CNBC Pro: Goldman Sachs Asset Management Highlights a Corner of the US 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 to research showing that these types of companies tend to outperform when inflation is high but falling.
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Zions shares fall after earnings
Actions of Bank of Zions 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.
However, non-interest income was lower than expected and deposits fell 13% year-over-year to $71.7 billion.
Zion shares gained 2.27% in regular trading on Monday before its earnings were released.
Stocks need to reach this key level to be considered rising, says Dawson
Stocks rose on Monday, but are not high enough to be considered a true market rally, according to Cameron Dawson of NewEdge Wealth.
“We have to break above the most critical level of 4100,” Dawson said on the show “Closing Bell: Overtime” on Monday. That’s because 4100 is the 65-day high of the S&P 500.
The S&P 500 never reached the key move level in 2022 because it was trending down, Dawson said. If stocks break above this level, it may indicate that the rally has the potential to move into a new bull market cycle.
Technicalities and positioning can only get the stock so far, he added, before a fundamental change is needed to really propel the stock.
“We would need to see a change in fundamentals to really think that this rally will continue,” he said.
He warned that the rise in stocks will likely remain capped until the Federal Reserve fully turns around and stimulates the US economy again.
“It is unlikely that we will be able to return to pre-pandemic multiples without help from the Federal Reserve,” he said.
If stocks can rally and break the 65-day high, it would also likely reduce the likelihood that the S&P 500 will retest its October lows, Dawson said.
Stock futures open little changed
Futures opened little changed Monday night after solid gains for the shares during regular trading hours. There were no large-cap earnings reports after the bell that triggered major moves in the futures market.
Nasdaq, chip stocks led on Monday
Stocks enjoyed a broad rally on Monday. Here is 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 biggest impact on the Nasdaq, adding 36 points.
- The VanEck Semiconductor (SMH) ETF rose 4.72% in its best day since November 1. thirty.
—Jesse Libra, Christopher Hayes
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