Stock market news live updates: September 7, 2022

US stock futures rose on Wednesday morning as Wall Street rebounded from a three-week sell-off in equity markets.

Futures linked to the S&P 500 Index were up 0.2%, while Dow Jones Industrial Average futures added about 30 points, or 0.1%. Hi-tech Nasdaq Composite contracts advanced 0.3%.

“Tough 2022 for stocks may not get much easier because, while we await better news on the inflation front, we have a seasonally weak September to contend with,” strategists at LPL Financial Research said in a recent note. .

Since 1950, the S&P 500 has posted an average drop of 0.54% in September, the worst historical performance of the 12 months of the year. Furthermore, September has been the only month in the last decade in which the benchmark index averaged a loss.

In commodities, oil prices rose on Wednesday amid reports from President Vladimir Putin threatened to cut off the power supply if the West imposes price caps on Russian oil and gas exports because of the country’s war in Ukraine. West Texas Intermediate crude oil rose 0.4% to $87.23 a barrel, while Brent futures rose by almost the same margin to $93.21 a barrel.

And in the cryptocurrency markets, Bitcoin (USD-BTC) dipped below $19,000, testing a new low for the year.

Shares of Sharpie marker, Elmer’s glue, and Yankee candlemaker Newell Brands (N.W.L.) fell nearly 5% in premarket trading after the company cut its full-year forecast after the closing bell on Tuesday. Chief Executive Officer Ravi Saligram said Newell saw a “significantly larger than expected pullback” in retail orders as inflation pressures consumer spending.

Sharpie markers owned by Newell Brands are seen for sale at a store in Manhattan, New York, U.S., February 7, 2022. REUTERS/Andrew Kelly

game stop (GME) was in the spotlight on Wednesday, with the darling of meme stocks set to report second-quarter earnings after the market closed. Shares fell about 1% before the opening bell.

During the months of July and August, analysts cut their earnings per share estimates for the third quarter by a larger than average margin, according to FactSet Research. The bottom-up estimate of third-quarter EPS, an aggregation of median third-quarter EPS estimates for all S&P 500 companies, decreased 5.4% from June 30 to August 31.

Analysts typically lower earnings estimates for the first two months of a quarter. Over the past two decades, the average decline in the bottom line EPS estimate for the first two months of a quarter has been 2.9%.

Michael J. Wilson of Morgan Stanley, one of Wall Street’s most pessimistic strategists, cut its expectations for earnings per share growth for the year in a note on Tuesday, citing the growing threat posed by a slowing economy, rather than inflation or monetary tightening by the Federal Reserve. Wilson expects earnings to fall 3%, even if the US economy doesn’t slip into recession.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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