Equity markets won't see sustained downturn until earnings fall: New York Life Investment's Goodwin


watch
now

U.S.
stock
futures
were
little
changed
Monday
night
after
a
losing
day
for
the
major
benchmarks.



Dow
Jones
Industrial
Average
futures

inched
lower
by
2
points,
or
0.01%.


S&P
500
futures

and


Nasdaq
100
futures

flickered
near
the
flatline.

Wall
Street
is
coming
off
a
choppy
day
for
the
major
benchmarks.
The
30-stock


Dow

dropped
248
points,
or
0.65%,
in
its
sixth
straight
losing
day.
The
blue-chip
index
erased
most
of
its
2024
gains,
a
major
reversal
considering
that
just
weeks
ago
it
approached
the
key
40,000
level.
The


S&P
500

lost
1.2%,
while
the


Nasdaq
Composite

tumbled
1.79%.

Those
losses
follow
a
rise
in
yields
that
had
investors
shrugging
off

strong
earnings

from


Goldman
Sachs
,
as
well
as
hot
retail
sales
data.
The
10-year
Treasury
yield
topped
4.6%,
its
highest
level
since
November.

Elsewhere,
investors
were
concerned
of
escalating
tensions
in
the
Middle
East
after
Iran’s

launch

of
missiles
and
drones
at
Israel
on
Saturday.
The
CBOE
Volatility
Index,
commonly
referred
to
as
the
fear
gauge,
closed
at
its
highest
level
since
October.

Still,
some
market
observers
urged
investors
to
remain
calm
and
stay
the
course,
saying
a
resilient
economy
and
strong
labor
market
could
continue
to
be
supportive
of
equities.

“I
think
the
reality
for
the
markets
is
that
we’re
not
going
to
see
a
sustained
downturn
in
the
U.S.
equity
market
until
we
have
an
earnings
problem,
which
we
do
not
have
right
now,
and
the
labor
market
cracks,
which
is
not
happening
right
now,”
Lauren
Goodwin,
chief
market
strategist
at
New
York
Life
Investments,
told
CNBC’s
Closing
Bell

on
Monday.
“And
so,
I
anticipate
that
the
jitters
that
we’re
seeing
are
a
result
of,
‘Yes,
valuations
are
high.
There’s
a
lot
of
uncertainty.’
That’s
been
true
for
months.”

Big
bank
earnings
are
set
to
continue
Tuesday,
with
the
release
of
results
from
Bank
of
America,
Johnson
&
Johnson
and
Morgan
Stanley.
Other
key
reports
including
from
UnitedHealth
and
United
Airlines
are
also
due
to
come
out.

Traders
will
also
watch
for
the
latest
reading
of
housing
starts
and
building
permits
on
Tuesday
to
gain
insight
into
the
health
of
the
housing
sector.
Industrial
production
data
is
also
set
for
release
before
the
open.