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S&P dips, just off record as energy shares fall

Stock MarketsAug 09, 2021 06:50PM ET
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2/2 © Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly 2/2

By Chuck Mikolajczak

NEW YORK (Reuters) - The S&P 500 dipped on Monday, as fuel demand worries during a resurgent pandemic sent energy stocks lower but rising U.S. Treasury yields lifted financial stocks, keeping Wall Street's benchmark index near record levels.

Energy shares were the worst performing of the 11 major S&P sectors, down 1.48% along with crude prices as mounting coronavirus cases and the potential for restrictions, particularly in China, raised worries about the fuel demand outlook.

China reported more COVID-19 infections, while U.S. cases and hospitalizations were at a six-month high as the Delta variant spread.

Financial shares gained, buoyed by a climb in the 10-year U.S. Treasury yield back above 1.30% to its highest level since July 16 as a report on job openings showed further evidence of an improving labor market.

"In general, of the economically sensitive cyclicals, it is the interest-rate sensitives that are going to celebrate this normalization of yields, even if normal is 1.30% versus where we were a week ago, which was 1.12%. That is driving the action," said Art Hogan, chief market strategist at National Securities in New York.

Investors will watch U.S. inflation readings this week for hints about the path of Federal Reserve policy. On Monday, Atlanta Fed president Raphael Bostic said the United States should be well past the pandemic crisis before the central bank raises rates. Richmond Fed President Tom Barkin said high inflation this year may have already met one of the Fed's benchmarks for raising interest rates.

Later this month, a meeting of Fed leaders in Jackson Hole, Wyoming should provide insight into the central bank's potential plan to begin tapering its bond purchases.

The Dow Jones Industrial Average fell 106.66 points, or 0.3%, to 35,101.85, the S&P 500 lost 4.17 points, or 0.09%, to 4,432.35 and the Nasdaq Composite added 24.42 points, or 0.16%, to 14,860.18.

A strong earnings season has helped U.S. stocks climb to record highs over the past two weeks, as several consensus-beating results from major firms reinforced belief in a post-COVID economic recovery.

As of Friday, analysts expected second-quarter profit growth of 93.1% for S&P 500 companies, according to IBES data from Refinitiv. Of the 443 companies in the index that have reported earnings so far, 87.4% beat analyst expectations, the highest on record.

Sanderson Farms (NASDAQ:SAFM) Inc climbed 7.41% after it agreed to be bought for $4.53 billion by commodities trader Cargill Inc and investment firm Continental Grain Co at a time when meat prices have been soaring.

Tyson Foods Inc (NYSE:TSN) advanced 8.69% after the meat processing company raised its forecast for fiscal 2021 revenue.

Declining issues outnumbered advancing ones on the NYSE by a 1.63-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored decliners.

The S&P 500 posted 30 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 83 new highs and 66 new lows.

Volume on U.S. exchanges was 8.55 billion shares, compared with the 9.64 billion average for the full session over the last 20 trading days.

S&P dips, just off record as energy shares fall
 

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Comments (9)
Js My
Moorok Aug 09, 2021 3:55PM ET
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Cut the government employees' wages to $nil. They will say COVID is good stuff. They have to stop this COVID non-sense.
Hunt Richardson
Hunt Richardson Aug 09, 2021 1:47PM ET
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Because Reuters over uses the word "fear" in its headlines. Concerns, maybe
Mitchel Pioneer
Mitchel Pioneer Aug 09, 2021 1:23PM ET
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No tightrope walk during a loss, as they're magically whisked away.  Uninhibited "gains" and mititaged losses, while the NASDAQ remains green as the criminal quest for 4,500 continues.  The greatest financial fraud in history, and biggest investment joke in the world continues to financially defile America in broad daylight.
Unoqueva Alguno
Unoqueva Alguno Aug 09, 2021 12:13PM ET
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virus fears, it is 2030 again! let's publish 100 article with the title "vaccine hopes" like 2020 to pump the market
Dominic Mazoch
Dominic Mazoch Aug 09, 2021 11:31AM ET
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Instead of going to Jackson Hole, have it at a Church Hall near a M6, and be like the common person, female and male.
YouTube Account
YouTube Account Aug 09, 2021 10:58AM ET
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hahaha we're back to virus fears again - you guys are a sham
Matius Marvn
Matius Marvn Aug 09, 2021 10:53AM ET
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si claro sigan vendiendo miedo para llegar a nuevos maximos historicos , estos articulos dan risa
Hunt Richardson
Hunt Richardson Aug 09, 2021 10:41AM ET
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there goes Reuters using the word "fear" again in the headlines
Mitchel Pioneer
Mitchel Pioneer Aug 09, 2021 10:29AM ET
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NASDAQ flagrantly pumped green at the open, as the fraudulent quest for 4500 continues in the laughingstock of the financial world.
 
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