An hour ago
The market rally is likely to expand in 2024, says the equity strategist
The stock market rally is likely to strengthen in 2024 as more sectors show strong earnings trends, according to Scott Chronert, U.S. equity strategist at Citi.
“The big challenge for 24 is whether or not to extend this mega-cap growth leadership into other areas of the market,” he said on CNBC’s “Closing Bell: Overtime.” “We increasingly believe this expansion is driven by a more consistent pattern of sector earnings trends moving up and to the right in a positive direction.”
He noted that the company expects the S&P 500 to reach 5,000 points by mid-2024. That’s almost 10% higher than Monday’s closing level of 4,550.43.
—Alex Harring
An hour ago
According to NYU’s Aswath Damodaran, Zoom and Peloton appear to be undervalued after the sell-off
It’s time to take another look at smaller tech stocks like Zoom Video Communications and Peloton in 2024, according to Aswath Damodaran, a professor of finance at NYU’s Stern School of Business.
Both names appear to be undervalued after their sell-offs this year and could recover, the finance professor said. Zoom Video Communications is down more than 3% in 2023, while Peloton shares plunged 31% as higher interest rates dented the prospects of growth stocks.
“Look at Zoom and Peloton stocks, and those stocks are well below where they were two years ago,” Damodaran told CNBC’s “Closing Bell” on Monday.
“Two years ago, of course, they were all overvalued, but I wouldn’t be surprised if you see some of these small tech stocks – especially if the market stays healthy and the economy doesn’t go into recession.” have fallen by the wayside, try to make up some ground in the coming year.
—Sarah Min
An hour ago
Renaissance Macro’s Jeff deGraaf expects the S&P 500 to rise to 4800 in 2024
The S&P 500 could hit 4,800 next year as investors digest a changing macroeconomic environment underpinned by the 2024 election, according to Jeff deGraaf, chairman of Renaissance Macro Research and head of technical research.
“I think at this point you want to play it out over the next eight weeks or so, and then we’ll see as we start the year that seasonal election years tend to be flat in the first half,” deGraaf told CNBC’s “Closing Bell.” on Monday. “I could easily see us rising at around 4800 on the S&P and perhaps moving sideways for an extended period of time as we sort of digest the potential for the 2024 election.”
—Brian Evans
An hour ago
Zscaler pulls back as investors analyze earnings report
Zscaler fell nearly 7% in after-hours trading as billings forecasts diverged from an otherwise strong report.
The cybersecurity cloud stock beat forecasts in both areas from analysts surveyed by LSEG and provided strong full-year earnings and revenue guidance. However, the company maintained its expectations for the year’s settlements and urged investors to reduce their exposure to the stock.
Despite the decline, it was a banner year for stocks. The stock is up 71.5% this year, while the First Trust NASDAQ Cybersecurity ETF (CIBR) has gained just over 26.2%.
See grafic…
Zscaler shares
CrowdStrike, a competitor, also fell more than 1% in extended trading.
Both stocks reached highs not seen in at least a year during Monday’s session.
—Alex Harring, Robert Hum, Ethan Kraft
An hour ago
Stock futures have barely changed
Stock futures saw muted moves shortly after 6:00 p.m. ET.
Dow futures rose about 0.1%, while S&P 500 and Nasdaq 100 futures were both nearly flat.
—Alex Harring