CNBC Daily Open: Trump assassination attempt

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open tells investors everything they need to know, no matter where they are. Like what you see? You can register here.

Trump assassination attempt
The attempted murder of the former President Donald Trump at a rally in Pennsylvania on Saturday left one attendee and the gunman dead and two other attendees in critical condition. Trump was grazed by a bullet and was treated at a local hospital but was released late Saturday night. The FBI has identified the perpetrator, now deceased, as 20-year-old Thomas Matthew Crooks of Bethel Park, Pa. He used a semi-automatic weapon, according to NBC News. You can find more live updates here.

Third Plenary Session of China
China’s real estate woes may be huge, but analysts are looking ahead to what’s to come Third Plenary Session to focus on high levels of local government debt and promoting advanced manufacturing. “The key challenge facing Beijing is to find an alternative fiscal system, as the current one, which relies heavily on land sales, is under severe pressure due to the plunge in the land market,” Larry Hu, head of China economist at Macquarie. . The much-anticipated delayed policy meeting, scheduled for Monday through Thursday, is a major gathering of top members of China’s ruling Communist Party that usually only happens once every five years. CNBC’s Evelyn Cheng explains how investors can play the biggest political event in six years.

Dow over 40,000, again
The Dow Jones Industrial Average reached an all-time high and closed above 40,000 for the first time since Mayprofit driven at Home goods store and Caterpillar, as investor sentiment shifts away from Big Tech and toward some industrial stocks. The move was sparked by hopes of a Fed rate cut after a softer-than-expected inflation report. The S&P 500 and Nasdaq also rose, but at a slower pace than the Dow, which gained 1.6% for the week. The Russell 2000 also made significant gains, rising 6%, amid growing optimism for smaller companies. For further reading, CNBC’s Michael Santoli takes a look at Bullfight 21 months and the pivot away from Big Tech.

Google’s biggest deal?
The parent company of Google Alphabet is is closing in on a $23 billion deal to acquire the Wiz, an Israeli cybersecurity startup specializing in cloud security, the Wall Street Journal reported, citing sources. The acquisition would be Google’s largest ever. Founded in 2020, Wiz has grown rapidly and secured investments from prominent firms such as Sequoia Capital and Insight Partners. The potential deal reflects Google’s growing focus on strengthening its cyber offerings and cloud computing capabilities.

Dimon inflation warning
CEO of JPMorgan Chase Jamie Dimon has warned that inflation and interest rates may remain high despite the recent easing of price pressures. He cited factors such as large fiscal deficits, infrastructure needs, trade restructuring and global remilitarization as continuing inflationary forces. “Therefore, inflation and interest rates may remain higher than the market expects,” Dimon said. His comments, made as The Wall Street behemoth beat earnings estimatesin contrast to recent market optimism fueled by the fall in inflation in June, which led to speculation of a rate cut.

[PRO] Preparation for elections
With the US presidential election looming and stock markets at all-time highs, professional investors are emphasizing portfolio diversification to mitigate risks. Despite a brief downturn due to the rotation of large-cap growth stocks, markets rebounded to new records. This is how professional investors are preparing for the presidential election

Billionaires Elon Musk and Bill Ackerman they rushed to supports former President Donald Trump after an assassination attempt on his life. Although Musk has been a staunch opponent of President Joe Biden’s re-election bid, he has not previously endorsed Trump. However, Bloomberg reported Friday that Musk made a “large” undisclosed donation to a pro-Trump super PAC.

The assassination attempt on Saturday has increased Trump’s chances of victory, according to investors cited by Reuters. Trump’s chances of winning the election have increased 66% after shootingaccording to political betting platform PredictIt.

Meanwhile, Democrats are facing a crisis of confidence after President Joe Biden’s poor performance in the debate. As major donors withhold funds, Sen. Bernie Sanders urged Democrats to “stop fightingand rally behind Biden, even though he admits that Biden is not “the ideal candidate.”

Politicians universally condemned the assassination attempt against Trump, and corporate America echoed their sentiments. Apple CEO Tim Cook told X, “I strongly condemn this violence.” CEO of Microsoft Satya Nadella and CEO of Google Sudar Pichai echoed similar sentiments.

Before the latest political turmoil, much of the market was watching whether it was Thursday rotation caused by inflation it was more than a flash in the pan.

“Historically, when the market experiences a significant one-day swing from large-cap to small-cap, the trend tends to continue for the next four weeks. When reviewing the top 5 cases, the 10 largest companies underperformed the rest of the market by -4.8% over the next month, the S&P 500 is up 4.5% over the same period,” Patrick Palfrey said in a note to clients.

Not everyone is convinced. To characterize the market moves as a rotation rather than a bounce, Wells Fargo analyst Christopher Harvey said better earnings expectations are needed. “We would adopt the ‘rotation’ if we see stocks stop falling on bad news,” he wrote on Friday. “For now, we are still concerned about earnings, especially for SMID-caps.”

A so-called “great switch” needs optimism about earnings in addition to expectations of lower interest rates, Harvey said. Although the consumer price index reading delivered on the interest rate front, it still sees concerns about corporate financials ahead Delta‘small weaker than expected revenue. “We’re seeing an oversold, not a pivot,” he said.

With stock markets hitting all-time highs and election months away, CNBC’s Lisa Kailai Han noted that professional investors have advising on portfolio diversification.

— CNBC’s Brian Evans, Hakyung Kim, Alex Harring, Kevin Breuninger, Lisa Kailai Han, Jesse Pound and Rohan Goswami contributed to this report.