This is Highlight Wall Street days September 26 from 2022with everything you need to know about US publicly traded companies!
Main topics of the day
To start your day well informed, read our Good morning ADVFN – Focus Bulletin, trade balance data and more highlights
U.S. stock futures fell on Monday as rising interest rates and foreign currency turmoil threatened to push the S&P 500 to a fresh 2022 closing low.
At 9:10 a.m. ET, Dow Jones futures were down 161 points, or 0.54%. S&P 500 futures fell 0.63%. Nasdaq 100 futures lost 0.55%.
The British pound fell to a record low against the US dollar on Monday. The pound sterling at one point fell 4% to an all-time low of $1.0382. An aggressive bullish campaign by the Federal Reserve, along with the UK tax cut announced last week, sent the US dollar soaring. The euro hit its lowest level against the dollar since 2002. A rising dollar could hurt the profits of US multinationals and also wreak havoc on global trade, with most transactions taking place in dollars.
“Such strength in the US dollar has historically led to some sort of financial/economic crisis,” Michael Wilson, chief US equity strategist at Morgan Stanley, wrote in a note. “If ever there was a moment to look for something to break, this would be it.”
On Friday, stocks ended a brutal week with the Dow Jones hitting a new intraday low of the year to close down 486 points. The S&P 500 temporarily broke below June’s closing lows to end down 1.7%. The Nasdaq Composite lost 1.8 percent.
Investors will be watching the S&P 500 closely on Monday for any downside from the bear market turning point. The S&P’s lowest close for the year in June was 3666.77. It closed at 3,693.23 on Friday after trading slightly below that close. The reference intraday lowest value for the year is 3636.87. Any trade below these levels can generate more sales in the market.
Another outsized rate hike by the Federal Reserve last week was the catalyst for the market’s latest decline. The central bank has signaled that it could raise rates by as much as 4.6% before withdrawing. The forecast also shows that the Fed’s plans will be aggressive this year, raising rates to 4.4% before the end of 2022.
Bond yields jumped after the Fed set another 75 basis point hike. Two-year and 10-year Treasury rates hit levels not seen in more than a decade. On Friday, Goldman Sachs lowered its year-end target for the S&P 500 from 4,300 to 3,600.
Rates rose again on Monday, with 2-year Treasuries at 4.29%.
The most important events from Wall Street for today
Planet Fitness (PLNT, P2LN34) – Shares of the gym franchise jumped nearly 3% in premarket trading after Raymond James upgraded the stock to “strong buy” in “market performance“. The Wall Street firm said the company has a resilient, recession-proof business with no interest rate risk and very little maturing short-term debt. Meanwhile, its current value is well below its recent historical average, Raymond James noted.
PG&E (PCG, PGCO34) – Shares of the dealership rose more than 5% in premarket trading after S&P Dow Jones Indices announced Friday that PG&E will replace Citrix Systems in S&P 500, effective before the open of trading on Monday, October 3. Vista Equity Partners is acquiring Citrix Systems (CTXS, C1TX34) in a transaction expected to close this week. Know more…
Las Vegas Sands (LVS, L1VS34) – Shares of the casino operator jumped more than 7% after Macau announced its plan to allow tour groups from mainland China as early as November. shares of MGM Resorts (MGM, M1GM34) rose more than 2%. Know more…
Alibaba (BABA, BABA34) – Alibaba will invest $1 billion over the next three fiscal years to support its cloud computing customers as the Chinese e-commerce giant looks to revive growth after a historic slowdown. Know more…
Lyft (LYFT) – Shares of the transportation company fell nearly 4% premarket after UBS downgraded the stock to “neutral” from “buy.” The Wall Street firm cited its driver survey showing that drivers prefer Uber and Lyft is not their top app.