Tags: Levkovich | S&P 500 | 2000 | Fed

Citi's Levkovich: S&P 500 Won't Break 2,000 Before Year-End

By    |   Tuesday, 07 October 2014 12:39 PM

Stocks have stumbled since the S&P 500 index hit a record high Sept. 19, and Tobias Levkovich, chief equity strategist at Citigroup, isn't looking for much of a rebound over the next three months.

The S&P 500 closed at 1,928.21 Thursday, down 2.1 percent from its peak last month.

"We have the Fed concerns — timing, intensity of rate hikes — without the offset of comfort levels about 2015 earnings," Levkovich tells Yahoo. "That's partially why we think the market is a bit restrained and can only get to 2,000 by year-end, and we can't go beyond that.”

As for the Federal Reserve, the consensus appears to be that it will start raising interest rates around mid-2015. But recent signs of strength in the economy have led some analysts — and a few Fed officials themselves — to speculate that the central bank will act sooner.

When it comes to other bearish factors for stocks, Levkovich notes that analysts' forecasts for third-quarter earnings have slipped since the quarter began, particularly for energy companies amid falling oil prices.

The dollar's strength could hurt too. "You're going to hear companies talk about the dollar, and it'll trim some of their fourth quarter numbers as well," he notes.

Many investors have turned wary of stocks.

"A combination of not-perfect economic data and some geopolitical risk has put doubt in some investors' minds, and that brings some volatility," Dan Curtin, a global investment specialist at JP Morgan Private Bank, tells Bloomberg.

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Stocks have stumbled since the S&P 500 index hit a record high Sept. 19, and Tobias Levkovich, chief equity strategist at Citigroup, isn't looking for much of a rebound over the next three months.
Levkovich, S&P 500, 2000, Fed
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2014-39-07
Tuesday, 07 October 2014 12:39 PM
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