Stock Futures Stumble Into September as Bond Yields Surge

The 2-year Treasury yield hit a roughly 15-year high

Deputy Editor
Sep 1, 2022 at 9:15 AM
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Stock futures are pointed lower today, as the market looks to extend its losing streak, with traders remaining skittish due to the Federal Reserve's potential rate hikes. The 2-year U.S. Treasury yield hit its highest level since November 2007, rising to 3.516% before the opening bell, while the 10- and 30-year Treasury yields climb as well. Meanwhile, investors are unpacking a number of notable earnings reports, as well as data showing initial jobless claims for last week dropped by 5,000 to 232,000 -- their lowest level since June. 

Continue reading for more on today's market, including:

  • Why investors should avoid this beverage stock next month.
  • Options bears blitz social media name after Snap's new plans.
  • Plus, 2 food producers stumble after earnings; and SIG boosted by affirmed full-year guidance.

Futures Chart September 1 2022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.05 million call contracts traded on Wednesday, and 815,984 put contracts. The single-session equity put/call ratio fell to 0.78 and the 21-day moving average stayed at 0.67.
  2. Campbell Soup Company (NYSE:CPB) is down 2.5% premarket, after the company reported fiscal third-quarter earnings and revenue that matched Wall Street's expectations. While Campbell released a sunny forecast for full-year 2023 organic net sales as it anticipates demand to remain strong, the company's 2023 adjusted profit estimates fell below expectations. The equity is up 15.9% year-to-date.
  3. Hormel Foods Corp (NYSE:HRL) is down 6.1% before the bell, after the food producer reported mixed fiscal third-quarter results. While revenue beat analysts' predictions, the company's earnings and full-year outlook fell short of expectations, with the latter figure dented by higher operational costs. Should today's negative price action hold, it will push HRL back below its year-to-date breakeven mark. 
  4. Signet Jewelers Ltd. (NYSE:SIG), meanwhile,is 2.5% higher in electronic trading, after the organization affirmed its full-year guidance on a notable second-quarter profit win. Today's upbeat price action comes even after Signet Jewelers reported a bigger-than-expected fall in same-store sales. Coming into today, SIG was down nearly 25% in 2022.
  5. Today will bring productivity and unit labor costs revisions, construction spending data, the S&P U.S. manufacturing PMI, the Institute for Supply Management (ISM) manufacturing index, and light motor vehicle sales, as well as additional remarks from Atlanta Fed President Raphael Bostic.

OV Buzz Chart Sept 1

Asian Markets Move Lower After China's PMI Report

Asian markets settled lower on Thursday, after China’s Caixin/Markit manufacturing purchasing managers’ index (PMI) for August revealed the sector is in contraction territory. Rising Covid-19 cases, the worst heatwave in several years, and the U.S. government’s move to restrict artificial intelligence chip sales in China due to cybersecurity concerns contributed to the report. In response, China’s Shanghai Composite settled with a 0.5% loss, while Hong Kong’s Hang Seng shed 1.8%. Elsewhere, South Korea’s record trade deficit for August had the Kospi settling 2.3% lower, and Japan’s Nikkei lost 1.5% as the yen fell to its lowest level since mid-1998.

European markets are lower as well, with interest rate hike and recession fears gripping investors. Also weighing on stocks today is news that August’s euro zone manufacturing activity showed a contraction for the second-straight month, while in the U.K. factory activity registered its worst month since May 2020. At last check, London’s FTSE 100 is down 1.2%, France’s CAC 40 is 1.1% lower, and the German DAX is eyeing a 1% dip.

 

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