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☆ S&P 500 rally in Q4 "more likely than not" despite headwinds - Morgan Stanley
▼ + stars: | 2023-10-16 | by ( ) www.reuters.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsOct 16 (Reuters) - A rally in the S&P 500 in the fourth quarter of 2023 "is more likely than not", Morgan Stanley's Michael Wilson said in a note. Morgan Stanley maintains its 3,900 year-end price target for the S&P 500 and believes the best way to position is a barbell of defensive growth stocks that have stable earnings, and late-cycle cyclical stocks such as energy. Stocks came under selling pressure last week as investors rushed to Treasuries after a surprise attack by militant group Hamas against Israel, but S&P 500 still managed to eke out some gains. "The fact that stocks rallied early in the week emboldened the view that equity markets could withstand another exogenous shock," Wilson said.

Persons: Brendan McDermid, Morgan Stanley's Michael Wilson, Wilson, Morgan Stanley, Morgan Stanley's, Stocks, Shubham Batra Organizations: New York Stock Exchange, REUTERS, Thomson Locations: New York City, U.S, Israel, Bengaluru

☆ How finally closing its Activision purchase will diversify Microsoft's revenue streams
▼ + stars: | 2023-10-13 | by ( Morgan Chittum | ) www.cnbc.com time to read: +4 min

Microsoft (MSFT) closed its landmark acquisition of Activision Blizzard (ATVI), according to a company regulatory filing Friday, furthering the Big Tech name's video game ambitions. However, this biggest video game deal ever was completed despite the Federal Trade Commission's (FTC) ongoing fight to block it. Activision reported $7.5 billion in revenue for the 2022 fiscal year, in comparison to Microsoft's $212 billion in sales for the same period. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Microsoft submitted a new proposal to U.K. regulators for the takeover of American game publisher Activision Blizzard after its initial proposal was rejected.

Persons: Victoria Graham, Jim Cramer, Jim, Tony Hawk, Jim Cramer's Organizations: Microsoft, Activision Blizzard, Big Tech, Activision, pushback, Markets, CMA, Ubisoft, Federal Trade Commission's, CNBC, FTC, Xbox, Nurphoto, Getty Locations: U.S, OpenAI

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. U.S. producer prices increased more than expected in September amid higher costs for energy products, but underlying inflation pressures at the factory gate continued to moderate. Yield on the benchmark 10-year notes fell to a roughly two-week low as prices rose on safe-haven flows due to fighting in the Middle East that has persisted for a fifth straight day. Advancing issues outnumbered decliners for a 1.51-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.10-to-1 ratio on the Nasdaq. The S&P index recorded 11 new 52-week highs and seven new lows, while the Nasdaq recorded 38 new highs and 124 new lows.

Persons: Brendan McDermid, Fed's Bowman, Raphael Olszyna, J Safra, Michelle Bowman, Christopher Waller, Birkenstock, Tim Wentworth, Drugmaker Eli Lilly, LLY.N, Novo, decliners, advancers, Shashwat Chauhan, Ankika Biswas, Arun Koyyur, Shounak Organizations: New York Stock Exchange, REUTERS, Fed's Bowman Exxon, Nasdaq, Treasury, Federal, Apple, Microsoft, Nvidia, Fed, Energy, Exxon Mobil, Natural Resources, Dow Jones, Walgreens Boots Alliance, Novo Nordisk's, Baxter International, NYSE, Thomson Locations: New York City, U.S, Middle East, Israel, Gaza, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. ET is expected to show the producer price index for final demand increased 0.3% last month after a 0.7% rise in August, ahead of Thursday's closely watched consumer inflation data. Yields on government bonds have eased from their multi-year highs on dovish remarks from Fed officials earlier this week. Central bank officials such as Fed Governor Christopher Waller, Atlanta Fed President Raphael Bostic and Boston Fed President Susan Collins are also scheduled to speak on Wednesday. Exxon Mobil (XOM.N) lost 1.7% as the oil and gas producer is set to buy shale producer Pioneer Natural Resources (PXD.N) in an all-stock deal valued at $59.5 billion.

Persons: Brendan McDermid, Fed's Bowman, Michelle Bowman, Christopher Waller, Raphael Bostic, Susan Collins, Mark Haefele, Birkenstock, Tim Wentworth, Piper Sandler, Drugmaker Eli Lilly, LLY.N, Novo, Shashwat Chauhan, Ankika Biswas, Arun Koyyur, Shounak Organizations: New York Stock Exchange, REUTERS, Companies, Fed's Bowman Exxon, Futures, Dow, Nasdaq, Treasury, Federal, Labor Department, Atlanta Fed, Boston Fed, UBS Global Wealth Management, Traders, Microsoft, Nvidia, Palestinian, Hamas, Dow e, Walgreens Boots Alliance, Arista Networks, Exxon Mobil, Natural Resources, Novo Nordisk's, Baxter International, Thomson Locations: New York City, U.S, Gaza, Thursday's, Middle East, Israel, Bengaluru

☆ Analysis: US stock market technicals suggest possible rebound as earnings, CPI loom
▼ + stars: | 2023-10-11 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The S&P 500 has slid about 5% since reaching its late-July high, but so far this month the benchmark index has rebounded. In 12 of those times the S&P 500 was higher six months later, Turnquist said. Reuters GraphicsStocks have tended to perform well at year end -- with November and December logging the second and third-biggest average S&P 500 monthly gains -- though this year the trends may portend even more favorably. That was followed by a 28% rally in the S&P 500 through late July of this year. Further, notes Delwiche, stock market breadth has been weak.

Persons: Brendan McDermid, Ed Clissold, Ned Davis, Clissold, Adam Turnquist, Turnquist, Willie Delwiche, Delwiche, Lewis Krauskopf, Ira Iosebashvili, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Federal, Thursday’s U.S, Ned, Ned Davis Research, LPL, Reuters Graphics, American, of, Mount Research, NYSE, Nasdaq, Thomson Locations: New York City, U.S

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Top ranking Fed officials indicated rising yields on long-term U.S. Treasury bonds could steer the central bank from further increases in its short-term policy rate. Megacap stocks Microsoft (MSFT.O), Alphabet (GOOGL.O), Nvidia (NVDA.O) and Amazon.com (AMZN.O) added between 0.2% and 0.4% in premarket trading. All three major U.S. stock indexes closed higher on Monday, with energy (.SPNY) leading gains as supply worries ignited by Middle East tensions sparked a rally in crude oil prices. Rivian Automotive (RIVN.O) added 4.1% on a report that UBS upgraded the EV maker's stock to "buy" from "neutral".

Persons: Brendan McDermid, Raffi Boyadjian, Atlanta's Raphael Bostic, Neel Kashkari, Mary Daly, Christopher Waller, Israel, John Riccitiello, J.P.Morgan, Shashwat Chauhan, Ankika Biswas, Arun Koyyur, Shounak Organizations: New York Stock Exchange, REUTERS, PepsiCo, Dow, Nasdaq, Treasury, Federal, Columbus, Peoples, Microsoft, Nvidia, XM, Traders, JPMorgan Chase, Citigroup, Dow e, Rivian, UBS, EV, Alibaba Group, PDD Holdings, Baidu, Thomson Locations: New York City, U.S, Gaza, Minneapolis, Wells Fargo, Beijing, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. The S&P 500 (.SPX) eyed its fifth straight weekly fall, while the Dow (.DJI) is on track to decline for the third straight week. Most major S&P 500 sectors were trading lower on Friday, with utilities (.SPLRCU), often considered a bond proxy, down 1.8%, while rate-sensitive real-estate (.SPLRCR) fell 1.2%. Energy (.SPNY) is set to be worst hit amongst the major S&P 500 sectors this week, while communications services (.SPLRCL) is on track to be the best performing. EV maker Tesla (TSLA.O) fell 2.2% after cutting prices of its Model 3 and Model Y vehicles in the United States.

Persons: Brendan McDermid, Tesla, Neil Birrell, advancers, Ankika Biswas, Shashwat Chauhan, Anil D'Silva, Shounak Organizations: New York Stock Exchange, REUTERS, Companies, Exxon, Dow, Nasdaq, Federal Reserve, Labor, Premier Miton, Treasury, Nvidia, Traders, Energy, JPMorgan Chase, Citigroup, BlackRock, Dow Jones, Tesla, Exxon Mobil, Reuters, Natural Resources, NYSE, Thomson Locations: New York City, U.S, Wells Fargo, United States, Bengaluru

"It's pretty evident that the jobs market and the consumer are doing OK. Claims are still very, very low," he said. If claims are up to mid-250,000 by year's end, "that's a fairly obvious sign that there's a loosening of the labor market." "The question everyone's asking is: can yields continue to rise further and at what point are yields going to cause some serious damage on the economy?" The dollar index fell 0.234%, with the euro up 0.25% at $1.0529. All 11 sectors of the S&P index were in the red, with the big megacap growth stocks leading the decline.

Persons: Brendan McDermid, Wall, Mike Sanders, Baylee Wakefield, Brent, Dennis Kissler, Elizabeth Howcroft, Elaine Hardcastle, Sharon Singleton, Richard Chang Organizations: New York Stock Exchange, REUTERS, Madison Investments, Labor Department, Reuters, Aviva Investors, Treasury, Bank of Japan, Analysts, Bank of, Dow Jones, Nasdaq, BOK, Thomson Locations: New York City, U.S, Madison , Wisconsin, Bank of Japan

Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities. Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields. The S&P 500 and the tech-heavy Nasdaq lost around 5% and 6% last month as yields spiked. Traders put the chance of interest rates remaining unchanged in November and December at 80% and 63%, respectively, according to CME's FedWatch tool. ET, Dow e-minis were down 92 points, or 0.28%, S&P 500 e-minis were down 10.5 points, or 0.24%, and Nasdaq 100 e-minis were down 27.75 points, or 0.19%.

Persons: Brendan McDermid, Janet Mui, Loretta Mester, Neel Kashkari, Richmond's Thomas Barkin, Mary Daly, Michael Barr, Kevin McCarthy, Steve Scalise, Jim Jordan, Joe Biden, VinFast, Ankika Biswas, Shashwat Chauhan, Shounak Dasgupta Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Treasury, RBC Brewin, Apple, Traders, Dow e, Federal, Democratic, Rivian, EV, Chevron, Exxon Mobil, Occidental Petroleum, Thomson Locations: New York City, U.S, Minneapolis, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. While the 30-year Treasury yield crossed above 5% for the first time since August 2007, the 10-year and five-year yields hit their highest since 2007. The CBOE volatility index (.VIX), Wall Street's "fear gauge", briefly hit a five-month high and topped its long-term average of 20. A day after U.S. job openings unexpectedly rose in August, investors will closely monitor September ADP National Employment data at 8:15 a.m. Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Kevin McCarthy, Mark Haefele, Haefele, Austan Goolsbee, Michelle Bowman, Eli Lilly, LLY.N, Mike Mason, Ankika Biswas, Shashwat Chauhan, Shounak Dasgupta Organizations: New York Stock Exchange, REUTERS, Apple, U.S . House Republicans, Treasury, Microsoft, Nvidia, Dow e, Nasdaq, Federal, UBS Global Wealth, Institute, Supply, PMI, Chicago, Traders, Dow, Intel, Thomson Locations: New York City, U.S, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Consumer discretionary (.SPLRCD) led declines in the major S&P 500 sectors, falling 2.2%, while beaten-down utilities (.SPLRCU) dropped 1.8%. Declining issues outnumbered advancers by a 4.74-to-1 ratio on the NYSE and by a 3.17-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and 48 new lows, while the Nasdaq recorded 11 new highs and 225 new lows. Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Eli Lilly, we're, David Russell, Raphael Bostic, Keybanc, McCormick, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Apple, Microsoft, Artificial Intelligence, Treasury, Boeing, Reuters, United Airlines, Labor Department, Investor, ADP, Atlanta Fed, Fed, Dow Jones, HP, BofA Global Research, Biopharma, NYSE, Thomson Locations: New York City, U.S, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. A Labor Department report showed U.S. job openings unexpectedly increased in August, pointing to tight labor market conditions. Traders' bets on at least another 25-basis-point rate hike stood in November and December at 30% and 48%, respectively, according to CME's FedWatch tool. The CBOE volatility index (.VIX), known as Wall Street's "fear gauge", touched a more than four-month high, reflecting heightened investor anxiety. Declining issues outnumbered advancers for a 5.99-to-1 ratio on the NYSE and a 3.50-to-1 ratio on the Nasdaq.

Persons: Brendan McDermid, Loretta Mester, Raphael Bostic, Jason Pride, KeyBanc, McCormick, advancers, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Microsoft, Dow, Nasdaq, Labor Department, Cleveland Fed, Atlanta, Traders, Apple, Reuters, Ofcom, Dow Jones, ADP, HP, BofA Global Research, Boeing, United Airlines, NYSE, Thomson Locations: New York City, U.S, Glenmede, Philadelphia, Bengaluru

☆ Strong earnings will reverse decline in megacap tech stocks: Goldman Sachs
▼ + stars: | 2023-10-02 | by ( David Randall | ) www.reuters.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsNEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists. At the same time, the group is expected to post sales growth of 11% in the third quarter, compared with a 1% improvement for the S&P 500, the firm noted. The S&P 500 has dropped nearly 5% over the last 10 trading days but remains slightly more than 11% up since the start of the year. "We expect the S&P 500 to rally into year-end, with more upside in the equal-weighted index," Subramanian wrote.

Persons: Brendan McDermid, Goldman Sachs, Savita Subramanian, Subramanian, David Randall, Ira Iosebashvili, Mark Potter Organizations: New York Stock Exchange, REUTERS, Apple, Microsoft, Nvidia, Tesla, BofA Global Research, Thomson Locations: New York City, U.S

By contrast, both funds received their highest monthly net inflows of 2023 in June, gaining $265.5 million and $29.74 million, respectively, according to Lipper data. But AI stocks have suffered along with broader markets in recent weeks, as Treasury yields hovering around 16-year highs dull investors' risk appetite. Retail investor flows into the sector have also cooled as the initial fervor surrounding AI wanes. September saw the lowest net monthly retail flows of $1.96 billion into AI-linked stocks since April, according to Vanda Research. "It is possible this negative sentiment could reverse again in Q4, particularly if large cap tech stocks like Nvidia held in AI-themed tech ETFs continue to show strong earnings growth," CFRA's Ullal added.

Persons: Dado Ruvic, Aniket, Mark Haefele, Bansari Mayur, Ira Iosebashvili, Mark Potter Organizations: REUTERS, Robotics, Intelligence, Global Robotics, Automation, CFRA Research, Vanda Research, Global, Nvidia, UBS Global Wealth Management, Thomson, & $ Locations: Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Other megacap stocks including Apple (AAPL.O), Meta Platforms (META.O), Amazon.com (AMZN.O), Alphabet (GOOGL.O) and Microsoft (MSFT.O) advanced between 0.9% and 1.9%. Eight of the eleven S&P sub sectors were down, with the utilities index (.SPLRCU), often considered as a bond proxy, declining 4.9%. Declining issues outnumbered advancers for a 4.02-to-1 ratio on the NYSE and for a 2.27-to-1 ratio on the Nasdaq. The S&P index recorded two new 52-week highs and 48 new lows, while the Nasdaq recorded 19 new highs and 211 new lows.

Persons: Brendan McDermid, Tesla, Goldman Sachs, Jerome Powell, Michelle Bowman, Loretta Mester, Stocks, Paul Ashworth, Kevin McCarthy, advancers, Shubham Batra, Shashwat Chauhan, Vinay Dwivedi, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal Reserve, Nvidia, Apple, Microsoft, Cleveland Fed, North, Capital Economics, Democratic, Republican, Dow Jones, NYSE, Thomson Locations: New York City, U.S, North America, Bengaluru

The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. Seven megacap stocks -- Apple (AAPL.O), Microsoft (MSFT.O), Alphabet (GOOGL.O), Amazon (AMZN.O), Nvidia (NVDA.O), Tesla (TSLA.O) and Meta Platforms (META.O) -- have led broader markets higher this year. Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. "When the big tech stocks start going down ... the indexes go down," said Matt Maley, chief market strategist at Miller Tabak. Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market.

Persons: Carlo Allegri, megacaps, LSEG, Matt Maley, Miller, ”, Matt Stucky, Chris Murphy, Rick Meckler, J, Bryant Evans, ” Evans, Lewis Krauskopf, Saqib Iqbal Ahmed, Ira Iosebashvili, David Gregorio Our Organizations: New York Stock, REUTERS, Microsoft, Nvidia, Apple, Federal Reserve, Northwestern Mutual Wealth Management, Nasdaq, Susquehanna Financial Group, Amazon, Cherry Lane Investments, Cozad Asset Management, Thomson Locations: Manhattan, New York City , New York, U.S, New Jersey

☆ Berkshire Hathaway gets a rare downgrade after conglomerate shares hit a record high
▼ + stars: | 2023-09-29 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Warren Buffett 's Berkshire Hathaway has been on fire this year with shares roaring back to a record on strong earnings, and this outperformance caused one analyst to urge caution about a slowdown in the stock. James Shanahan at Edward Jones downgraded Berkshire shares to a hold rating from buy Thursday evening and removed B shares from the firm's U.S. stock focus list. "BRK shares have significantly outperformed financial services peers over the past six months, supported by a relatively strong earnings outlook," Shanahan said in a note. BRK.A YTD mountain Berkshire Hathaway Berkshire's operating earnings jumped 6.6% year over year in the second quarter, while it also posted big gains from its stock portfolio and Treasury holdings. Meanwhile, trading activity in Class A shares is relatively muted given its high price tag.

Persons: Warren Buffett, Berkshire Hathaway, James Shanahan, Edward Jones, Shanahan, —, Berkshire doesn't Organizations: Berkshire, Berkshire Hathaway Locations: U.S, Omaha, Berkshire

As the 10-year Treasury yields regained steam, megacap growth stocks including Apple (AAPL.O), Microsoft (MSFT.O), Amazon.com (AMZN.O) and Alphabet (GOOGL.O) shed between 0.4% and 2.2%. Technology (.SPLRCT) led declines amongst major S&P 500 sectors, down 0.7%, while healthcare (.SPXHC) added 0.5%. The S&P 500 and the Nasdaq are on course for their worst monthly performance of the year as Treasury yields hit multi-year highs on uncertainty around interest rates. Advancing issues outnumbered decliners by a 1.34-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq. The S&P index recorded two new 52-week highs and eight new lows, while the Nasdaq recorded 15 new highs and 88 new lows.

Persons: Brendan McDermid, megacaps, Jerome Powell's, Michael Pearce, Pearce, Powell, Lisa Cook, Austan Goolsbee, Ankika Biswas, Shashwat Chauhan, Sriraj Kalluvila, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Nasdaq, Treasury, Federal Reserve, Apple, Microsoft, Technology, Dow Jones, Oxford Economics, Chicago Fed, Traders, Micron Technology, Accenture, NYSE, Thomson Locations: New York City, U.S

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. Investors' focus will be on the final gross domestic product (GDP) estimate for the second quarter and weekly jobless claims data - due at 8:30 a.m. ET, as well as remarks by voting members Chicago Fed President Austan Goolsbee and Board Governor Lisa Cook during the day. The scope for interest rates staying higher for longer than anticipated has solidified with soaring energy prices keeping headline inflation elevated. Meme darling GameStop (GME.N) jumped 7.2% after the company named billionaire activist investor Ryan Cohen as its CEO and chairman.

Persons: Brendan McDermid, Ryan Cohen, Jerome Powell's, Powell, Austan Goolsbee, Lisa Cook, Russ Mould, AJ Bell, GameStop, Ankika Biswas, Shashwat Chauhan, Maju Samuel, Sriraj Organizations: New York Stock Exchange, REUTERS, Micron, GameStop, Dow, Nasdaq, Federal, Treasury, Apple, Microsoft, Investors, Chicago Fed, Dow e, Traders, Micron Technology, Thomson Locations: New York City, U.S, Riding

☆ JPMorgan’s top stock guru stays bearish on market, sees headwinds for any risk asset
▼ + stars: | 2023-09-27 | by ( Brian Evans | ) www.cnbc.com time to read: +3 min

"This reasoning is based on market valuations (fundamentals), investor positioning, and various macro and geopolitical considerations." Higher-for-longer interest rates from the Federal Reserve have stoked investor worry on Wall Street. Kolanovic is JPMorgan's chief global market strategist who gained notoriety for correctly calling the post-pandemic rebound in stocks, something very few on Wall Street anticipated. In the near term, the strategist believes stocks could fall further until some of these headwinds subside. Most Wall Street strategists expect the S & P 500 to rebound above 4,300 before the year is out, according to the exclusive CNBC PRO strategist survey .

Persons: JPMorgan's Marko Kolanovic, Kolanovic, CNBC's Michael Bloom Organizations: Federal Reserve, Treasury, CNBC PRO

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. A pullback in the 10-year Treasury yields provided some relief to megacap growth stocks including Apple (AAPL.O), Microsoft (MSFT.O), Tesla (TSLA.O) and Alphabet (GOOGL.O), up between 0.4% and 0.6%, in premarket trading. Amazon.com (AMZN.O) edged 0.2% higher after Tuesday's sell-off following the U.S. Federal Trade Commission's antitrust lawsuit against the online retailer. Costco (COST.O) dipped 2% even though the wholesale retailer reported better-than-expected fourth-quarter results, with analysts pinning the fall on broader market concerns. Reporting by Ankika Biswas, Shashwat Chauhan and Amruta Khandekar in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Peter Cardillo, Jerome Powell's, gridlock, Ankika Biswas, Shashwat Chauhan, Amruta, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Costco, Dow, Nasdaq, Federal, Apple, Microsoft, U.S . Federal Trade, Dow e, Spartan Capital Securities, U.S . Senate, Republican, Rivian Automotive, Thomson Locations: New York City, U.S, New York, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2023. Megacap growth stocks including Apple (AAPL.O), Microsoft (MSFT.O), Meta Platforms (META.O) and Tesla (TSLA.O) lost between 0.5% and 1.3% in premarket trading. Pressuring equities, the benchmark two- and 10-year Treasury yields have scaled multi-year highs after the Fed's hawkish longer-term rate outlook, a stance also projected by other major central banks. Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to over 33% in June and July. DraftKings (DKNG.O) rose 3% after J.P. Morgan upgraded the online sports and gaming company's stock to "overweight" from "neutral".

Persons: Brendan McDermid, Moody's, Stuart Cole, Jerome Powell, Neel Kashkari, Austan Goolsbee, Goldman Sachs, Morgan, Ankika Biswas, Shashwat Chauhan, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal Reserve, Sunday, Apple, Microsoft, Dow e, Treasury, Equiti, Traders, Investors, Minneapolis, Chicago Fed, CNBC, PDD Holdings, Thomson Locations: New York City, U.S, China, Bengaluru

Earlier in the day, the S&P 500 (.SPX) and the Nasdaq (.IXIC) had dropped to their lowest level since June, while the Dow (.DJI) stooped to an over two-month low. While energy (.SPNY) jumped over 1% to lead gains among major S&P 500 sectors, utilities (.SPLRCU) and real estate (.SPLRCR) were the worst hit. "Because of worries over rising oil prices, rising dollar, rising interest rates, we could see some additional weakness in this traditionally soft seasonal period." Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and a 1.07-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and 41 new lows, while the Nasdaq recorded 24 new highs and 297 new lows.

Persons: Brendan McDermid, stooped, Jerome Powell, Sam Stovall, Austan Goolsbee, Jefferies, JD.com, advancers, Ankika Biswas, Shashwat Chauhan, Arun Koyyur, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Nike, Nasdaq, Federal Reserve, Apple, Nvidia, Dow, CFRA, Dow Jones, Chicago Fed, CNBC, PDD Holdings, Baidu, NYSE, Thomson Locations: New York City, U.S, Bengaluru

☆ There's a market index breaking down with an 'ominous precedent,' says a top chart analyst
▼ + stars: | 2023-09-25 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

An equal-weighted version of the S & P 500 has hit thresholds that have historically signaled trouble ahead, according to BTIG. Known as the SPW, the equal-weight S & P 500 measures performance by tracking all the stocks in the broad index at equal exposure. In the cap-weighed version, known in short as the SPX , more exposure is given to stocks with larger market caps. That has only happened five times in the last three decades and sets an "ominous precedent," said Jonathan Krinsky, chief market technician at BTIG. .SPX YTD mountain The cap-weighted S & P 500's ascent in 2023 Krinsky said the S & P 500 should test 4,200 points — which is 2.8% off its Friday close of 4,320.06 — if not lower.

Persons: BTIG, Jonathan Krinsky, Krinsky, — CNBC's Michael Bloom Organizations: CNBC

☆ Bernstein says investors should take profits in pricey tech stocks such as Nvidia and these others
▼ + stars: | 2023-09-25 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Megacap technology stocks have led most of the 2023 market rally, and it might be time to take some chips off the table, according to one of Wall Street's top technology analysts. Bernstein's Toni Sacconaghi is advising clients to look to take profits on this year's leaders opportunistically. Sacconaghi is rated consistently as the No.1 analyst on IT hardware and electronics manufacturing services by Institutional Investor. Investors flocked to tech stocks, especially the ones tied to the artificial intelligence boom, in the first half of the year. Still, Bernstein kept its neutral rating on tech stocks, adding that investors should turn to quality shares that are more undervalued.

Persons: Bernstein's Toni Sacconaghi, opportunistically, Bernstein, Sacconaghi, — CNBC's Michael Bloom Organizations: Institutional Investor, Nvidia, Meta, Apple, Microsoft, Broadcom

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