U.S. stock markets: Live updates

Wells Fargo gives its outlook on the recent stock market slump and seasonality in September.

“In our view, the credit calendar is the main driver of seasonal equity and bond weakness,” Chris Harvey, head of equity strategy, said in a note to clients Thursday.

“September credit flooding (and damage) could occur in the two weeks before the FOMC[September 20]as bond investors sell or short Treasuries in search of new credit positions,” he said. is high,” he added.

— Samantha Soobin

Copper prices hit a two-week low as investors around the world worried about the impact of the Fed rate hike on the global economy. Futures fell to a low of $3.739 per pound, the lowest since August 25.

Copper is seen by many as an indicator of the global economy because of its wide range of uses, from architecture to electronics.

— Fred Imbert, Gina Francola

Two clean energy-focused ETFs hit lows not seen in years during Thursday’s trading.

The Invesco Solar ETF (TAN) dropped nearly 3% at the end of the session, hitting its lowest since September 2020. Maxion Solar and JinkoSolar led the fund’s decline, both down about 6%.

Meanwhile, the iShares Global Clean Energy ETF (ICLN) last fell more than 1% to its lowest since August 2020. Down more than 5%, Sannova Energy was the worst performing ETF.

— Alex Haring, Gina Francola

Former St. Louis Fed President James Bullard said on Thursday that the possibility that inflation remains stubbornly high for some time could mean further rate hikes.

In an interview with CNBC, the current dean of Purdue University’s Mitchell E. Daniels Jr. School of Business said he expects further policy tightening as core inflation remains hovering around 4%.

Bullard told CNBC’s Steve: “This raises the risk that the Fed will have to deliver on its promised rate hikes at the next few meetings, and even more from there.” Stated. Riesman.

He said the inflation numbers “should drop to the 3% range and eventually to the 2% range, and if that doesn’t happen and inflation gets too high, the Fed will take further action.” We may need it,” he said.

— Jeff Cox

Billionaire investor Leon Cooperman said Thursday that the stock market could stagnate for a long time, adding he supports calls for a recession.

“I don’t think the market is going to see new highs for a while,” Cooperman said on CNBC’s “Squawkbox.” “The mix of policies is very bad, and some of the strengths of this year have been very simulative fiscal policy and restrained monetary policy.”

— Yun Lee

Barclays downgraded Seagate Technology stock from overweight to equal weight, citing weaker fundamentals and a longer-than-expected recovery.

Analyst Tom O’Malley said in a note to clients on Thursday, “The near-line recovery is an exercise in ‘running your fingers’ at this point and will likely lag behind the hype, with the stock trading at 30x its 2024 stock price. It is being done,” he said.

A normalization of server spending should benefit the company next year, but the introduction of hard drives also includes the late-stage benefits of artificial intelligence, he said.

“I understand this is a momentum-trading stock and many people think it will be 2025, but it’s going to take a long time and the stock is going down. We sit on the sidelines here at $65 PT because it’s obvious,” O’Malley said. I have written.

Shares are down more than 8% in early-morning trading, suggesting a price target down about 9% from Wednesday’s close.

— Samantha Soobin

Valvoline’s drop is a buying opportunity, according to Wells Fargo.

Analyst David Lantz said there are long-term risks to electric vehicles, but “the recent underperformance has been significant, and we believe there is opportunity.” He began overweighting his auto repair inventory.

CNBC Pro subscribers can read more about his decision here. Shares were up 1.3% most recently.

— Alex Haring

Stocks started lower on Thursday.

The Nasdaq Composite fell 1.5% for a fourth straight day, while the S&P 500 fell 0.7%. The Dow Jones Industrial Average remained near the flat line.

— Samantha Soobin

Perhaps a stronger dollar will be another headwind for the stock market in September.

Thursday’s dollar index is on pace for five consecutive gains each day, nearing a six-month high and headed for eight consecutive gains in a week, the first since February 2015. The index measures the dollar against six major currencies, but mostly the euro and the Japanese yen.

China’s domestic yuan, not included in the index, hit its lowest level since December 2007, while the euro and pound sterling, which is included in the index, hit three-month lows.

A strong dollar is good for American tourists in Paris, but the problem for stocks is that a strong dollar raises the cost of U.S. exports, hurts U.S. competitiveness, and converts foreign profits into dollars. is that the value of

— Scott Schnipper, Gina Francola

A series of economic data on Thursday morning showed costs rising more than expected and the labor market tightening.

Initial jobless claims fell 13,000 from the previous quarter to 216,000 on a seasonally adjusted basis in the week ending Sept. 2, below the Dow Jones forecast of 230,000. Department of Labor reported. The number of one-week delays in continuous filings totaled 1,679,000, down 40,000, below FactSet’s estimate of 1,725,000.

another Report from the Bureau of Labor Statistics Unit labor costs — hourly wages minus productivity — rose 2.2% in the second quarter, beating expectations of 1.9%.

Nonfarm productivity (hourly output) rose 3.5% in the quarter, down 0.2 percentage points but 0.1 percentage points higher than expected, according to the BLS.

— Jeff Cox

Here are the biggest moves from Thursday’s premarket:

• WestRock — Shares up 6.7% after Wall Street Journal publication report The company is nearing a merger with Europe’s Smurfit Kappa, which could create a global paper and packaging giant worth about $20 billion.
• Apple — Apple shares fall 2.9% on Bloomberg news report China plans to extend the iPhone ban to state-owned enterprises.
• Dutch Brothers — drive-thru coffee chain Public offering of $300 million in stock Shares of Class A common stock will be sold after the market close on Wednesday.

Read here for the full list of stocks on the move.

— Pia Singh

McDonald’s shares rose about 1% in premarket trading after Wells Fargo raised its stock to an overweight position and the fast-food chain said it was “going full steam ahead.”

“Despite the much-reported slowdown, we see room for upside in the second half,” analyst Zachary Fadem told clients. And even after outperforming comparable store stats in Q1 and Q2, “I believe MCD is just getting started.”

CNBC Pro subscribers can read the full story here.

— Alex Haring

Apple stock has since fallen more than 2%. bloomberg news China is planning to extend its iPhone ban to include state-owned enterprises. A day earlier, The Wall Street Journal reported that China was moving to ban the use of iPhones in government offices.

Bank of America’s Savita Subramanian said the bank expects the equal-weighted S&P 500 to outperform the capitalization-weighted index. “Why? (1) Earnings growth bottomed out in the second quarter, and investors tend to be price sensitive as growth accelerates. (2) Value stocks are historically cheap. (3) Our regime model has shifted to a recovery that favors deep value.”

— Fred Imbert, Michael Bloom

China’s imports and exports fell less than expected in August, dropping 8.8% and 7.3% respectively from a year earlier.

This is a slower decline than the 9.2% drop in exports and the 9% drop in imports forecast by economists polled by Reuters.

The country’s trade balance was $68.36 billion, down from $80.6 billion in June and below the $73.9 billion forecast in a Reuters poll.

— Lim Huisier

Australian trade surplus July sales were A$8.04 billion ($7 billion), down almost a third from June’s revised A$10.27 billion.

The figure also missed economists polled by Reuters forecasting a surplus of A$10 billion.

Exports fell 2% month-on-month due to a decline in non-monetary gold, while imports increased 2.5% due to imports of non-industrial transport equipment.

— Lim Huisier

According to a BMI report, India’s consumer market is expected to become the world’s third largest by 2027 as the number of middle- and high-income households increases.

The report forecast that India’s per capita household spending growth will outpace other developing Asian countries such as Indonesia, the Philippines and Thailand by 7.8% year-on-year.

BMI estimates that India’s household spending will exceed $3 trillion as disposable income grows by 14.6% compounded annually through 2027. By that time, 25.8% of Indian households are projected to reach $10,000 in annual disposable income.

“The majority of these households will reside in economic centers such as New Delhi, Mumbai and Bengaluru.Wealthier households live primarily in urban areas, making it easier for retailers to target key target markets. said BMI.

Read the full article here.

— Charmaine Jacob

The October contract for West Texas Intermediate (WTI) crude reached $88.08 a barrel on Wednesday, the highest since Nov. 15, 2022, when crude traded at $88.68 a barrel. . (His barrel of oil holds 42 gallons). WTI is up 9.1% by 2023.

Global benchmark Brent November delivery closed Wednesday at $90.60 a barrel, up 5.5% in 2023.

September RBOB gasoline futures (RBOB stands for reformulated blendstock for oxygenated mixtures) rose 0.80 percent Wednesday to $2.6014 a gallon, up 5.8 percent from the beginning of the year.

— Scott Schnipper, Gina Francola