Trader on the floor of the NYSE Aug. 30, 2022.
Stock futures rose in overnight trading Monday after the major averages capped their third straight week of losses.
Futures tied to the Dow Jones Industrial Average gained 158 points, or 0.5%. Nasdaq 100 futures rose 0.53% and S&P 500 futures added 0.47%.
On Friday, the major averages closed out their third negative week in a row. The Nasdaq Composite posted its first six-day losing streak since 2019, ending the session 1.3% lower, while the Dow erased a 370-point gain on Friday to close about 1.1% lower. The S&P shed 1.1% to its lowest close since July.
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. August PMI services and ISM services data are slated for Tuesday.
“This is the week where everyone’s back,” said Ed Moya, senior market analyst at Oanda. “Everyone’s back to school, back to trading, a lot of people are back into the office. There’s still a lot of pessimism here that we could continue to see inflation rear its ugly head and that should warrant more aggressive rate hikes by the Fed.”
European markets closed lower on Monday as investors weighed energy concerns following news that Russia’s state-owned Gazprom would halt gas supplies to Europe through its Nord Stream 1 pipeline.
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.
— 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.
— 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
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