Stocks plunge as coronavirus resurgence spooks investors
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U.S. equity markets were under pressure Monday amid a resurgence in new COVID-19 infections.
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The Dow Jones Industrial Average fell about 600 points, or 2.35 percent, while the S&P 500 and the Nasdaq Composite were lower by 1.93 percent and 1.41 percent, respectively. The losses come after the worst week for stocks in three months, which saw the benchmark S&P 500 shed 4.78 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 25085.68 | -519.86 | -2.03% |
| SP500 | S&P 500 | 3004.75 | -36.56 | -1.20% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9537.405882 | -51.40 | -0.54% |
A new outbreak in Beijing, which forced parts of the Chinese capital into lockdown, rattled markets overnight. In the U.S., Florida and Texas are among the states that have seen a spike in the number of infections.
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Meanwhile, economic data continued to point to a sharp rebound in the U.S. economy as the June reading of New York Fed manufacturing printed surged to -0.2 from last month’s reading of -48.5. Analysts surveyed by Refinitiv were expecting a print of -29.8.
Looking at stocks, airlines, cruise operators and other travel-related names were in focus amid fears that a second wave of the pandemic is developing.
Recently bankrupt rental car company Hertz will sell up to $500 million of stock, according to a regulatory filing.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 15.72 | -1.02 | -6.09% |
| CCL | CARNIVAL CORP. | 18.61 | -1.37 | -6.86% |
| HTZ | HERTZ GLOBAL HLDGS | 2.44 | -0.39 | -13.78% |
Elsewhere, drugmaker AstraZeneca has reached a deal to provide Europe with 400 million doses of its experimental COVID-19 vaccine. Deliveries could begin by yearend if the vaccine is proven to be effective.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AZN | ASTRAZENECA PLC | 52.25 | +0.78 | +1.52% |
Walt Disney will reopen Hong Kong Disneyland with limited capacity on June 18, the company announced on Monday. Visitors will be asked to fill out health forms, wear masks and have their temperatures taken upon entering the park. Once in the park, they will be asked to adhere to social-distancing guidelines.
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Cboe Global Markets reopened its Chicago-based trading floor on Monday. The exchange asks traders to wash their hands before entering the trading floor and to wear masks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | WALT DISNEY COMPANY | 113.81 | -1.68 | -1.45% |
| CBOE | CBOE GLOBAL MARKETS | 98.78 | -1.12 | -1.12% |
BP will take a write-down of up to $17.5 billion when it reports second-quarter results on Aug. 4, and said the COVID-19 pandemic will lead to a faster transition away from fossil fuels. The energy giant expects Brent crude oil will average $55 per barrel through 2050, down about 30 percent from its previous forecast.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BP | BP PLC | 23.55 | -1.20 | -4.85% |
West Texas Intermediate crude oil fell 3.67 percent to $34.93 a barrel and gold slid 1.52 percent to $1,711 an ounce.
U.S. Treasurys rallied, dropping the yield on the 10-year note by 2.5 basis points to 0.674 percent.
Britain’s FTSE paced the decline in Europe, down 1,01 percent, while France’s CAC and Germany’s DAX were off 0.87 percent and 0.8 percent, respectively.
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In Asia, Japan’s Nikkei fell 3.47 percent, Hong Kong’s Hang Seng lost 2.16 percent and China’s Shanghai Composite shed 1.02 percent.
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