Bed Bath & Beyond Under Pressure Once Again
Shares of Bed Bath & Beyond dropped more than 16% in the premarket, putting the meme stock on track for its fifth straight day of losses. Those moves come as traders pore over a slew of corporate moves by the company, including store closures and layoffs.
The decline comes after CFO Gustavo Arnal died by suicide on Friday. Police said he fell to his death. The company said in a statement Sunday that Arnal “was instrumental in guiding the organization throughout the coronavirus pandemic.”
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 â in an oversold market â 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.
â Samantha Subin
Billionaire Investor Bill Ackman Says There Are Signs Inflation Is Calming
Billionaire investor Bill Ackman has said the Federal Reserve needed to be more aggressive in its rate hiking plan to tame inflation. Now, he says it’s on well on that track and there are some indications that inflation is calming.
“Our biggest fear was inflation, and that’s why I wanted the Fed to raise rates quickly and soon. They’re now doing this, I think they have to ,” the Pershing Square Capital CEO told CNBC’s “Squawk Box” Tuesday morning. “What they’ve said they’re going to do they have to do, which is raise rates to something in order of 4% or maybe a little bit more, keep the there forâ¦ a year or so.”
The markets are still down big for the year but Ackman said that for the most part, Pershing owns the same companies it has owned since the start of 2022.
“Ultimately if you own great businesses, you can ride through a challenging time like this,” he said.
â Tanaya Macheel
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Defensive Stocks Help Dow
Defensive names gained on Tuesday, helping to lift the Dow Jones Industrial Average off lows of the morning. Health services and health technology sectors led the index.
Johnson & Johnson notched the top performance on the Dow, up more than 2%. UnitedHealth Group gained 1.81% and Merck rose nearly 1%.
Consumer staples also helped lift the market. Coca-Cola gained 1.21% to come in third on the top performers of the Dow list. It was followed by McDonald’s, which was up 0.60%.
â Carmen Reinicke
Dow Rises In Volatile Post
U.S. stocks whiplashed on Tuesday in a volatile trading session at the start of the holiday-shortened week as investors weighed what strong economic data and rising rates mean for the Federal Reserve’s aggressive tightening campaign.
The Dow Jones Industrial Average rose 48 points, or 0.16%, climbing off lows of the day boosted by defensive stocks such as Johnson & Johnson and Coca-Cola. The S& P 500 rose 0.30% and the Nasdaq Composite gained 0.12%.
At the same time, bond yields surged, adding to the rout in stocks. The yield on the U.S. 10-year Treasury jumped as much as 0.162 percentage point before settling up 0.13 percentage point as investors sold bonds. Yields move inversely to prices.
The moves came after was stronger than expected, coming in at 56.9 versus expectations of 55.5. The report follows Friday’s jobs release, which also beat Wall Street’s expectations, showing a more solid U.S. economy than anticipated.
Both reports come ahead of the Federal Reserve’s September meeting, where they’re expected to raise interest rates again. Better-than-expected economic data may mean that the central bank continues to act aggressively in hiking interest rates.
In the holiday-shortened week, investors are looking ahead to speeches from Federal Reserve presidents and a fresh rate hike decision from the European Central Bank due out later this week.
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Notes & Data Providers
Stocks: Real-time U.S. stock quotes reflect trades reported through Nasdaq only comprehensive quotes and volume reflect trading in all markets and are delayed at least 15 minutes. International stock quotes are delayed as per exchange requirements. Fundamental company data and analyst estimates provided by FactSet. Copyright © FactSet Research Systems Inc. All rights reserved. Source: FactSet
Indexes: Index quotes may be real-time or delayed as per exchange requirements refer to time stamps for information on any delays. Source: FactSet
Data on U.S. Overview page represent trading in all U.S. markets and updates until 8 p.m. See Closing Diaries table for 4 p.m. closing data. Sources: FactSet, Dow Jones
Stock Movers: Gainers, decliners and most actives market activity tables are a combination of NYSE, Nasdaq, NYSE American and NYSE Arca listings. Sources: FactSet, Dow Jones
ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. Sources: FactSet, Dow Jones
Bonds: Bond quotes are updated in real-time. Sources: FactSet, Tullett Prebon
Currencies: Currency quotes are updated in real-time. Sources: FactSet, Tullett Prebon
Cryptocurrencies: Cryptocurrency quotes are updated in real-time. Sources: CoinDesk , Kraken
Calendars and Economy: ‘Actual’ numbers are added to the table after economic reports are released. Source: Kantar Media
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Russian Energy Minister Says Price Cap Will Lead To Shipping More Russian Oil To Asia
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 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.
â Natalie Tham
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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
Us 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 2-year Treasury note jumped nearly 7 basis points to trade at 3.466%.
â Sam Meredith
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Dow S& p 500 Turn Green
The Dow Jones Industrial average and the S& P 500 reversed earlier losses to trade in positive territory heading into midday Tuesday.
Defensive stocks such as Johnson & Johnson and Coca-Cola lifted the Dow, while the S& P 500 was boosted by Rollins, Illumina and Eli Lilly.
The Nasdaq was still down on the day as tech shares dragged the index lower. Pinduoduo, Okta and Moderna were the biggest losers on the index. Shares of Netflix, Datadog and Palo Alto Networks also slumped.
– Carmen Reinicke
Nasdaq On Track For Seven Days Of Losses Its Longest Since 2016
The Nasdaq Composite ticked lower on Tuesday, heading for its seventh consecutive day of declines.
It’s a grim milestone for the tech-heavy index, marking its longest losing streak since a 9-day downturn in November 2016. This is also a particularly painful slump for the Nasdaq, which is off by nearly 9% in this latest string of consecutive losses.
Here are a list of notable losing streaks for the Nasdaq, going back to 2000:September 2022 -8.86%
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Missed Loan Payments Point To A Hard Landing For Companies Squeezed By Rising Interest Rates
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Financial pain is spreading in the junk-loan market, showing how interest-rate increases are hurting debt-laden companies and worrying investors that a credit crunch looms as the economy slows.
Defaults on so-called leveraged loans hit $6 billion in August, the highest monthly total since October 2020, when pandemic shutdowns hobbled the U.S. economy, according to Fitch Ratings. The figure represents a fraction of the sprawling loan market, which doubled over the past decade to about $1.5 trillion. But more defaults are coming, analysts say.
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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.
â Samantha Subin, Christopher Hayes
Us Treasury Yields Push Higher
U.S Treasury yields surged on Tuesday as investors weighed concerns that the Federal Reserve will remain aggressive in its fight to tame surging prices despite its potential repercussions on economic growth.
The yield on the 2-year note last rose 11 basis points to 3.511% and traded at its highest level since November 2007, while the yield on the 10-year note was last up nearly 15 basis points at 3.336%.
The moves came as investors digested a fresh batch of economic news, including August ISM data which came in stronger than anticipated.
â Samantha Subin
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Why Consider This Fund
- You want the opportunity to remain in the same portfolio after the target date is reached
- You want one-step diversification with exposure to domestic stocks, international stocks and fixed-income securities
- You’ve considered your risk tolerance and want your asset allocation to become more conservative over time, but still provide growth after your retirement date to protect against longevity risk
- You want an actively managed asset allocation portfolio investing in actively managed underlying funds
How T Rowe Price Retirement Funds Work
T. Rowe Price Retirement Funds, a Target Date asset allocation option, are designed to take you through retirement.
The asset mix of each Portfolio is based on a target date. This is the expected year in which participants in a Portfolio plan to retire and no longer make contributions. A team of asset allocation professionals adjusts each Portfolios make-up over time to ensure a noticeable and steady shift from equities to fixed income in the years leading to retirement.
The T. Rowe Price Retirement Funds are composed of actively managed funds and are managed to help retain your potential for growth, and aim to preserve the value of your assets at and after retirement.
As each Portfolio glides over time, its asset mix is adjusted. Looking at the image below:
- Greater emphasis on aiming to provide an income stream in your retirement years
- Actively managed T. Rowe Price funds with broad diversification
- The Funds invest in a mix of equities and bonds that gradually becomes more conservative as the target Retirement Date nears
- At the target Retirement Date, the Funds allocation to stocks is anticipated to be approximately 55% of its assets
- The Funds exposure to stocks will continue to decline until approximately 30 years after its target Retirement Date, at which its allocation to stocks will remain at approximately 20% and the remainder will be invested in bonds
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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%.
â Abigail Ng
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Falling Gas Prices Show Inflation Is Coming Down Fundstrat’s Tom Lee Says
Fundstrat’s Tom Lee believes that falling gas prices show that inflation is coming down.
“I think the bar is pretty high for investors and markets and the Fed to be convinced inflation is breaking. I mean part of it is because inflation is so uncertain that the market wants to have comfort that it’s truly vanquished before they think the Fed can even consider being a little easier,” Lee said Tuesday on CNBC’s “TechCheck.”
Still, Lee said investors should be encouraged by gasoline prices that are falling “like a rock” in a way they hadn’t in prior inflationary periods. The investor also pointed to softening housing data, and believes that there is more weakness in the job market than is immediately apparent.
“I think investors should be encouraged that hit some sort of wall. We think it’s actually going to fall pretty quick,” he added.
â Sarah Min
Ism Services Pmi Tops Expectations For August
The Institute for Supply Management said its services purchasing managers index came in at 56.9 for August, beating a Dow Jones estimate of 55.5. In other words, the U.S. services sector expanded last month at a faster rate than expected.
The report propelled Treasury yields higher and sent stocks lower, as it raised concern over even higher rates from the Federal Reserve.
To be sure, & P Global’s U.S. services PMI showed the biggest contraction for the services sector since May 2020.
â Fred Imbert
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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 Â£1,971 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 Â£3,548 per year.
â Elliot Smith
Stocks Rise At Market Open Tuesday
U.S. stocks rose at Tuesday’s open as Wall Street looks to snap a three-week losing streak. The Dow Jones Industrial average ticked up 117 points or 0.38%, while the S& P 500 and the Nasdaq Composite gained 0.28% and 0.08%, respectively.
“Bulls hoping for a rebound will be doing so during a shortened Labor Day week that historically has paralleled September and its track record of underperformance: Losses have been slightly less frequent over the past three decades, but volatility has been higher,” said Chris Larkin, managing director of trading for E*Trade from Morgan Stanley.
â Carmen Reinicke
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