The Dow and S&P 500 slipped off record for the start of the week


The trader works on the trading floor on the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, on August 5, 2021.

Andrew Kelly Reuters

The Dow Jones industrial average fell on Monday due to concerns about global growth, after an average of 30 stocks hit a record high on Friday.

The Dow weakened 106.66 points to 35,101.85 or 0.3%. The S&P 500 traded 0.1% at 4,432.35. Meanwhile, the technologically large Nasdaq Composite rose 0.16% to 14,860.18.

Oil prices fell on Monday, building on last week’s losses, as a growing number of Covid cases have raised concerns about a slowdown in demand. West Texas Intermediate Crude Oil at one point it fell more than 4% to trading at just $ 65.15, a level not seen since May. The contract offset some of those losses during afternoon trading and eventually settled 2.64% lower to $ 66.48 per barrel. International scale Brent raw reached $ 69.04 per barrel for a loss of 2.35%, after reaching a low of $ 67.60.

The oil slide reduced energy stocks with the SPDR ETF for energy selection by 1.3%. Exxon Mobile i Chevron lost 1.2% and 1.7%, respectively. Diamondback Energy slipped 3.5%.

Stocks related to the economic recovery, such as cruises and airlines, fell on Monday. Norwegian Cruise Line fell nearly 1% after a federal judge ruled that the cruise could ask passengers for proof of vaccination against COVID-19. Carnival i The Royal Caribbean also lost more than 1%. American Airline and United Airlines fell 2.2% and 2.5%, respectively.

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“Covid is of great importance in the financial markets,” said Jim Paulsen, chief investment strategist at Leuthold Group. “The sharp rise in cases continues to put pressure on cyclical parts of the stock market, including cyclical sectors such as energy and industry and small stocks.”

Tesla shares lead Nasdaq on Monday. The electric car maker strengthened 2.1% after Jefferies upgraded inventory and projected growth of more than 20% over the next 12 months.

Shares of Berkshire Hathaway B rose 0.6% on the back of a solid earnings report. The conglomerate’s operating income jumped 21% year-over-year to $ 6.69 billion in the second quarter as its countless businesses from energy to rail benefited from the reopening of the economy.

The Dow and S&P 500 closed at record highs on Friday after a strong job report. The Department of Labor said the U.S. economy added 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate fell to 5.4%, below expectations of 5.7%.

Job creation increased in June, reaching 10.1 million, according to a JOLTS report from the Ministry of Labor released on Monday. This is compared to the $ 9.1 million economists expect according to a Dow Jones poll.

The earnings season continues this week, including companies Tyson Foods,, AMC Entertainment,, Coinbase,, Lordstown Motors,, Bumble,, Palantir,, Disney,, Airbnb i from Dash set up for quarterly income reporting.

Credit Suisse on Monday initiated a target of 5,000 prices for the S&P 500 by the end of 2022, citing higher earnings as the reason. The firm maintained its goal of 4,600 by 2021.

“Over the past 5 quarters, analysts have significantly underestimated EPS, a trend we expect to continue,” Credit Suisse chief investment strategist Jonathan Golub told clients. “We see upside-down estimates of how empty shelves are renewed and the price maintained. Consumer maintenance should improve with a further reduction in the unemployment rate, accompanied by higher wages.”

Investors are waiting key inflation data scheduled for release this week. It is planned to publish the consumer price index and the producer price index Wednesday i Thursday, respectively.


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