Portfolio

US close: Stocks slump following Monday's bumper rally

By Josh White

Date: Wednesday 08 Jul 2020

US close: Stocks slump following Monday's bumper rally

(Sharecast News) - Wall Street stocks closed weaker on Tuesday following a strong rally seen during the previous session.
The Dow Jones Industrial Average ended the session down 1.51% at 25,890.18, the S&P 500 lost 1.08% to 3,145.32, and the Nasdaq Composite was off 0.86% at 10,343.89.

It was a weaker Tuesday in general for the Dow, which had opened 195.54 points lower, reversing some of the gains recorded in the previous session as major indices shook off concerns around a continued rise in new Covid-19 cases across the United States.

However, while investors were seemingly able to shake off those fears on Monday, concerns around the global economic outlook as a result of the pandemic were weighing on sentiment on Tuesday after the Organisation for Economic Cooperation and Development stated unemployment would reach its highest level since the Great Depression - and may not return to pre-outbreak levels until 2022.

A general sense of dread coming into second-quarter earnings season also seemed to be impacting sentiment, with fast-food chain Shake Shack warning of a 39% sales drop in June alone not helping matters much.

On the macro front, the government's Job Openings and Labor Turnover Survey revealed job openings had unexpectedly increased in May as the economy awoke from its slumber.

The number of available positions rose by 400,000 to 5.4m during the month, well ahead of the median forecast of 4.5m.

Federal Reserve Bank of Atlanta President Raphael Bostic said a surge in new Covid-19 cases had made American business owners "nervous again".

"We are hearing it more and more as we get more data - people are getting nervous again, business leaders are getting worried.

"Consumers are getting worried, and there is a real sense this might go on longer than we have planned for," Bostic said in webcast remarks.

In the corporate space, Amazon shares closed down 1.86% after hitting $3,000 each for the first time on Monday, while Novavax shares surged 31.62% after the White House awarded the pharma group a $1.6bn contract to develop a Covid-19 vaccine.

Shares in tech giants Microsoft and Apple reversed earlier gains by the closing bell, finishing down 1.16% and 0.31%, respectively.

Dow Jones - Risers

Walmart Inc. (WMT) $126.95 6.78%
Procter & Gamble Co. (PG) $122.22 0.49%
Dowdupont Inc. (DWDP) $30.52 0.00%
Coca-Cola Co. (KO) $45.21 -0.04%
Johnson & Johnson (JNJ) $142.85 -0.09%
Apple Inc. (AAPL) $372.69 -0.31%
Verizon Communications Inc. (VZ) $55.04 -0.36%
Walt Disney Co. (DIS) $113.63 -0.70%
Home Depot Inc. (HD) $247.35 -0.88%
Merck & Co. Inc. (MRK) $78.72 -1.08%

Dow Jones - Fallers

Boeing Co. (BA) $178.88 -4.81%
Goldman Sachs Group Inc. (GS) $199.36 -3.86%
American Express Co. (AXP) $93.01 -3.70%
Raytheon Technologies Corporation (RTX) $61.04 -3.65%
Nike Inc. (NKE) $97.07 -2.88%
JP Morgan Chase & Co. (JPM) $92.32 -2.82%
Exxon Mobil Corp. (XOM) $43.24 -2.59%
Chevron Corp. (CVX) $86.31 -2.55%
Walgreens Boots Alliance, Inc. (WBA) $42.22 -2.18%
International Business Machines Corporation (CDI) (IBM) $117.58 -2.17%

S&P 500 - Risers

Walmart Inc. (WMT) $126.95 6.78%
Rollins Inc. (ROL) $45.62 6.71%
Air Products & Chemicals Inc. (APD) $265.13 6.52%
Philip Morris International Inc. (PM) $72.94 3.31%
Vertex Pharmaceuticals Inc. (VRTX) $299.06 2.66%
J.B. Hunt Transport Services Inc. (JBHT) $124.04 2.65%
Regeneron Pharmaceuticals Inc. (REGN) $640.88 2.17%
Newmont Corporation (NEM) $62.47 2.11%
Twitter Inc (TWTR) $32.99 2.01%
Church Dwight Co Inc. (CHD) $79.05 1.53%

S&P 500 - Fallers

FMC Technologies Inc. (FTI) $7.11 -7.90%
United Airlines Holdings Inc (UAL) $32.55 -7.55%
Devon Energy Corp. (DVN) $10.35 -7.26%
Mohawk Inds Inc. (MHK) $95.98 -7.05%
American Airlines Group (AAL) $11.91 -6.95%
Carnival Corp. (CCL) $14.57 -6.66%
Diamondback Energy Inc. (FANG) $40.12 -6.44%
National Oilwell Varco Inc. (NOV) $11.61 -6.30%
Kimco Realty Corp. (KIM) $12.15 -6.03%
Brighthouse Financial, Inc. (BHF) $25.88 -6.03%

Nasdaq 100 - Risers

Check Point Software Technologies Ltd. (CHKP) $115.88 3.90%
Vertex Pharmaceuticals Inc. (VRTX) $299.06 2.66%
J.B. Hunt Transport Services Inc. (JBHT) $124.04 2.65%
Regeneron Pharmaceuticals Inc. (REGN) $640.88 2.17%
Costco Wholesale Corp. (COST) $316.23 1.52%
eBay Inc. (EBAY) $57.00 1.48%
Tesla Inc (TSLA) $1,389.86 1.33%
Mercadolibre Inc. (MELI) $1,007.24 1.14%
Take-Two Interactive Software Inc. (TTWO) $147.27 1.09%
NetEase Inc. Ads (NTES) $444.29 0.97%

Nasdaq 100 - Fallers

American Airlines Group (AAL) $11.91 -6.95%
Paychex Inc. (PAYX) $73.94 -4.94%
Wynn Resorts Ltd. (WYNN) $73.37 -4.34%
Ross Stores Inc. (ROST) $86.38 -4.17%
Baidu Inc. (BIDU) $127.83 -3.84%
Trip.com Group Limited (TCOM) $27.04 -3.70%
Micron Technology Inc. (MU) $49.09 -3.59%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $202.93 -2.90%
Xilinx Inc. (XLNX) $99.17 -2.87%
Western Digital Corp. (WDC) $41.72 -2.86%

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