Stock futures are little changed as Wall Street looks to build on back-to-back gains

European markets stagnate as investors digest key PMIs

European markets were mixed on Tuesday as investors digested the last flash data on euro zone purchasing managers’ indices in January.

Pan-European Stoxx 600 index were partly flat in early trade, with retail stocks adding 0.7% while oil and gas stocks fell 0.6%.

The S&P global composite PMI for the euro area came in at 50.2 in January, up from 49.3 in December and ahead of the consensus forecast of 49.8.

CNBC Pro: Goldman Sachs Asset Management carves out ‘big opportunity’ part of US market

A Goldman Sachs Asset Management strategist named a segment of the market that could make 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 perform better when inflation is high but falling.

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— Ganesh Rao

Zions shares fall after earnings

Actions from Zions Bancorp fell more than 2% despite the regional bank beating estimates for fourth-quarter earnings. Zions reported earnings per share of $1.84, topping analysts’ expectations of $1.65, 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.

Sion shares gained 2.27% in regular trading on Monday before the earnings announcement.

— Jesse Pound

Stocks must reach this key level to be considered a rally, Dawson says

Stocks rose on Monday, but not high enough to be considered a true market recovery, according to NewEdge Wealth’s Cameron Dawson.

“We have to get through the most critical level of 4100,” Dawson said Monday on CNBC’s “Closing Bell: Overtime.” That’s because 4,100 is the S&P 500’s 65-day high.

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The S&P 500 never reached a key swing level in 2022 because it was in a downtrend, Dawson said. If the stock breaks this level, it could indicate that the rally has the potential to move into a new bull market cycle.

Technology and positioning can only take stocks so far, she added, before a fundamental shift is needed to really move stocks forward.

“We would need to see a change in fundamentals to really think this rally will continue,” she said.

She warned that gains in stocks are likely to remain limited until the Federal Reserve fully turns around and stimulates the US economy again.

“It is unlikely that we can return to pre-pandemic multiples without the Fed’s help,” she said.

If stocks can recover and break a 65-day high, that would also likely reduce the likelihood that the S&P 500 will retest its October lows, Dawson said.

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— Carmen Reinicke

Stock futures open only a little

Futures opened little changed on Monday night after solid gains in stocks during regular trading hours. After the bell, there were no big-cap earnings reports to spark big moves in the futures market.

— Jesse Pound

Nasdaq, chip stocks led on Monday

Stocks enjoyed broad gains 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.
  • The biggest influence on the Nasdaq was Nvidia, which added 36 points.
  • The VanEck Semiconductor ETF (SMH) rose 4.72%, its best day since November 30.

— Jesse Pound, Christopher Hayes


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