Bed Bath & Beyond under pressure once again
U.S. Treasury yields rise as investors monitor economic data
U.S. Treasury yields were higher as market participants awaited a fresh batch of economic data and Treasury auctions following Monday’s Labor Day recess.
The yield on the benchmark 10-year Treasury note rose over 7 basis points to 3.265% at around 3:40 a.m. ET, while the yield on the 30-year Treasury bond gained 6 basis points to 3.408%.
The yield on the 2-year Treasury note jumped nearly 7 basis points to trade at 3.466%.
— Sam Meredith
Sterling jumps on reports of new UK PM’s energy bill plans
Sterling climbed 0.6% against the dollar in early trade on Tuesday after Bloomberg reported that incoming British Prime Minister Liz Truss has drafted plans to freeze energy bills for U.K. households, in a bid to mitigate the country’s spiraling cost of living crisis.
The pound was changing hands for around $1.158 shortly after 8 a.m. in London, having slid below $1.15 on Monday.
The report overnight suggested that Truss plans to fix typical household gas and electricity prices at their current level £1,971 ($2,300) per year. British energy regulator Ofgem recently announced an 80% increase to the country’s energy price cap from Oct. 1, which would take the cap to £3,548 per year.
— Elliot Smith
European markets rise as investors assess economic challenges
European markets climbed on Tuesday, recovering the previous session’s losses as investors continued to assess recession risks in the region.
The pan-European Stoxx 600 added 0.8% in early trade, with retail stocks jumping 3.7% to lead gains as most sectors nudged into positive territory. Oil and gas stocks were the outliers, slipping 0.7%.
– Elliot Smith
Australia’s central bank hikes rates by half a point
The Reserve Bank of Australia hiked rates by 50 basis points, in line with analyst forecasts in a Reuters poll.
That’s the fifth increase in a row since the central bank started raising rates in May.
Inflation in Australia stood at 6.1% in the June quarter, above the target range of between 2% and 3%.
— Abigail Ng
Russian energy minister says price cap will lead to shipping more Russian oil to Asia
A worker walks from the Sans Vitesse accommodation towards the gas receiving compressor station of the Nord Stream 1 natural gas pipeline in Lubmin, Germany, on Tuesday, Aug 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 actions to impose a price cap will lead to deficit on (initiating countries’) own markets 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. Before the invasion, Russia exported approximately half of its crude and petroleum product exports to Europe, according to the International Energy Agency.
— Natalie Tham
CNBC Pro: Forget the volatility. Buy this ETF for a long term growth story, analyst says
Investors should navigate the ongoing market volatility by getting into ETFs with a long-term growth story, according to one portfolio manager.
“The idea of owning ETF instead of one specific player — you have the whole basket and ride the wave of more capital investment into the cyberspace,” John Petrides, portfolio manager at Tocqueville Asset Management, told CNBC.
He names his favorite cyber security ETF, along with two others.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: Hold cash as it’s beating the market, say the pros
Strategists are urging investors to allocate more of their portfolios to cash during these volatile times, as interest rate hikes mean it’s now offering 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 read more here.
— Weizhen Tan
Where the major averages stand to start the week
Last week’s sell-off saw the major averages post their third straight week of losses. All 11 S&P 500 sectors ending the week negative, led to the downside by materials, which fell nearly 5%.
Here’s how the major averages fared:
- The Dow Industrial Average fell 1.1% on Friday. The 30-stock index closed roughly 3% lower for the week and finished 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 index 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 finished its sixth negative session in a row for the first time since 2019. The tech-heavy index fell 4.21% for the week and closed more than 28% off its 52-week high.
— Samantha Subin, Christopher Hayes
Truist’s Lerner on searching for signs of ‘stabilization’ in an oversold market
How markets react to the news over the weekend could play an integral role in where the markets move going forward, said Truist’s Keith Lerner
“The best side for the bulls would be that the market is actually able to stabilize with all the bad news,” he said. “That will at least tell you that the market has taken enough short-term pain. I’m just looking to see — in an oversold market — can we find any kind of stabilization coming back online after a long weekend.”
According to Lerner, technical indicators show the most extreme oversold conditions since June’s trough, but the market moving higher or slightly only lower on the back of the weekend could be a good sign.
Over the long weekend, Europe grappled with energy supply concerns amid news that Russia would halt gas flows to Europe, while OPEC+ announced a production cut. Lerner is also closely watching the ECB and its impending decision on rate hikes.
“What you want to see is can the market find some stability tomorrow as opposed to a big broad sell-off,” Lerner said.
— Samantha Subin
CVS to purchase Signify Health for roughly $8 billion
CVS Health said Monday it’s reached a deal to buy in-home health company Signify Health for $30.50 a share, or roughly $8 billion.
The acquisition, which both companies expect to close in the first half of 2023, will enable CVS to continue expanding its growing health-care services offerings and comes amid a push by competitors Amazon and Walgreens to expand in the space.
“This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience,” CVS Health President and CEO Karen Lynch said in a news release.
— Samantha Subin, Leslie Josephs
Stock futures open higher
Stock futures rose on Monday as Wall Street kicked off a holiday-shortened week of trading. 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 were last up 0.12%.
— Samantha Subin
Read More:Stock futures rise as Wall Street looks to break 3-week losing streak