US stocks fall Monday as technology lags and yields rise; Energy and banking strengthen the Dow Jones

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U.S. stocks ended mostly lower on Monday, weighed down by weak technology, while government bond yields hit their highest level in nearly three months after durable goods orders exceeded forecasts.

The S&P 500 fell 0.3% to 4,443.11 and the Nasdaq Composite fell 0.5% to 14,969.97. The Dow Jones Industrial Average rose 0.2% to 34,869.37.

The energy and financial sectors fared the best, while real estate and health care were the most down.

Microsoft (MSFT) shares lost 1.7%, while Apple (AAPL) was down 1.1% and Alphabet (GOOG, GOOGL) was down 0.8%.

The 10-year US Treasury yield climbed 3 basis points to 1.49%, the highest since June.

Durable goods orders in the United States rose 1.8% in August after gaining 0.5% the month before, above expectations of a 0.7% increase in a Bloomberg survey. Excluding a 5.5% increase in transport orders, new orders would have increased 0.2% after rising 0.8% in July. Expectations were for a gain of 0.5% on that basis.

“The economy continues to make welcome progress, but the Delta variant has been more disruptive than initially expected,” Federal Reserve Governor Lael Brainard said on Monday. Jobs are expected to make substantial progress beyond improvements that may trigger cuts in Fed asset purchases before the central bank starts raising interest rates, she said: “I would like to stress that no signal on when to take off should be taken from any decision announcing a slowdown in asset purchases. “

West Texas Intermediate crude oil gained $ 1.46 2% to $ 75.42 a barrel.

Hurricane Ida more than offset the surge in production since July by the Russia-led Organization of the Petroleum Exporting Countries and Allied Producers, Goldman analysts including Damien Courvalin said in a report on Sunday. evening. Currently observable inventory withdrawals, averaging 4.5 million barrels per day, are the largest ever recorded, proof of a structural deficit which should not reverse in “the coming months”, said Goldman said.

“The current deficit in global oil supply and demand is larger than expected, with the recovery in global demand from the Delta impacting even faster than our above consensus forecast and global supply remaining below our forecast below consensus, “wrote Goldman analysts.

Tesla’s plant (TSLA) in Shanghai is expected to produce 300,000 electric vehicles in the first nine months of 2021 despite the global semiconductor shortage, Reuters reported on Sunday, citing two sources with knowledge of the matter. The company shipped 240,000 cars in the first eight months of the year, according to data from the China Passenger Car Association.

Shares jumped 2.2% despite reports that a number of suppliers to Apple (AAPL) and Tesla suspended production for several days in China due to power shortages.

In the metals markets, gold rose 1% to $ 1,750.20 per troy ounce, silver rose 1% to $ 22.65 per ounce and copper gained 0.1% at $ 4.28 a pound.


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