Traders work on the floor of the New York Stock Exchange during morning trading in New York City on August 25, 2023.
Michael M. Santiago | Getty Images
This report is from today’s CNBC Daily Open, our new international market newsletter. The CNBC Daily Open gives investors everything they need to know, wherever they are. like what you see?can subscribe here.
The last explosion in the market in August
US stocks got off to a strong start to the final week of August, with all three major indexes finishing green. All but one sector of the S&P 500 turned positive. The pan-European Stoxx 600 index rose 0.89%, aided by the best-performing sectors, technology and construction stocks. The UK market was closed for a public holiday.
Goldman Sachs eases burden on new acquisitions
Goldman Sachs is selling its personal finance management unit to wealth management firm Creative Planning. In May 2019, Goldman acquired United Capital Financial Partners for $750 million. CEO David Solomon touted the deal as a way to reach high-net-worth customers (Goldman is focused on ultra-high-net-worth customers), but the bank had sold about 10% of that market by February. Only got 1%.
Monetize Google Maps data
CNBC reports that Google plans to license solar power and environmental data to companies. Google has energy data for more than 350 million buildings and sees an opportunity to sell it to companies like Tesla Energy, Aurora Solar and Zillow, according to documents seen by CNBC. . The tech giant expects revenue to reach $100 million in its first year.
Desperate hope for memetic stocks?
Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April. Since then, the company’s stock has hovered around 20 cents. However, investors still trade vast amounts of stocks. 15 million transactions made August 16, according to Nasdaq data. Investors still seem to be caught up in the meme stock frenzy and could be left empty-handed just like the company.
[PRO] Stocks September Vulnerability
We are in the last trading week of August. Investors may have breathed a sigh of relief as stocks have had more weeks of decline than gains so far this month. But CFRA data says September is historically the worst month for stocks. And CNBC pro Bob Pisani wrote that stocks still look fragile into the new moon. Here’s why.
“There’s an old adage among people who work on consumer markets,” says Michael Zdinak, economist who heads U.S. consumer markets services at S&P Global Market Intelligence. “Never bet on US consumers, because we are always willing to spend money we don’t have.”
But analysts at Deutsche Bank and Morgan Stanley are less optimistic about consumers.
“Consumers are not as healthy as they appear,” said Simeon Gutmann, an analyst at Morgan Stanley. Gutmann said consumers are spending more on services than on goods, which isn’t good news for consumer retailers. Indeed, Deutsche Bank analyst Christina Katay said the retail sector has been plagued by volatility over the past two weeks amid volatile earnings. And investors should expect more turmoil ahead.
Perhaps the warning comes from over-vigilance. After all, retail rose Monday along with nine other sectors in the S&P 500 index (only utilities fell 0.04%). Markets generally rose, with the S&P up 0.63%, the Dow Jones Industrial Average up 0.62% and the Nasdaq Composite up 0.84%.
Markets are trying to make up for a disastrous August, with the S&P down about 3.4% so far, the Dow down 2.8% and the Nasdaq 4.5%, but that could prove difficult. Monday’s gain was just one data point. Moreover, more obstacles lie ahead.
“The ‘wall of insecurity’ that had all but disappeared by July is being rebuilt: US 10-year yields are above 4%, anxiety is mounting in China, the European economy is sluggish, some US retailers are ‘s attitude has become more sober,” said Evercore ISI Senior Managing. Manager Julien Emmanuel wrote in Sunday’s memo:
This is not the news investors want to hear heading into September, a historically bad month for stocks. So even if the market manages to recoup its losses by the end of this week, it would be wise to prepare for another challenging month.