Bed Bath & Beyond under pressure again
US Treasury yields rise as investors monitor economic data
US Treasury yields were higher as market participants awaited fresh economic data and Treasury auctions after Monday’s Labor Day pause.
The benchmark 10-year Treasury yield rose over 7 basis points to 3.265% around 3:40 am ET, while the 30-year Treasury yield rose 6 basis points to 3.408%.
The yield on the 2-year Treasury note rose nearly 7 basis points to trade at 3.466%.
– Sam Meredith
Sterling is reacting to reports of the new British Prime Minister’s energy bill plans
Sterling was up 0.6% against the dollar in early trade on Tuesday after Bloomberg reported that Britain’s new prime minister, Liz Truss, has outlined plans to freeze energy bills for British households in a bid to ease the country’s mounting cost-of-living crisis.
The pound changed hands at around $1.158 just after 8am in London after falling below $1.15 on Monday.
The report indicated overnight that Truss plans to keep typical residential gas and electricity prices at their current level of £1,971 ($2,300) a year. Britain’s energy regulator Ofgem recently announced an 80 per cent increase in the country’s energy price cap from October 1, bringing the cap to £3,548 a year.
– Eliot Smith
European markets rise as investors assess economic challenges
European markets rose on Tuesday, erasing losses from the previous session as investors continued to assess the risks of a recession in the region.
The pan-European Stoxx 600 was up 0.8% in early trade, with retail stocks jumping 3.7% to lead gains as most sectors surged into positive territory. Oil & gas stocks were the outliers, falling 0.7%.
Australia’s central bank hikes interest rates by half a point
The Reserve Bank of Australia hiked interest rates by 50 basis points, in line with analyst forecasts in a Reuters poll.
This is the fifth straight hike since the central bank began raising interest rates in May.
Inflation in Australia was 6.1% in the June quarter, above the target range of 2% to 3%.
– Abigail Ng
Russia’s energy minister says the price cap will result in more Russian oil being shipped to Asia
A worker walks from the Sans Vitesse shelter to the gas-receiving compressor station of the Nord Stream 1 natural gas pipeline in Lubmin, Germany, Tuesday, August 30, 2022.
Krisztian Bocsi | Bloomberg | Getty Images
Russian Energy Minister Nikolai Shulginov said the country will ship more oil to Asia in response to price caps on its oil exports, Reuters reported.
“Any measure to impose a price cap will create a deficit in their own markets (the initiating countries) and 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 oil to punish Moscow for its unprovoked invasion of Ukraine. According to the International Energy Agency, before the invasion, Russia exported about half of its crude oil and petroleum products exports to Europe.
– Natalie Tam
CNBC Pro: Forget about volatility. Buy this ETF for a long-term growth story, says analyst
According to a portfolio manager, investors should navigate continued market volatility by investing in ETFs with a long-term growth history.
“The idea of owning an ETF instead of a specific player — you have the whole basket and you’re riding the wave of more equity investing into cyberspace,” John Petrides, portfolio manager at Tocqueville Asset Management, told CNBC.
He names his favorite cybersecurity ETF, along with two others.
CNBC Pro subscribers can read more here.
— Wheat Tan
CNBC Pro: Hold cash as it beats the market, pros say
Strategists are urging investors to allocate more of their portfolios to cash during these volatile times, as rate hikes mean it now offers higher yields.
“Cash was king” over the past month, Bank of America said in a Sept. 1 statement, as most asset classes — like stocks, bonds and even commodities — posted losses.
Here’s how to add it to your portfolios, according to the pros.
CNBC Pro subscribers can read more here.
— Wheat Tan
Where the key averages stand to start the week
In last week’s sell-off, the major averages posted their third straight week of losses. All 11 sectors of the S&P 500 ended the week negative, leading to downside action in materials that fell almost 5%.
Here’s how the big averages fared:
- The Dow Industrial Average fell 1.1% on Friday. The 30-stock index ended the week around 3% lower, closing more than 15% below its 52-week high.
- The S&P 500 fell 1.1% on Friday and 3.29% on the week. The benchmark index hit its lowest close since July, ending more than 18% below its 52-week highs.
- The Nasdaq Composite fell 1.3% on Friday, ending its sixth consecutive negative session for the first time since 2019. The tech-heavy index fell 4.21% on the week, closing more than 28% below its 52-week high.
– Samantha Subin, Christopher Hayes
Truist’s Lerner on looking for signs of ‘stabilizing’ in an oversold market
How markets react to the news over the weekend could play a significant role in how markets move going forward, Truist’s Keith Lerner said
“The best side for the bulls would be that with all the bad news, the market can actually stabilize,” he said. “That will at least tell you that the market has suffered enough pain in the short term. I just want to see if – in an oversold market – after a long weekend we can find some sort of stabilization that comes back online.”
According to Lerner, technical indicators are showing the most extreme oversold conditions since the June bottom, but the market move up or only slightly down at the end of the weekend could bode well.
Over the long weekend, Europe battled energy supply concerns as news emerged that Russia would halt gas supplies to Europe, while OPEC+ announced a production cut. Lerner is also keeping a close eye on the ECB and its forthcoming decision on rate hikes.
“What you want to see is whether the market can find some stability tomorrow as opposed to a big broad sell-off,” Lerner said.
— Samantha Subin
CVS acquires Signify Health for approximately $8 billion
CVS Health announced Monday that it has reached an agreement to buy home health care company Signify Health for $30.50 per share, or about $8 billion.
The acquisition, which both companies are expected to close in the first half of 2023, will position CVS to continue expanding its growing offering of healthcare services and comes amid pressure from competitors Amazon and Walgreens to expand in the space.
“This acquisition will enhance our connection to consumers at home and enable providers to better serve patients’ needs as we execute on our vision of redefining the healthcare experience,” said Karen Lynch, President and CEO of CVS Health, in a press release.
– Samantha Subin, Leslie Josephs
Stock futures open higher
Stock futures rose on Monday as Wall Street ushered in a holiday-shortened trading week. Futures linked to the Dow Jones Industrial Average were up 121 points, or 0.39%, while S&P 500 futures were up 0.26%. Nasdaq 100 futures were last up 0.12%.
— Samantha Subin