5 things to know before the stock market opens on Tuesday, September 6
Trader on the NYSE floor August 30, 2022
Source: New York Stock Exchange.
Here are the most important news investors need to start their trading day:
1. Stocks tend to bounce back
The long holiday weekend may have been good for US stock markets. The three major indexes looked like they could open Tuesday’s session in positive territory. Stocks are down for three straight weeks and the Nasdaq closes lower for six straight days, the longest losing streak since 2019. By now, it is widely believed that the Federal Reserve will again raise the base rate by three-quarters of a percent. point this month, but investors are looking for clarity on what happens after that and whether the economy can take tougher medication.
2. CVS closes home health care deal
People walk past CVS Pharmacy in New York’s Manhattan borough.
Shannon Stapleton | Reuters
CVS Health goes beyond the pharmacy business. The company announced on Monday that it had agreed to buy home care firm Signify Health for about $8 billion. The match seemed to be only a matter of time. Signify is reportedly exploring strategic alternatives, including a possible sale. Amazon, which is making its own move into healthcare, was mentioned as a potential bidder after it closed a $3.9 billion deal for OneMedical in July. CVS also said last month that it plans to either acquire or buy a stake in the primary care provider by the end of this year.
3. Crisis in bed Bath and beyond
A sign outside a Bed Bath & Beyond retail store in New York on August 25, 2022.
Gabby Jones | Bloomberg | Getty Images
The story of Bed Bath & Beyond took a shocking and horrifying turn over the weekend when it was revealed that the retailer’s chief financial officer, Gustavo Arnal, had committed suicide. Arnal was declared dead on Friday, just two days after he briefed investors on a recovery plan for the troubled company that included a new loan to bolster finances, store closures and layoffs. Arnal’s death exacerbates the lack of leadership at Bed Bath, which has an interim CEO and recently abolished other management positions, including the chief operating officer. The company’s shares were under further pressure early Tuesday, with its market capitalization falling to around $690 million as of Friday’s close.
4. New British Prime Minister
Conservative Party leader candidate Liz Truss greets supporters as she races as part of the Conservative Party leadership campaign in Birmingham, UK, August 23, 2022.
Phil Noble | Reuters
The era of Boris Johnson is over. Now, after all the twists and turns and scandals of BoJo’s tenure as British prime minister, it’s Liz Truss’s turn to try to sort out the country’s economic woes. Soaring prices, and in particular rising energy prices, have hurt many parts of British life. including in schools where children are given smaller meals of lower quality food. Truss, a member of the Conservative Party, is partial to tax cuts and spending cuts and has said she will temporarily suspend so-called “green fees” in the face of skyrocketing energy bills, although experts warn she will need to do more. . It also plans to merge banking supervisors in the City of London, which observers say will lead to a “soft regime”.
5. Harsh Warning in Europe
According to the CEO of the German Uniper, the worst days of the European energy crisis are yet to come. “What we see in the wholesale market is 20 times the price we saw two years ago – 20 times. That’s why I think we need to have a really open discussion where everyone takes responsibility for how to fix this.” Klaus-Dieter Mobach told Hadley Gamble on CNBC in Milan. His warning came after Russia cut off gas supplies on Friday due to an oil leak at a compressor station. Siemens Energy, which Russia says should fix the problem, said the leak was not a technical reason for shutting off gas flows.
— Samantha Subin of CNBC, Leslie Josephs, Mackenzie Cigalos, Holly Ellatt, Hannah Ward-Glenton, and Sam Meredith all contributed to this report.
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