Where the major averages stand to start the week
Here’s how the major averages fared:
- The Dow Industrial Average fell 1.1% on Friday. The 30-stock index closed roughly 3% lower for the week and finished more than 15% off its 52-week high.
- The S&P 500 fell 1.1% on Friday and 3.29% for the week. The benchmark index hit its lowest close since July and closed more than 18% off its 52-week highs.
- The Nasdaq Composite fell 1.3% on Friday and finished its sixth negative session in a row for the first time since 2019. The tech-heavy index fell 4.21% for the week and closed more than 28% off its 52-week high.
— Samantha Subin, Christopher Hayes
Truist’s Lerner on searching for signs of ‘stabilization’ in an oversold market
How markets react to the news over the weekend could play an integral role in where the markets move going forward, said Truist’s Keith Lerner
“The best side for the bulls would be that the market is actually able to stabilize with all the bad news,” he said. “That will at least tell you that the market has taken enough short-term pain. I’m just looking to see — in an oversold market — can we find any kind of stabilization coming back online after a long weekend.”
According to Lerner, technical indicators show the most extreme oversold conditions since June’s trough, but the market moving higher or slightly only lower on the back of the weekend could be a good sign.
Over the long weekend, Europe grappled with energy supply concerns amid news that Russia would halt gas flows to Europe, while OPEC+ announced a production cut. Lerner is also closely watching the ECB and its impending decision on rate hikes.
“What you want to see is can the market find some stability tomorrow as opposed to a big broad sell-off,” Lerner said.
— Samantha Subin
CVS to purchase Signify Health for roughly $8 billion
The acquisition, which both companies expect to close in the first half of 2023, will enable CVS to continue expanding its growing health-care services offerings and comes amid a push by competitors Amazon and Walgreens to expand in the space.
“This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience,” CVS Health President and CEO Karen Lynch said in a news release.
— Samantha Subin, Leslie Josephs
Stock futures open higher
Stock futures rose on Monday as Wall Street kicked off a holiday-shortened week of trading. Futures tied to the Dow Jones Industrial Average rose 121 points, or 0.39%, while S&P 500 futures gained 0.26%. Nasdaq 100 futures were last up 0.12%.
— Samantha Subin