European Markets Flat as Investors Digest Key PMIs
European markets were mixed on Tuesday as investors digested the latest flash buy manager index data from the eurozone for January.
Pan-European STOXX 600 Index Retail stocks rose 0.7% while oil and gas stocks fell 0.6%.
S&P Global’s Eurozone Composite PMI was 50.2 in January, up from 49.3 in December and above consensus expectations of 49.8.
CNBC Pro: Goldman Sachs Asset Management points to ‘massive opportunity’ in one corner of US market
Strategists at Goldman Sachs Asset Management have identified market segments that are likely to rebound this year.
James Ashley, head of international market strategy at Goldman Sachs Asset Management, said these types of companies tend to outperform when inflation is high but down. pointed out research.
— Ganesh Rao
Zions shares fall after earnings
shares of Zions Bancorp Regional banks fell more than 2% despite beating fourth-quarter earnings estimates. According to StreetAccount, his earnings per share for Zions were $1.84, beating analyst expectations for him at $1.65. Net interest income also exceeded expectations.
However, non-interest income fell short of expectations and deposits fell 13% year-over-year to $71.7 billion.
Zion shares were up 2.27% in regular trading on Monday before earnings were announced.
— Jesse Pound
Stocks need to be notched at this critical level for the stock to be considered rising, Dawson said.
NewEdge Wealth’s Cameron Dawson said shares rose Monday, but not high enough to be considered a true market rally.
“We have to go through 4,100 most important levels,” Dawson said on CNBC.Closing Bell: OvertimeThis is because 4,100 is the S&P 500’s 65-day high.
According to Dawson, the S&P 500 has been in a downtrend and will not reach significant volatility levels in 2022. If the stock breaks through this level, it could indicate that the rally is likely to move into a new bull market cycle.
Technicals and positioning can only gain stocks so far, before a radical shift is needed to really give stocks momentum, she added.
“We need to see a shift in fundamentals to really believe this rally will continue,” he said.
She warned that stock gains are likely to remain subdued until the Federal Reserve makes a complete turnaround and re-stimulates the U.S. economy.
“Without the Fed’s help, it’s unlikely we’ll get back to the pre-pandemic multiple,” she said.
Dawson said if the stock can rise and break its 65-day high, it will also make it less likely that the S&P 500 will retest its October low.
— Carmen Reinicke
Equity Futures Opens Are Little Changed
Futures were little changed on Monday night after a solid gain in equities during normal trading hours. After the bell, there were no large-cap earnings reports to trigger major moves in the futures market.
— Jesse Pound
Nasdaq, chip stocks lead on Monday
Stocks enjoyed a wide rally on Monday. Let’s take a look at some of the key numbers of the trading session.
- The Dow Jones Industrial Average rose 254 points (0.76%) to close at 33,629.56.
- The S&P 500 rose 47 points (1.19%) to close at 4,019.81.
- Nasdaq Composite rose 224 points (2.01%) to close at 11,364.41.
- Nvidia had the biggest impact on Nasdaq, adding 36 points.
- The VanEck Semiconductor ETF (SMH) rose 4.72% to its highest since November 30th.
— Jesse Pound, Christopher Hayes