US stocks close flat on oil slide, covid fears

4 min read | August 10, 2021 07:42 AM AEST | By Sanjeeb Baruah

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US stocks close flat on oil slide, covid fears — Image source: Copyright © 2021 Kalkine Media Pty Ltd.

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Benchmark US indices closed flat on Monday, August 9, as global oil prices tumbled amid rising delta virus concerns, deterring investors from exploring opportunities in the stock market.

The S&P 500 fell 0.09% to 4,432.35. The Dow Jones declined 0.30% to 35,101.85. The NASDAQ Composite rose 0.16% to 14,860.18, and the small-cap Russell 2000 was down 0.58% to 2,234.81.

Investors pulled back from economically sensitive stocks as declining oil prices created unease over the recovery outlook of the world's biggest economy. The spread of the delta virus has added to their worries. The robust labor data on new job openings in June also failed to motivate them.

US job openings rose by 590,000 to 10.1 million, while hirings increased from 6.0 million to 6.7 million in June, the Labor Department said on Monday. It shows that despite supply bottlenecks that constrained new recruitments, the US labor market continues to improve.

US stocks end flat: Things to know before ASX opens!

Global oil prices dipped after data showed that China, one of the world's leading oil importers, noticeably cut its daily crude imports in July compared to the previous month. Brent oil futures ticked down 2.79% to US$68.76 per gallon, while WTI crude futures slipped 3.21% to US$66.09.

The financial sector provided the most significant boost to the S&P 500 on Monday. The communication and consumer discretionary stocks saw small gains while energy stocks trailed. Six of the eleven segments of the index stayed in the negative territory in Monday's session.

Of the 443 S&P 500 companies that have reported quarterly earnings so far, around 87% of them beat market expectations. Now analysts expect about a 93% jump in quarterly profit of the index this season, the EODHD/Others data showed.

Meanwhile, Brookfield Asset Management Inc (BAM) said on Monday that its reinsurance business would acquire the financial services company America National Group Inc (ANAT) for about US$5.1 billion in an all-cash deal. Following the announcement, shares of American National surged 8.30%, while Brookfield (BAM) stock rose by 0.52% in intraday trading.

Also Read: 5 things that markets can expect from this week’s US inflation data

Shares of Tyson Foods Inc (TSN) jumped 8.48% after it raised its revenue estimate for the fiscal year 2021. Sales rose to US$12.48 billion from US$10.02 billion YoY in the quarter ended July 3. It raised the revenue outlook to US$46 billion-US$47 billion from the earlier US$44 billion-US$46 billion.

Sports betting operator DraftKings Inc. (DKNG) said it would buy the Golden Nugget Online Gaming (GNOG) for US$1.56 billion. GNOG and DKNG stocks rose 51.87% and 1.71%, respectively. On the other hand, Sanderson Farms Inc. (SAFM) has agreed to its purchase by private firms Cargill Inc. and Continental Grain Co. for US$4.5 billion. SAFM stock jumped 7.41% after the news.

In financial stocks, Berkshire Hathaway Inc. (BRK-B) gained 0.62%, the Bank of America Corporation (BAC) rose 1.51%, and Lemonade Inc. rose 6.56%. Visa Inc. (V) and Mastercard Incorporated (MA) declined 0.92% and 0.79%, respectively.

In the energy sector, Exxon Mobil (XOM) declined 0.78%, Chevron Corporation (CVX) dropped 1.36%, and ConocoPhillips (COP) fell 1.66%. In healthcare stocks, Pfizer Inc. (PFE) rose 1.61%, Eli Lilly and Company (LLY) increased by 1.23%, and Moderna Inc. (MRNA) surged 18.02%.

In the crypto world, the Coinbase Global Inc. (COIN) stock rallied 7.62%, lifted by gains in Bitcoin. On the other hand, Bitcoin (BTC) and Ethereum (ETH) surged 6.07% and 6.73%, respectively.

Also Read: In the Spotlight: Three financial stocks to consider in August

Top Gainers

Top performers on S&P 500 included Moderna Inc (17.10%), Tyson Foods Inc (8.69%), Viatris Inc (5.96%), Mosaic Co (3.40%). On NASDAQ, top performers were Golden Nugget Online Gaming Inc (50.77%), Cortexyme Inc (47.32%), Tarena International Inc (40.30%), China XD Plastics Company Ltd (35.48%). On Dow Jones, Walgreens Boots Alliance Inc (0.72%), Procter & Gamble Co (0.54%), Goldman Sachs Group Inc (0.50%), Boeing Co (0.41%) were the leaders.

Top Losers

Top laggards on S&P 500 included Air Products and Chemicals Inc (-5.18%), Darden Restaurants Inc (-4.47%), Diamondback Energy Inc (-3.52%), Marriott International Inc (-3.16%). On NASDAQ, Axsome Therapeutics Inc (-46.50%), Aterian Inc (-33.29%), BioVie Inc (-29.96%), bluebird bio Inc (-27.45%). On Dow Jones, Chevron Corp (-1.67%), UnitedHealth Group Inc (-1.02%), Amgen Inc (-0.98%), International Business Machines Corp (-0.84%) were the laggards.

Volume Movers

Top volume movers were Advanced Micro Devices Inc (15.70M), Bank of America Corp (13.98M), Apple Inc (10.55M), Wells Fargo & Co (9.06M), Moderna Inc (7.91M), Scworx Corp (14.01M), Sphere 3D Corp (9.14M), Bit Digital Inc (8.37M), Sundial Growers Inc (8.16M), Zynga Inc (7.79M).

Also Read: Five e-commerce stocks that could beat the pandemic blues

Futures & Commodities

Gold futures were down 1.79% to US$1,731.55 per ounce. Silver decreased by 3.62% to US$23.445 per ounce, while copper dropped 1.29% to US$4.2920.

Brent oil futures decreased by 2.09% to US$69.22 per barrel and WTI crude was down 2.17% to US$66.80.

Bond Market

The 30-year Treasury bond yields was up 2.07% to 1.973, while the 10-year bond yields rose 2.90% to 1.325.

US Dollar Futures Index increased by 0.20% to US$92.988.

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