Stock futures fall after S&P 500 hits fresh low for the year; 10-year government yield briefly tops 4%
CNBC Pro: Credit Suisse Says It’s Time to Buy Two Green Hydrogen Stocks – Giving Over 200% Upside
Credit Suisse says it’s time to enter the green hydrogen sector, with a range of catalysts set to power the clean energy powerhouse.
“Green hydrogen is a growth market – we are increasing our 2030 market estimates by [over] 4x,” the bank said, predicting that green hydrogen production will increase by around 40 times by 2030.
It cites two stocks to play the boom – and offers upside of more than 200%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
US 10-year Treasury yield breaks 4% for first time since 2010
CNBC Pro: Asset manager reveals what’s next for stocks – and shares how he trades the market
Neil Veitch, chief investment officer at Edinburgh-based SVM Asset Management, says he expects the macro landscape to remain “quite difficult” for the rest of the year.
Speaking to CNBC Pro Talks last week, Veitch mentioned the key drivers that could help the stock market become “more constructive” and shared his views on growth versus value.
CNBC subscribers can read more here.
— Zavier Ong
Earnings issues, potential recession means more sales could be in store
The Dow and S&P 500 have fallen for six straight days, with many of them seeing broad selling typical of so-called “washout days.”
It can sometimes be a contrarian buy signal on Wall Street, but many investment experts are skeptical that the sell-off is over. One reason is that profit expectations for next year still show solid growth, which would be unlikely in the event of a recession.
“We know that if we start to see a turnaround in 2-year yields … and if we start to see a turnaround in the dollar, that gives us the opportunity to jump out of these extremely oversold conditions,” said Andrew Smith, chief investment strategist for Delos Capital Advisors in Dallas. “But I have a hard time coming to terms with the fact that the earnings story is going to be as good as we expect.”
In addition, the dramatic moves in the bond and currency markets mean “something broke” and it might be smart to wait for the information to shake out, Smith said.
On the positive side, Smith pointed to a strong labor market and signs of continued spending on travel as a sign that the U.S. economy may be able to avoid a major recession.
-Jesse Pound
Futures open higher
Stock futures rose slightly after trading started at 18.00. Dow futures rose more than 60 points at one point, though those gains have since shrunk.
Nasdaq 100 futures had the biggest early jump of three, suggesting the technology could continue to outperform on Wednesday.
-Jesse Pound
The S&P 500 takes out June lows on Tuesday
Although Tuesday’s closing levels showed relatively modest daily moves, the S&P 500 fell below its previous intraday low for the year during the session. This move was seen by many as confirmation that this summer’s rally for shares has failed.
The S&P 500 is now 24.3% off its record high, and the Dow is also in a bear market, down about 21.2%. The Nasdaq Composite, whose decline dates back to last November, is 33.2% below the high-water mark.
The next key value for investors in the days ahead may come from the bond market, where the 10-year government yield has risen to just below the 4% level.
— Jesse Pound, Christopher Hayes
