People pass by the Apple store in Wangfujing. An advertisement for the iPhone 13 series is displayed on a large screen.
Sheldon Cooper | Light Rocket | 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.
won’t stop sliding
US stocks continued their decline on Thursday. Weakness in tech stocks weighed on the Nasdaq Composite for the fourth day. The European regional stock index Stoxx 600 fell 0.14%, marking its seventh consecutive negative trading and longest losing streak since February 2018. Meanwhile, according to Berenberg and the IFO Institute, Germany is likely to enter a recession in the second half of the year.
Goldman watches IPOs closely
Goldman Sachs CEO David Solomon told CNBC’s David Faber that capital markets could rebound in the coming months “if Arm and other IPOs do well.” . Apart from Arm, grocery delivery company Instacart has also filed to go public. A return to acquisitions and mergers would be welcome news for Solomon, after Goldman’s activity has been sluggish over the past year due to high interest rates.
FTX’s Salame pleads guilty
Former FTX executive Ryan Salameh pleaded guilty to campaign finance and wire transfer crimes. Salameh admitted to making political donations in his name when the money came out of Alameda Research. According to court documents, Salameh said in a private message that the donation would “eliminate anti-crypto pubs for pro crypto pubs and anti-crypto pubs for pro crypto pubs” in a private message. said it was intended.
Another G20 in a changed world
US President Joe Biden is on his way to India to attend the Group of 20 (G20) summit. The G20 accounts for 85% of the world’s gross domestic product, 75% of international trade and two-thirds of the world’s population. However, Chinese President Xi Jinping and Russian President Vladimir Putin will not attend. It’s the first time a Chinese president has skipped a summit, demonstrating how geopolitics is changing.
[PRO] don’t stay high for long
Traders are optimistic that the S&P 500 index will hit a new all-time high of 4,796.56 thanks to curbed inflation and growth driven by artificial intelligence. But Leon Cooperman, chairman and CEO of the Omega Family Office, told CNBC that he doesn’t think the market will have a long time to hit new highs. Here’s why.
Oil prices rose on Tuesday. The next day, I learned that the input prices were going up. Today we see another sign that the US economy refuses to bounce back. The fact that the market has fallen into the “good news is bad news” mentality means that the stock market has given in.
The number of initial unemployment claims fell to 216,000 on a seasonally adjusted basis last week, according to data. U.S. Department of Labor Report. This figure is lower than the expected 230,000 and 13,000 less than the previous quarter. Separately, unit labor costs — hourly wages minus productivity — rose 2.2% in the second quarter, beating expectations of 1.9%.
In other words, the labor market still looks tight as employers lay off fewer people and raise salaries. That prompted traders to expect the Federal Reserve to raise interest rates at its November meeting. That puts the probability of interest rates rising 25 basis points at 47.5%. CME FedWatch Tool. Just a week ago it was 37.1%.
Tech stocks have suffered a double whammy from Thursday’s economic data and reports that China is banning government employees from using iPhones at work, pushing the ban to other state-owned companies and government-backed agencies. It is said that it is also trying to expand to
Apple fell 2.92%, following a 4% drop in the previous session. That’s a drop of about $200 billion in two days. Stocks of NVIDIA, Advanced Micro Devices and Seagate also fell.
The move weighed on the tech-heavy Nasdaq Composite, which fell 0.89 percent in its fourth day. The S&P 500 fell 0.32%. But the Dow managed to climb 0.17%, helped by Intel’s 3.24% gain and UnitedHealth’s 1.65% gain.
“August was a tough month with weak data, and September may be the same,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.
And while markets may be stuck in a “good news is bad news” mentality for now, McMillan reminds us that positive economic data is basically a welcome thing. “But apart from that, the outlook remains good. A recession is likely some time away, and the market should remain healthy.”
— CNBC’s Jeff Cox contributed to this report
