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US open: Stocks see big drop, alongside slump in oil and Treasury yields

By Alexander Bueso

Date: Monday 18 Oct 2021

US open: Stocks see big drop, alongside slump in oil and Treasury yields

(Sharecast News) - Trading on Wall Street got off to a poor start on Monday with investors' focus on rising Covid-19 case numbers around the world and the toll they might take on attempts to reopen economies.




As of 1544 BST, the Dow Jones Industrials was down by 2.12% or 732.53 points to 33,958.61, alongside a 1.66% or 71.70 point drop for the S&P 500 to 4,256.24 while the Nasdaq Composite was retreating by 1.29% or 187.91 points to 14,240.20.

"US markets have taken their cues from today's declines in European markets, opening sharply lower as concerns about the economic prospects for the rest of this year become shrouded in uncertainty, with the S&P500 sinking below last week's lows and below the 4,300 level, and to its lowest levels this month," said Michael Hewson, chief market analyst at CMC Markets UK.

"From concerns about the reflation trade, we've gone full reverse ferret in the face of what is becoming rising worries that spiralling Delta cases could undermine the global recovery story, and prompt new restrictions as we head into the autumn."

Having in many cases been spared the worst of the first waves of the pandemic, several Asian countries including Indonesia, Thailand, South Korea, Vietnam and Singapore were now battling outbreaks and imposing restrictions.

Meanwhile, cases in the US and UK, as on much of the continent, were continuing to climb.

For his part, Jeffrey Halley at Oanda noted the failure of an article in the Wall Street Journal, penned by US Treasury Secretary, Janet Yellen, criticising the US-China trade deal "had failed to lift the malaise" in markets.

Also dampening the mood was a 6.2% slump in front-dated West Texas crude oil futures to $67.35 a barrel.

Contributing to the selling in oil, at the weekend, OPEC+ countries agreed to up their combined output by 400,000 barrels a day from August.

In parallel, the yield on the benchmark 10-year US Treasury note was down by 10 basis points to just under 1.20%.

On the economic front, the National Association of Homebuilders Housing Market Index dipped from a reading of 81.0 for June to 80.0 in July (consensus: 81.0) - an 11-month low.

Dow Jones - Risers

Procter & Gamble Co. (PG) $141.18 0.47%
Walmart Inc. (WMT) $141.74 0.13%
Dowdupont Inc. (DWDP) $30.52 0.00%
Honeywell International Inc. (HON) $230.94 0.00%
Amgen Inc. (AMGN) $247.30 -0.27%
Johnson & Johnson (JNJ) $166.85 -0.74%
Merck & Co. Inc. (MRK) $77.42 -0.77%
Walgreens Boots Alliance, Inc. (WBA) $45.63 -0.85%
Verizon Communications Inc. (VZ) $55.94 -0.93%
Intel Corp. (INTC) $54.45 -0.95%

Dow Jones - Fallers

Boeing Co. (BA) $206.32 -5.24%
Dow Chemical Co. (DOW) $57.41 -4.33%
Goldman Sachs Group Inc. (GS) $350.42 -3.94%
American Express Co. (AXP) $163.59 -3.78%
Caterpillar Inc. (CAT) $200.70 -3.49%
Walt Disney Co. (DIS) $173.19 -3.41%
Chevron Corp. (CVX) $95.27 -3.40%
Visa Inc. (V) $239.78 -3.36%
JP Morgan Chase & Co. (JPM) $146.85 -3.33%
Apple Inc. (AAPL) $141.88 -3.08%

S&P 500 - Risers

Kroger Co. (KR) $40.62 3.20%
Clorox Co. (CLX) $191.58 2.82%
Nvidia Corp. (NVDA) $746.67 2.78%
ConAgra Brands Inc (CAG) $35.52 1.89%
Quest Diagnostics (DGX) $136.97 1.82%
Church Dwight Co Inc. (CHD) $88.77 1.65%
Illumina Inc. (ILMN) $472.26 1.46%
J. M. Smucker Co. (SJM) $135.04 1.46%
Campbell Soup Co. (CPB) $46.12 1.30%
Kimberly-Clark Corp. (KMB) $140.27 1.26%

S&P 500 - Fallers

Macerich Co (MAC) $15.39 -8.31%
Tractor Supply Company (TSCO) $174.32 -7.77%
Simon Property Group Inc. (SPG) $115.08 -7.57%
Occidental Petroleum Corp. (OXY) $24.05 -7.29%
Carnival Corp. (CCL) $19.44 -7.05%
United Airlines Holdings Inc (UAL) $42.78 -7.02%
American Airlines Group (AAL) $18.42 -6.90%
Norwegian Cruise Line Holdings Ltd (NCLH) $21.55 -6.87%
Royal Caribbean Cr (RCL) $67.55 -6.69%
Macy's Inc. (M) $15.82 -6.58%

Nasdaq 100 - Risers

Nvidia Corp. (NVDA) $746.67 2.78%
Illumina Inc. (ILMN) $472.26 1.46%
Costco Wholesale Corp. (COST) $415.22 1.18%
Incyte Corp. (INCY) $78.98 0.83%
Electronic Arts Inc. (EA) $144.04 0.66%
Check Point Software Technologies Ltd. (CHKP) $122.81 0.51%
NortonLifeLock Inc. (NLOK) $26.11 0.40%
Mondelez International Inc. (MDLZ) $64.44 0.28%
Hologic Inc. (HOLX) $69.70 0.23%
Charter Communications Inc. (CHTR) $711.27 0.18%

Nasdaq 100 - Fallers

American Airlines Group (AAL) $18.42 -6.90%
Marriott International - Class A (MAR) $127.99 -5.23%
Trip.com Group Limited (TCOM) $28.86 -4.50%
Vodafone Group Plc ADS (VOD) $15.64 -3.99%
Fiserv Inc. (FISV) $106.84 -3.92%
Wynn Resorts Ltd. (WYNN) $100.63 -3.89%
Expedia Group Inc. (EXPE) $151.52 -3.86%
Baidu Inc. (BIDU) $172.90 -3.72%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $319.98 -3.66%
Ross Stores Inc. (ROST) $115.15 -3.63%

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