we equity markets reversed early gains as concerns mounted over a slight increase in COVID-19 cases and a consumer sentiment survey for July highlighted inflation concerns sweeping America.
The Dow Jones Industrial Average lost 300 points or 0.86%, while the S&P 500 Index and the Nasdaq Composite Index fell 0.76% and 0.8%, respectively.
The Dow Jones gained more than 100 points before the University of Michigan Consumer Confidence Index for July hit 80.8, below the Refinitv estimate of 86.5. Traders paid particular attention to the portion of the report that says consumers expect prices to rise 4.8% over the next 12 months, the highest since August 2008.
|Me: DJI||MEDIUM DOW JONES||34687.85||-299.17||-0.86%|
|I: COMP||NASDAQ COMPOSITE INDEX||14427.236932||-115.90||-0.80%|
It comes after a separate report showed sales rose 0.6% in June, beating the 0.4% drop expected by analysts polled by Refinitiv.
Mixed economic data has added to nervousness over news that the number of new COVID-19 infections and hospital admissions linked to the disease is increasing in all 50 states. Still, the number of deaths has continued to decline, as those who are vaccinated are likely to have a less severe case.
On the Treasury market, the 10-year bond was little changed at nearly 1.33%.
On the equity side, rate-sensitive sectors lagged after early outperformance.
Banks, including JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Holdings, backed down amid concerns about the economy.
|JPM||JPMORGAN CHASE & CO.||151.91||-3.55||-2.28%|
|BAC||BANK OF AMERICA CORP.||37.92||-0.91||-2.34%|
|SG||THE GOLDMAN SACHS GROUP, INC.||364.72||-8.42||-2.26%|
Travel-related names have fallen behind due to concerns over the growing number of COVID-19 infections. Casino, cruise and airline operators were all down.
|WYNN||WYNN RESORT LTD.||104.70||-3.53||-3.26%|
|AAL||AMERICAN AIRLINES GROUP, INC.||19.79||-0.67||-3.27%|
|EXPED||EXPEDIA GROUP, INC.||157.61||-1.68||-1.05%|
MODERNA JOINS THE S&P 500
Elsewhere, drugmaker Moderna Inc. will be added to the S&P 500, replacing Alexion Pharmaceuticals Inc., which is being acquired by Britain’s AstraZeneca Plc. The change will take place before the market opens on July 21.
|MRNA||MODERN, INC.||286.43||+26.75||+ 10.30%|
|ALXN||ALEXION PHARMACEUTICALS, INC.||180.03||-0.48||-0.27%|
Shares of Didi Global Inc. fell sharply after officials from seven Chinese ministries showed up at its Hangzhou headquarters for a cybersecurity review. The shares had fallen 26% through Thursday from their debut at $ 16.65 apiece on June 30.
|HAVE I GOT||DIDI GLOBAL INC||11.97||-0.40||-3.23%|
In terms of earnings, Charles Schwab reported mixed results, with daily trading volume slowing 28% from the previous quarter. Volume was still up 4% year-on-year.
State Street Corp. broke both the top and bottom of the lines and increased its quarterly dividend by 10% to 57 cents per share. The financial services company also announced a new $ 3 billion share buyback program.
|SCHW||THE CORP. CHARLES SCHWAB.||68.92||-1.58||-2.24%|
|STT||STATE OF CORP.||84.34||+2.37||+ 2.89%|
In commodities, West Texas Intermediate crude oil rose 16 cents to $ 71.81 per barrel and gold fell $ 13.90 to $ 1,814.50 per ounce.
Overseas markets were mostly weaker.
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European trade was choppy, with the French CAC falling 0.51%, the German DAX 30 falling 0.57% and the UK FTSE 100 dropping 0.06%.
In Asia, Hong Kong’s Hang Seng index rose 0.03% while China’s Shanghai Composite and Japan’s Nikkei 225 fell 0.71% and 0.98% respectively.