U.S. equity markets fell across the board amid ongoing wrangling from lawmakers over the next round of economic relief for COVID-19 and on mixed quarterly results from large multinationals including McDonald's and 3M.
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|I:DJI||DOW JONES AVERAGES||27433.48||+46.50||+0.17%|
|I:COMP||NASDAQ COMPOSITE INDEX||11010.982553||-97.09||-0.87%|
The Dow Jones Industrial Average fell 200 points, or 0.77 percent, while the Nasdaq Composite dropped 1.27 percent and the S&P 500 slipped 0.64 percent.
On Capitol Hill, a $1 trillion COVID-19 relief package put forth by Senate Republicans on Monday evening would reduce the additional $600 weekly payment to unemployed workers to $200. The plan would also extend another $1,200 check to those Americans earning less than $75,000 a year.
Negotiations with House Democrats, who passed a larger relief bill months earlier and criticized the GOP plan as insufficient, are ongoing and a deal isn’t expected to be reached until August.
So far, 32 percent of S&P 500 companies have reported results with 79 percent exceeding earnings estimates.
Looking at stocks, Pfizer and BioNTech have begun a late-stage human trial of their experimental COVID-19 vaccine. The trial, if successful, could move the inoculation toward final regulatory approval as early as October of this year.
Separately, Dow component Pfizer reported earnings and revenue that outpaced estimates and raised its outlook for both measures.
McDonald’s, another Dow member, said quarterly global same-store sales tanked 23.9 percent as the pandemic shut restaurants, limiting them to drive-thru and delivery, while manufacturing conglomerate 3M’s top- and bottom-line results fell short of expectations.
Meanwhile, Harley-Davidson launched a five-year turnaround plan after COVID-19 caused the company’s quarterly loss to deepen. The plan, dubbed The Hardwire, aims to update the company’s iconic motorcycles in addition to making operational changes and focusing on its parts and accessories and merchandising businesses.
JetBlue Airways Corp.’s quarterly loss deepened and revenue plunged 90 percent as stay-at-home orders aimed at slowing COVID-19 eliminated non-essential travel, causing the company to ground flights.
Homebuilder D.R. Horton reported record sales as low mortgage rates and limited supply fueled a rush for houses in May and June.
|DHI||D.R. HORTON INC.||68.38||+0.76||+1.12%|
Looking at commodities, gold closed up $13.70 at $1,944.70 after reaching a record high of $1,974.70 in overnight trading while West Texas Intermediate crude oil was off 56 cents at $41.04 per barrel.
U.S. Treasurys were little changed, with the yield on the 10-year note holding near 0.6 percent.
European markets were mixed, with France’s CAC down 0.22 percent, Germany’s DAX weaker by 0.03 percent and Britain’s FTSE up 0.4 percent.
In Asia, China’s Shanghai Composite and Hong Kong’s Hang Seng gained 0.71 percent and 0.69 percent, respectively, while Japan’s Nikkei slid 0.26 percent.