Stocks fell for a second day as investors weighed tensions in China and a fresh increase in profits
Bill Ackman calls for higher prices
Hedge fund manager Bill Ackman said on “Squawk Box” that the Fed needs to raise interest rates to around 4% or more to fight inflation.
“I think interest rates will have to stay at 4% for the foreseeable future – about 12 to 18 months.” higher to stop this inflation. It may be necessary to raise rates,” Ackman said. “The biggest risk to the markets is that people don’t identify it.”
He said Pershing Square has interest rate hedges in Akmene that would benefit from higher short-term interest rates and higher 30-year Treasury yields.
Patikrink Full interview here.
– Jesse Pounds
Job opportunities decrease in June
The June survey of job opportunities and employment changes, released Tuesday morning by the Bureau of Labor Statistics, showed job openings fell to 10.7 million. This is well below economists’ expectations of 11.14 million. prints.
The largest declines in employment were in the retail and wholesale trade, government education and local government sectors.
– Karmen Renikas
Stocks open lower, led by a 266-point drop in the Dow
Stocks fell on Tuesday as traders shrugged off tensions with China over House Speaker Nancy Pelosi’s visit to Taiwan ahead of fresh earnings reports and economic data later in the day.
The Dow fell more than 260 points and was weighed down by Caterpillar, which fell more than 4% on lower-than-expected earnings. The S&P 500 fell 0.53% and the Nasdaq Composite fell 0.30%.
– Karmen Renikas
CNBC’s Jim Kramer says inflation has peaked, citing low oil prices
The economy has reached a peak in inflation, as evidenced by the recent drop in oil prices, CNBC’s Jim Kramer reported Tuesday.
“I think the rate of decline in oil belies the notion that we haven’t reached peak inflation,” Cramer wrote. “Inflationists simply refuse to believe it could have peaked, despite the evidence.”
Data showing a decline in global production caused Oil prices continue to fall From this week’s highs, although they have recovered a bit since then.
– Sara Min
JPMorgan says stocks could rise after Pelosi falls in Taiwan
Stock markets may ignore House Speaker Nancy Pelosi’s visit to Taiwan on Tuesday, especially if there is no immediate reaction from China, JP Morgan wrote on Tuesday.
“Senators from both sides of the aisle have visited Taiwan this year, including Democrats Duckworth and Menendez and Republicans Graham and Scott,” the analysts wrote. He added that “some of China’s reactions to those visits were military exercises in the Taiwan Strait and military aircraft flights in Taiwan.”
So the parallels with Russia/Ukraine and the possibility of shutting down parts of the global supply chain could be abnormal, the memo said.
“Pelosi’s plane is scheduled to land about an hour after the US opening today; no immediate reaction could see markets rise,” JPMorgan analysts wrote.
– Karmen Renikas
Don’t forget the JOLTS data, El-Arian says
Investors focused on House Speaker Nancy Pelosi’s trip to Taiwan should keep in mind key economic data coming out today that could weigh on the Federal Reserve, according to Mohamed El-Erian, Allianz’s chief economic adviser.
“There’s a lot of interest in the U.S. issue in China, don’t forget the JOLTS data,” El-Erian said on CNBC’s “Squawk Box” on Tuesday, referring to the job outlook and labor turnover survey, which is due later. morning
He added that the data is important to the Federal Reserve because it indicates the course of potential rate hikes.
– Karmen Renikas
Bank of America says customers have bought the stock for five consecutive weeks
Bank of America clients were net buyers of U.S. stocks last week, the fifth consecutive week of positive inflows, according to a report from strategist Jill Carrie Hall. Total revenue was $4 billion, according to the note.
“Buyers this week were from all customer groups. Institutional clients bought after selling last week, while hedge funds and private clients were net buyers for the second and fifth straight weeks,” Hall wrote.
There was positive net buying in nine of the 11 sectors, with Bank of America clients leaning toward cyclical sectors, the report said.
– Jesse Pounds
Pinterest shares remain high after Elliott Management announced a stake
Shares of Pinterest rose more than 18% in premarket trading and have continued to rise since Monday evening when activist investor Elliot Management announced it had bought a stake in the company, making it its largest investor.
The photo-sharing company also reported earnings on Monday that were disappointing on revenue and earnings, but with better-than-expected user numbers.
Uber increases profit margins
Market impact of Pelosi’s trip
Mona Mahajan, chief investment analyst at Edward Jones, discussed the market impact of Pelosi’s potential visit to Taiwan on CNBC.creaking boxPerformance on Tuesday:
“Geopolitical tensions have been a theme that we’ve really seen all year that is weighing on the markets… The risk and the concern is that we have Russia and Ukraine 2.0, which is much more serious from China. I think it’s a tail risk at this point. I don’t think the trip will cause any real economic collapse, but of course the rhetoric and the headlines are growing and that’s something we have to keep an eye on.
Caterpillar reportedly fell after earnings
Larva Shares fell more than 1% after the industrial giant reported mixed quarterly results. The company earned $3.18 per share, beating Refinitiv’s estimate of $3.01 per share. However, Caterpillar’s revenue of $14.25 billion USD – was slightly lower than the expected 14.35 billion.
Treasury yields fall in early trade
U.S. Treasury yields fell in early trading on Tuesday ahead of House Speaker Nancy Pelosi’s visit to Taiwan. The benchmark 10-year rate fell more than 5 basis points to 2.548%, while the two-year rate fell to 2.856%.
The British oil giant is raising its dividend as quarterly profit rises on higher commodity prices
British oil giant BP It raised its dividend on Tuesday as it posted a modest profit in the second quarter due to higher commodity prices.
Underlying replacement cost profit in the second quarter, which is used as a proxy for net profit, was $8.5 billion. The higher earnings enabled BP to increase its quarterly dividend to shareholders by 10% to 6,006 cents per ordinary share.
European shares fall amid global risk-off sentiment
European markets retreated slightly on Tuesday amid risk-off sentiment around the world as investors gauged whether last month’s rally would continue.
all of Europe Stokes 600 By morning London, it was down 0.6%, while tech shares fell 2.1%, leading to losses as almost all major sectors and bourses slipped into the red. Telecom shares rose 0.6%.
Earnings remain the main driver of individual stock price movements. BP, Ferrari, Maersk and Uniper were among the major European companies to report before the bell on Tuesday.
Chinese stocks fall as tensions mount over Pelosi’s visit
Stock futures open
Stock futures opened steady in overnight trading on Monday.
Futures for the Dow Jones Industrial Average fell 0.06%, or 21 points. S&P 500 and Nasdaq 100 futures fell 0.06% and 0.01%, respectively.
– Samantha Sobin
Positive results will be limited over the next few months. Lerner of Trustist states
Keith Lerner, Truist’s chief investment officer, says investors looking for the stock should consider taking advantage of current market conditions to reduce their positions, as future growth in the stock will be limited.
According to Lerner, market upside will likely be limited to 3% to 5% over the next few months, but the downside could exceed that amount.
“The market has been very resilient, no doubt, and may have remained so a little bit, but we don’t see the risk and reward here being compelling,” he said.
Lerner added that this is by no means a sign of a market top and the stock could go higher, but it is an opportunity to reallocate positions after the market’s strong rally last month.
Pinterest shares soar 21% after Elliott Management reveals position as largest investor
Pinterest Shares rose more than 21%. After the company posted higher-than-expected user numbers and Elliott Management revealed it was the photo-sharing company’s largest shareholder.
Activist investor Elliott said in a statement that he was “convinced by Pinterest’s value creation potential,” describing the social media company as a “highly strategic business with significant growth potential.”
“As the market-leading platform at the intersection of social, search and commerce, Pinterest is uniquely positioned in the advertising and shopping ecosystem, and CEO Bill Reddy is the right leader to oversee Pinterest’s next phase of growth,” Elliott wrote.
Despite the stock’s move, Pinterest missed second-quarter estimates on both the top and bottom lines. The number of monthly active users of this period exceeded 2 million.
– Samantha Sobin
“Zombie Evangelist. A thinker. Passionate developer. An award-winning internet fanatic. An incurable Internet fanatic.”