Stocks on the go: Griggs up 9%, Drax down 7%
A share of the British bakery chain Greg Gaining 9.5% in the early afternoon after came the strong earnings report, which showed a rise in quarterly sales despite a worsening cost-of-living crisis and waning consumer confidence in the UK.
At the bottom of the Stoxx 600, Drax group It fell 7.5% after a BBC Panorama investigation questioned the British power generation company’s forestry methods.
– Elliot Smith
Credit Suisse will remain ‘under pressure’ but analysts are wary of comparing Lehman
The Swiss bank Credit Suisse logo appears at a branch office in Zurich, Switzerland, November 3, 2021.
Arend Weligman | Reuters
Credit Suisse Shares continued to recover on Tuesday from the previous session’s low of 3.60 Swiss francs ($3.64), but were still down more than 53% for the year.
Based on Credit Suisse’s weaker return on the stock profile than its European investment bank counterparts, US investment research firm CFRA on Monday lowered its target price for the stock to 3.50 Swiss francs ($3.54) per share, down from 4.50 francs.
“Ability” CS is rumored to consider optionsCFRA Equity Analyst Ferdows Ibrahim said that, including exiting US investment banking, creating a “bad bank” to hold risky assets, and raising capital, point to the need for an overhaul to change the bank’s trajectory.
“We believe that the negative sentiment surrounding the stock will not subside anytime soon, and we believe its stock price will remain under pressure. A disguised restructuring plan will help, but we remain skeptical, given its poor track record of achieving previous restructuring plans.”
– Elliot Smith
See stock market volatility as your friend, not your enemy, says analyst
“What we’ve seen over the past three quarters has been a storm, and every storm runs out of rain at some point,” says Ann Miletti, head of active equity at Allspring Global Investments.
Eurozone producer price inflation hits highest expectations in August
Eurostat revealed on Tuesday that producer prices in the euro zone grew 5% month-on-month in August, beating expectations for a 4.9% monthly rise.
Year-over-year, prices at the factory gates across the 19-nation common currency bloc were up 43.3%, primarily driven by skyrocketing energy costs, which were up 11.8% month-on-month and 116.8% year-on-year.
– Elliot Smith
CNBC Pro: Credit Suisse is under pressure, but short sellers appear eyeing another global bank
Investor worries more Credit Suisse The data showed its shares dropping, but it appears that short sellers are eyeing another European bank.
Credit Suisse is the eighth most exposed European bank for a short deal, with 2.42% of its offered shares used to bet on it, according to data analytics firm S3 Partners.
Some French, Italian and German banks suffer from a severe shortage of short selling.
– Ganesh Rao
UBS: Expect “cyclical bounces” in stocks, but more volatility in the near term
Mark Heffel, chief investment officer at UBS Global Wealth Management, says investors can expect a cyclical bounce in stocks as we’re seeing today, but volatility will continue.
“After dropping more than 9% in September and extending its year-to-date decline to nearly 25% as of Friday’s close, we believe the S&P 500 was looking to be oversold,” Heffel said in a Tuesday morning note.
He noted that some of the selling pressure last week may have been driven by the “quarter-final rebalancing,” which has now subsided as we enter the fourth quarter.
“With sentiment towards equities already weak, a cyclical recovery is expected. But markets are likely to remain volatile in the near term, primarily driven by expectations regarding inflation and monetary policy rates,” Heffel said.
“While risk assets rebounded on Monday, we believe the continued rally in equities is likely to require indications of a clear downward trend in US inflation (eg at least three months of core PCE inflation + 0.2% m/m or less),” Along with signs of a cooling labor market. This week’s JOLTS jobs data and September’s job report will be key data to watch.”
– Elliot Smith
Stocks on the go: Greggs and Accelleron rise 5%
A share of the British bakery chain Greg Gaining 5.6% in early trade after reporting a rise in quarterly sales despite a worsening cost-of-living crisis and waning consumer confidence in the UK
CNBC Pro: Want a ‘defensive move’ with a 5% return? Buy this fund, says the strategist
It’s been a volatile year for both stocks and bonds, with only Wall Street’s major indices Ending her worst month since March 2020Treasury yields remain high.
However, David Dietz, chief investment strategist at Point View Wealth Management, says “pockets of opportunity” remain.
“Short-term defensive measures are likely justified,” Dietz said in an interview with CNBC’s “Street Sings Asia” on Monday, and he chose his favorite box to play in the market now.
– Weezin Tan
See more Q4 earnings guidance than actual Q3 numbers, S&P Global says
Standard & Poor’s Global believes that the fourth-quarter earnings forecast that companies provide when reporting third-quarter results will be more important to future market direction than the actual third-quarter numbers themselves.
“October is bringing in profits, with third-quarter estimates already down 7%, and the whisper numbers are a bit more than that,” Howard Silverblatt, chief index analyst, wrote over the weekend. “The biggest concern (from the actual numbers for the third quarter, when consumers were still spending) is the guidance for the fourth quarter, where consumers have fallen, inflation has continued, and the Fed’s ‘adjustments’ will have a greater impact.”
Third-quarter earnings for the S&P 500 are expected to grow 6.1% compared to the same quarter last year, and about 18% during the second quarter of 2022, according to S&P Global.
Next year estimates are for 14.3% earnings growth through 2022, and a P/E ratio of 15.0%.
Silverblatt also looked at the typical performance of the S&P 500 in October. “Historically, the index has gained 57.4% of the time, with an average gain of 4.18% for bullish months, average decrease of 4.67% for low months, and an average overall decrease of 0.46%,” he wrote.
– Scott Schneper
CNBC Pro: Here’s what’s next for stocks, according to Wall Street professionals
We’re finally over September, to the relief of many stock investors who endured a difficult month, as all major US indices posted heavy losses.
With a historically weak month now firmly in the rearview mirror, what is the outlook for stocks as we enter the fourth quarter of the year?
CNBC Pro has combed through the research to see what Wall Street thinks.
Professional subscribers can Read more here.
– Xavier Ong
European markets: here are the opening calls
European stocks are heading to open higher on Tuesday, benefiting from the gains seen in yesterday’s trading session.
The UK’s FTSE is expected to open 30 points higher at 6934, Germany’s DAX 126 index up at 12324, France’s CAC 40 by 58 points at 5850 and Italy’s FTSE MIB 245 points higher at 21043, according to data from IG.
The expected higher opening in Europe comes after a rebound on Wall Street on Monday. There, stocks rose to start the new month and quarter on a positive note, with Treasury yields plummeting from levels not seen in nearly a decade. It was the best day since June 24 for the Dow, and the best day for the S&P 500 since July 27.
Earnings come from Griggs on Tuesday and Eurozone producer price data for August.
– Holly Eliat