Bed Bath & Beyond under pressure once again
US Treasury yields rise as investors watch economic data
US Treasury yields were higher as market participants awaited a fresh batch of economic data and Treasury auctions after Monday’s Labor Day break.
The yield on the benchmark 10-year Treasury rose more than 7 basis points to 3.265% around 3:40 a.m. ET, while the yield on the 30-year Treasury rose 6 basis points to 3.408 %.
The yield on the 2-year Treasury note jumped almost 7 basis points to trade at 3.466%.
Sterling jumps on reports of new UK Prime Minister’s energy billing plans
The pound climbed 0.6% against the dollar in early trading on Tuesday after Bloomberg reported that new British Prime Minister Liz Truss had drawn up plans to freeze British household energy bills, in a bid to mitigate the spiraling cost of living crisis in the country.
The pound was changing hands for around $1.158 shortly after 8 a.m. in London, after slipping below $1.15 on Monday.
The overnight report suggested that Truss planned to set typical gas and electricity prices for households at their current level of £1,971 ($2,300) a year. UK energy regulator Ofgem recently announced an 80% increase in the country’s energy price cap from October 1, which would raise the cap to £3,548 a year.
European markets rise as investors assess economic challenges
European markets rose on Tuesday, recouping losses from the previous session as investors continued to assess recession risks in the region.
The pan-European Stoxx 600 added 0.8% in early trading as retail stocks jumped 3.7% to lead the gains as most sectors moved into positive territory. Oil and gas stocks were the outlier, slipping 0.7%.
Australia’s central bank hikes rates by half a point
The Reserve Bank of Australia raised rates by 50 basis points, in line with analysts’ forecasts in a Reuters poll.
This is the fifth straight increase since the central bank began raising rates in May.
Inflation in Australia came in at 6.1% in the June quarter, above the target range of 2% to 3%.
Russia’s energy minister says price cap will lead to more Russian oil being shipped to Asia
A worker walks from the Sans Vitesse housing towards the gas receiving compressor station of the Nord Stream 1 gas pipeline in Lubmin, Germany, Tuesday, August 30, 2022.
Krisztian Bocsi | Bloomberg | Getty Images
Russian Energy Minister Nikolai Shulginov said the country would ship more oil to Asia in response to price caps on its oil exports, Reuters reported.
“Any action to impose a price cap will lead to a deficit in the own markets (of the initiating countries) and will increase price volatility,” he told reporters at the Eastern Economic Forum in Vladivostok, according to Reuters.
Last week, the G-7 economic powers agreed to cap the price of Russian crude to punish Moscow for its unprovoked invasion of Ukraine. Prior to the invasion, Russia exported about half of its crude and oil product exports to Europe, according to the International Energy Agency.
— Natalie Tam
CNBC Pro: Forget volatility. Buy this ETF for a long-term growth story, analyst says
Investors should navigate the current market volatility by choosing ETFs with a long-term growth history, according to one portfolio manager.
“The idea of owning an ETF instead of a specific player – you have the whole basket and are riding the wave of more capital investment in cyberspace,” John Petrides, portfolio manager at Tocqueville, told CNBC. Asset Management.
He names his favorite cybersecurity ETF, along with two others.
CNBC Pro subscribers can learn more here.
CNBC Pro: Hold on to money because it beats the market, pros say
Strategists are urging investors to allocate more of their portfolios to cash in these volatile times as interest rate hikes mean it now offers higher yields.
“Cash was king” last month, Bank of America said in a Sept. 1 note, as most asset classes — such as stocks, bonds and even commodities — posted losses.
Here’s how to add it to your portfolios, according to the pros.
CNBC Pro subscribers can learn more here.
Where are the main averages to start the week
Last week’s selloff saw major averages post their third straight week of losses. All 11 sectors of the S&P 500 ended the week negative, dragged down by materials, which fell almost 5%.
Here’s how the major averages fared:
- The Dow Industrial Average fell 1.1% on Friday. The 30-stock index closed down about 3% for the week and ended more than 15% off its 52-week high.
- The S&P 500 fell 1.1% on Friday and 3.29% for the week. The benchmark hit its lowest close since July and closed more than 18% off its 52-week highs.
- The Nasdaq Composite fell 1.3% on Friday and ended its sixth consecutive negative session for the first time since 2019. The tech-heavy index fell 4.21% for the week and closed at over 28 % of its 52-week high.
— Samantha Subin, Christopher Hayes
Truist’s Lerner on looking for signs of “stabilization” in an oversold market
How markets react to news over the weekend could play a vital role in how markets move, said Keith Lerner of Truist
“The best side for the bulls would be if the market was actually able to stabilize with all the bad news,” he said. “That will at least tell you that the market has suffered enough in the short term. I’m just looking to see – in an oversold market – can we find some sort of stabilization coming back in line after a long weekend.”
According to Lerner, technical indicators are showing the most extreme oversold conditions since the June low, but the market rising or falling slightly at the end of the weekend could be a good sign.
Over the long weekend, Europe grappled with energy supply problems amid news that Russia would halt gas flows to Europe, while OPEC+ announced a cut in the production. Lerner is also closely watching the ECB and its impending decision on rate hikes.
“What you want to see is that the market can find some stability tomorrow, as opposed to a big sell-off,” Lerner said.
— Samantha Subin
CVS is buying Signify Health for about $8 billion
CVS Health said Monday it reached an agreement to buy home health company Signify Health for $30.50 per share, or about $8 billion.
The acquisition, which the two companies expect to complete in the first half of 2023, will allow CVS to continue to expand its growing healthcare service offerings and comes amid a push by rivals Amazon and Walgreens to expand into the market. ‘space.
“This acquisition will enhance our connection with consumers in the home and enable providers to better meet patient needs as we execute our vision to redefine the healthcare experience,” said CVS President and CEO. Health, Karen Lynch, in a press release.
—Samantha Subin, Leslie Josephs
Stock futures open higher
Stock futures rose on Monday as Wall Street kicked off a shortened holiday trading week. Futures tied to the Dow Jones Industrial Average rose 121 points, or 0.39%, while S&P 500 futures gained 0.26%. Nasdaq 100 futures rose 0.12% for the last time.
— Samantha Subin