Market Pullback Coming in February: Citi's Levkovich
The market is up roughly 3 percent in January, but expect stocks to consolidate in February, warned Tobias Levkovich, chief U.S. equity strategist at Citi.
“Some of our sentiment signals—the Shanghai market, which usually leads the market by 3 months, peaked in early November, so we think there are some challenges in February,” Levkovich told CNBC.
He expects the market pullback to be about 5 percent. But then he expects stocks to “grind higher” for the year, ending at about 1,400 on the S&P by year-end. (Scroll down for his industry group picks and pans.)
“Earnings are the primary driving force, but I’m very concerned about margins,” he said.
Diversified financials such as money-center banks and investment banks
Consumer services such as gaming and leisure products
Energy and capital goods
Scorecard—What He Said:
- Levkovich's Previous Appearance on CNBC (Dec. 29, 2010)
More Market Intelligence:
- Expect Double-Digit Returns in 2011: Strategist
- Stocks Will Move Higher in First Half of 2011: Pro
- Why Rising Food Prices Could Hurt Stocks
CNBC Data Pages:
Major Earnings Coming Up:
No immediate information was available for Levkovich or his firm.