Record highs for the Dow, S&P 500 and NASDAQ

Record highs for the Dow, S&P 500 and NASDAQ

September 15, 2019 100 By Kailee Schamberger


WE BRING IN TODAY’S “COUNTDOWN” CLOSER SAM STOVALL WHETHER YOU PICK THE DAVID AND GOLIATHS OR THE SMALL CAPS. TELL US, SAM.>>I THINK THE DAVIDS COULD SURPASS THE GOLIATHS IN NEAR TERM. THERE IS POTENTIAL FOR OPTIMISM, GOOD MOMENTUM, ET CETERA. THE SMALL CAPS WERE UNDERPERFORMING SMALL CAPS FOR EXTENDED PERIOD. THEY HAD BEEN EMERGING FROM A CONTRACTION AREA ENVIRONMENT THAT A LOT OF TECHNICIANS FELT WERE HOLDING BACK THE OTHER INDICES. BUT IF YOU LOOK BACK TO 1980, THE RUSSELL 2000 HAS GAINED 6.6% ON AVERAGE SIX MONTH AFTER THE FED HAS STARTED A RATE EASING CYCLE. SO THAT’S A POTENTIAL BENEFIT FOR THE OVERALL CATEGORY. AND IF YOU LOOK AT SOMETHING CALLED THE RULE OF 24, WHICH BASICALLY SAYS THAT PE PLUS INFLATION SHOULD EQUAL 24 FOR THE S&P SMALL CAP 600, THAT IMPLIES MORE THAN 20% ADVANCE IN THE COMING 12 MONTHS VERSUS ONLY 5% FOR THE SUBPOENA 500. LIZ: YET YOU’RE PICKING BIG BANKS, JPMORGAN, U.S. BANCORP, PNC. WE HAVE 30 SECONDS LEFT. THE FED APPEARS IN CONTRACTING MODE AT THE MOMENT. HOW WILL THAT AFFECT BANKS?>>BANKS COULD CONTINUE TO BE UNDER PRESSURE IN GENERAL. THE QUESTION WAS, WHAT KIND OF BANKS DO WE FAVOR RIGHT NOW? OUR ANALYSTS GO FOR JPMORGAN, U.S. BANCORP AND PNC FINANCIAL BUT USUALLY WHEN THE YIELD CURVE