Dow falls 400 points to start week as Wall Street’s summer rally fades

Dow falls 400 points to start week as Wall Street's summer rally fades
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Here are the names making the biggest moves this afternoon

AMC — Fell like the shares of the theater chain weight of investors News of the company’s new preferred share class and a rival to Cineworld had it considering bankruptcy.

Express health — Shares of home health services provided jumped The Wall Street Journal and Bloomberg News reported that Amazon was among the suitors for the company.

Ford — Ford shares sank after a jury ruled against the automaker in a fatal crash involving the roof of an older pickup truck.

See our full story here.

– Michelle Fox, Fred Imbert

The 10-year yield falls above 3% for the first time in a month

Fed Chairman Jerome Powell speaks at the annual Wyoming conference on Friday at 10 a.m. ET.

Wells Fargo’s Michael Schumacher said the market expects Powell to be tough on raising rates after recent hawkish comments from other Fed officials. Last week St. Louis Fed President James Bullard, for example, said he wanted to see a third straight 0.75 percentage point hike in September.

“I’m not sure he’s going to take off his heels and sound like a hawk. I think the fear is that he’s going to be a hawk.” Schumacher says.

— Patti Domm

Ford fell 5% after the $1.7 billion decision

Ford F-150 Lightning at the 2022 New York Auto Show.

Scott Mlyn | CNBC

Ford Motor shares fell 5.4% on Friday after a jury ruled against the automaker, focusing on the strength of the roof on one of its older pickup trucks.

A jury in Georgia last week ordered the company to pay $1.7 billion to the families of two people killed in a 2014 F-250 pickup truck rollover crash.

Tech stocks fall amid interest rate hike fears

Technology stocks fell on Monday as investors feared more aggressive hikes by the Federal Reserve and investors awaited comments from Fed Chairman Jerome Powell in Wyoming later this week.

Big tech names apple, Amazonand Alphabett decreased by 1.7%, 3.3% and 2.4%, respectively netflix It sank more than 5%. Semiconductor stocks also took a hit Nvidia, micron and Advanced Micro Devices each down more than 2%.

Popular program names were also a hit with their shares Atlasian and Datadog each decreasing by more than 4%.

– Samantha Subin

Bitcoin briefly fell below $21,000

In this May 19, 2021, illustration, an image of the Bitcoin virtual currency is seen in front of a stock chart.

Dado Ruvic | Reuters

value bitcoin It fell below $21,000 around 4:15 a.m. ET on Monday. The cryptocurrency was down just 1% at $21,297 at 9:46 a.m., according to CoinMetrics. Ethereum It also fell more than 3% to $1,571.35 on Monday morning.

Bitcoin, which trades 24 hours a day, also fell over the weekend.

Crypto-related stocks also stumbled. stocks MicroStrategy and Riot Blockchain decreased by more than 1%.

The virtual currency’s decline comes as Wall Street’s summer rally begins to fizzle out. The three major indexes opened Monday’s session lower, and all three ended the previous week with losses.

­-Darla Mercado, Nick Wells

AMC drops by more than 30% in the open state

The AMC Theater in Times Square in the Manhattan borough of New York City, New York, June 2, 2021.

Carlo Allegri Reuters

AMC shares were down about 38% In its opening trading minutes on Monday, rival theater chain Cineworld said it was considering filing for bankruptcy.

AMC’s new preferred share class, called “APE,” is also scheduled to begin trading on Monday. Shares as dividend to existing shareholders and It can be a tool for AMC to raise money in the future.

Since APE unit dividends are similar to stock splits, the move could put pressure on AMC’s common stock this morning.

– Jesse Pound

Stocks open lower on Monday

Stocks opened lower on Monday as the summer rally waned ahead of the Federal Reserve’s Jackson Hole symposium. The Dow Jones Industrial Average fell 376 points or 1.12%. The S&P 500 and Nasdaq Composite fell 1.29% and 1.42%, respectively.

– Sara Min

The VIX is at its highest level since August. 3

The VIX, a measure of stock volatility, rose to its highest level since August. 3.

The Cboe volatility index On Monday, it rose 2.6 points to 23.16, though it was still off its all-time high of above 30 in June.

– Sara Min

Wolfe Research says Powell will be “meaningfully more hawkish” at Jackson Hole

Jerome Powell, Jackson Hole, Wyoming, August 24, 2018.

David A. Grogan | CNBC

According to Wolfe Research, Federal Reserve Chairman Jerome Powell will take an aggressive stance on inflation during his Jackson Hole speech on Friday.

“We expect Powell to sound more hawkish at Jackson Hole,” Wolfe Research’s Chris Senyek said in a note Monday.

“As we’ve discussed at length before, we believe the Fed will need to raise the Fed funds rate to 4.5%+ to set inflation on a sustainable path toward the FOMC’s long-term 2% target,” he said.

The research firm said the central bank was “behind the curve” and outlined reasons why it would not settle for a bullish stance, including slowing global growth and inflated earnings expectations.

– Sara Min

AMC shares sink as Cineworld considers filing for bankruptcy

Signify appears in the Amazon report

Shares of Signify Health rose nearly 38% in premarket trading on Monday Wall Street Journal report Amazon is among several companies bidding for the healthcare company, he said.

The tech giant is reportedly competing with CVS Health and UnitedHealth Group in an auction that would value Signify at more than $8 billion.

Amazon shares fell 2% in premarket trading on Monday.

Buffett does not intend to take over Occidental outright

Warren Buffett

Gerry Miller | CNBC

CFRA says it’s time to sell Netflix

netflix According to CFRA, it has fallen sharply since mid-July, but the good times for the flow fund won’t last long.

Analyst Kenneth Leon downgraded Netflix’s sales, noting: “The main catalyst for NFLX — introducing new ad-paid subscription plans — may not appear until 2023.”

Netflix shares fell 2% in premarket trading.

CNBC Pro subscribers can read full story here.

-Fred Imbert, Carmen Reinicke

Euro falls back to dollar parity

Image of euro banknotes being counted.

Leonhard Foeger | Reuters

The euro It briefly fell below parity with the US dollar on Monday for the first time since mid-July as recession fears resurfaced in the euro zone.

As of 9:15 a.m. London time, the common currency had partially recovered and was trading flat at $1.

– Elliot Smith

European markets fall as interest rate hike fears resurface

European markets retreated on Monday on fears of more aggressive rate hikes Federal Reserve and European Central Bank returned to the fore.

All over Europe Stoxx 600 In London, it fell 1.2% in the morning, while autos fell 2.9%, leading losses as all sectors and major bourses traded in negative territory.

Risk-on sentiment was dampened by blunt signals from ECB policymakers, with Bundesbank President Joachim Nagel telling a German newspaper that the ECB should continue to raise interest rates even as recession risks rise in Germany.

The minutes of the ECB’s latest policy meeting will be published on Thursday, while investors will pay close attention to the eurozone flash PMIs due on Tuesday.

The Central Bank of China has lowered lending rates

The The People’s Bank of China has cut its one-year benchmark lending rate 5 basis points and the five-year rate 15 basis points, according to an online statement.

This brings the one-year LPR to 3.65% and the five-year LPR to 4.3%.

Analysts polled by Reuters expected a 10 basis point cut in the one-year LPR, while half of respondents expected a 15 basis point cut in the five-year interest rate.

– Abigail Ng

CNBC Pro: How to reduce risk in your portfolio right now, according to experts

Stocks have been volatile this year as a mix of recession fears, inflationary pressures and other macro risks roiled markets.

According to Goldman Sachs, Wells Fargo, and others, there are three ways investors can adjust their portfolios to reduce risk or reduce losses.

Pro subscribers can read more here.

– Weizhen Tan

CNBC Pro: JPMorgan predicts when rally in growth stocks will end

Investors have flocked to growth stocks of late, but as recession fears mount, market watchers are opting to shift to safer bets instead.

However, JPMorgan thinks the rally still has a long way to go and is looking at several indicators as it considers a pivot away from growth stocks.

Pro subscribers can read the story here.

– Xavier Ong

Earnings season is over

Investors end the earnings season with only a few dozen companies still in the S&P 500. According to FactSet, 95% of companies in the broader market index reported earnings, with nearly 75% beating expectations.

– Sara Min

Here’s what to expect from Powell’s Jackson Hole speech

Fed Chairman Jerome Powell is expected to speak at the central bank’s annual symposium in Jackson Hole, Wyoming this week and shed some light on the pace of future rate hikes.

Powell could point to blunt comments from Fed officials recently stressing their commitment to fighting inflation as investors enjoy a summer rally in part due to less aggressive Fed expectations.

Again, St. Louis Fed President James Bullard said in an interview last week The Wall Street Journal he said that he is considering another 0.75 percentage point interest rate increase at the September meeting.

Check out CNBC Pro for More on what to expect from the Fed chairman.

– Sara Min

Futures open lower

Futures opened lower on Sunday night. Dow Jones Industrial Average futures fell 94 points, or 0.28%. S&P 500 and Nasdaq 100 futures fell 0.36% and 0.69%, respectively.

– Sara Min

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