Dow closes lower after setting intraday record high earlier in session

Watch on YouTube ↗  |  January 07, 2026 at 21:22  |  1:05  |  CNBC
Speakers
Mike Santoli — Senior Markets Commentator

Summary

Michael Santoli reviews a market pullback from a strong three-day start, noting value and high beta underperformance after early leadership. He says cyclical leadership remains in place and the global reflation trade could eventually overheat, though not imminently. He also highlights NVIDIA holding a bid and money rotating into laggard mega-cap tech such as Amazon and Microsoft ahead of the jobs report.

  • Dow set an intraday record high before closing lower.
  • Value and high beta stocks gave back early gains.
  • Michael Santoli says cyclical leadership has persisted for months.
  • He sees the reflation trade as a watch item for potential overheating.
  • NVIDIA was holding a bid just under 190.
  • Amazon and Microsoft attracted catch-up flows after lagging last year.
  • The upcoming jobs report was in focus.
Ideas
Mike Santoli Senior Markets Commentator 0:27
Cyclical leadership intact, watch reflation overheating
The market is seeing a minor spillback from a strong three-day start, with value and high beta underperforming after leading early. Cyclical leadership has persisted for a couple of months, and the key question is when the global reflation trade might tip into overheating or an overshoot, though that is probably not an immediate concern this week.
Cyclical equities MED
Mike Santoli Senior Markets Commentator 0:43
NVIDIA holds bid near 190
NVIDIA is holding a bid just under 190, which is a little bit of a shift in tech leadership and suggests support for the stock at this level.
NVDA LOW
Mike Santoli Senior Markets Commentator 0:57
Money rotates into laggard mega-cap tech
Money is flowing around the market and picking up mega-cap tech that had been left behind. Amazon has led over the last couple of days after being a laggard last year, and Microsoft is seeing the same catch-up rotation.
AMZN MSFT MED
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This CNBC video, published January 07, 2026, features Mike Santoli discussing Cyclical equities, NVDA, AMZN, MSFT. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mike Santoli  · Tickers: Cyclical equities, NVDA, AMZN, MSFT