Asia, Europe, and US Markets Closing Report | August 16, 2022:

 ASIA

Source: cnbc.com

Asia-Pacific markets were mixed as BHP and Chinese real estate shares soar


Asia-Pacific shares were mixed on Tuesday as strong rallies from Chinese real estate companies and Australian miners were offset by muted Japanese and Hong Kong markets.

Mainland China closed in positive territory. The Shanghai Composite gained 0.05% to 3,277.89 and the Shenzhen Component was up about 0.08% at 12,470.11.

Hong Kong's Hang Seng finished the day 1.05% lower.

MSCI broadest index of Asia-Pacific shares outside Japan decreased 0.02%.

Japan's Nikkei 225 finished flat at 28,868.91 while the Topix index dipped 0.15% to 1,981.96. The Kospi closed higher by 0.22% to settle at 2,533.52.

The S&P/ASX 200 in Australia rose 0.58% to 7,105.4 with the major miners all posting strong returns led by BHP's rise of 4.09% following a sterling full-year profit result.

The annual wholesale price inflation rate in India fell to 13.93% in July from 15.18% in June, according to new data from India's Office of the Economic Adviser, surpassing market estimates of 14.2%.

Indian wholesale price inflation falls to nearly 14%

The annual wholesale price inflation rate in India fell to 13.93% in July from 15.18% in June, according to the latest data from India's Office of the Economic Adviser. This was better than analysts' estimates of 14.2%, according to a Reuters' poll.

The wholesale price inflation is an inflation indicator that measures the change in prices of wholesale goods before they are sold in the retail market to consumers.

According to data from the ministry of commerce and industry, the fall in inflation came from lower prices of wholesale food and manufactured goods offset by higher prices of fuel and power.

"That's the largest monthly decline in the food index since the current aggregate index began in 2012, and reverses about half of the increase in food prices since February," said Adam Hoyes, assistant economist at Capital Economics. "The fall was almost entirely down to a drop in wholesale vegetable inflation ... suggesting the upside risks from fears about lower crop yields have dissipated."

The fall in WPI was in line with lower consumer food inflation (CPI) as reported last week, Capital Economics said.

But given that both WPI and CPI inflation are still elevated, Hoyes said the Indian central bank would likely wait until the last quarter before scaling back the pace of its monetary policy tightening.

— Su-Lin Tan

Fitch ratings downgrades Country Garden

Fitch ratings has downgraded Chinese homebuilder Country Garden Holdings' Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs), senior unsecured ratings and the rating on the outstanding bonds to 'BB+' from 'BBB-'.

"The downgrade reflects a weakening in Country Garden's financial flexibility due to challenges in China's property sector," Fitch said in a note.

"Fitch believes that Country Garden's liquidity buffer, while adequate, is under pressure as declining sales coupled with working capital commitments put pressure on cash generation, while deterioration in capital market conditions has narrowed the company's funding sources."

- Su-Lin Tan

Chinese property stock makes surprise leap after reports of Beijing's bond guarantee pledge

Chinese real estate stocks surged after reports that Beijing told state-owned China Bond Insurance Co. to provide guarantees for onshore bond issuance by "model private developers," including Hong Kong-listed Longfor Group.

Even though the Hang Seng index was down 1.73% as major stocks across the bourse — including Tencent, Ping An Insurance and Petrochina fell, there were green shoots among Chinese developers like Longfor.

Longfor shares rose 11% while top developer Country Garden leapt 9%. The rally is also strong across China Resources Land with a 3.2% rise, R&F Properties up 1.26% and China Vanke, which rose 1.72%.

To revive the beleaguered Chinese residential property market, regulators are planning to provide liquidity support to the selected private developers through underwriting new local bonds raised, financial information provider, REDD said.

Jessica Tea, Asia and Greater China Investment specialist at BNP Paribas Asset Management, however, said investors will remain skeptical until they see evidence confirming these private developers benefit from the government's funding support.

"That said, we believe that the recent mortgage boycott is unlikely to cause any systemic risk, unless the situation spins out of control," Tea said.

"Crucially, Beijing's policy response to this problem has been swift, with the authorities trying to sort out some solutions including allowing mortgage payments holiday for the affected homeowners and mobilizing banking, SoE and local government resources to revive the suspended projects and ease funding shortages of developers."

More expected macroeconomic policy easing should lessen the risks the property market could pose to economic growth, Tea added.

— Su-Lin Tan
Correction: This post has been updated to reflect that property stocks surged after reports of China's liquidity support. An earlier version misrepresented the facts.

More growth policies seen as needed for China's economy despite rate cuts

China still needs more growth policies to stabilize its economy after the central bank moved unexpectedly to cut its key interest rates, the Chinese central-bank backed Financial News said on Tuesday.

The People's Bank of China lowered the rate on its 1-year policy loans by 10 basis points to 2.75% and the 7-day reverse repo rate to 2% from 2.1% on Monday. It defied economists expectations that the central bank would act on rate cuts.

Citing Wen Bin, chief economist of China Minsheng Bank, Financial News said for the economy to recover further, the rate of increase in infrastructure investments needed to accelerate, especially since recovery momentum has slowed.

Wen also said the weakness in domestic demand was a problem for the economy and Beijing would need to put out policies that would shore up economic growth.

Wang Qing, chief macro analyst at Dongfang Jincheng, was also cited saying that Beijing would likely boost fiscal policies and industrial policies to propel recovery.

Luo Huanjie, senior macro researcher at the Zhixin Investment Research Institute, said in light of possible future pandemic outbreaks, Beijing should prioritize the adjustment of macro policies in an effort to further improve the economy.

- Su-Lin Tan

China's interest rate cuts are a modest first step, says professor

The People's Bank of China's surprise interest rate cuts on borrowing costs for medium-term policy loans are a modest first step, according to Eswar Prasad, senior professor of international trade policy at Cornell University.

"The rate cut that we've seen right now is very modest. Ten basis-points doesn't amount to very much, although it does unleash some liquidity," he told CNBC's "Squawk Box Asia" on Tuesday.

The PBOC lowered its one-year medium-term lending facility on 400 billion yuan ($59.3 billion) of loans to some financial institutions by 10 basis points to 2.75%, according to an announcement posted on the central bank's website. It also cut its seven-day reverse repo rate by 10 basis points to 2%.

"It seems like a very small step. But the PBOC is trying to send a very calibrated signal here that it is ready to step in if circumstances were warranted," the professor added.

 "I think it is very cautious about unleashing any significant monetary stimulus because they know that it's going to create medium-term financial risks."

 — Sumathi Bala

Australia to look into competition, consumer issues for social media services

The Australia Competition & Consumer Commission said it will look into competition and consumer issues with social media services such as Facebook, Instagram, Twitter, TikTok and Snapchat.

The ACCC said its report will also consider YouTube, Reddit and Discord.

"We hope to examine trends in user preferences and engagement over time, and consider how users choose social media services," it said in a statement. The body plans to look into "if new entrants such as TikTok have changed the competitive landscape."

On Friday, China released a list of algorithms driving its tech giants' success, including that of Alibaba and Tencent. The filing also mentions how Douyin, the Chinese version of TikTok, uses such data to recommend content to users.

Jihye Lee

Gas prices continue to surge up north as Japanese industrials lag

Energy prices will continue to move north amid strong consumption, Skylar Capital Management head trader and chief executive Bill Perkins told "Street Signs Asia."

Surging gas prices has seen the northern hemisphere countries, including Asian ones like Japan scrambling for imports of liquified natural gas. The Asian benchmark spot price is on an upward trajectory while Japanese industrial stocks are in the red on Tuesday.

"I think that these pull backs with traders taking profit and concerns in China over recession and the real estate conditions over there. They are concerns but they are overblown relative to the macro trends going on in this cycle," he said.

Perkins said there will be little relent in surging oil prices, and he expects the WPI oil price to move north of $100 a barrel and Brent to push past $120 a barrel.

- Su-Lin Tan

Anglo-Australian miner BHP soars after posting its second-biggest profit in history

Anglo-Australian miner BHP shares soared 3.80% after posting its second-biggest profit in history and a record dividend worth $16.3 billion.

Its full-year results ending 30 June have beaten expectations.

BHP Chief Executive Mike Henry said BHP enters the 2023 financial year "in great shape strategically, operationally and financially."

He also expects China to "emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold."

"At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures," he said in a press release.

"The direct and indirect impacts of Europe's energy crisis are a particular point of concern. Tight labor markets will remain a challenge for global and local supply chains."

The situation is reversed for peers Rio Tinto and Fortescue Metals which have posted falls.

- Su-Lin Tan

U.S., Japan and South Korea complete missile search and tracking exercise

The Pentagon said the United States Navy, Japan Maritime Self-Defense Force, and Republic of Korea (ROK) Navy have completed a missile warning and ballistic missile search and tracking exercise off the coast of the Pacific Missile Range Facility (PMRF) in Hawaii.  

The U.S., Japanese, and ROK participants shared tactical data link information in accordance with a trilateral information sharing agreement. 

"Following the June 11 U.S.-ROK-Japan Trilateral Ministerial Meeting in Singapore, this missile warning and ballistic missile search and tracking exercise demonstrated the commitment of the U.S., ROK, and Japan to furthering trilateral cooperation to respond to DPRK challenges, protecting shared security and prosperity, and bolstering the rules-based international order," the Pentagon said in a note.

- Su-Lin Tan

Chinese fast food operator Yum goes for HK primary listing

Chinese fast food operator Yum China Holdings announced Monday it has applied for the conversion of its secondary listing to a primary listing status in Hong Kong. It currently has a dual listing on the New York Stock Exchange.

"Since our secondary listing in Hong Kong in 2020, we have enhanced access to our shareholders in Asia. We have diversified our investor base and tapped into additional capital pools," said Joey Wat, CEO of Yum China, in a press release.

"Dual primary listing would bring us even closer to our employees, customers and other stakeholders. This strategic move would further broaden our shareholder universe, increase liquidity and mitigate the risk of delisting from the NYSE," he added.

Yum has the exclusive rights to operate fast food brands like KFC, Pizza Hut and Taco Bell brands in China.

- Su-Lin Tan

CNBC Pro: Strategist names the global stocks to buy despite slowing growth

There are pockets of "compelling value" in three sectors — even amid an economic slowdown, said Patrick Armstrong, chief investment officer at Plurimi Group.

These sectors are "incredibly cheap," he told CNBC's "Squawk Box Europe," naming his favorite stocks and explaining why he likes them.

Pro subscribers can read the story here.

— Weizhen Tan

CNBC Pro: Tesla's valuation doesn't make sense until it hits this level, fund manager says

Tesla may be one of the best-known electric vehicle makers, but fund manager and tech investor Paul Meeks thinks the stock is still too expensive.

Meeks revealed to CNBC Pro Talks the valuation at which he will find Tesla "more interesting."

Pro subscribers can read the story here.

— Zavier Ong

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EUROPE

Source: cnbc.com
 
European markets close marginally higher, struggle to build momentum; Sonova drops 15%
Elliot Smith, Holly Ellyatt

Workers at BHP Billiton's Escondida, the world's biggest copper mine, in front of an open pit, in Antofagasta, northern Chile, on March 31, 2008.

Ivan Alvarado | Reuters

European markets closed slightly above the flatline Tuesday, having struggled to build on positive momentum seen at the end of last week.

The pan-European Stoxx 600 index ended the day up 0.2%, with basic resources adding 3.4% to lead gains while health care slid 0.6%.

Elsewhere, U.S. stocks were mostly lower Tuesday morning after all three major averages gained during the previous trading session.

Stocks in Asia-Pacific struggled to get off the ground Tuesday despite the positive rally on Wall Street.

Sonova drops 15%

Switzerland's Sonova fell to the bottom of the Stoxx 600 in mid-afternoon trade, dropping 15%, following the release of its financial results Tuesday. The manufacturer of hearing care products revised its outlook for the year ahead due to subdued market conditions and higher-than-expected component and freight costs.

Hearing health company Demant also fell more than 10% after the release of its half-year results Tuesday.

— Karen Gilchrist

Dow rises, S&P 500 and Nasdaq slip

The Dow rose 34 points on Tuesday, or 0.1%, led by gains from Walmart and Home Depot, which jumped more than 1% and 5%, respectively. The S&P 500 slipped 0.14%, while and Nasdaq Composite edged 0.44% lower.

— Samantha Subin

Delivery Hero up 6% on rosy third-quarter outlook

Shares of Delivery Hero were up more than 6% by mid-afternoon in Europe, after the German online takeaway company offered an optimistic third-quarter outlook, while confirming its preliminary figures for the second quarter.

The company forecasts gross merchandise value (GMV) growth of 7% quarter-on-quarter to total 10.6 billion euros ($10.75 billion).

- Elliot Smith

UK real wages decline at record rate as inflation soars

U.K. real wages, which reflect the power of employee's pay after accounting for inflation, fell by an annual 3% in the last quarter, according to data released by the Office of National Statistics on Tuesday.

While average pay — excluding bonuses — increased by 4.7% in the April to June period, according to the ONS, the cost of living is increasing at an even faster rate and outpacing wage growth.

Darren Morgan, ONS director of economic statistics, said this was affecting how far wages go in the day-to-day life of workers.

- Sophie Kiderlin

Sonova shares down 14% after guidance cut

Sonova Holding shares plunged more than 14% in early trade after the world's largest hearing aid manufacturer cut its full-year guidance for 2022/23, citing a subdued market environment and continual input cost pressures.

The Swiss company is now projecting consolidated sales growth of between 15% and 19%, down from a previous target of 17% to 21%. Full-year adjusted EBITA growth is now expected in the range of 6% to 10%, versus 12% to 18% previously.

- Elliot Smith

BHP posts highest profit in 11 years; shares climb

BHP Group posted a larger-than-expected 26% rise in annual earnings on the back of price surges in coal and other commodities.

The world's biggest miner reported $21.3 billion in earnings for the year ended June 30, its highest since 2011, and announced a record dividend worth $16.3 billion.

The company also refused to rule out a second bid for copper and nickel miner OZ Minerals, having had a $5.8 billion offer rebuffed earlier this month.

BHP shares were up 3.9% during early trade in London.

— Elliot Smith

CNBC Pro: Tesla's valuation doesn't make sense until it hits this level, fund manager says

Tesla may be one of the best-known electric vehicle makers, but fund manager and tech investor Paul Meeks thinks the stock is still too expensive.

Meeks revealed to CNBC Pro Talks the valuation at which he will find Tesla "more interesting."

Pro subscribers can read the story here.

— Zavier Ong

Anglo-Australian miner BHP soars after posting its second-biggest profit in history

Anglo-Australian miner BHP shares soared 3.80% after posting its second-biggest profit in history and a record dividend worth $16.3 billion.

Its full-year results ending 30 June have beaten expectations.

BHP Chief Executive Mike Henry said BHP enters the 2023 financial year "in great shape strategically, operationally and financially."

He also expects China to "emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold."

"At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures," he said in a press release.

"The direct and indirect impacts of Europe's energy crisis are a particular point of concern. Tight labor markets will remain a challenge for global and local supply chains."

The situation is reversed for peers Rio Tinto and Fortescue Metals which have posted falls.

- Su-Lin Tan

CNBC Pro: Strategist names the global stocks to buy despite slowing growth

There are pockets of "compelling value" in three sectors — even amid an economic slowdown, said Patrick Armstrong, chief investment officer at Plurimi Group.

These sectors are "incredibly cheap," he told CNBC's "Squawk Box Europe," naming his favorite stocks and explaining why he likes them.

Pro subscribers can read the story here.

— Weizhen Tan

__________________________________________________________________________________

US
 
Source: cnbc.com

Dow closes 200 points higher on Tuesday for fifth day of gains, buoyed by Walmart and Home Depot

Samantha Subin, Carmen Reinicke

Dow rally loses steam, S&P and Nasdaq turn negative into final hour

The Dow's roughly 368-point rally lost steam heading into the finally hour of trading, while the S&P 500 and Nasdaq Composite veered back into negative territory.

The Dow was last up 192 points, or 0.57%, while the S&P traded marginally lower and the Nasdaq slipped 0.45%.

— Samantha Subin

The market is 'ripe' for a short-term pullback, Morgan Stanley's Slimmon says.

Markets are poised for a short-term pullback amid the recent rally, Morgan Stanley Investment Management's Andrew Slimmon said.

Equities should end the year higher, or close near where markets began 2022, but investors should expect a pause over the next few weeks, Slimmon said.

The senior portfolio manager believes that markets remain overbought, especially after taking a strong leg higher within a short period of time.

"Pullbacks are being used as an opportunity to get cash to work for those that missed out over the last month's significant rally," Slimmon said, noting that some of Tuesday's moves may be triggered by investors who missed out on the recent rally. "I think that is propping up the market a little bit more than it probably should at a time when you know the market is ripe for a consolidation."

— Samantha Subin

The S&P 500 is testing an important resistance level

The S&P 500 is coming up against its 200-day moving average, a key resistance level closely watched by traders.

The 200-day moving average is 4,326, and the S&P came as close as 4,325 and backed away in afternoon trading. If the index rises above the 200-day and closes there for a period of time, it would be perceived as a bullish sign, indicating possible further gains.

Tests of resistance can take place across multiple trading sessions. The S&P 500 was at 4,319 at 2:30 p.m. ET.

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"It's an important test of a closely watched moving average, often thought to be the demarcation between the bull and bear trend," said Oppenheimer technical strategist Ari Wald. "I think you're watching how the market responds. It could be a level to see some profit taking. A sustained move above it would be an indication of strong buying demand."

The 200-day is basically the average of the last 200 closing prices of an index or stock. It is viewed as a momentum indicator. The S&P 500 was last above its 200-day in April.

— Patti Domm

Bed Bath & Beyond downgraded midday during stock surge

Bed Bath & Beyond has skyrocketed today, fueled by meme-stock traders snapping up shares and potentially boosted by a short squeeze.

That's an opportunity to sell, according to Alex Arnold at Odeon Capital Group. The firm on lowered its rating on the retailer to sell from hold while maintaining its $7.50 price target.

While Arnold ultimately thinks the retailer could turn itself around, the runup in shares is premature, he said.

Read more at CNBC PRO.

— Carmen Reinicke

Retailers are the standouts in a lackluster market day

Retailers were the standout sector Tuesday, following better-than-expected earnings from Walmart and Home Depot and as the speculative fervor around Bed Bath and Beyond continued.

Walmart jumped 5.5%, and Home Depot was 5.1% higher. Bed Bath and Beyond was up 60% in afternoon trading, as meme traders reacted to news that GameStop founder Ryan Cohen's venture capital firm RC Ventures made another big bet on the retailer through an options trade.

The S&P consumer discretionary sector, which includes retail names, was the top sector, up 1.7%, followed by consumer staples, up 1.3%. Financials were the third best performing major sector with a 1% gain. Tech was flat to negative, and energy was the worst performer, down 2.4%.

Other retail names also popped. Macy's jumped more than 7%, and Best Buy rose more than 6%. Target, which is reporting earnings Wednesday, rose nearly 6%. Online retailer Amazon was up just 1.8%.

"Oil falling below $87 is helping as well," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. High gasoline prices have been a head wind for retailers, and prices at the pump should fall further if oil continues to decline.

Market breadth was mixed. About 140 more stocks were advancing than declining on the New York Stock Exchange in lackluster trading. Market leader Apple was down 0.1%.

Dow components Walmart and Home Depot helped the Dow Jones Industrial Average outperform, and it was up 1% in afternoon trading. The small cap Russell 2000, which has been leading lately, was barely higher, up 0.2%. Nasdaq was flattish, up 0.3%.

The S&P 500 gained 0.6%, at 4323, very close to a next level of resistance at 4,326. That is the 200-day moving average, and it would be viewed as a very positive momentum indicator if the index were to rise above it and hold.

— Patti Domm

Airlines outperform, with American climbing more than 2%

Airline stocks are outperforming on Tuesday as investors are betting on consumer-centric stocks.

The U.S. Global Jets ETF was up 1.3% in afternoon trading. Shares of the three biggest U.S. airlines ¯ United, Delta and American — were all up at least 22%.

The stocks may be getting a boost from signs that the U.S. consumer is continuing to spend despite high inflation. Strong earnings reports from Walmart and Home Depot and the upbeat demand outlook from Carnival could be seen as positives for airlines.

Falling oil prices could also be catalyst for the stocks. Futures for U.S. benchmark West Texas intermediate crude have fallen more than 3% on Tuesday.

—Jesse Pound

Amazon accuses FTC of harassing Bezos and Jassy

Amazon CEO Andy Jassy speaks at a WSJD Live conference in Laguna Beach, California in 2016.

Mike Blake | Reuters

Amazon accused the Federal Trade Commission of harassing executive chairman Jeff Bezos and chief executive Andy Jassy, both of whom were asked to testify as part of the FTC's investigation into Amazon Prime.

The tech giant said a "legitimate reason" is needed for testimony from the two leaders, according to a legal filing from the company's lawyers hoping to quash the civil investigation demands.

The FTC's demand for Bezos and Jassy to testify "on an open-ended list of topics on which they have no unique knowledge is grossly unreasonable, unduly burdensome, and calculated to serve no other purpose than to harass Amazon's highest-ranking executives and disrupt its business operations," lawyers for the company said in a legal filing.

The FTC is looking into concerns that Prime is misleading users on how to sign up or cancel their subscription service. Earlier this year, an Insider report found that Amazon had been "concerned" its user design was leading some customers to feel "manipulated" into signing up for Prime. However, an Amazon spokesperson at the time called the process "simple and transparent" in response.

An FTC spokesperson declined a comment to CNBC.

— Sarah Min

Carnival rises on increased bookings

Shares of Carnival Cruise Lines gained 3.5% Tuesday after the company said that its bookings for Aug. 15 were nearly double the equivalent day in 2019, showing that cruise travel is experiencing a healthy rebound.

The increased bookings come after the company on Friday announced that it would eliminate Covid testing requirements for vaccinated travelers. It also eliminated the exemption request process for unvaccinated guests and now only requires that they show a negative test when they board. These new rules start for cruises leaving Sept. 6 or later and lasting 16 nights or less.

Carnival changed its requirements in-line with the CDC streamlining its guidance for Covid-19 last week.

— Carmen Reinicke

Ally Financial jumps 3% on Berkshire stake, ZipRecruiter slides

Shares of Ally Financial jumped 4% on Tuesday following news that Berkshire Hathaway more than tripled its position in the home and auto lender in the recent quarter.

Meanwhile, ZipRecruiter's stock shed 5% despite an earnings beat as it lowered its full-year revenue outlook and noted that employers are slowing job postings.

— Samantha Subin

Walmart shares rise nearly 6% despite last month's profit cut

Walmart shares jumped nearly 6% on Tuesday after the retailer reported results that beat expectations on the top and bottom lines.

The retailer's results signaled that the consumer may be holding up better than anticipated even as its profits remain under pressure in the face of inflation.

At the same time, Walmart stuck by its profit outlook for the second half, which it cut last month as consumers shift spending away from discretionary purchases. The retailer reaffirmed that warning on Tuesday.

— Samantha Subin

Bed Bath & Beyond having another wild meme trading day

Bed Bath & Beyond shares soared on Tuesday as Reddit traders piled into the stock, encouraged by news that GameStop chairman Ryan Cohen placed another bet on the struggling retailer.

Shares of Bed Bath & Beyond skyrocketed more than 70% to an intraday high of $28.04 in midday trading Tuesday amid multiple trading halts due to volatility. The stock last traded up 57%.

Cohen purchased distant out-of-the-money call options on more than 1.6 million Bed Bath & Beyond shares with strike prices between $60 and $80. The stock closed Monday at $16.

Bed Bath & Beyond's trading volumes jumped on Tuesday with more than 160 million shares changing hands as of noon ET. According to a regulatory filing, the company has only 80 million shares outstanding.

— Yun Li

Retail stocks jump following Walmart, Home Depot results

Retail stocks rose Tuesday on the back of strong results from both Walmart and Home Depot.

Shares of Target, Bath & Body Works, Ross Stores and Best Buy jumped more than 3% each, pushing the S&P 500's consumer discretionary sector up 1%. Consumer staples added 1%, boosted by shares of Walmart, Costco and Kroger.

— Samantha Subin

Tech, semiconductor stocks slip

Technology stocks moved lower on Tuesday led by shares of semiconductor names such as Nvidia, Applied Materials and Qualcomm, which fell more than 1% each. Big tech stocks including Apple, Meta Platforms, Netflix and Microsoft also dipped into negative territory.

The S&P 500's information technology sector was last down 1%. Within the sector, shares of solar stocks Enphase Energy and SolarEdge fell more than 2% each.

At the same time, consumer staples rose more than 1% boosted by shares of Walmart and Kroger.

— Samantha Subin

Natural gas prices jump

Natural gas prices jumped on Tuesday as parts of the U.S. grapple with high summer temperatures. U.S. futures added 5.55% to trade at $9.21 per million British thermal units.

In Europe, futures advanced 7% to 244.4 euros per megawatt hour. The gain comes after the contract closed at a record level on Monday, amid the continent's worsening energy crisis.

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— Pippa Stevens

Jeremy Siegel says the June low was a market bottom

You can count Jeremy Siegel among the group that is feeling more bullish about the U.S. economy and the stock market after the July economic data releases.

The Wharton professor said on CNBC's "Squawk Box" that he is growing more confident in the Fed pulling off a "soft landing" and that stocks appear to be on solid footing after a rough start to the year.

"I think the market has it right here, I think June will be a bottom, and I think the second half of the year will be quite good," Siegel said.

Check out more of Siegel's analysis on CNBC Pro.

— Jesse Pound

Dow rises, S&P 500 and Nasdaq slip

The Dow rose 34 points on Tuesday, or 0.1%, led by gains from Walmart and Home Depot, which jumped more than 1% and 5%, respectively. The S&P 500 slipped 0.14%, while and Nasdaq Composite edged 0.44% lower.

— Samantha Subin

Industrial production increased faster than estimate in July

Industrial production rose more than expected in July at a time when concern are rising over the U.S. manufacturing sector.

The measure of activity in manufacturing, mining and electrical and gas utilities increased 0.6% on the month, compared to the Dow Jones estimate for 0.3%, according to Federal Reserve data Tuesday. Manufacturing was particularly strong, rising 0.7% after falling for two months in a row.

Those numbers come the day after a stunning slide in the New York Fed's Empire Manufacturing Index, which collapsed 42 points for a reading of minus-31.3.

However, the national numbers show activity 3.9% above its level at the same period a year ago.

Also Tuesday, the Fed said capacity utilization totaled 80.3%, slightly above the estimate. The metric calculates the output level compared to full potential, and the current reading is 0.7 percentage point above its long-run average, according to the Fed.

—Jeff Cox

Futures slip ahead of open

Stock futures slipped ahead of market open on Tuesday. Futures tied to the Dow were last down 59 points, or 0.17%. S&P 500 and Nasdaq 100 futures fell 0.23% each.

— Samantha Subin

Housing starts show sharp decline in July

A fresh batch of economic data Tuesday morning shows the housing market industry is still under pressure.

Housing starts totaled 1.446 million in July, a slide of 9.6% from June, according to the Commerce Department. Economists surveyed by Dow Jones had been looking for 1.52 million on the starts number, which would have been a drop of 2.5%.

On building permits, they totaled 1.674 million, a 1.3% decline from a month ago. However, that was a bit better than the 3.3% estimate.

Construction has slowed as mortgage rates and building costs have shot higher this year. The slump in housing has weighed on broader economic growth, as the industry contributes more than 15% of national GDP.

—Jeff Cox

Zoom sputters in premarket trading

Zoom dropped 3% in Tuesday premarket trading after Citi downgraded the stock to sell from neutral. Shares of the video teleconferencing platform are down 38% this year as the company struggles to sustain momentum from its pandemic highs.

— Sarah Min

Most investors think inflation is heading lower, Bank of America survey shows

Nearly all professional investors are looking for lower inflation over the next year and have been loading up on U.S. stocks, according to the latest Bank of America Fund Manager Survey.

Some 88% of respondents said they see inflation abating and "fear of draconian rate hikes subsiding," said Michael Hartnett, BofA's chief investment strategist. Following July's market rally, there has been a "big [August] rotation to US stocks/tech/consumer out of staples/utilities/UK."

The consumer price index was flat in July was 8.5% higher than a year ago but flat month over month, providing some hope that soaring prices may be easing.

However, Hartnett added that portfolio manager positioning is still "long stagflation," or slow growth with relatively high inflation. That means allocations are still tilted to commodities, cash and defensive stocks and away from Europe and emerging market stocks as well as consumer names.

Markets have been on a roll after bottoming in mid-June, with the S&P 500 up 11.2% over the past month alone.

Hartnett cautioned against getting carried away, though. He said the bank's investment team remains "patient bears" and would bet against stocks after the index hits 4,328, which is just 0.7% away from Monday's close.

This month's fund manager survey entailed 284 panelist overseeing $836 billion in client money.

—Jeff Cox

Walmart beats expectations, reiterates forecast

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— Samantha Subin

Home Depot tops earnings estimates, posts record sales

Home Depot reported $5.05 in adjusted earnings per share for the last quarter, more than $4.94 expected by analysts, according to Refinitiv. The home improvement retailer's $43.8 billion in sales for the period were a record. Home Depot also reaffirmed its 2022 guidance of 3% sales growth.

The shares, which have rebounded by more than 14% so far this quarter, were fluctuating in premarket trading.

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European markets nudge higher, looking to build momentum

European markets were cautiously higher on Tuesday, having struggled to build on positive momentum seen at the end of last week.

The pan-European Stoxx 600 index climbed 0.2% in early trade, with basic resources adding 1.3% to lead gains while retail stocks slid 0.3%.

- Elliot Smith

CNBC Pro: Tesla's valuation doesn't make sense until it hits this level, fund manager says

Tesla may be one of the best-known electric vehicle makers, but fund manager and tech investor Paul Meeks thinks the stock is still too expensive.

Meeks revealed to CNBC Pro Talks the valuation at which he will find Tesla "more interesting."

Pro subscribers can read the story here.

— Zavier Ong

CNBC Pro: Strategist names the global stocks to buy despite slowing growth

There are pockets of "compelling value" in three sectors — even amid an economic slowdown, said Patrick Armstrong, chief investment officer at Plurimi Group.

These sectors are "incredibly cheap," he told CNBC's "Squawk Box Europe," naming his favorite stocks and explaining why he likes them.

Pro subscribers can read the story here.

— Weizhen Tan

Ginkgo Bioworks surges after hours

Shares of Ginkgo Bioworks stock jumped more than 20% after hours when the company raised its full-year guidance more than Wall Street analysts expected.

The company now expects full-year revenue in 2022 to be between $425 million and $440 million. Previously, the company had expected revenue in a range of $375 million to $390 million.

— Carmen Reinicke

Ziprecruiter, Compass shares slump

Shares of Ziprecruiter and Compass both fell in after hours trading Monday after each company delivered results that fell short of Wall Street's expectations.

Ziprecruiter actually posted a quarterly profit Monday after the bell, but warned that upcoming economic uncertainty may weigh on a strong labor market. The company lowered its year-end revenue outlook to reflect a weaker labor market. Shares fell more than 5%.

Shares of Compass plunged nearly 11% in after hours trading when the company said it would cut costs next year to be able to withstand a difficult housing market.

— Carmen Reinicke

U.S. stock futures open flat

U.S. stock futures opened flat Monday evening after all three major averages notched gains in the daily trading session.

Dow Jones Industrial Average futures shed 33 points, or 0.11%. On Monday, the 30-stock index closed above its 200-day moving average for the first time since late April. S&P 500 and Nasdaq 100 futures dipped 0.13% and 0.11%, respectively.

— Carmen Reinicke

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