Dow, S&P, and Russell 2000 close at record highs

Summary

Sam Stovall, CFRA chief investment strategist, joined Closing Bell Overtime to discuss the record market action and the January jobs report. He said the jobs data was not concerning enough to make investors cautious and saw it as increasing the odds of Fed rate cuts that could support equities. He favored last year's winning sectors and cited positive early-January seasonality, while also noting a working January effect and rotation into smaller-cap stocks.

• Sam Stovall discussed record market action and the first week of trading.
• He did not view the slowing jobs report as a reason for caution.
• He expects Fed rate cuts and sees policy support for equity prices.
• He favors last year's winning sectors: communication services, industrials, and technology.
• He cited positive first-five-days and January-barometer signals for the S&P 500.
• He said the January effect is working and investors are rotating down in market cap.
• He noted the S&P MidCap 400 recently at about a 30% discount.
• He mentioned current improvements in health care, energy, and materials but stuck with winners for the year.