5 things to know before the stock market opens Tuesday, September 6
Trader on the floor of the New York Stock Exchange August 30, 2022.
Here are the most important news that investors need to start their trading day:
1. Stocks aim for recovery
The long weekend could be beneficial for the US stock markets. The three major indicators looked as if they might open Tuesday’s session in positive territory. Stocks are down for three straight weeks, and the Nasdaq has closed six straight days down, the longest losing streak since 2019. So far, it’s widely assumed that the Federal Reserve will raise its benchmark rate again by three-quarters of a point this month, but investors are looking for Clarity about what will happen next and whether the economy can take some tough medicine.
2. CVS makes a home healthcare deal
People walk past a CVS pharmacy store in the Manhattan borough of New York City.
Shannon Stapleton | Reuters
CVS Health pushes beyond the field of pharmacy. The company announced Monday that it has agreed to buy home health care company Signify Health for approximately $8 billion. The match seemed like it was just a matter of time. Signify was reportedly exploring strategic alternatives, including a potential sale. Amazon, which is taking its own steps in healthcare, was mentioned as a potential bidder after it raised a $3.9 billion deal for OneMedical in July. Similarly, CVS said last month that it is looking to either acquire or buy a stake in a primary healthcare provider by the end of this year.
3. Crunch at Bed Bath & Beyond
Signs outside the Bed Bath & Beyond retail store in New York, August 25, 2022.
Gaby Jones | Bloomberg | Getty Images
The Bed Bath & Beyond story took a shocking turn over the weekend, when it was revealed that the retailer’s chief financial officer, Gustavo Arnal, had committed suicide. Arnal’s death was announced Friday, just two days after investors were briefed on the troubled company’s turnaround plan, which included a new loan to shore up finances, store closings and layoffs. Arnal’s death exacerbated the leadership vacuum at Bed Bath, which has an interim CEO and recently eliminated other executive positions, including chief operating officer. The company’s shares came under more pressure early Tuesday morning, with its market value dropping to just about $690 million as of Friday’s close.
4. New UK Prime Minister
Conservative leadership candidate Liz Truss greets supporters as she attends an event, as part of the Conservative Party leadership campaign, in Birmingham, Britain on August 23, 2022.
Phil Noble | Reuters
Boris Johnson’s era is over. Now, after all the twists, turns and scandals of Pogo’s tenure as Britain’s prime minister, it’s Liz Truss’ turn to take a crack at solving the country’s economic woes. Rising prices, and especially rising energy costs, have taken a toll on large parts of British life, including schools, as children face smaller lunches consisting of lower quality food. Truss, a Conservative MP, is biased towards cutting taxes and spending cuts, and said she would temporarily halt so-called green taxes on higher energy bills, although experts have warned it will need to do more than that. It also plans to integrate the City of London’s banking regulator, a move that regulators said would produce a “light-touch regulatory regime”.
5. A stark warning in Europe
The worst days of the European energy crisis lie ahead, according to the CEO of German Uniper. “What we’re seeing in the wholesale market is 20 times the price we saw two years ago — 20 times. And that’s why I think we really need to have an open discussion with everyone who takes responsibility for how to fix that,” Klaus-Dieter Mubach told Hadley Gamble on CNN. C in Milan. His warning comes after Russia on Friday shut down the flow of gas due to an oil leak at a compressor station. Siemens Energy, which Russia says should solve the problem, said the leak was not a technical reason to stop the flow of gas.
Samantha Sobin, Leslie Joseph, MacKenzie Segalos, Holly Eliat, Hannah Ward Glinton, and Sam Meredith of CNBC contributed to this report.
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