The market will continue to work its way higher, says CFRA's Sam Stovall
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Stock futures are little changed as investors await more inflation data: Live updates
Traders work on the floor of the New York Stock Exchange (NYSE) on August 12, 2025 in New York City. Spencer Platt | Getty Images News | Getty Images Stock futures were relatively unchanged on Wednesday after the S&P 500 and Nasdaq Composite rallied to new records and as investors gear up for more data to assess the state of the U.S. economy. S&P 500 futures traded around the flatline, as did Nasdaq 100 futures . Futures tied to the Dow Jones Industrial Average were also flat. The moves come after a winning day on Wall Street, with the S&P 500 and Nasdaq reaching new intraday and closing record highs on Wednesday for the second day in a row. Both indexes finished the session with a gain of 0.32% and 0.14%, respectively. The Dow Jones Industrial Average also rose 463.66 points, or 1.04%. Tuesday's session had returned the broad market S&P 500 and the tech-heavy Nasdaq to record territory on the back of a cooler-than-expected inflation report for July. That report stoked hopes among investors for a rate cut from the Federal Reserve at the end of its September policy meeting. More economic data releases are on the docket for Thursday. July's producer price index reading – as well as jobless claims data for the week ended Aug. 9 – is slated for release at 8:30 a.m. ET. Economists polled by Dow Jones are expecting the measure of wholesale prices to show a 0.2% rise on the month. The index had come in flat in June. "After yesterday's 'not as bad as it could have been' July Consumer Price Index report, the equity markets are now in full 'easing expectation' mode," said CFRA Research's chief investment strategist Sam Stovall. "Even though Thursday's Producer Price Index (PPI) is projected to show increases on a month-over-month (M/M) and year-over-year (Y/Y) basis, we think investors will overlook them." Meanwhile, in extended trading Wednesday, shares of Cisco dropped more than 2% after the major tech company's fourth-quarter results narrowly beat expectations. Other names like agricultural equipment company Deere and Coach owner Tapestry are due to release their latest quarterly results before the bell Thursday. U.S. stock futures traded just below the flatline on Wednesday evening. S&P 500 futures fell 0.1% shortly after 6 p.m. ET, along with Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average lost 36 points, or about 0.1%. — Sean Conlon
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3 days ago
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Market valuation looks 'stretched,' strategist says
CFRA Research chief investment strategist Sam Stovall joins Market Domination with Josh Lipton to discuss which sectors in which he recommends investing and whether the market is overvalued right now. To watch more expert insights and analysis on the latest market action, check out more Market Domination. Speaking of sectors, Sam, where where do I want to be overweight, what do I want to avoid here? Well, we're still overweight the communication services and the information technology sectors. Um, basically what I like to do is is focus on those groups that were beaten up during the market decline because they tend to end up being the out performers, uh, in the recovery period. Uh, so through July 28th, which was the recent high while the S&P was up 28%, the three worst performing sectors during the decline, communication services, consumer discretionary and tech, were up 37%, and the 10 worst performing sub-industries were up 44%, and they included independent power producers, semiconductors, diversified financial services. I was speaking to another strategist, Sam. It was interesting. She she told me she was getting kind of uneasy after this bounce off of the April low and one reason, not surprisingly, Sam, she brought up her unease was valuation, and I'm just curious how you would broadly characterize valuations here. Are we are we looking stretched, Sam? I I think we are looking a bit stretched. Uh, if you look at a 20-year average, we're trading at two standard deviations above the mean on the S&P 500 based on forward 12-month earnings. If you shorten that to a 10-year average, then we're trading at one standard deviation above, but as a lot of tech analysts like to say, well, so much has changed that really you probably should only be looking at a five-year average, and in that case, we are within a standard deviation. So I would tend to say that until we find other areas to be much more attractive or indeed we it the market is convinced that we are headed for a recession, I think investors are gonna like white water rafting, let the market take it where, uh, take them where it wants to go. They're going to stick with the growth areas for now. Sam, always great to have you on the show. Thank you, sir. Thanks, Josh. Related Videos Video game sector: Tariff impacts, GTA 6 release, EA outlook 2 reasons Waller is 'leading the pack' for Fed chair candidate Why quality non-US stocks are the 'cream of the crop' Fed's Mary Daly says it's time to cut rates Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
