US stocks rise on cruise and tech spending

12:05 p.m .: Dow oscillates between gains and losses

Both major U.S. indices rebounded from five days of losses after the Dow Jones and S&P 500 hit their lowest closing point in two years.

By midday, the S&P 500 was flat at 3,653, while the Nasdaq Composite was up 0.3% at 10,837. The Dow Jones hit a high of 29,659 points, before falling back to 29,216 points at the noon bell.

Keith Buchanan, senior portfolio manager at Globalt Investments, said analysts are wondering if the market is starting to bottom.

“Participants from my perspective are starting to circle around the carnage, if you will, of the last couple of weeks and trying to identify when the markets have flushed out or are at maximum pessimism to get more involved,” Buchanan wrote in a report.

Major movers included cruise lines Norwegian, Royal Caribbean and Carnival, up 4.8%, 4.5% and 3.9% respectively, following news that Canada will drop related travel restrictions to COVID-19 in October.

US fertilizer maker CF Holdings rose 6.4%, while solar company Enphase Energy rose 4.6% and chipmaker Nvidia rose 2.2%.

On the downside, Keurig Dr Pepper fell 2.1% after Goldman Sachs (NYSE:GS) downgraded the stock to “Neutral” from a “Buy” rating, and Estée Lauder fell nearly 3% , despite yesterday’s announcement of a partnership with BALMAIN. focusing on luxury beauty products.

9:35 a.m.: The market mood is improving…for now

US stocks reversed sharply at the open on Tuesday as bargain hunters rushed after days of selloffs, with the S&P 500 sliding to a new 2022 closing low and the Dow Jones Industrial Average joining the S&P 500 and the Nasdaq Composite officially entering a bear market yesterday.

Shortly after the market opened, the Dow Jones Industrial Average had gained 207 points or 0.7% to 29,468 points, the S&P 500 was up 40 points or 1.1% to 3,695 points and the Nasdaq Composite had added 173 points or 1.6% to 10,975 points. .

Meme AMC Entertainment Holdings (NYSE:AMC) Inc stock jumped 6% on news that it has reached a distribution deal to sell up to 425 million shares of AMC Preferred Units, known as of APE. APE also climbed 10%.

After rising about 3% in premarket trading, shares of Twitter Inc (NYSE: TWTR) held steady at the open as the legal battle between the social media company and eccentric billionaire Elon Musk heats up with attorneys for both sides ready to argue several unresolved requests for pre-trial information. market analyst Fiona Cincotta noted that while stocks rose slightly, it was more of a pause in the market sell-off than the start of something more positive.

“The fundamentals remain the same and a recession looks increasingly likely,” she said. “When companies like Goldman Sachs (NYSE:GS) downgrade global equities to underweight for more than three months, we can expect the last quarter of the year to be a shock.”

6:30 a.m.: A little respite?

U.S. stocks are set to open higher after five straight days of sharp declines amid growing worries about a faltering global economy driven by high inflation, rising interest rates and currency market swings.

Futures on the Dow Jones Industrial Average rose 0.5% in premarket trading, while those on the S&P 500 added 0.7% and contracts on the Nasdaq-100 rose 0.9% .

The gains in stock futures come after the Dow Jones entered the so-called bear market, defined roughly as levels around 20% below recent highs, and the S&P 500 index fell. collapsed to its lowest levels in about two years.

The trigger for the market rout last week was the Federal Reserve’s third 75 basis point interest rate hike and expectations of further hikes in the future, but the turmoil in the foreign exchange market, the the pound being on the way to parity with the dollar, added to equity. market woes.

“We had a bearish start to the week on Monday and price action across multiple asset classes remains volatile and chaotic – and that’s particularly true for currency markets rocked by the free fall of the pound,” he said. said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

The pound has come under huge selling pressure since the announcement of the UK’s ‘mini-budget’ last week, fueling debt concerns rather than boosting growth expectations as reported. had hoped. The UK central bank’s decision not to proceed with an emergency rate hike prompted further selling, pushing the pound to new all-time lows just above the US$1.03 level.

Ozkardeskaya noted that investors are sitting on cash after selling assets, citing reports that $4.6 trillion is now sitting in U.S. money market mutual funds paying 2% or more.

“But of course rising sovereign yields also become attractive. US 2-year paper now yields around 4.30%, while the S&P500 dividend yield is only around 1.7%,” she added.

Where the flows will go remains to be seen, but equity futures this morning suggest recent price declines could attract bargain hunters.

On the data front, US durable goods orders and home sales prices are due out today and personal consumption expenditures numbers are due Friday. Each of these numbers will shed light on where the world’s largest economy stands in the face of current concerns.

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