Markets Stabilize After Worst Fall for Stocks in Months

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The Wall Street Journal 20 July, 2021 - 07:34am 56 views

Futures tied to the Dow Jones Industrial Average rose 0.5%, suggesting a reversal for the blue-chip index that fell more than 700 points Monday in its worst session since October. S&P 500 futures and Nasdaq 100 futures also climbed 0.5%, pointing to gains for both the broad-market index and technology stocks.

Investors have grown concerned over the Delta coronavirus variant, prompting a reassessment of the economy’s prospects. Despite this, the three major stock indexes each closed only around 3% down from their all-time highs Monday, underscoring the strength of the rally that powered equity markets in the first half of the year.

“When you get a selloff like we had yesterday, there are certainly going to be some investors who are going to see that as an opportunity to invest for the longer term,” said Kiran Ganesh, a multiasset strategist at UBS Global Wealth Management. “Especially where the 10-year [Treasury] yields have gone, that still points to the default position for investors as long equities, because there are simply very few other options.”

In bond markets, the yield on the benchmark 10-year U.S. Treasury note extended its fall and edged down as low as 1.167%, after dropping to 1.181% Monday in the biggest daily decline since March. Prices rise when yields fall. The WSJ Dollar Index hovered close to its highest level since March.

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Read full article at The Wall Street Journal

Dow suffers biggest drop of the year as Delta variant fears hit Wall Street hard

CNN 20 July, 2021 - 06:00am

Updated 4:21 PM ET, Mon July 19, 2021

Anneken Tappe and Matt Egan contributed to this story

Dow has worst day since October

ABC 10 News 20 July, 2021 - 06:00am

What to watch today: Stock futures down sharply on Covid, economic growth worries

CNBC 19 July, 2021 - 07:40am

Stock futures are pointing to a sharply lower open, after Friday's skid that saw the Dow and Nasdaq post their largest one-day losses in a month and send the Nasdaq lower for July. Dow futures implied an opening decline of more than 500 points. S&P 500 and Nasdaq futures also were solidly lower, as Wall Street grew concerned about economic growth due to an increase in coronavirus cases. (CNBC)

The yield on the benchmark 10-year Treasury was lower Monday, falling below 1.25% and hitting its lowest level in five months. Yields move inversely to prices. (CNBC)

The National Association of Home Builders is out with its July sentiment index, expected to remain at June's 81 level, which had been the lowest level in 10 months. While anything above 50 is seen as positive, the index it hit a record of 90 in November.

AutoNation (AN), Cal-Maine Foods (CALM) and Tractor Supply (TSCO) are among the companies releasing quarterly earnings this morning, while IBM (IBM), JB Hunt Transport (JBHT), Zions Bancorp (ZION) and PPG Industries (PPG) will be out with quarterly numbers after today's closing bell.

In the U.S., the seven-day average of new daily coronavirus cases is nearly 32,300, up 66% compared with one week ago, according to a CNBC analysis of Johns Hopkins University data. "The only pandemic we have is among the unvaccinated," President Joe Biden said recently.

Zoom Video Communications (ZM) plans to buy software firm Five9 (FIVN) in an all-stock deal valued at $14.7 billion, the company's first billion-dollar acquisition. The transaction, announced Sunday, comes as more companies shift away from fully remote work during the Covid-era and bring employees back to the office. California-based Five9, which ended Friday with a market cap of nearly $12 billion, is a provider of cloud contact center software. (CNBC)

Pershing Square Tontine Holdings, a special purpose acquisition company backed by Bill Ackerman, announced Monday it no longer plans to buy 10% of Vivendi's Universal Music Group. The SPAC's board unanimously decided against the roughly $4 billion deal, according to a shareholder letter, after discussions with the Securities and Exchange Commission. When it was announced early last month, the proposed SPAC transaction was noteworthy not only for its size, but for the complexity of its multipart structure. (CNBC)

The joint first action of a newly created cybersecurity alliance — made up of NATO member states, the European Union, Japan, Australia and New Zealand — will be to blame a major cyberattack on Microsoft Exchange email servers on China's Ministry of State Security. (CNBC)

The upcoming Olympics in Tokyo also continue to be impacted by Covid, with American tennis star Coco Gauff withdrawing from the Summer Games due to a positive coronavirus test. The Olympics, which were delayed a year due to Covid, are highly controversial in Japan. In a reflection of public opinion, Japanese automaker Toyota will not air any Olympic-related advertising on the country's television during the Games. Toyota's CEO, Akio Toyoda, and other company executives also will not attend the opening ceremony, which is set for Friday. (Associated Press) (Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.)

National Grid (NGG) will reportedly be stripped of its responsibility to run Britain's electricity grid. The Times newspaper reports that British officials are preparing plans to award that responsibility to an independent body, with an announcement coming as early as this week.

Ingersoll-Rand (IR) has been rebuffed in its bid to initiate takeover talks with manufacturing equipment maker SPX Flow (SPXC), according to people familiar with the matter who spoke to Reuters. The sources said the most recent per-share offer was in the low $80s, which SPX Flow is said to have dismissed as inadequate.

Johnson & Johnson (JNJ) is reportedly exploring a plan to offload talc-related liabilities into a new business that would then file for bankruptcy. People familiar with the matter who spoke to Reuters said such a move could result in lower payouts to those who do not settle their cases before a trial. J&J faces numerous allegations that its baby powder and other talc-related products have caused cancer.

Tesla (TSLA) is offering customers of its FSD premium driver assistance service on a subscription basis for $199 per month, rather than for a $10,000 up front payment.

Autodesk (ADSK) has ended takeover talks with Australia-based software maker Altium. The move comes several weeks after Altium rejected a more than $3.7 billion takeover offer from Autodesk.

Xpeng (XPEV) priced the base model of its new P5 electric sedan at about $24,700, undercutting the price of Tesla's newly introduced cheaper version of its Model 3 sedan.

AMC Networks (AMCX) will pay $200 million to end a legal dispute over profits from the hit TV show "The Walking Dead." It will pay $143 million to settle the suit, and will pay the restr to buy the remaining rights to the show from executive producer Frank Darabont and Creative Artists Agency.

Collin Morikawa won the British Open on Sunday, the 24-year-old American golfer's second major championship victory in just eight starts. After capturing the PGA Championship last year, Morikawa is already halfway to a career Grand Slam. (Associated Press)

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