Stocks surrender gains after California rolls back coronavirus reopenings
A volatile session cut the bulk of Monday's stock gains
U.S. equity markets took a sharp turn lower in the final hour of trading after California Gov. Newsom ordered all bars and indoor dining to reclose after an uptick in COVID-19 cases.
|I:DJI||DOW JONES AVERAGES||32551.96||-8.64||-0.03%|
|I:COMP||NASDAQ COMPOSITE INDEX||11852.514616||-7.59||-0.06%|
The Dow Jones Industrial Average held onto fractional gains, after rising as many as 541 points. The S&P 500 and the Nasdaq Composite fell by 0.93 percent and 2.13 percent, respectively. The Nasdaq was earlier on track for a 28th record close this year.
All members of the so-called FAANG group, including Facebook, Amazon, Apple, Netflix and Google-parent Alphabet, fell after touching record territory together for the first time since 2017. Microsoft also dropped.
In biotech news, two COVID-19 vaccines were given “fast-track” status while earnings season kicked off with some better-than-expected results.
Pfizer Inc. and BioNTech SE received fast-track designation for two of their experimental COVID-19 vaccines, helping offset news that the number of new daily COVID-19 infections in the U.S. remained above 60,000 all weekend. Despite the daily case count surging to a record high, the number of new deaths totaled 482 on Sunday, or just 18 percent of the 2,701 peak in May.
CORONAVIRUS VACCINE COULD TILT ELECTION TOWARD TRUMP BY ENERGIZING STOCK MARKET
Looking at earnings, PepsiCo Inc. reported results that outpaced Wall Street expectations for both earnings and revenue. The company reported that sales slid 3.1 percent from a year ago as consumers stocked up on snacks and bought fewer beverages amid COVID-19 stay-at-home orders.
Citigroup Inc., Delta Air Lines Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are set to report their second-quarter results ahead of Tuesday’s opening bell.
|DAL||DELTA AIR LINES INC.||33.89||+0.75||+2.26%|
|JPM||JPMORGAN CHASE & CO.||130.55||+3.41||+2.68%|
|WFC||WELLS FARGO & CO.||38.48||+1.00||+2.67%|
Elsewhere, Analog Devices Inc. agreed to buy Maxim Integrated Products Inc. for $20.91 billion in an all-stock deal that pays 0.63 Analog shares for each Maxim share owned.
Alibaba co-founder Jack Ma sold $9.6 billion worth of company stock, at current levels, lowering his stake to 4.8 percent. Meanwhile, executive vice chairman Joseph Tsai reduced his stake to 1.6 percent after selling $4.1 billion worth of company shares.
Tesla Inc. slashed the starting price of its Model Y SUV by almost 6 percent to $49,990 amid sluggish demand in the auto sector due to the COVID-19 pandemic. Shares have been soaring in recent days amid a short-squeeze.
|ADI||ANALOG DEVICES INC.||188.40||+1.34||+0.72%|
|BABA||ALIBABA GROUP HOLDING LTD.||83.70||+2.70||+3.33%|
West Texas Intermediate crude oil slipped 1.11 percent to $40.10 a barrel while gold was higher by $12.80 at $1,811 an ounce.
U.S. Treasurys were little changed with the yield on the 10-year note near 0.638 percent.
In Europe, France’s CAC was leading the rally, up 1.73 percent, while Britain’s FTSE and Germany’s DAX were higher by 1.33 percent and 1.32 percent, respectively.
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Asian markets were higher across the board with Japan’s Nikkei surging 2.22 percent, China’s Shanghai Composite climbing 1.77 percent and Hong Kong’s Hang Seng adding 0.17 percent.