Stocks mixed as oil hits 7-year high
WTI crude oil hit $83.87 earlier on Monday before pulling back
U.S. stock indexes were mixed Monday as oil prices ticked to seven-year highs and industrial production slowed.
The Dow Jones Industrial Average fell 36 points, or 0.1%, while the S&P 500 index and the Nasdaq Composite index advanced 0.34% and 0.84%, respectively.
|I:DJI||DOW JONES AVERAGES||33274.15||+415.12||+1.26%|
|I:COMP||NASDAQ COMPOSITE INDEX||12221.906686||+208.44||+1.74%|
Industrial production fell 1.3% in September, missing the 0.2% gain that was expected. The August print was revised lower to a 0.1% contraction from a previous reading of 0.4% growth.
Elsewhere, the Chinese economy grew at a 4.9% pace in July through September from a year earlier, down from 7.9% in the previous quarter, as ongoing supply bottlenecks and the Evergrande debt crisis weighed on confidence. Economists surveyed by Refinitiv were expecting 5.2% growth.
CHINA'S ECONOMY STUMBLES ON POWER CRUNCH, PROPERTY WOES
In stocks, oil companies, including Chevron Corp. and Diamondback Energy Inc., were in focus as West Texas Intermediate crude oil touched a seven-year high of $83.87 before paring its gains and finishing up 16 cents at $82.44 a barrel.
|FANG||DIAMONDBACK ENERGY INC.||135.17||+1.87||+1.40%|
Meanwhile, financials were in focus as the yield on the 10-year Treasury note rose 1 basis point to 1.58%, holding near a four-month high.
|JPM||JPMORGAN CHASE & CO.||130.30||+1.50||+1.16%|
|BAC||BANK OF AMERICA CORP.||28.57||+0.27||+0.95%|
Zillow Group Inc. will put its homebuying program on hold as it works through a backlog of inventory, according to a report from Bloomberg News.
|ZG||ZILLOW GROUP INC.||43.70||+1.53||+3.63%|
Walt Disney Co. was cut to "equal-weight" from "overweight" at Barclays, which also lowered its price target to $175 from $210 amid concerns over slowing subscriber growth for its streaming service.
|DIS||THE WALT DISNEY CO.||100.09||+1.99||+2.03%|
In earnings, Albertsons Companies Inc. beat on both the top and bottom lines and hiked its quarterly dividend by 20%.
American Airlines Group Inc., Johnson & Johnson, Netflix Inc and Tesla Inc. are among the companies reporting their quarterly results later this week.
|AAL||AMERICAN AIRLINES GROUP INC.||14.75||+0.28||+1.94%|
|JNJ||JOHNSON & JOHNSON||154.96||+1.52||+0.99%|
Overseas markets were mostly weaker.
European bourses were lower across the board with Britain’s FTSE 100 sliding 0.42%, Germany’s DAX 30 declining 0.72% and France’s CAC 40 falling 0.81%.
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In Asia, China’s Shanghai Composite index and Japan’s Nikkei 225 lost 0.12% and 0.15%, respectively, while Hong Kong’s Hang Seng index edged up 0.31%.