Stocks opened lower on Monday
Stocks opened lower on Monday as the summer rally waned ahead of the Federal Reserve’s Jackson Hole Symposium. The Dow Jones industrial average fell 376 points, or 1.12%. The S&P 500 and Nasdaq Composite fell 1.29% and 1.42%, respectively.
– Sarah Min
VIX highest since Aug. 3
The measure of stock volatility, known as the VIX, rose to its highest level since August 3.
The Cboe volatility index It rose 2.6 points to 23.16 on Monday, although it was off its most recent high in June, when it rose above 30.
– Sarah Min
Wolff Research Says Powell Will Be “Significantly More Hawkish” in Jackson Hole
Federal Reserve Chairman Jerome Powell will take an aggressive stance against inflation in his Jackson Hole speech on Friday, according to Wolff Research.
“We expect Powell to be more hawkish on Jackson Hole,” Wolfe Research’s Chris Senyek wrote in a Monday note.
“As we’ve discussed at length before, we believe the Fed will need to raise the funds rate to 4.5%+ to put inflation on a steady path toward the FOMC’s long-term 2% target,” he added.
The research firm said the central bank was “behind the curve” and outlined reasons why it was not buying into the bull case, including slowing global growth and earnings expectations.
– Sarah Min
AMC shares sink as Cineworld weighs filing for bankruptcy
Mark the surges in the Amazon report
Shares of Signify Health jumped nearly 38% in premarket trading on Monday The Wall Street Journal reports Amazon is among several companies bidding for the healthcare company.
Along with tech giant CVS Health and UnitedHealth Group, Signify is competing in a bid valued at more than $8 billion, the report said, citing people familiar with the matter.
Amazon shares fell 2% in premarket trading on Monday.
Buffett is reportedly not looking to take over Occidental outright
Time to sell Netflix, CFRA says
Netflix CFRA said it has risen sharply since mid-July, but the good times for the streaming stock won’t last long.
Analyst Kenneth Lyon downgraded Netflix to hold and sell: “The main catalyst for NFLX — the introduction of new ad-paid subscription plans — won’t be seen until 2023.”
Shares of Netflix fell 2% in the premarket.
Can be read by CNBC Pro subscribers Full story here.
-Fred Imbert, Carmen Reinicke
The euro returns to dollar parity
The Euro The euro zone briefly slipped below parity with the U.S. dollar on Monday for the first time since mid-July as recession fears resurfaced.
As of 9:15 a.m. London time, the common currency had partially recovered, trading at exactly $1.
– Elliott Smith
European markets fell as rate hike fears resurfaced
Pan-European Stoxx 600 In London, it fell 1.2% by mid-morning, while autos fell 2.9% and led losses as all sectors and major bourses traded in negative territory.
Risk sentiment was tempered by hawkish signals from ECB policymakers, with Bundesbank President Joachim Nagel telling a German newspaper that the ECB should continue raising interest rates even as recession risks rose in Germany.
Minutes from the ECB’s most recent policy meeting will be released on Thursday, while investors will focus on euro zone flash PMIs on Tuesday.
China’s central bank cuts benchmark lending rates
The The People’s Bank of China has cut its benchmark one-year lending rate 5 basis points and its five-year rate is 15 basis points, according to an online report.
This brings the one-year loan prime rate to 3.65% and the five-year LPR to 4.3%.
Analysts polled by Reuters expected a 10-basis-point cut to the one-year LPR, and about half of survey respondents expected the five-year rate to drop by 15 basis points.
– Off Abigail
CNBC Pro: How to reduce risk in your portfolio now, according to the pros
Stocks have been volatile this year due to a combination of recession fears, inflationary pressures and other macro risks.
Here are three ways investors can adjust their portfolios to reduce their risks or mitigate losses, according to Goldman Sachs, Wells Fargo and others.
Pro subscribers can Read more here.
– Weissen Don
CNBC Pro: JP Morgan predicts when growth stocks’ rally will end
Investors have flocked to growth stocks of late, but as recession fears mount, market watchers are deciding whether to pivot to safer bets instead.
However, JP Morgan thinks the rally has more to go and named several indicators to look out for when considering the cycle of growth stocks.
Pro subscribers can Read the story here.
– Javier Ong
Earning season ends
Investors close earnings season with more than two dozen companies in the S&P 500. Of the 95% of companies in the broad market index that reported earnings, roughly 75% beat expectations, according to FactSet.
– Sarah Min
What to Expect from Powell’s Jackson Hole Talk
Federal Reserve Chairman Jerome Powell will speak this week at the Fed’s annual symposium in Jackson Hole, Wyoming, and shed some light on the pace of future interest rate hikes.
While Powell may face harsh comments from central bank officials who have recently underscored their commitment to fighting inflation, investors have enjoyed a summer rally partly based on expectations of a less aggressive central bank.
Still, St. Louis Fed President James Bullard said in an interview last week Wall Street Journal He is considering another 0.75 percent interest rate hike at the September meeting.
See CNBC Pro More on what to expect from the central bank chair.
– Sarah Min
The future opens less
Futures opened lower Sunday night. Dow Jones Industrial Average futures fell 94 points, or 0.28%. S&P 500 and Nasdaq 100 futures were down 0.36% and 0.69%, respectively.
– Sarah Min