Stocks slide as oil hits 7-year high
West Texas Intermediate crude oil briefly topped $82 a barrel
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U.S. stock indexes closed on session lows as oil prices hit a seven-year high and financials weighed on the S&P 500 ahead of key earnings later this week.
The Dow Jones Industrial Average fell 249 points or 0.72%, while the S&P 500 index and the Nasdaq Composite index declined 0.69% and 0.64%, respectively. The Dow had gained 205 points at its best levels of the day. Trading was light as the U.S. Treasury market was closed for Columbus Day.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 41597.39 | -244.24 | -0.58% |
| SP500 | S&P 500 | 5613.26 | -61.86 | -1.09% |
| I:COMP | NASDAQ COMPOSITE INDEX | 17498.569842 | -310.09 | -1.74% |
In stocks, Diamondback Energy Inc., ExxonMobil Corp. and Cabot Oil & Gas Corp. were among the energy companies in focus as West Texas Intermediate crude soared $1.17 to $80.52 a barrel. The energy component early on Monday briefly topped $82, hitting a 7-year high.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FANG | DIAMONDBACK ENERGY INC. | 154.65 | +1.62 | +1.06% |
| XOM | EXXON MOBIL CORP. | 113.56 | -0.24 | -0.22% |
| CTRA | COTERRA ENERGY INC. | 28.75 | +0.58 | +2.08% |
| CVX | CHEVRON CORP. | 160.49 | +1.77 | +1.12% |
Elsewhere in the space, Chevron Corp. announced it would target zero net emissions for some upstream gas emissions by 2050. A number of other energy companies have already announced plans to reduce greenhouse gas emissions.
Meanwhile, financials including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Wells Fargo & Co. traded lower ahead of earnings due later this week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 234.91 | +0.90 | +0.38% |
| GS | THE GOLDMAN SACHS GROUP INC. | 551.66 | +0.32 | +0.06% |
| WFC | WELLS FARGO & CO. | 71.11 | +0.26 | +0.37% |
Southwest Airlines Co. blamed air traffic control problems, bad weather in Florida and staff shortages for more than 1,600 flights being canceled over the weekend.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 32.70 | +0.57 | +1.79% |
Merck & Co. said it has applied for emergency use authorization for its COVID-19 tablet. If approved, the drug would be the first oral antiviral drug for the disease.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRK | MERCK & CO. INC. | 94.88 | +0.07 | +0.08% |
Honeywell International Inc. raised its business jet delivery forecast for 2022 to 2031 by 1% to 7,400 planes worth $238 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HON | HONEYWELL INTERNATIONAL INC. | 209.86 | -0.56 | -0.27% |
Overseas markets were mixed.
European trading was choppy with Britain’s FTSE 100 up 0.72% and France’s CAC 40 ticking higher by 0.16% while Germany’s DAX 30 slipped 0.05%.
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In Asia, China’s Shanghai Composite index slipped 0.01%, Japan’s Nikkei 225 rose 1.6% and Hong Kong’s Hang Seng index jumped 1.96%.