
“We cannot go back to pre-pandemic multiples without the central bank’s help,” he said.
If stocks can rally and break a 65-day high, Dawson said, that would reduce the likelihood that the S&P 500 will retest its October lows.
– Carmen Reinicke
Stock futures have changed little
Futures were little changed on Monday evening after solid gains in stocks during regular trading hours. There have been no large-cap earnings reports since the bell to trigger major moves in the futures market.
– Jesse Pound
Nasdaq and chip stocks led the way on Monday
Stocks enjoyed a broad rally on Monday. Here are some key numbers of the trading session.
- The Dow closed up 254 points, or 0.76%, at 33,629.56.
- The S&P 500 closed up 47 points, or 1.19%, at 4,019.81.
- The Nasdaq Composite rose 224 points, or 2.01%, to close at 11,364.41.
- Nvidia was the biggest hit on the Nasdaq, adding 36 points.
- VanEck Semiconductor ETF ( SMH ) rose 4.72% for its best day since November 30.
– Jesse Pound, Christopher Hayes