NYSE Trader August 30, 2022
Here are the most important news investors need to start the trading day:
A long holiday weekend may have benefited US equity markets. Three main indicators it looked like they might open Tuesday’s session in positive territory. The stock has fallen for three straight weeks, and the Nasdaq has closed lower for six straight days, its longest losing streak since 2019. The Federal Reserve is now widely expected to raise its key rate again by three quarters this month, but investors are looking for clarity on what will happen after that and whether the economy will be able to take even tougher medicine.
People walk past a CVS Pharmacy store in Manhattan, New York.
Shannon Stapleton | Reuters
CVS Health goes even further beyond the pharmacy business. The company announced this on Monday agreed to buy home health care firm So health by about $8 billion. It seemed that the match was only a matter of time. Signify has reportedly been exploring strategic alternatives, including a possible sale. Amazon, which is making its own move into health care, has been mentioned as a potential bidder since it struck a $3.9 billion deal for OneMedical in July. CVS also said last month that it aims to either acquire or buy a stake in the primary care provider by the end of this year.
A sign outside a Bed Bath & Beyond retail store in New York on August 25, 2022.
Gabby Jones | Bloomberg | Getty Images
The Bed bath and more The story took a shocking and horrifying turn last weekend when it emerged that the retailer’s CFO, Gustavo Arnal, committed suicide. Arnal was pronounced dead on Friday, just two days after he briefed investors on a plan to liquidate the troubled company, which included a new loan to shore up its finances, store closings and layoffs. Arnal’s death exacerbates a leadership void at Bed Bath, which has an interim CEO and other executive positions recently eliminated, including chief operating officer. The company’s stock came under further pressure early Tuesday morning, with its market capitalization falling to about $690 million at Friday’s close.
Conservative Party leadership candidate Liz Truss greets supporters at an event as part of the Conservative Party leadership campaign in Birmingham, Britain, on August 23, 2022.
Phil Noble | Reuters
The era of Boris Johnson is over. Now, after all the twists and turns and scandals during BoJo’s tenure as UK Prime Minister, it’s Liz Truss’ turn to tackle the country’s economic woes. Skyrocketing prices, and especially rising energy prices, have hurt many Britons, including in schools, where children are exposed to smaller lunch portions consisting of lower quality food. Truss, a member of the Conservative Party, is passionate about cutting taxes and spending, and has said he will deliver a temporary pause in the so-called green fees on skyrocketing electricity bills, although experts warn it will need to do more than that. She also plans merger of banking observers in the City of London, a move observers say will lead to a “regulatory feel-good regime”.
The worst days of the European energy crisis are still ahead, according to the general director of the German Uniper. “What we’re seeing in the wholesale market is 20 times what we saw two years ago — 20 times. So I think we need a really open discussion with everyone who is taking responsibility on how to fix this.” Klaus-Dieter Maubach told CNBC’s Hadley Gamble in Milan. His warning came after Russia cut off gas supplies on Friday due to an oil leak at a compressor station. Siemens Energy, which Russia believes should solve the problem, said the leak was not the technical reason for the gas flow shutdown.
— CNBC’s Samantha Subin, Leslie Josephs, Mackenzie Sigalas, Holly Elite, Hannah Ward-Glenton and Sam Meredith contributed to this report.