32 Mins Ago
Central banks take center stage around the world
It’s a big week for central banks — both within the U.S. and abroad.
The Federal Reserve begins its two-day policy meeting Tuesday. Traders are pricing in a 99% probability the Fed skips a rate hike when announcing policy on Wednesday, according to CMEGroup’s FedWatch tool, which gauges pricing in fed funds futures. The Fed will also offer market forecasts on Wednesday.
The central banks of multiple other countries are also expected to announce policy decisions this week. Here’s a list of the countries scheduled to release decisions in the 36 hours following the Fed’s announcement expected at 2 p.m. ET on Wednesday, per Bespoke Investment Group:
- South Africa
- The United Kingdom
Sam Stovall, chief investment strategist at CFRA Research, said investors around the globe “are on edge waiting to find out what their central banks are likely to do.”
— Alex Harring
57 Mins Ago
Rocket Lab shares drop after first launch failure in more than two years
The company said its 41st Electron rocket launch – lifting off from New Zealand and carrying the Acadia 2 satellite for San Francisco-based Capella Space – failed about 2 minutes and 30 seconds into the flight. Rocket Lab said it has begun working with the Federal Aviation Administration on investigating the root cause of the issue, which appeared to happen around the time the rocket’s first and second stages separated.
The aerospace stock is set to open below $5. Shares closed Monday at $5.04.
Rocket Lab USA shares 1-day
— Michael Sheetz, Sarah Min
An Hour Ago
Stocks making the biggest moves premarket
Check out the companies making headlines before the bell:
- Carnival, Royal Caribbean Group — The cruise lines both gained about 2% after being upgraded by Truist. The Wall Street firm moved Royal Caribbean to buy from hold and Carnival to hold from sell, citing forward-looking trends for 2024 and 2025 that look “exceptionally strong.” Truist maintained its hold rating on Norwegian Cruise Lines, which was up more than 1% in premarket trading.
- Deere & Company, CNH Industrial — The two stocks slid in the premarket after Evercore ISI downgraded each to in-line from outperform, citing agricultural production cuts. Deere fell 1.4%, CNH declined 1.2%.
- Starbucks — Shares fell 1.2% after TD Cowen downgraded the coffee giant over the “worrisome” macro backdrop in China. The firm believes slower consumer spending in China could hit share growth and affect Starbucks’ multiple.
Read the full list here.
— Sarah Min
An Hour Ago
TD Cowen downgrades Starbucks on China headwinds
Starbucks shares slid more than 1% before the bell after TD Cowen said slower consumer spending and macroeconomic headwinds China could hurt the coffee chain.
The firm downgraded the stock to market perform from outperform on Tuesday.
“While we forecast consensus 2023-25E EPS is achievable, in our view the multiple isn’t discounted enough vs the 5Y [average] that leads us to expect shares will be in a holding pattern,” analyst Andrew Charles said. “We like the long-term story but move to the sidelines as we monitor China macro & competitive dynamics.”
CNBC Pro subscribers can read the full story here.
— Brian Evans
2 Hours Ago
Monday brought muted moves for stocks
The three major indexes finished Monday’s session little changed as investors readied for the Federal Reserve meeting that begins Tuesday.
— Alex Harring
6 Hours Ago
European markets open lower
European markets opened lower Tuesday, with investors looking ahead to the start of the U.S. Federal Reserve’s two-day monetary policy meeting.
The pan-European Stoxx 600 index opened 0.2% lower, with sectors spread across tentatively positive and negative territory. Health-care stocks made the biggest losses, down 0.7%, while travel and leisure stocks were up 0.2%.
— Hannah Ward-Glenton
14 Hours Ago
Square CEO to depart company
14 Hours Ago
Cathie Wood stands by her wildly bullish call on Tesla
Ark Invest’s Cathie Wood reiterated her massively bullish call on her EV darling Tesla, seeing it hitting $2,000 in five years driven largely by a robotaxi boom.
“About a third of our valuation is associated with electric vehicles,” Wood said on CNBC’s “Fast Money” Monday. “Two thirds of our evaluation is around autonomous [driving] and autonomous taxi platforms.”
Wood’s bear case on Tesla is a $1,400 target by 2027 and $2,500 as her bull case. Tesla is the biggest holding in her flagship Ark Innovation ETF (ARKK) fund, with a 11.5% weighting. Shares of Tesla have mpre than doubled this year after losing 65% in 2022.
— Yun Li
15 Hours Ago
Instacart prices IPO at $30 a share
Instacart priced its IPO at $30 a share Monday evening, valuing the grocery delivery company at roughly $10 billion.
The company is set to debut Tuesday on the Nasdaq under the “CART” ticker symbol.
The puts the offering at the top end of the $28 to $30 a share range expected.
— Ari Levy, Samantha Subin
15 Hours Ago
Stock futures open little changed
Stock futures opened little changed on Monday evening as Wall Street looked ahead to the start of the Federal Reserve’s policy meeting.
— Samantha Subin