CNBC Pro: Goldman Sachs asset management allocates a corner of US markets with ‘exquisite opportunities’
An asset management strategist at Goldman Sachs 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 that shows these types of companies tend to outperform when inflation is high but falling.
– Ganesh Rao
Zion shares fall after earnings
shares Zion Bancorp It fell more than 2% despite the regional bank beating fourth-quarter earnings expectations. Zions reported earnings per share of $1.84, higher than the $1.65 that analysts had expected, according to StreetAccount. Net interest income also beat estimates.
Non-interest income was lower than expected, however, and deposits fell 13% year over year to $71.7 billion.
Shares of Zion rose 2.27% in regular trading Monday before its earnings announcement.
Dawson says stocks need to make this key level to be considered on the rebound
Shares rose Monday, but not high enough to be considered a true market rally, according to NewEdge Wealth’s Cameron Dawson.
“We have to get above the most important level, which is 4100,” Dawson said on CNBC.Closing bell: overtimeMonday. This is because 4100 is the 65-day high of the S&P 500.
Dawson said the S&P 500 never reached a major moving level in 2022 because it was in a downtrend. If stocks break this level, it could indicate that the rally is likely to move into a new bull market cycle.
She added that technical indicators and positioning can only get stocks so far, before a fundamental shift is needed to really give stocks forward momentum.
“We would need to see a change in the fundamentals to really believe this rally is going to continue,” she said.
She warned that the upside for stocks is likely to remain limited until the Fed fully stimulates the US economy and stimulates the US economy again.
“It is unlikely that we will return to pre-pandemic complications without help from the Fed,” she said.
Dawson said if stocks can rally and break the 65-day high, it would also likely lower the likelihood of the S&P 500 retesting its October lows.
– Carmen Renick
Stock futures have changed little
Futures opened little changed Monday evening after strong gains for stocks during normal trading hours. There were no major earnings reports after the bell to spark big moves in the futures market.
– Jesse Pound
On Nasdaq, chip stocks led the way 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 Jones rose 254 points, or 0.76%, to close at 33,629.56.
- The S&P 500 rose 47 points, or 1.19%, to close at 4,019.81.
- The Nasdaq Composite Index rose 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 ETF (SMH) rose 4.72% in its best day since November 30th.
– Jesse Pound, Christopher Hayes
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