Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street Mixed at Open as China, Covid Fears Dominate; Dow Down 20 Pts

Stock MarketsJul 26, 2021 09:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets retreated from all-time highs at the open on Monday, weighed on by fresh worries for the future of Chinese ADRs and by concern at the growing spread of Covid-19 in the U.S., and its possible impact on the economy. 

By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was down 20 points, or less than 0.1%, at 35,041 points. The Nasdaq Composite was down in line while S&P 500 was up by less than 0.1%.

Earlier, newswires reported that Goldman Sachs (NYSE:GS) had cut its U.S. growth forecasts for the third and fourth quarters by 1 percentage point each, in part due to the renewed spread of Covid-19 weighing on the service sector. Separately, a survey by Deutsche Bank (DE:DBKGn) showed that over half of its clients expect some form of Covid-related restrictions to be back in place before the end of the year. 

The day's only major data release also surprised to the downside: new home sales fell for a third straight month in June, by 6.6%, to their lowest in 14 months.

The prospect of a slowing economy once again drew attention to the stretched valuations of U.S. markets after 16 months of extraordinary stimulus. Liz Ann Sonders, chief investment strategist at Charles Schwab (NYSE:SCHW), noted via Twitter that the forward price/sales ratio of the S&P is now higher than at the peak of the 2000 Internet bubble. 

The morning's biggest movers were, once again, largely Chinese ADRs, which tumbled after a multi-pronged attack on the country's tech sector over the weekend. The government confirmed leaks on Friday that it intends to force online education providers to turn into non-profits, while two separate regulators banned Tencent Music from holding certain exclusive music rights and issued a sharply-worded reminder to food delivery companies of the need to pay at least the minimum wage. 

After earlier dealings, EdTech names New Oriental Education & Technology (NYSE:EDU) was down 24% while TAL Education (NYSE:TAL) was down 17% and Ke Holdings (NYSE:BEKE) was down 18%. Tencent Music  (NYSE:TME) stock meanwhile fell 5.1% and Meituan (OTC:MPNGY), the country's biggest food delivery service, fell 12% to a new all-time low.  Meituan is also backed by Tencent Holdings (OTC:TCEHY), which fell 7.8% to a 10-month low.

In the U.S., meanwhile, Aon (NYSE:AON) stock rose 6.5% and Willis Towers Watson (NASDAQ:WLTW) stock fell 5.9% after the two insurers called off their planned merger due to resistance from antitrust regulators at the Department of Justice, who feared the deal would limit choice and lead to higher prices. 

Among the biggest gainers was Coinbase Global (NASDAQ:COIN)l stock, which rose 8.0% after rumors of interest from Amazon (NASDAQ:AMZN) in cryptocurrency pushed the price of Bitcoin up by over 15% through the weekend. Hasbro (NASDAQ:HAS) stock rose 9.0% to its highest since the start of the pandemic after reporting strong quarterly numbers. However, the big earnings release of the day is from Tesla (NASDAQ:TSLA), which reports its numbers after the close. Tesla stock rose 1.0% in anticipation of a record quarterly profit. The company sold 206,000 cars in the second quarter, escaping the worst of the global chip shortage.

 

Wall Street Mixed at Open as China, Covid Fears Dominate; Dow Down 20 Pts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
Dave Jones
Dave Jones Jul 26, 2021 1:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
New all time high for DJ! Based on money printing!
Lex Wild
Lex Wild Jul 26, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just Buy the Dip nothing else ;-)
Ronald Warren
Ronald Warren Jul 26, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The day is coming soon where that philosophy will cost you dearly.
Lex Wild
Lex Wild Jul 26, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ronald Warren  with a proper Risk Management all will be fine
James Andrews
James Andrews Jul 26, 2021 11:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How many years are these fools going to fear this weak virus?
Matt Kay
Matt Kay Jul 26, 2021 11:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
10:30AM and we are green, erased over 1.5% in overnight losses. Stonks shall not go down, so say the JPOW!
Franco Dominguez
Franco Dominguez Jul 26, 2021 10:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
invent more virus to infect Nico Las
Nico Las
Nico Las Jul 26, 2021 10:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stop inventing viruses, it is already old-fashioned and boring
Rick Baier
Rick Baier Jul 26, 2021 10:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Typos I'm sorry I'm in a tunnel on a train
Rick Baier
Rick Baier Jul 26, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Alit of people got covid before a vaccine became available. Like myself got over it and after news came out that there's no reason to get this vaccine if you had Covid. BIn my opinion if your not obese or dark skinned you are better off catching this and getting your own immunity. Rather than thaje a experimental vaccine.
vicky kumar
vicky kumar Jul 26, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
another virus is coming, 15000 old virus by Chinese, be ready for fake mourn.
John Avenetti
John Avenetti Jul 26, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's not even a vaccine. this is all planned. medical dictatorship and the planned bankruptcy of the west. most people are sleeping
Franco Dominguez
Franco Dominguez Jul 26, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when you dnt freeze the pfizer vaccine at the right degree, it doesnt work. sorry to said the truth
sal galeano
sal galeano Jul 26, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I hate people like you. shame you didn't 💀.
Ronald Warren
Ronald Warren Jul 26, 2021 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Note: Schwab says forward price/sales of S&P 500 is higher than 2000 crash. In 2008, the bubble was 30 trillion. Currently, the bubble is 100 trillion. The FEDS intervention has created a dangerous scenario for markets.
John Avenetti
John Avenetti Jul 26, 2021 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
of course it has. It's all planned just like the virus. Bankruptcy of the west and a medical dictatorship.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email