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The Dow was flat on Monday after recovering from a nearly 180-point decline

The Dow was flat on Monday after recovering from a nearly 180-point decline
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Bed Bath & Beyond jumped 12% as the meme stock revival continued

The retail frenzy around Bed Bath & Beyond isn’t slowing down.

The company’s shares rose more than 12% on Monday morning, bringing its August gains to nearly 200%.

According to FactSet, around 50 million shares have already been traded. From April to June of this year, Bed Bath & Beyond had zero business days.

Many large funds have bet against Bed Bath & Beyond. About half of the company’s stock is sold short, according to FactSet.

– Jesse Pound

Credit Suisse’s Golub said the chances of a soft landing are increasing

Credit Suisse’s Jonathan Golub told CNBC’s “Squawk on the Street” on Monday that the recent market rally has more room to run.

Technology shares and highly shorted names continue to win at the moment, and those are the stocks that typically come out of recessions, Golub said.

“I believe that but that’s what the market is saying, a soft landing is more likely now than two, three, four months ago,” he said. “Now, I’m not saying we’re going to have a soft landing, but the odds are rising. That’s what’s driving the market.”

— Samantha Subin

Dan Loeb’s third point reveals Disney’s position

Disney shares rose slightly on Monday after hedge fund manager Dan Loeb made the disclosure Third Point Fund took a new stake in the company.

In a letter to Disney CEO Bob Chapek, obtained by CNBC’s David Faber, Loeb raised the possibility of discontinuing Disney’s ESPN sports networks, among other suggestions.

Disney shares ended up 1.4%.

– Jesse Pound

Increases power loss

A variety of Halliburton equipment is being stored at the equipment yard in Alvarado, Texas.

Cooper took it Reuters

Energy stocks led the decline in morning trading, with the sector down more than 4%.

Shares in Halliburton, Marathon Oil and Diamondback Energy each fell more than 5%.

Financial stocks Wells Fargo, Bank of America and Citigroup declined 1%. Materials also fell 1%, with Nucor and Mosaic each down more than 3%. Freeport-McMoRan fell 4.6%.

— Samantha Subin

Stocks open low

Stocks opened lower on Monday, led by energy and financial shares, which fell more than 3% and 1%, respectively. The Dow Jones Industrial Average slipped 169 points, or 0.5%, while the S&p 500 and Nasdaq Composite fell 0.46% and 0.23%, respectively.

— Samantha Subin

New York area manufacturing posts surprise decline in August, survey shows

According to a report published on Monday, manufacturing activities in the New York area have collapsed.

The New York Fed’s Empire State Manufacturing Survey plunged to a reading of minus-31.3 for August, a 42-point slide that weighed on the intensity of new orders and shipments. The index measures the difference between business expansion and contraction. Economists polled by Dow Jones were looking for a reading of 5.

It was the lowest reading since May 2020 and the second-lowest reading overall for the data series going back to July 2001, and the second-biggest plunge in history. In addition to the sharp decline in general conditions, the Shipments Index was minus-49.4 and the New Orders Index was minus-35.8.

Employment also remained mildly expanding, with the index at 7.4, but that was a 10.6-point drop from July.

There was some hope for the future, as the general business conditions index six months from now rose to 2.1, an 8.3-point gain.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, cautioned against getting too carried away by the disappointing report.

“As always, remember that the Empire State is a small regional survey and is not definitive proof of anything,” he wrote. “This is not a reliable indicator of the national ISM manufacturing index. We are now very curious about the other regional reports for August, in the next few weeks. Our bet is that none of them will be as dire as this one.”

– Jeff Cox

Energy and technology set to open less

Some stocks remained in positive territory in premarket Monday, with energy and technology leading those declines.

Declining oil prices weighed on energy stocks as weak data from China, the world’s biggest crude importer, fueled fears of a recession.

Most tech names also remained in the red, led by shares of Apple, Microsoft and Amazon. Despite the downward trend, the share of analog devices in the premarket increased by around 2.7%.

On the banking front, shares of Goldman Sachs, Bank of America and Morgan Stanley were down about 1%.

— Samantha Subin

Stock futures bearish

Stock futures fell on Monday before the market opened. Futures linked to the Dow Jones Industrial Average lost 224 points, or 0.66%, while S&P 500 and Nasdaq 100 futures fell 0.7% and 0.5%, respectively.

— Samantha Subin

Despite the summer bounce, more pain lies ahead, says Canaccord Genuity

A strong summer rally saw the S&P 500 bounce 16% from June lows but investors should avoid chasing “hush” or “outsized rallies,” Canaccord Genuity said.

Oversold conditions and fears of both the Fed and an economic slowdown make a strong case for a summer rebound, analyst Tony Dwyer said in a note to clients on Monday. That said, more uncertainty lies ahead and investors should look to mitigate increased risk due to the summer bounce.

“The strength of the summer rally suggests to some momentum-based indicators that the worst of the bear market is over, but the macro backdrop of yield curve investment, real liquidity, and further Fed rate hikes argues otherwise,” he said.

— Samantha Subin

A ‘Goldilocks’ past few weeks

While Monday’s rally appears to be taking a bit of a break, bulls have had some good news lately At last check, the S&P 500 was up 17% from its mid-June lows, more than halving losses for the year and the benchmark is now down 10% for 2022.

Tavis McCourt, institutional equity strategist at Raymond James, put it this way in a note on Sunday:

“An absolute ‘Goldilocks’ who last week’s ridiculously strong July jobs number, followed by weaker-than-expected CPI, PPI (headline and core), export and import prices, sent the S&P 500 higher, with those paying attention to economic data Two weeks for. ~3.2% higher with small/mid-caps. Central bankers hit the airwaves to try to tighten monetary conditions, equity markets continue their rally and credit spreads continue to tighten, as inflation appears to have peaked without another dramatic supply. reached. We’ll note that in the post-World War II world of the 1940s, which we still think is the closest historical economic analogy to today, equities bottomed out at the peak of inflation, but were limited for about 4 years before reaching new highs.”

Oil prices fell on global growth concerns

Oil prices fell on Monday due to weak economic data out of China, fueling concerns of a slowdown in demand.

West Texas Intermediate Crude, the US oil benchmark, fell 4.5% to trade at $87.94 a barrel. Global Benchmark Brent crude Down 4.5% to $93.71 per barrel.

“The figures for China are really worrying,” says Onder’s Craig Erlam.

“This does not bode well for oil demand especially when the country is committed to zero Covid. And if cases continue to rise, the downward pressure on oil prices could intensify,” he added.

The Energy Select Sector SPDR Fund (XLE)The S&P 500, which tracks the energy sector, fell 3% in the premarket.

Halliburton, Valero, Devon Energy, western And Marathon oil All were off more than 3%.

– Pippa Stevens

China’s central bank unexpectedly cut interest rates

The People’s Bank of China, the country’s central bank, surprised investors overnight by cutting its one-year medium-term lending facility rate by 400 billion yuan ($59.3 billion). 2.85% to 2.75%. The PBOC cut another key rate, its seven-day reverse repo rate, by 10 basis points to 2%.

Fred Imbert, Abigail Ng

Disappointing data out of China

Sentiment eased slightly on Monday after the Chinese government released economic data that missed the mark.

overnight, National Bureau of Statistics of China Retail sales rose 2.7% in July. That could come in short of a Reuters forecast of a 5% gain. That’s also slower than June’s 3.1% advance. Industrial production, meanwhile, rose 3.8%, also missing a 4.6% estimate.

Fred Imbert, Evelyn Cheng

European markets are mixed after cautious gains last week

European market That changed on Monday morning, struggling to build on a positive trend seen at the close of trading last week.

Pan-European Stoxx 600 Autos fell 0.9%, while healthcare stocks added 0.7%, up 0.1% in early trade.

European stocks closed higher last Friday as investors digested economic data from the region, including preliminary UK second-quarter GDP readings, July inflation prints from France, Spain and Italy and euro zone industrial production for June.

-Elliot Smith

CNBC Pro: Fund manager says bear market rally won’t last and reveals how to position for it

CNBC Pro: Top tech investor Paul Meeks reveals whether it’s time to go all in on tech

Tech stocks were among the worst hit in the first half of the year as investors fled for safety amid a broad market-selloff. But investor interest in the sector appears to be picking up once again, begging the question—is it time to return to the sector?

Top tech investor and portfolio manager Paul Meeks shares his strategy for trading the sector, what he’s seeing in the market and his best ideas in the space.

Learn more CNBC-Pro.

— Javier Wong

Earnings season is coming to an end soon

More than 90% of companies in the S&P 500 have now reported earnings, and according to Refinitiv, some of those names posted 78% of expected profits. These results paced overall S&P 500 earnings, which rose 9.7% from the year-ago period.

– Tanaya fish

What to expect from retail earnings this week

Investors await quarterly financial results from retail giants, Wall Street Expect to miss a lot of earnings and downgrading the annual outlook as companies continue to struggle with macro headwinds such as higher inflation, global economic uncertainty and supply chain issues.

Walmart and Home Depot will report first, Tuesday. Last quarter Walmart cut profit estimates due to rising food prices, while Home Depot raised its full-year outlook.

See CNBC Pro for more What to expect from retail earnings this week.

– Tanaya fish

Examines the S&P 500’s bear case

The S&P 500 closed above 4,231 on Friday, a 50% retracement from its highs. BTIG technical analyst Jonathan Krinsky said a close above that level That means it’s a new bull market And not just a bear market bounce.

The broader market index also traded above that level on Thursday but did not close above it.

The S&P 500 gained 9% in July and, through Friday’s close, was up 3.6% for the month.

– Tanaya fish

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