In this March 23, 2021 file photo, pedestrians walk past the New York Stock Exchange in New York's Financial District. (AP Photo/Mary Altaffer, File)
By Damian J. Troise and Alex Veiga
Technology and energy companies led stocks lower on Wall Street Monday, easing the market back from its recent all-time highs.
The S&P 500 slipped 0.1%, erasing an early gain. Technology companies accounted for a big share of the decline. Industrial and consumer-centric stocks also fell. Those losses outweighed gains in health care companies, banks and elsewhere in the market.
Energy companies slumped the most among S&P 500 stocks as the price of benchmark U.S. crude oil fell 2.6% to its lowest levels since May. The move lower follows a decline of 7.7% last week. Occidental Petroleum shed 3%.
Every major index was coming off weekly gains last week, which ended with record highs for the S&P 500 and the Dow Jones Industrial Average.
The modest pullback is another example of the volatility the market has seen amid uncertainty over the impact COVID-19 variants will have on the economy and the Federal Reserve’s next monetary policy moves, said Sylvia Jablonski, chief investment officer at Defiance ETFs.
“People who got in and saw some of the stocks that they hold at all-time highs on Friday, perhaps they’re selling a little bit off today and might be opportunistically trading some of this volatility,” she said.
The S&P 500 fell 4.17 points to 4,432.35. The Dow dropped 106.66 points, or 0.3%, to 35,101.85. The Nasdaq added 24.42 points, or 0.2%, to 14,860.18.
Smaller companies fell more than the rest of the market. The Russell 2000 index lost 12.95 points, or 0.6%, to 2,234.81.
Bond yields moved higher. The yield on the 10-year Treasury rose to 1.32% from 1.28% late Friday. Bond yields tend to move with expectations for the economy and for inflation.
The latest round of corporate earnings is winding down, and nearly 90% of companies in the S&P 500 have reported their latest results. The reports have been mostly solid. Tyson Foods jumped 8.7% for one of the biggest gains in the S&P 500 Monday after handily beating Wall Street's profit forecasts.
Investors are also closely watching the world's reaction to the latest surge of the coronavirus. Some governments have reimposed limits on business and travel. China canceled flights as it tries to stop a rash of outbreaks. 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 U.S. and global economies to continue growing, but have cautioned that the resurgent virus could slow down the pace.
“That's one part of the story and that could be holding back" the stock market, said David Kelly, chief global strategist at JPMorgan Funds. “We don't really have a handle on how bad the delta variant might get.”
Investors have been taking in a steady stream of encouraging economic reports. The latest from the Labor Department shows that U.S. employers posted a record 10.1 million job openings in June. That 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.
The solid jobs figures also raise some concerns about wage inflation and the pace of economic growth.
“We’re burning our way back to full employment fast," Kelly said. “Once we get there the economy is going to slow down.”
The latest figures also raise concerns about inflation fueled by the improving job market, as employers are potentially forced to raise wages to fill jobs.
Investors will get another piece of data on inflation when the Labor Department releases its consumer price index for July on Wednesday. Wall Street is still trying to gauge how much inflation might rise as the economy recovers and whether that will push the Federal Reserve to trim back its support for the economy sooner than expected.
Major indexes Europe edged lower while indexes in Asia ended mixed.
Rebecca Walser, President of Walser Wealth Management, joins Cheddar News' Closing Bell, where she discusses the factors behind Monday's surge on Wall Street and explains why investors will likely experience volatility in the market throughout the month of December.
PNC Asset Management Group Chief Investment Officer Amanda Agati joined Cheddar News "Closing Bell" to discuss the financial institution's 38th annual Christmas Price Index. The holiday measure of consumer prices cheekily follows the theme of the carol "The Twelve Days of Christmas." Agati also explains what takeaways shoppers should have during the season, including the role of e-commerce.
Caitlin Cook, Head of Community at Onramp Invest and VP of Operations at Onramp Academy, joins Cheddar News' Closing Bell, where she breaks down the multiple factors that contributed to the major sell-off of Bitcoin, Ether, and other cryptocurrencies late Friday night.
A lockout is now in place for Major League Baseball. The collective bargaining agreement between the league and players association expired at 11:59 p.m. Wednesday night.
MLB commissioner Rob Manfred said both sides were unable to negotiate a new contract by that time, so the league locked out the players on Thursday at 12:01 a.m. The lockout also means trades and free agency deals have to stop for now. Dodgers Nation lead editor Clint Pasillas joined Cheddar News' Closing Bell to discuss.
The UK-based augmented reality startup, Dent Reality, raised the equivalent of $3.4 million USD in its most recent funding round. Dent Reality has created an AR app for smartphones that helps shoppers navigate retail locations by providing a layout of a store's aisles, while showing where to find specific items. The company works mainly with grocery stores but aims to integrate its tech with all types of physical spaces. Dent Reality CEO Andrew Hart joins Cheddar News' Closing Bell to discuss.
As the electric vehicle sector continues to heat up, one company could be poised to knock Tesla from its top spot. Many analysts have issued buy ratings and raised their price targets for EV-maker Rivian, and say that the company's push into under-developed areas like electric SUVs, pickups, and delivery trucks could give it the right competitive edge to push Tesla from the number one spot. Dan Ives, Managing Director of Equity Research at Wedbush Securities, joins Cheddar News' Closing Bell to discuss Rivian's potential market domination, why their business plan sets them up for success, and more.
Cheddar's Chloe Aiello joined "Closing Bell" to break down the progress of the SAFE Banking Act in Congress as cannabis businesses operators struggle to find financial institutions that will service them. Banks face steep federal penalties, including the risk of losing a bank charter, if found to be servicing marijuana businesses even if their state has legalized operations. Aiello reported that while there was some bipartisan support for the measure in the Senate, the bill faces some opposition from conservatives with "longstanding concerns" about cannabis and progressives who prefer a more comprehensive approach to reform.
Not everything is as it seems in the supermarket. From name brands under different labels, to confusing store layouts, supermarkets employ a variety of tactics to keep you spending. Including selling products with surprising ingredients. This episode of Who Knew? unveils the secrets of our supermarkets.
The world is amidst a skyscraper boom. In 2018, 146 buildings over 650 feet were constructed. That’s more than the total amount of skyscrapers constructed between 1979 and 1999. And all this construction is transforming our cities.
Amazon and online shopping have forever changed how we shop. While I love that I can order almost anything I need with the click of the mouse, this transition from in- person retail is shuttering MUCH of the brick and mortar landscape. But in what’s been deemed the “retail apocalypse” some brick and mortar stores are actually thriving.
