GO
Loading...

Last week's big stock selloff 'probably over': Pro

The sharp stock market decline last week—fueled by the bloodbath in momentum names—doesn't look like it will continue this week, Jonathan Golub, chief U.S. market strategist at RBC Capital, told CNBC. And better-than-expected earnings and revenues from Citigroup are giving stocks a boost Monday.

"When interest rates go up it's good for banks," Golub said on "Squawk Box" Monday. Let Federal Reserve Chair Janet Yellen raise rates, and let the banks get healthy. "It'll be good for the economy," he added.

Read MoreCitigroup posts earnings of $1.30 a share vs. $1.14 estimate

"I think the selloff is probably over," Golub said. "If you look at the economically sensitive stuff in the market, it's not really selling off. It's tech. It's bio-tech," which makes up about 10 percent of the market. "The other 85 to 90 percent is in perfectly fine shape," he added.

The financials will continue to be a feature in this busy week for earnings. But on Tuesday, it's Coca-Cola, Johnson & Johnson, Intel, and Yahoo.

Then it's back to the financials with Bank of America and American Express on Wednesday. Google, and IBM are also among those reporting.

On the last day of trading during this holiday-shortened week Thursday, results are expected from DuPont, General Electric,Goldman Sachs, Morgan Stanley, BlackRock, PepsiCo, UnitedHealth, and Chipotle Mexican Grill.

But with Ukraine tensions flaring-up again Monday, investors are getting another reason to worry, after disappointing earnings Friday from JPMorgan sent stocks sharply lower.

For the week, the Dow Jones Industrial Average dropped 2.4 percent, while the S&P 500 lost 2.7 percent. The Nasdaq's losses of 1.3 percent last week were not as severe, but the technology-heavy index closed Friday under the 4,000 level.

"What do you have you going on in the world? Nothing good," Drew Matus, senior U.S. economist at UBS, told CNBC. "It's going to effect 'A' the equity market, and then 'B' it's going to get everyone who's risk-averse moving into the 10-year [Treasury]."

Read MoreUkraine eyes military moves as unrest grows

As for the economy, "you're going to accelerate into the second half of the year. The second half of the year is going to be very healthy," Matus said.

"By the time you get to the second half of the year, you're getting close enough to the idea of [Fed] rate hikes that people who are sitting on the sidelines—CEOs who are saying, 'Should I make the investment now or should I wait?'—the clock is running. They are going to begin to invest."

But Golub was less optimistic about the economy. "For the last 5 years, the back-half of the year, everyone said it was going to be better, and it never materialized." He expects the economy to eventually come in softer than the 3 percent expectations.

—By CNBC's Matthew J. Belvedere

Introducing Morning Squawk: CNBC's before the bell news roundup

Sign up to receive Morning Squawk in your inbox each weekday › Sample


Contact Stocks

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More