People walk near the New York Stock Exchange on July 18, 2023 in New York City
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This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Dow’s 11-day streak
Major U.S. stock indexes ended Monday in the green, with the Dow Jones Industrial Average notching an 11-day winning streak. The pan-European Stoxx 600 advanced 0.06%, led by a 1.5% rise in oil and gas stocks. But business activity in the euro zone and U.K. is slowing down, according to flash estimates.
Ex-Twitter
Twitter rebranded to “X” and dumped its iconic bird logo. The transition from Twitter to X is part of owner Elon Musk’s vision to turn the platform into an “everything app” that is “centered in audio, video, messaging, payments/banking,” according to CEO Linda Yaccarino’s tweet — sorry — “x,” in the brand’s new parlance for short messages. Analysts aren’t convinced by the move.
Busy week for central banks
The U.S. Federal Reserve, the European Central Bank and the Bank of Japan will all announce interest rate decisions this week. Analysts are expecting the Fed to hike rates by 25 basis points; the ECB to raise rates by 25 basis points as well; and the BOJ to keep its ultra-loose monetary policy intact. However, the central banks could pivot at the meeting following this week’s.
China’s ‘tortuous’ recovery
China’s Politburo, the top decision-making body of the Chinese Communist Party, met Monday and pledged to “adjust and optimize policies in a timely manner” for its property sector. Acknowledging the country’s disappointing economic data, the Politburo said “the economy is facing new difficulties” and that the economic recovery will be “tortuous” — though it didn’t announce any major stimulus.
[PRO] No sign of recession
Steve Eisman, the investor who called and profited from the 2008 subprime mortgage crisis, told CNBC he thinks “there’s no evidence of a recession” so far. Thus, the stock market can continue climbing — this is how he’s playing the market.
The bottom line
The stock market continues to look strong as all three major indexes rose Monday. The S&P 500 climbed 0.4%, the Nasdaq Composite added 0.19% and the Dow Jones Industrial Average gained 0.52%.
The Dow notched 11 straight day of gains, its first in six years, which gave it its highest close since February 2022. To put into perspective how impressive that feat is, the Dow has achieved an 11-day rally — or longer — only six times since 1945, according to Paul Hickey, co-founder of Bespoke Investment Group. That’s less than once a decade.
Stocks were fired up by the energy sector, which rose 1.7% after oil and gas futures jumped to a three-month high. Goldman Sachs expects even higher prices as “demand reaches an all-time high” in the third quarter of the year, echoing a warning by the International Energy Agency.
In another indication markets are buoyant, meme stocks seem to be back. The Roundhill Meme ETF has gained nearly 60% year to date, suggesting investors are feeling confident enough to pour money into stocks driven by sentiment and speculation.
Small-cap stocks might be the next to rally, if Canaccord Genuity’s prediction proves right. In a note to clients, strategist Tony