Europe stocks open lower
Negative sentiment from the start of the week rolled into Tuesday’s open, with the regional Stoxx 600 index 0.32% lower at 8:15 a.m. London time.
Utilities fell 1.3%, while health-care stocks managed to gain 0.37%.
Stoxx 600 index.
Solar names go dark on Monday
Barclays downgraded SolarEdge to equal weight, warning that the company and its peer Enphase could be hampered by price cuts and market share losses. SolarEdge dropped nearly 5.4%, while Enphase tumbled 2.7%.
Sunrun dropped 10% after Susquehanna trimmed its price target.
–Darla Mercado, Ethan Kraft
Nasdaq-100 Index has rallied for 14 straight weeks on first day of trading
The Nasdaq-100 Index rose again Monday, the 14th week in a row that the benchmark for large-cap, nonfinancial stocks traded on the Nasdaq Stock Market rallied on the first trading day of the week.
In a streak noted in an intraday report by BTIG chief market technician Jonathan Krinsky, the last time the Nasdaq-100 failed to advance on the first day of the week was back on June 26. The string of gains even includes Labor Day weekend, when the first day of trading was Tuesday, Sept. 5, and the week of the 4th of July, when Independence Day fell on a Tuesday and interrupted trading.
“At this point the ‘green Monday/first day of week’ streak is not only extremely rare, but just bizarre,” Krinsky wrote. “Interestingly over the course of this streak from late June, the [Nasdaq-100] is down modestly, so the strong starts to the week aren’t leading to any followthrough.”
— Scott Schnipper, Michael Bloom
A shopping opportunity is about to emerge in muni bonds, according to Wells Fargo Investment Institute
Municipal bonds typically pull back in September and October, but they could see a pop as the year winds down, Wells Fargo Investment Institute found.
“Municipal bonds have historically seen negative performance during September, and to a lesser extent, October,” wrote municipal analyst Dorian Jamison. He noted that in September 2022, municipal bonds returned -3.8%, the worst month of performance dating back to 2018, according to the Bloomberg U.S. Municipal Bond Index.
These bonds do enjoy a pop in November and December, however. Last November, munis had a return of 4.7%, the best single month of performance going back to 2018, Jamison wrote.
“While past performance is not indicative of future results, we expect that a pullback in the market may potentially offer a more attractive entry point heading into the final quarter of the year, when the technical for munis have traditionally been more favorable,” he said.
Sectors that have outperformed the broader muni market include tobacco, transportation and health care, Jamison said.
Stock futures open little changed
Stock futures opened little changed on Monday, following a session that saw the yield on the 10-year Treasury climb to its highest level since 2007.
— Brian Evans