Stocks chase major milestones as S&P, Dow aim for new record highs

Watch on YouTube ↗  |  January 07, 2026 at 18:50  |  6:40  |  CNBC
Speakers
Joe Terranova — Senior Managing Director, Virtus Investment Partners
Stephanie Link — Chief Investment Strategist, Hightower
Liz Young Thomas — Head of Investment Strategy, SoFi
Jason Snipe — Founder, Odyssey Capital Advisors
Scott Wapner — Host, CNBC

Summary

The CNBC Investment Committee discusses whether the S&P 500 and Dow can keep pushing to new milestones, with a focus on market broadening beyond mega-cap leadership. Panelists cite strong bank loan growth, resilient consumer spending, positive earnings expectations, and cyclical rotation. Several speakers favor software, financials, industrials, materials, healthcare, retail, and regional banks.

  • S&P 500 and Dow record-high milestones dominate the discussion.
  • Joe Terranova sees software mean reversion and favors IGV and Microsoft.
  • Stephanie Link highlights 11 straight weeks of record bank loan growth and equal-weight strength.
  • Liz Young is cyclically bullish, favoring materials, healthcare, and retail stocks.
  • Jason Snipe says earnings look positive and market breadth is healthy and durable.
  • Panelists cite bank lending, consumer spending, AI, and productivity as supports for earnings.
  • Regional banks, industrials, and transports are mentioned as broadening beneficiaries.
  • Valuation and EPS growth remain central to whether the market can move higher.
Ideas
Joe Terranova Senior Managing Director, Virtus Investment Partners 0:21
S&P futures signal higher move
March S&P futures trading at 7000 and the price action over the last four days indicate the market continues to move higher; the market is not running away from risk and is accepting risk tactically.
SPY MED
Joe Terranova Senior Managing Director, Virtus Investment Partners 0:36
Software mean reversion favors IGV
Software is finally seeing a long-awaited mean reversion in 2026; IGV is higher and the market is tactically finding opportunity in the group.
IGV HIGH
Joe Terranova Senior Managing Director, Virtus Investment Partners 0:51
Microsoft is Mag-7 software recovery play
Microsoft is the Mag-7 software name to focus on if the software mean reversion continues.
MSFT MED
Joe Terranova Senior Managing Director, Virtus Investment Partners 1:10
Risk-on rotation spans financials, tech, healthcare, biotech
The market is accepting risk and creating tactical alpha opportunities across financials, technology, healthcare, and biotech, so he likes those areas.
XLF XLK XLV XBI MED
Stephanie Link Chief Investment Strategist, Hightower 1:30
Earnings growth supports S&P 7K move
The S&P is heading toward 7,000 without the biggest names leading, and record bank loan growth, resilient consumer spending, AI momentum, and productivity support 10-12% EPS growth in a 2.5-3% GDP world.
SPY HIGH
Stephanie Link Chief Investment Strategist, Hightower 1:41
Market broadening supports equal-weight S&P
The equal-weight S&P is at a fresh record high as the S&P 500 climbs without the largest names, indicating healthy market broadening.
RSP HIGH
Stephanie Link Chief Investment Strategist, Hightower 1:47
Industrials benefit from reopened business activity
Industrials are among the leading areas as the economy strengthens; a business executive said post-holiday activity opened like floodgates.
XLI MED
Stephanie Link Chief Investment Strategist, Hightower 2:06
Record loan growth supports banks
Bank loan growth has risen for 11 consecutive weeks to record highs, the best streak since Q2 2022, signaling that lending and economic activity are building.
KBE HIGH
Liz Young Thomas Head of Investment Strategy, SoFi 4:41
Consumer resilience supports retail stocks
Despite no Santa Claus rally, the consumer kept spending, so retail stocks should benefit and sentiment should recover after the Q4 2025 soft patch.
XRT MED
Liz Young Thomas Head of Investment Strategy, SoFi 4:55
Cyclicality supports materials this year
She is cyclically bullish and likes materials for the year because economic activity is picking up and expected to stay strong.
XLB HIGH
Liz Young Thomas Head of Investment Strategy, SoFi 4:56
Healthcare is growth rotation destination
Healthcare is a place for investors to rotate into for growth exposure and it continues to do well.
XLV HIGH
Jason Snipe Founder, Odyssey Capital Advisors 6:00
Earnings growth supports broad market
The earnings picture looks very positive at 12-15%, and the market multiple historically is not a good timing mechanism, so the market is durable and healthy.
SPY MED
Jason Snipe Founder, Odyssey Capital Advisors 6:24
Breadth expands to KRE, industrials, transports
Market breadth is healthy and durable as the other 493 sectors start to perform, including KRE regional banks, industrials, and transports.
KRE XLI IYT MED
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This CNBC video, published January 07, 2026, features Joe Terranova, Stephanie Link, Liz Young Thomas, Jason Snipe discussing SPY, IGV, MSFT, XLF, XLK, XLV, XBI, RSP, XLI, KBE, XRT, XLB, KRE, IYT. 13 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Joe Terranova, Stephanie Link, Liz Young Thomas, Jason Snipe  · Tickers: SPY, IGV, MSFT, XLF, XLK, XLV, XBI, RSP, XLI, KBE, XRT, XLB, KRE, IYT