“The percentage of stocks above their 10-day moving average has fallen into single digits for six straight days, and the CBOE Volatility Index (VIX) has risen into the mid-20s, a level we watch closely to indicate an oversold condition .” he said, adding that “our two longer-term indices have lost their bullish momentum and retreated back into neutral territory in a downtrend.” That informed Canaccord’s game plan for the year, which is not to chase the dips and hits in volatile markets – or chumps, as they call them. “The weakness was extreme enough that our most sensitive tactical indicators indicated a sell-off, but our reliable weekly SPX stochastic continues to show a market that has lost upside momentum while in a clear intermediate bearish trend of lower highs and lower lows.” , he said. “Despite the potential for oversold recovery, we still recommend not taking bets on major markets or sectors until we see a real change from the Fed – and that is likely to take longer,” Dwyer added. —Carmen Reinick
The Nasdaq is on track for seven days of losses – the longest since 2016
The Nasdaq Composite fell on Tuesday, heading for its seventh straight day of decline. It’s a bleak milestone for the tech-heavy index, marking its longest losing streak since a nine-day slump in November 2016. It’s also a particularly painful drop for the Nasdaq, which is down nearly 9% in this latest streak. losses. Here’s a list of notable losing streaks for the Nasdaq dating back to 2000: September 2022 -8.86% January 2016 -9.09% November 2011 -9.11% October 2008 -21.36% June 2001 -12.16% December 2000 -22.63% The Federal Reserve’s move to raise interest rates didn’t help the companies backing the Nasdaq Composite. Rising interest rates reduce the value of future earnings for tech stocks. -Darla Mercado, Robert Hum
Dow, S&P 500 turn green
The Dow Jones Industrial Average and the S&P 500 reversed earlier losses to trade in positive territory by 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 stocks dragged the index lower. Pinduoduo, Okta and Moderna were the biggest losers in the index. Shares of Netflix, Datadog and Palo Alto Networks also fell. – Carmen Reinick
Defensive stocks help Dow
Defensive names gained on Tuesday, helping to lift the Dow Jones industrial average from morning lows. The health services and health technology sectors led the index. Johnson & Johnson was the top performer on the Dow, rising more than 2%. UnitedHealth Group gained 1.81% and Merck nearly 1%. Consumer staples also helped lift the market. Coca-Cola gained 1.21% to come in third on the Dow’s top performers. It was followed by McDonald’s, which rose 0.60%. — Carmen Reinick
Tech stocks fall
Technology stocks fell, despite earlier gains, as rising interest rates threatened to limit their growth and expose their lofty valuations.
Information technology was among the biggest laggards in the S&P 500, with the sector down 1.3% in morning trading on Tuesday.
Shares of Apple and Microsoft fell 1.3% and 1.2% respectively. Tesla fell 1%. Nvidia fell 1.5%.
US bond yields are rising
U.S. Treasury yields rose on Tuesday as investors weighed concerns that the Federal Reserve will remain aggressive in its fight to tame rising prices despite its potential impact on economic growth. The yield on the 2-year note was last up 11 basis points at 3.511% and traded at its highest level since November 2007, while the 10-year yield 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 expected. — Samantha Subin
Services ISM PMI top expectations for August
The Institute for Supply Management said its services purchasing managers’ index (PMI) came in at 56.9 in August, beating the Dow Jones estimate of 55.5. In other words, the U.S. services sector expanded last month at a faster-than-expected pace. The report pushed Treasury yields higher and sent stocks lower as it sparked concern about even higher interest rates from the Federal Reserve. Sure enough, the US &P Global services PMI showed the largest contraction for the services sector since May 2020. — Fred Ebert
Verizon raises dividend
Telecom giant Verizon raised its quarterly dividend to 65.25 cents a share from 64 cents a share — a 2% increase. The new dividend will be paid on November 1st. The move comes as Verizon shares have struggled this year, losing 20% in 2022. The stock is also down 7% in the past month and 25% below its 52-week high. — Fred Ebert
Stocks are moving higher at the market open on Tuesday
U.S. stocks rose at the open on Tuesday as Wall Street tries to snap a three-week losing streak. The Dow Jones Industrial Average rose 117 points, or 0.38%, while the S&P 500 and Nasdaq Composite gained 0.28% and 0.08%, respectively. “Bulls hoping for a rebound will do so during a shortened Labor Day week that has historically paralleled September and the history of underperformance: losses have been slightly less frequent over the past three decades, but volatility has been higher Chris Larkin said. , managing director of trading for E*Trade from Morgan Stanley. — Carmen Reinick
Stoltzfus on what September trading marks for the year
September is known as a volatile trading month for the markets. Looking back at previous Septembers may offer some clues as to what the month may hold, John Stoltzfus, Chief Investment Strategist, Managing Director of Oppenheimer Asset Management, wrote in a note on Tuesday. “With Q2 earnings season almost in the rearview mirror (with 99% of S&P 500 companies having reported by last Friday) and Q3 earnings season not scheduled to begin until mid-October, when the major banks report, ‘what have you done for me lately’ market crowd is likely to carry more weight daily, in the short term and with their usual tendency to worry and negative projection,” he wrote. Counting back from 1994 to calendar year 2021, Stoltzfus counted 13 Septembers that saw a negative return for the S&P 500 and 15 Septembers when the S&P 500 posted a positive return. He also noted that of the past 13 Septembers with negative returns, only 6 of those years saw the S&P 500 negative for the entire year. “Given the above, we believe that while it is not unreasonable to consider potential volatility entering any given September, it is not necessarily a determinant of the performance of the S&P 500 this month, or for that matter the performance of the index reporting for the calendar year.” he said. – Carmen Reinick
Billionaire investor Bill Ackman says there are signs that inflation is calming down
Billionaire investor Bill Ackman said the Federal Reserve needed to be more aggressive in its rate hike plan to tame inflation. Now, he says it is on track and there are some signs that inflation is calming down. “Our biggest fear was inflation, and that’s why I wanted the Fed to raise rates quickly and soon. Now they’re doing that, I think they should [continue],” the Pershing Square Capital CEO said on CNBC’s “Squawk Box” Tuesday morning. “What they said they were going to do they have to do, which is to raise interest rates to something like 4% or maybe a little bit more. , keep it there for… a year or so.” Markets are still very much down for the year, but Ackman said that for the most part, Pershing is holding the same companies it has since the start of 2022. “At the end of the day, if you have great businesses, you can get through a tough time like this,” he said. — Tanaya Machel
Credit Suisse’s Golub in the market returns year-to-date
The S&P 500’s roughly -16.1% year-to-date “hides sharp underlying moves,” Credit Suisse’s Jonathan Golub wrote in a Monday note. Returns were -22.5% in the year to mid-June, up 17.7% in mid-August and -8.1% at the end of the month. “Market leadership was consistent throughout, with Value, Large Cap and Energy outperforming moves lower, while Growth, Small Cap and TECH+ outperformed during the recent market rally,” he said Golub. Moreover, even though EPS rose 10.2% during the second-quarter earnings season, beating estimates by 4.6%, revisions have been subdued due to recession concerns and poor guidance. Now, estimates are -5.5% for the third quarter and -3.7% for 2023. “Energy revisions were extreme to the upside, TECH+ to the downside,” Golub said. “Historically, in inflationary periods, EPS changes with the onset of a recession, 15 months prior, when inflation is low.” However, the employment figures are not consistent with a recession, he said. And, economists’ forecasts signal that inflation could ease to around 2.5% at the end of 2023. – Carmen Reinick
Bed Bath & Beyond under pressure once again
U.S. Treasury yields rise as investors monitor economic data
US bond yields were higher as market participants awaited a fresh batch of economic data and Treasury auctions after Monday’s Labor break. The yield on the benchmark 10-year Treasury note rose more than 7 basis points to 3.265 percent at about 3:40 a.m. ET, while the yield on the 30-year Treasury note gained 6 basis points to 3.408%. The yield on the 2-year Treasury note jumped nearly 7…
