Stocks open higher to start out the week
U.S. stocks opened higher Monday morning, ahead of per week with several highly-anticipated events in the continued fight against inflation.
The Dow Jones Industrial Average added 76 points, or 0.2%. The S&P 500 gained 0.2% and the Nasdaq Composite added 0.1%.
— Tanaya Macheel
Natural gas higher for a 4th day; drillers rally 4% or more in premarket
January natural gas futures rallied to $7.058 per million BTUs early Monday, the very best in almost two week and the fourth straight day of gains.
Comstock, Antero, Southwestern and Range Resources are all higher by 4% or more in pre-market trading.
Crude oil headed south early Monday, with January West Texas Intermediate contracts briefly falling as little as $70.25, above Friday’s low of $70.08, which was the weakest since December 22, 2021. That was also the last time WTI traded below $70 a barrel.
Thus far this quarter, WTI Is down 10%, on pace for its second straight quarterly decline. It tumbled almost 25% within the third quarter and is now down almost 5% on the yr.
The Energy Select Sector SPDR Fund is up by greater than 15.5% within the fourth quarter, heading in the right direction for the 4th quarterly advance prior to now five, and essentially the most for the reason that first quarter’s 38% rally. Quarter-to-date leaders include Halliburton, Schlumberger and Baker Hughes, all higher by 30% or more within the fourth quarter.
— Scott Schnipper, Gina Francolla
El-Erian says rates aren’t coming down next yr because the market expects
Investors betting on a pivot from the Federal Reserve in 2023 are more likely to be upset, Mohamed El-Erian of Allianz said on CNBC’s “Squawk Box” on Monday.
“I believe ultimately the Fed goes to should maneuver this very, very difficult road towards the center of next yr,” he said. “I believe we’ve clarity on what happens next with the Fed, however the further out you go in 2023, the harder it gets, and we’re not going to get rates coming down because the market expects.”
He added that while he doesn’t think a recession is needed to bring down inflation, one is very likely. And, he worries that inflation will get sticky around 4%, putting the Fed in a difficult position of probably having to crush the economy further to bring price increases in check.
—Carmen Reinicke
Stock making the most important moves in premarket trading
These are a number of the biggest stock moves in premarket trading Monday.
- Coupa Software – The maker of business spending management software jumped 26% in early morning trading after private-equity firm Thoma Bravo agreed to purchase the corporate. The deal is price $8 billion, or $81 per share in money.
- Weber – The maker of grills and other outdoor cooking products saw its shares surge 21% after it agreed to be taken private by BDT Capital Partners for $2.32 billion in money, or $8.05 per share.
- Horizon Therapeutics – The drugmaker’s shares gained 15% within the premarket after it agreed to be bought by Amgen for $116.50 per share in money, with the deal valued at $27.8 billion.
For more movers take a look at our full list here.
— Peter Schacknow, Tanaya Macheel
Rivian halts plans to create electric vans with Mercedes-Benz
Rivian shares slumped nearly 4% after the electrical vehicle company announced it’s halting plans to make electric business vans in Europe.
The corporate first announced plans of the three way partnership with Mercedes-Benz in September, saying that each firms would work together to fabricate two different EV vans.
“At this time limit, we imagine specializing in our consumer business, in addition to our existing business business, represent essentially the most attractive near-term opportunities to maximise value for Rivian,” said Rivian CEO RJ Scaringe, adding that company is open to working with Mercedes-Benz on future projects.
— Samantha Subin, Anmar Frangoul
Coupa Software halted for news pending
Coupa Software shares were halted for news pending after Bloomberg News reported Sunday that the corporate was in advanced talks to be acquired by private equity firm Thoma Bravo.
Coupa was up 21% when it was halted.
— Fred Imbert
Horizon Therapeutics surges on Amgen acquisition
Horizon Therapeutics shares rallied 15% within the premarket after the corporate announced it should be acquired by Amgen for $116.50 per share, valuing the corporate at greater than $27 billion on a totally diluted basis.
“In nearly 15 years, we’ve built certainly one of the fastest growing and most respected firms within the biotechnology industry from the bottom up. We’ve completed an amazing amount for patients, their families and our customers, and created significant value for shareholders,” Horizon CEO Tim Walbert said in a press release.
Amgen shares dipped 2%.
— Fred Imbert
Microsoft buys near 4% stake in London Stock Exchange and launches 10-year partnership
U.S. tech giant Microsoft on Monday announced a 10-year partnership with the London Stock Exchange Group and took a near 4% stake within the U.K. bourse operator.
The partnership involves next-generation data and analytics, in addition to cloud infrastructure solutions, based on a press release by the LSEG. It involves a recent data infrastructure for the London exchange and analytics and modelling solutions with Microsoft Azure, AI, and Microsoft Teams.
Read the total story here.
– Matt Clinch
European markets pull back as investors look forward to next Fed meeting
European markets retreated on Monday as investors look forward to the last U.S. Federal Reserve meeting of 2022 this week, in addition to the most recent inflation reading.
The pan-European Stoxx 600 was down 0.6% in early trade, with retail stocks shedding 1.6% to steer losses as all sectors and major bourses opened in negative territory.
Janet Yellen sees much lower inflation by end of 2023, but says recession risks remain
US Treasury Secretary Janet Yellen speaks on the Bureau of Engraving and Printing Western Currency Facility on December 8, 2022 in Fort Price, Texas.
Andy Jacobsohn | Afp | Getty Images
U.S. Treasury Secretary Janet Yellen foresees a “substantial reduction in inflation” by the top of next yr, provided there is no “unanticipated shock.”
Yellen, speaking in an interview on CBS’ “60 Minutes,” premised her optimism on shipping costs and gas prices coming down.
She cautioned, nonetheless, that recession risks remain and that the economy remains to be susceptible to shocks. But she said this could possibly be buffered by a “very healthy” banking system, in addition to business and household sectors.
“There is a risk of a recession. However it definitely is not, for my part, something that’s needed to bring inflation down.”
The newest reading for the U.S. consumer price index is predicted Tuesday. Analysts polled by Reuters expect the index rose 0.3% in November. Before this, October’s consumer price index inched up lower than expected. Even with the slowdown within the inflation rate, it still stays well above the Fed’s 2% goal.
—Lee Ying Shan
CNBC Pro: Dan Niles is betting the S&P 500 will hit a recent low in 2023. Here’s how he’s trading it
Dan Niles’ Satori Fund is thrashing the market this yr. He shares what’s behind the outperformance and the way he’s trading the market as recession looms.
Pro subscribers can read more here.
— Zavier Ong
Futures fall barely
Stock futures have slowly declined throughout the primary hour of trading. Dow futures are down about 50 points, or around 0.2%, while Nasdaq 100 futures have dipped about 0.3%.
— Jesse Pound
Amgen discussing acquisition of Horizon Therapeutics, report says
One stock that would impact the Dow on Monday is drugmaker Amgen.
The Wall Street Journal reported on Sunday night that Amgen is in advanced talks to purchase Horizon Therapeutics.
The Journal, citing people acquainted with the discussions, reported the deal could possibly be finalized by Monday.
Amgen closed on Friday at $278.65 per share, making it one of the vital impactful stocks within the price-weighted Dow.
—Jesse Pound
Futures open flat
The futures market was calm on Sunday night ahead of a key week within the fight against inflation. Futures for the Dow, S&P 500 and Nasdaq 100 were all inside 0.1% of the flatline.
—Jesse Pound
Wall Street coming off losing week
The most important averages fell on Friday to clinch a losing week, snapping a two-week winning streak for Wall Street.
Listed here are the important thing stats from last week:
- The Dow fell 2.77%, suffering its worst stretch since September.
- The S&P 500 fell 3.37%, suffering its worst stretch since September.
- The Nasdaq composite fell 3.99%, suffering its worst weekly stretch in a month.
- The Russell 2000 fell 5.08%, marking the worst week since September for small caps.
- All 11 sectors were negative for the week, led to the downside by energy.
—Jesse Pound, Christopher Hayes