Where the major averages stand to start the week
The heavy selling last week saw the major averages post the third consecutive week of losses. All 11 sectors of the S&P 500 that ended the week on a negative note, led to the downside with materials down about 5%.
Here’s how the key averages perform:
- The Dow Jones Industrial Average fell 1.1% on Friday. The 30-share index closed down nearly 3% for the week and finished more than 15% off its 52-week high.
- The S&P 500 is down 1.1% on Friday and 3.29% for the week. The benchmark index hit its lowest closing level since July and has closed more than 18 percent from its 52-week high.
- The Nasdaq Composite fell 1.3% on Friday and ended its sixth consecutive negative session for the first time since 2019. The tech-heavy index fell 4.21% for the week and closed more than 28% from its 52-week high.
– Samantha Soobin, Christopher Hayes
Trust’s Lerner on the hunt for signs of ‘stability’ in an oversold market
“How the markets react to the news over the weekend can play a key role in the direction the markets are moving forward,” said Keith Lerner from Trust.
“The best aspect of the bulls is that the market is already able to stabilize with all the bad news,” he said. “This will at least tell you that the market has had enough short-term pain. I’m just looking to see – in an oversold market – if we can find any kind of stability coming back to the internet after a long weekend.”
According to Lerner, technical indicators are showing the most extreme oversold conditions since the June low, but a market move slightly higher or lower in the back of the weekend might be a good sign.
Over the long weekend, Europe faced energy supply concerns amid news that Russia will halt gas flows to Europe, while OPEC+ announced production cuts. Lerner is also closely watching the European Central Bank and its imminent rate hike decision.
“What you want to see is can the market find some stability tomorrow instead of a broad sell-off,” Lerner said.
– Samantha Sobin
CVS to buy Signify Health for nearly $8 billion
CVS Health Monday said he We reached a deal to buy home health products a company sign of health for $30.50 a share, or roughly $8 billion.
The acquisition, which the two companies expect to complete in the first half of 2023, will enable CVS to continue expanding its growing healthcare service offering, and comes amid rivals Amazon and Walgreens pushing to expand into the space.
“This acquisition will enhance our connection with consumers at home and enable providers to better meet the needs of patients as we implement our vision to redefine the healthcare experience,” Karen Lynch, President and CEO of CVS Health, said in a press release.
Samantha Sobin, Leslie Joseph
Stock futures open higher
Stock futures rose on Monday as Wall Street began a trading week shorter than the holiday. Futures linked to the Dow Jones Industrial Average rose 121 points, or 0.39%, while S&P 500 futures rose 0.26%. Nasdaq 100 futures rose 0.12%.
– Samantha Sobin
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”