CNBC Pro: Forget the volatility. Buy This ETF For Long-Term Growth Story, Analyst Says
According to one portfolio manager, investors should navigate ongoing market volatility by getting into ETFs with a long-term growth story.
“The idea of owning ETF rather than one specific player — you have the whole basket and the wave of more capital investments out into cyberspace,” John Petrides, portfolio manager at Tocqueville Asset Management, told CNBC.
He names his favorite cybersecurity ETF, along with two others.
— Weizhen Tan
CNBC Pro: Hold onto cash as it beats the market, the pros say
Strategists are urging investors to invest more of their portfolios in cash during these volatile times, as rate hikes mean it now offers higher returns.
“Cash was king” last month, Bank of America said in a Sept. 1 note, as most asset classes — such as stocks, bonds and even commodities — posted losses.
Here’s how to add it to your wallets, according to the pros.
— Weizhen Tan
Where are the key averages to start the week
Last week’s sell-off caused the major averages to record their third consecutive week of losses. All 11 S&P 500 sectors that ended the week in negative led to a downtrend from materials, which fell nearly 5%.
Here’s how the main averages fared:
- The Dow Industrial Average fell 1.1% on Friday. The 30-stock index closed the week about 3% lower, ending more than 15% of its 52-week high.
- The S&P 500 was down 1.1% on Friday and 3.29% for the week. The benchmark index reached its lowest close since July, closing more than 18% of its 52-week highs.
- The Nasdaq Composite fell 1.3% on Friday, closing out its sixth consecutive negative session for the first time since 2019. The tech-heavy index fell 4.21% for the week, closing more than 28% from its 52-week high.
— Samantha Subin, Christopher Hayes
Truist’s Lerner on Looking for Signs of ‘Stabilization’ in an Oversold Market
How markets react to the news over the weekend could play an integral role in where markets are headed in the future, said Truist’s Keith Lerner
“The best side for the bulls would be that the market could actually stabilize with all the bad news,” he said. “At least that will tell you that the market has had enough short-term pain. I’m just looking – in an oversold market – if we can find any kind of stabilization online after a long weekend.”
According to Lerner, technical indicators are showing the most extreme oversold conditions since the June low, but a market rise or a fall in the market after the weekend could be a good sign.
Over the long weekend, Europe grappled with energy supply concerns amid news that Russia would cut gas flows to Europe, while OPEC+ announced a production cut. Lerner is also closely monitoring the ECB and its impending decision on rate hikes.
“What you want to see is if the market can find some stability tomorrow instead of a big broad sell-off,” Lerner said.
— Samantha Subin
CVS buys Signify Health for about $8 billion
The acquisition, which both companies are expected to close in the first half of 2023, will enable CVS to further expand its growing healthcare services offering and comes amid pressure from competitors Amazon and Walgreens to expand in the market. room.
“This acquisition will enhance our connection to consumers at home and enable healthcare providers to better address patient needs as we execute on our vision to redefine the healthcare experience,” said CVS Health President and CEO Karen Lynch in a press release.
— Samantha Subin, Leslie Josephs
Stock futures open higher
Stock futures rose Monday as Wall Street entered a short week of vacation. Futures linked to the Dow Jones Industrial Average were up 121 points, or 0.39%, while S&P 500 futures gained 0.26%. Nasdaq 100 futures were last up 0.12%.
— Samantha Subin