(This is CNBC Pro’s live coverage of Wednesday’s market chatter on the market volatility.) Whether it’s time to buy the dip or prepare for more pain ahead is on investors’ minds Wednesday as they deal with the most volatile period for stocks of 2024. The market was rebounding for a second day but investors remain on edge after Monday’s brutal sell-off. The Dow Jones Industrial Average lost more than 1,000 points to start the week, with the S & P 500 posting its worst day since 2022. On Tuesday, the following day, the major averages rebounded sharply . Many investors advise against buying the dip just yet, as they expect this volatile period to continue through October at least. Others were starting to nibble and bet on an eventual return to new highs after some sideways trading. Follow along for the latest market chatter and reaction. All times ET. 11:04 a.m.: Oakmark’s Bill Nygren remains bullish on value Bill Nygren, Oakmark portfolio manager and CIO, is bullish on a set of value names as the economy chugs along. “I think it’s fair to say that you do need a good economy for the banks to do well, for the auto-related companies to do well. But I don’t think it needs to be anything incredible, and the levels we’re at today just don’t seem that far above trend.” Nygren emphasized that companies, such as General Motors , are aggressively repurchasing shares and that will drive prices higher towards fair value companies in the market. Companies like GM and Citigroup have gotten cheaper after the recent market correction, he added. The Oakmark Fund’s top 10 holdings include Alphabet, financials Citigroup and Charles Schwab, General Motors and Deere — each of which Nygren is bullish on over the next five to seven years. — Pia Singh 10:48 a.m.: Strategas is ‘hesitant to get bearish’ despite expecting further volatility ahead Increased volatility in the market will be the new normal, according to Strategas. “As we believe that inflation and inflationary expectations are reverting to the mean and that the pace of globalization is in the process of slowing markedly, it seems reasonable to assume that the “great moderation” that started in the early 1980s is over,” strategist Jason Trennert wrote in a Wednesday note. But “with expectations for both GDP and earnings robust in 3Q and long rates lower, we are hesitant to get bearish despite recent volatility,” he said, adding that the highly elevated levels in the CBOE Volatility Index are often associated with buying opportunities. Trennert also noted that the S & P 500 trades in a 27% range in any given year, on average, and that the broad-market index has so far this year traded in a 17% range. This suggests “further market gyrations” ahead — particularly amid ongoing domestic and international political tensions. — Pia Singh 10:15 a.m. U.S. stocks to rebound while Japanese markets stay subdued, Citi says It’s possible the U.S. stock market sees a quicker recovery than its Japanese counterparts after the recent sell-off, according to Citi. “We find that US equities are apt to rebound even as international equities (including Japan) stay subdued,” strategist Alex Saunders wrote. This is due in part to the bank’s expectation that the yen will remain strong, thus hurting Japanese equities. This month, the yen is up more than 1.8% against the U.S. dollar — despite a 2% decline on Wednesday. “Contemporaneous returns are poor in a high volatility environment, but the model is more positive on forward returns for US stocks and fixed income in general,” Saunders said. — Fred Imbert 9:52 a.m. Barclays scooping up tech Emmanuel Cau, head of European equity strategy at Barclays, moved tech to overweight now that the sector is more than 10% off the all-time highs it reached just last month. The strategist expects continued volatility ahead, citing seasonal weakness. But, with earnings remaining resilient, and the likelihood of a Fed rate cut serving as a backstop, Cau said he expects the economy is cooling, rather than headed for a recession. “Summer markets are notoriously tricky to navigate, and the latest bout of volatility may have a knock-on effect for days/weeks to come, as degrossing may not be over. Price action may thus stay erratic, while US elections will likely keep markets on their toes into the fall,” Cau wrote in a Tuesday note. “However, everything put together, we find the recent indiscriminate selling exaggerated and look to selectively buy the dip. We move Tech to OW post the 16% pullback since mid-July.” “We buy tech on dip,” Cau said. — Sarah Min 9:45 a.m. Lots of reasons to like stocks long-term Nick Colas of DataTrek Research said there are “plenty of reasons” to like stocks after Monday’s dip “The Fed has plenty of room to cut rates,” wrote Colas in his morning note. “The dollar and stocks just passed a global stress test. S & P earnings/margins are robust, and the former is at record highs. Volatility should peak this month. We respect the tape’s cautious message but remain bullish longer term,” he added. -Jeff Cox 9:33 a.m. Rally for dollar could be ‘limited,’ strategist says The dollar is rising against the yen again on Wednesday, but that doesn’t mean the so-called carry trade is over, according to Scotiabank. Shaun Osborne, the firm’s chief foreign exchange strategist, described US dollar trading as “lumpy” in a note to clients and added that their may be more unwinding of Japanese yen positions still to come. “The USD can regain a little ground for now but scope for strength remains limited while the economic and market outlook remains uncertain. The S & P 500 is close to 10% off its recent peak, equating to a decent correction but I think the carry trade shake out may have further to run given the still significant short JPY positioning in the market (and perhaps still elevated earnings expectations in parts of equity land),” the note said. The ICE U.S. Dollar Index was up 0.2% to 103.18 shortly before the stock market open in New York. “DXY gains may extend to the 104 area in the short run but the underlying trend retains a soft undertone and rallies are likely to attract better selling interest,” the Scotiabank note said. — Jesse Pound 8:59 a.m. Piper Sandler chart analysts say bet on an eventual S & P 500 rebound to new high of 5,800 The chart analysts at Piper Sandler are not worried about the recent pullback and said investors should “roll with the changes” that have occurred in the market in the last month, like the rotation to smaller stocks. Craig Johnson and Scott Smith said in a note Wednesday that investors should expect volatility spikes like this and historically they end around October. The two cite a steepening yield curve, the testing of key market support levels and relative strength of smaller stocks as reasons to remain bullish. They maintain their S & P 500 year-end target of 5,800, which represents a nearly 11% rebound from Tuesday’s close and a new record for the benchmark Piper found some interesting data to support their bullish thesis. During this recent market pullback, the Cboe Volatility index more than doubled to above 30 and the S & P 500 still managed to stay above its 200-day moving average. Since 1991, when the VIX spikes above the 30 level and the S & P 500 stays above its 200-day moving average, it tends to rebound after three months following some sideways trading. Basically it means the recent panic didn’t damage the market’s long-term trend. The firm says investors should embrace the rotation to financials and industrials, along with smaller stocks. “The Fed will likely cut interest rates at least once later this year, which has historically benefited Small and Mid-cap companies,” stated the note. — John Melloy 8:26 a.m. ‘Worst might not be over,’ UBS says There’s more pain to come, according to UBS. Strategist Shahab Jalinoos said elevated signals in a number of indicators suggest the market selloff is not yet over, citing, for example, high levels in Wall Street’s “fear gauge.” The CBOE Volatility Index (VIX) was last around the 23 handle. “We suspect the level of anxiety that there is more damage possible in what may be perceived as a thinner liquidity summer environment is likely to keep many twitchy,” Jalinoos wrote in a Tuesday note. 8:20 a.m. It’s not yet safe to get back into stocks, Citi says Stocks have recouped some of their losses during Tuesday’s session, but that doesn’t mean it’s safe to go back in, according to Citi. “Positioning in SPX and Nikkei was not overly stretched to begin with, but at this stage only around one-half of the recent run-up has been pared back as of Friday. For NDX and Kospi, positioning has been reduced by less,” strategist Dirk Willer wrote on Tuesday. “The positioning clean-up is not far enough advanced yet to make it safe to re-enter the equity market, in our view,” he said. 7:59 a.m. ‘Bad news’ is back to being bad news, Wolfe Research says Bad economic news is back to being bad news for stocks, according to Wolfe Research. For much of this year, stocks reacted positively to signs of economic cooling for the bulk of this year, as investors took the reports as signs the Federal Reserve could soon cut interest rates. After last week’s disappointing July jobs report, however, investors are concerned the economy is now cooling too quickly, and could be headed toward a recession. “Our sense is, a weaker-than-expected ISM Manufacturing and payrolls report last week has shifted the narrative back to ‘bad news’ being ‘bad news’ as investors start to question whether a few Fed rate cuts will avert a broader slowdown,” Chris Senyek, chief investment strategist at Wolfe Research, said in a Wednesday note.
How top investors are dealing with market volatility: Piper sees eventual new S&P high this year
Aug 7, 2024
![i’m-nervous,-too!-[part-2]](https://10xwealthreport.com/wp-content/uploads/2026/03/177042-im-nervous-too-part-2-1568x784.jpg)
