CNBC Daily Open: A ‘Crazy’ Summer | Wilnesh News

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

end of run
wall street Close lower Ending a multi-game winning streak. After eight days of running-in, S&P 500 Index and Nasdaq Index rose 0.2% and 0.3% respectively. this Dow Jones Industrial Average It fell 0.2%, ending a five-day winning streak. boeing company After the discovery, the largest decline occurred, down 4.2%. Engine installation structural defects On a 777X test aircraft. Meanwhile, the 10-year Treasury bond yield Ministry of Finance was Little change Investors are awaiting the release of the minutes of the Federal Reserve’s July meeting on Wednesday. US oil prices fell down Oil prices fell below $74 a barrel on demand concerns.

Reduce diabetes risk
Eli Lilly and CompanyThe weight loss drug tirzepatide, used in Zepbound and Mounjaro, Reduce risk of type 2 diabetes The prevalence of prediabetes among obese or overweight adults is as high as 94 percent, according to preliminary results from a long-term study. The trial, which studied more than 1,000 participants over 176 weeks, also showed sustained weight loss, with patients taking the highest dose losing an average of 22.9%. The results highlight the potential of GLP-1 drugs to delay the onset of diabetes and provide significant long-term health benefits for people with obesity and prediabetes. Eli Lilly shares rose 3%.

Waiting for the Fed to cut interest rates
Lowe’s have Cuts full-year sales and profit forecasts Because it expects home improvement spending to be weak. Chief Executive Marvin Ellison told CNBC that consumers are waiting for the Fed to cut interest rates. “Inflation remains high,” he said. “Commodity purchases were delayed as customers sat on their hands and waited for interest rates to fall.” Lowe’s shares fell 1.2%.

Xie Yin sues Temu
Fast fashion retailers with ties to China Shein sues rival Temu It is suspected of stealing its designs and engaging in counterfeiting, intellectual property infringement and fraud. Shein filed the lawsuit Monday in Washington, D.C. refute similar accusations from likes Levi Strauss and H&M. Shein claimed Temu falsely represented itself as a legitimate marketplace while actively encouraging its sellers to copy designs and preventing them from removing infringing products. Pinduoduo HoldingsShares of companies that own Temu fell 4.5% on Tuesday.

China electric vehicle tariffs
European Union Planned tariffs reduced exist Tesla Car imports from China fell from 20.8% to 9%. The European Commission imposed “substantial” tariffs on Chinese electric vehicle imports in June, saying they “posed a threat of economic harm” to local electric vehicle manufacturers. The EU has also reduced tariffs on other Chinese EV companies, including BYD, auspicious and State Administration for Industry and Commerce.

(PRO) Avoid crowded transactions
Morgan Stanley warned that individual investors should be cautious about buying stocks favored by hedge funds. Such”Crowded deal“Often faced with high valuations and increased volatility, it is difficult to find new buyers.

The past few weeks have been worth reflecting on as the S&P 500 and Nasdaq failed to extend their recovery momentum into a ninth trading day. When asked by CNBC’s Sara Eisen to describe the current state of the market, Neuberger Berman Private Wealth’s Holly Newman Kroft said: “a little crazy“This summer.

“We’re off to a much better start to the summer, the stock market is really rising, and everyone feels good when the market goes up. There’s been a lot of head-spinning events over the past six, seven, eight weeks. We’ve had an assassination attempt on the market. Expanded, the market priced in a Trump win, then Biden out, Kamala in, and now it’s a close race.

Croft said the market is experiencing an uncertain environment filled with volatility. “Two weeks ago, we had a knee-jerk reaction in the market to the not-so-good jobs numbers — the jobs numbers weren’t terrible, but they weren’t great either. So what’s exciting about Monday’s opening was almost down. The market was flat by the end of the week.

With the S&P 500 within two percentage points of July’s all-time high, Croft sees limited upside and expects volatility to increase during the election. She said that what the market needs is “the Fed to keep a cool head in its role.”

John Stoltzfus, chief investment strategist at Oppenheimer, said Friday’s speech by Federal Reserve Chairman Jerome Powell may affect the marketinvestors await an interest rate cut at the central bank’s September meeting.

“With many now looking for as much as a 50 basis point rate cut in September, a degree of hesitation in the chairman’s comments could reintroduce some volatility into the market by the end of next week,” Stoltzfus wrote in a note on Monday. , he believes a 25 basis point rate cut is more likely given last week’s stronger-than-expected employment and retail sales data.

Yung-Yu Ma, head of investments at BMO Wealth Management, believes Fed rate cuts could have more significant impact Exceeding investor expectations. “We think the rate cut will actually have a stronger, more beneficial impact, probably much bigger than what the market is expecting right now,” Ma told CNBC’s “Money Movers.”

Ma added: “Maybe it’s not the first rate cut, but after we cut interest rates by 75 basis points, 100 basis points, we think there’s a lot of pent-up demand lurking under the surface.”

— CNBC’s Hakyung Kim, Sarah Min, Alex Harring, Gabrielle Fonrouge, Yun Li, Melissa Repko, Annika Kim Constantino and Spencer Kimball contributed to this report.