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Dow Turns Negative For the Year
37 minutes ago
The Dow Jones Industrial Average fell more than 350 points, or 1.1%, Tuesday morning, taking the index into negative territory for the year.
The index finished 2022 at 33,147.25 and traded around 33,072 midday Tuesday.
The S&P 500 and Nasdaq fell further Tuesday but were faring slightly better for the year. The S&P was up more than 10% from the beginning of the year, while the Nasdaq was 25% higher than its 2022 close.
30-Year Treasury Yield Tops 4.9%
1 hr 16 min ago
The yield on the 30-year Treasury bond climbed Tuesday morning to more than 4.9%, a 16-year high.
10-year yields, already their highest since 2007, rose even further to 4.77%.
Yields jumped at exactly 10 a.m. when the Bureau of Labor Statistics released its monthly Job Openings and Labor Turnover Survey (JOLTS) report, which showed job openings unexpectedly rose 7% to more than 9.6 million in August. Meanwhile, the number of separations—including quits and layoffs—was nearly unchanged.
Markets and the Federal Reserve are looking for signs of a modestly weakening labor market, which officials expect will help ease price pressures and bring inflation back to the central bank’s 2% goal.
Passive Funds Come Out on Top in Fight for Assets
2 hours ago
Assets in passively managed funds could surpass those in active funds within a year, according to research from Cerulli Associates.
As of the end of August, actively managed mutual funds and ETFs held $12.79 trillion in assets while passive funds held $12.33 trillion. The $462 billion difference could be made up in less than a year if flow trends persist.
Active mutual funds and ETFs saw outflows of $239.5 billion in the first 8 months of the year. Over the same period, passive fund inflows totaled $275.9 billion.
Yet active management has proved a better strategy in 2023 than it has in years. In the 12 months through June 2023, about 57% of active funds survived and outperformed their average index peer. That’s an impressive feat considering many of the first half’s top-performing stocks—Nvidia (NVDA), Amazon (AMZN), and Microsoft (MSFT), for example—are also major index components.
Stocks Making the Biggest Moves Premarket
3 hr 19 min ago
Gains:
- POINT BioPharma Global Inc. (PNT): Shares of the biopharmaceutical company jumped more than 84% after drug giant Eli Lilly said it would buy the company and the cancer treatments it is developing for $12.50 a share, or about $1.4 billion.
- Warby Parker Inc. (WRBY): The online eyewear retailer’s shares rose 5% after an upgrade from analysts at Evercore ISI, who cited margin improvement and revenue growth.
- HP Inc. (HPQ): Shares of the PC maker gained more than 2% after Bank of America upgraded the stock to buy from underperform, citing improving fundamentals.
Losses:
- Airbnb Inc. (ABNB): Shares of the vacation rental platform fell more than 3% after Keybanc downgraded the stock, citing the easing of travel demand after a post-pandemic boom.
- McCormick & Co. (MKC): Shares of the food seasoning maker fell 5% after reporting third-quarter revenue below Wall Street’s expectations amid a sputtering economic recovery in China.
5 Things to Know Before Markets Open
3 hr 50 min ago
Here’s what investors need to know to start their day:
- Meta Platforms (META) is reportedly planning to start charging European users a monthly subscription fee for ad-free versions of apps like Facebook and Instagram.
- Ford (F) and General Motors (GM) laid off 500 workers as a result of the ongoing United Auto Workers (UAW) strike, adding to the more than 2,000 workers laid off by the two companies last month.
- Tesla (TSLA) shares dipped 1% in premarket trading after reporting third-quarter deliveries on Monday that came in below expectations.
- Shares of Kellanova (K) rebounded 1% in premarket trading after its shares and those of its cereal brands spin-off WK Kellogg (KLG) tumbled yesterday in their first day of trading as separate entities.
- The Job Openings and Labor Turnover Survey (JOLTS) for August is projected to show job openings staying steady at 8.8 million in August when that data is released at 10 a.m. ET.
-Terry Lane
Stock Futures Slump Amid Bond Market Jitters
4 hr 18 min ago
Futures contracts connected to the Dow Jones Industrial Average were down 0.4% in premarket trading.
S&P 500 futures fell 0.5%.
Nasdaq 100 contracts slumped 0.6%.
