Technology and Energy Stocks Lead Major Indices Lower in US Trade | Company
Stocks edged down on Wall Street as investors scrutinize the latest corporate earnings reports and cautiously watch the latest wave of the virus for its impact on economic growth.
The S&P 500 fell 0.1% at 11:45 a.m. EST. The Dow Jones Industrial Average fell 76 points, or 0.2%, to 35,131 and the Nasdaq rose 0.1%.
All major indices posted weekly gains last week and the S&P 500 set a record on Friday.
Energy companies collapsed as the price of benchmark U.S. crude oil fell 2.9% to its lowest level since May. This drop follows a 7.7% drop last week. Occidental Petroleum lost 1.6%.
Technological and industrial companies were among the biggest weights in the broader market. Micron Technology fell 1.4% and General Electric fell 1.2%.
The latest round of corporate earnings is drawing to a close and nearly 90% of S&P 500 companies have released their latest results. Reports have for the most part been solid. Tyson Foods jumped 7.9% after handily beating Wall Street earnings forecasts.
Airbnb, DoorDash and Walt Disney are all set to release their latest financial results on Thursday.
Investors are also closely monitoring the world’s reaction to the latest wave of coronavirus. Some governments have reimposed limits on business and travel. China has canceled flights as it tries to stop a wave of epidemics. Australia’s two most populous states have told people to stay home except to go to work or for a handful of other reasons.
Analysts expect the US and global economies to continue growing, but have warned that the resurgence of the virus could slow the pace. Investors digested a steady stream of encouraging economic reports.
The latest from the Department of Labor shows that American employers posted a record 10.1 million job postings in June. This follows Friday’s report that the economy generated 943,000 jobs last month and the unemployment rate fell to 5.4% from 5.9% in June.
Investors will get more inflation data when the Labor Department releases its consumer price index for July on Wednesday. Wall Street is still trying to gauge how far inflation could rise as the economy recovers and whether that will cause the Federal Reserve to reduce its support for the economy sooner than expected.
Bond yields remained stable. The 10-year Treasury yield remained at 1.28% on Friday night.
The main European indices were down slightly while the Asian indices were mixed. In China, the Shanghai Composite Index gained 1.1% and the Hong Kong Hang Seng gained 0.4%.
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