Earnings will propel the market forward but valuations could bring volatility, says Nuveen's Malik

Summary

Saira Malik, Nuveen CIO and head of equities and fixed income, joins Closing Bell to discuss the tug of war between macro risks and micro earnings. She expects over 10% earnings growth in 2026 to support the market, but warns that premium valuations, geopolitical issues, and Fed tensions could drive volatility. She favors tech, materials, industrials, financials, and NiSource, while avoiding staples and watching utilities.

• Nuveen expects over 10% earnings growth in 2026 to support equities.
• Tech earnings are expected to be about twice S&P 500 earnings; Mag 7 results, including Meta and Alphabet, could extend the tech rally.
• Deregulation is viewed as positive for financials amid strong earnings, capital markets, and M&A.
• Materials and industrials are secondary earnings-growth areas she would look at.
• Consumer staples screen cheap but lack earnings growth outside a recession.
• Utilities are defensive; Midwest utilities and AI data centers are highlighted, with NiSource as a preferred stock.
• Policy noise, geopolitics, and Fed tensions are seen as volatility risks.
• Affordability, tax relief, and a K-shaped consumer are macro themes without a clean tradeable expression.