European markets are flat as investors digest major PMIs
European markets were mixed on Tuesday as investors digested the latest flash euro-zone PMI data in January.
The pan-European Stoxx 600 index hovered marginally above the zero line in early trade, with retail stocks up 0.7% while oil & gas stocks fell 0.6%.
S&P Global Composite PMI for the euro zone was 50.2 in January, up from 49.3 in December and ahead of a consensus forecast of 49.8.
CNBC Pro: Goldman Sachs Asset Management highlights corner of US market with ‘great opportunity’
A strategist at Goldman Sachs Asset Management has identified a market segment 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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— Ganesha Rao
Zion shares fall after earnings
shares of Zion Bancorp fell more than 2% even though the regional bank beat fourth-quarter earnings estimates. Zions reported earnings per share of $1.84, according to StreetAccount, up from the $1.65 analysts were expecting. Net interest income also exceeded estimates.
However, noninterest earnings were lower than expected, and deposits fell 13% year over year to $71.7 billion.
Shares of Zion gained 2.27% in regular trading Monday ahead of the earnings release.
– Jesse Pound
Stocks need to hit this key level to potentially be considered a rally, Dawson says
Shares rose on Monday but are not high enough to be considered a true market rally, according to NewEdge Wealth’s Cameron Dawson.
“We have to survive the most critical level of 4,100,” Dawson said Monday on CNBC’s Closing Bell: Overtime. That’s because 4,100 is the S&P 500’s 65-day high.
The S&P 500 never hit the key moving mark in 2022 because it’s in a downtrend, Dawson said. If stocks break through this level, it may indicate that the rally has the potential to transition into a new bull market cycle.
Tech and positioning can only take stocks so far, she added, before a fundamental shift is needed to really give stocks momentum.
“We would have to see a change in fundamentals to really believe this rally is going to last,” she said.
She warned that stocks would likely remain capped on the upside until the US Federal Reserve fully turns around and restarts the US economy.
“It’s unlikely we can return to pre-pandemic multiples without help from the Fed,” she said.
If stocks are able to rebound and break the 65-day high, it would also likely reduce the likelihood of the S&P 500 retesting its October lows, Dawson said.
– Carmen Reinicke
Stock futures open little changed
Futures opened little changed Monday night after stocks posted solid gains during regular trading hours. After the bell, there were no large-cap earnings reports to trigger any major moves in the futures market.
— Jesse Pound
Nasdaq, chip stocks led on Monday
Stocks staged 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 biggest impact on the Nasdaq, adding 36 points.
- The VanEck Semiconductor ETF (SMH) is up 4.72% on its best day since Nov. 30.
— Jesse Pound, Christopher Hayes