Stocks fell on Monday, pulling again from file ranges as geopolitical and growth concerns weighed on threat urge for food.
The S&P 500 declined simply after market open after logging yet one more file excessive on Friday. The Dow and Nasdaq every additionally dipped, and the benchmark 10-year Treasury yield fell again under 1.3%. U.S. West Texas intermediate crude oil futures sank by greater than 1% to commerce round $67 per barrel.
The strikes got here as jitters over the tempo of world financial growth and dangers to the outlook elevated, with new financial knowledge out of China disappointing on a number of fronts. Retail gross sales and industrial manufacturing every slowed greater than anticipated on this planet’s second-largest economic system in July, suggesting a extra marked growth deceleration within the second half of the yr as the nation tries to comprise fallout from the newest resurgence in coronavirus circumstances.
Elsewhere, dysfunction in Afghanistan weighed additional on international markets, with chaos reported on the Kabul airport as civilians tried to flee from the nation swiftly overtaken by the Taliban.
Lingering worries in regards to the Delta variant have additionally been at play for traders, offset solely partially by optimism over what has been to-date an exceptionally sturdy company earnings season. This week, a handful of further S&P 500 index parts will report quarterly outcomes, with retail names like Walmart (WMT), Target (TGT) and Home Depot (HD) set to be among the many most carefully watched.
“I feel it’s going to be very key to listen to from U.S. retail corporations to see not provided that this Delta variant surge is having any influence to client conduct, but in addition to what their projections are for the remainder of the yr, on condition that we’re within the again to high school spending season,” Margaret Reid, senior portfolio supervisor at Union Bank, informed Yahoo Finance. “And we’ll additionally get July retail gross sales … so a number of incremental knowledge factors within the coming week with ties to the Delta variant.”
As of Friday afternoon, 91% of S&P 500 corporations had reported second-quarter earnings outcomes, and 87% of those had topped consensus estimates on earnings per share, according to FactSet. The anticipated total growth price for S&P 500 earnings stands at 89.3%, which might be the quickest improve because the fourth quarter of 2009.
According to many pundits, the sturdy rebound in company income has been and can doubtless proceed to be gas for the market going ahead, serving to to counterbalance concerns over an inevitable deceleration in growth as the restoration matures.
“In an earnings season with many surprises – together with the best frequency of EPS [earnings per share] beats in our 22-year knowledge historical past – probably the most notable was the surge in company buyback exercise,” David Kostin, chief U.S. fairness strategist for Goldman Sachs, wrote in a observe on Monday. “Strong company fairness demand is one motive we forecast a 5% return to our S&P 500 year-end goal of 4700.”
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9:30 a.m. ET: Stocks open decrease
Here’s the place markets had been buying and selling Monday morning:
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S&P 500 (^GSPC): -13.48 (-0.3%) to 4,454.52
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Dow (^DJI): -117.44 (-0.33%) to 35,397.94
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Nasdaq (^IXIC): -48.87 (-0.33%) to 14,774.03
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Crude (CL=F): -$1.99 (-2.91%) to $66.45 a barrel
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Gold (GC=F): +$5.30 (+0.3%) to $1,783.50 per ounce
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10-year Treasury (^TNX): -4.7 bps to yield 1.25%
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8:33 a.m. ET: Tesla shares fall after U.S. regulators open formal probe into Autopilot crashes
Shares of Tesla (TSLA) declined by greater than 1.5% on Monday after U.S. regulators mentioned they opened a formal safety investigation into Tesla’s Autopilot system following a string of crashes.
The National Highway Traffic Safety Administration (NHTSA) mentioned it had recognized 11 crashes since January 2018 throughout which Tesla fashions struck autos concerned in first responder scenes. As a outcome, the company mentioned it had opened a probe evaluating the Autopilot in Tesla autos made between 2014 and 2021.
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7:44 a.m. ET Monday: Stock futures level to a decrease open
Here’s the place markets had been buying and selling Monday morning:
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S&P 500 futures (ES=F): -13.00 factors (-0.29%) at 4,449.50
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Dow futures (YM=F):-103.00 factors (-0.29%) to 35,317.00
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Nasdaq futures (NQ=F): -44.00 factors (-0.29%) to fifteen,081.75
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Crude (CL=F): -$1.22 (-1.78%) to $67.22 a barrel
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Gold (GC=F): -$5.20 (-0.29%) to $1,773.00 per ounce
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10-year Treasury (^TNX): -1.7 bps to yield 1.28%
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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