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

Wall Street Opens as Covid Concerns Drive Rotation out of Value; Dow Down 110 Pts

Stock MarketsJul 12, 2021 09:57AM 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 opened the week mixed on Monday, as concerns about the global spread of the Covid-19 virus encouraged further rotation out of value stocks and back into the 'growth-oriented' stocks that benefited so much from the pandemic last year.

Even so, they remained close to record highs at the start of a week that will feature testimony from Federal Reserve chairman Jerome Powell, U.S. inflation data for June and the start of the second-quarter earnings season.

By 9:35 AM ET (1335 GMT). the Dow Jones Industrial Average was down 113 points, or 0.3%, at 34,757 points, while the S&P 500, which had finished last week at a record high, was down 0.1%. The Nasdaq Composite, which likewise closed at a record high on Friday, extended that streak with a 0.3% gain. 

The U.S. recorded its highest number of new Covid-19 cases in over two months at the weekend, prompting fears that the highly-transmissible delta strain of the virus may yet derail economic reopening, especially in those state with low vaccination rates. The U.S. vaccination rate has tailed off sharply since April and is currently running at one-tenth of its peak rate, despite the fact that less than half of the adult population is fully vaccinated.

For many, though, that's still only a cloud on the horizon that may or may not blow their way. The gradual return to normal life was illustrated at the weekend by Disney 's new blockbuster Black Widow raking in $218 million at the box office, including over $150 million from reopened movie theaters. Analysts were more impressed by the $60 million it made through the Disney+ streaming channel, where it earns higher margins. Walt Disney (NYSE:DIS)stock outperformed with a 0.9% gain.

Virgin Galactic (NYSE:SPCE) stock followed its founder Richard Branson in returning to earth after a brief stratospheric rise in the overnight session. The stock fell 8.7% after investors took profit on a trade driven by anticipation of the company's first full-crew test flight on Sunday, leaving it some 25% below the record high it hit after Branson announced the flight date earlier in the year.

Tesla (NASDAQ:TSLA)stock rose 2.7% as some bet on a speedy exoneration for CEO Elon Musk at a much-delayed trial in a Delaware Court, where he faces charges of defrauding Tesla investors by overpaying for solar panel business SolarCity back in 2016. 

Chinese American Depositary Receipts remained under pressure after further signs of the Communist Party taming the country's big Internet firms. Didi Global (NYSE:DIDI) ADRs fell 3.1% after the Cyberspace Administration of China ordered the removal of 25 more apps owned by the ride-hailing giant from local app stores. The company acknowledged this would hurt its revenue in China. Meanwhile, Tencent Music Entertainment ADRs (NYSE:TME) fell 3.4% to their lowest in five weeks after reports that antitrust regulators want it to give up certain exclusive rights to music.

Tencent Holdings (OTC:TCEHY), TME's largest shareholder, also fell 2.5% after antitrust regulators stopped it from orchestrating a merger between two of its affiliates, on the grounds that it would create too much concentration in the videogaming sector.

Wall Street Opens as Covid Concerns Drive Rotation out of Value; Dow Down 110 Pts
 

Related Articles

Electronic Arts: Reasonably Priced, Catalysts to Come
Electronic Arts: Reasonably Priced, Catalysts to Come By TipRanks - Sep 21, 2021

Electronic Arts (NASDAQ:EA) appears poised to continue seeing growth despite the easing of lockdown restrictions. The company develops and publishes video games, and is known for...

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 (10)
Ric Later
riclater211 Jul 12, 2021 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I love how the media ignores facts. Fauci is caught lying about the Flu. Doesn't matter. Joey B is ruining business. Doesn't matter. Inflation will hit like a truck. Doesn't matter. Cryptos tank by 50%. Now at actual value. Real Estate and stocks are next. Sorry folks. Looks like 2008 all over again.
Mitchel Pioneer
Mitchel Pioneer Jul 12, 2021 11:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A new week of fraud and criminal manipulation in the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world.  Assume the position America.
Stan Smith
Stan Smith Jul 12, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Strong inflation in U.S. to persist throughout 2021 before fading: Treasury Secretary. Stocks up!!
simone scelsa
simone scelsa Jul 12, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
At this rate, strong inflation will persist up to 2031, not 2021. The FED has no tools available, right now, to fight an inflationary recession.
Ryan Rainer
Ryan Rainer Jul 12, 2021 10:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stock market says otherwise. No covid fear
christos rousakis
christos rousakis Jul 12, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all circus in american show hi is a bigest lie ever ,big trifle
Chaitany Bag
Chaitany Bag Jul 12, 2021 9:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
USDINR
Chaitany Bag
Chaitany Bag Jul 12, 2021 9:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jul 12, 2021 9:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buy gold
Jeffrey Vose
Jeffrey Vose Jul 12, 2021 9:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FEAR ******
Azoo Otengo
Azoo Otengo Jul 12, 2021 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i see a sell from usa30
Fusairu Takumi
Fusairu Takumi Jul 12, 2021 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Long term sell for sure
 
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