Dow industrialists shrank and the broader stock market struggled to end a series of losses on Friday as investors weighed in on the mandates of the COVID-19 vaccine announced by President Joe Biden to fight the delta variant of the coronavirus. that some concerns are holding back economic recovery.
How are futures traded on a stock market index?
-
The Dow Jones Industrial Average DJIA,
-0.32%
56 points were traded, 0.2%, lower to 34,832. The blue chip index had opened about 224 points higher, before falling. -
The S&P 500 SPX,
-0.16%
it gained about 4 points, or less than 0.1%, to 4,497, but had set an intraday high at 4,520.47. -
The Nasdaq COMP Composite Index,
+ 0.01%
it increased 43 points, 0.3%, to 15,291, but had set an intraday peak at 15,349.47.
On Thursday, the Dow industrial fell 151.69 points, or 0.4%, to end at 34,879.38, the S&P 500 index closed 20.79 points, or 0.5%, to 4,493.28, and the Nasdaq Composite Index ended at 15,248.25, with a loss of 38.38 points, or 0.3%.
What is driving the market?
After a rapid rise, the stock market struggled to maintain altitude on Friday mid-morning, with the sale in shares of UnitedHealth Group Inc. UNH,
and Salesforce.com Inc. CRM,
heavy on Dow industrials and a fall in consumer commodities are also pressuring the broad market index.
Initial volatility outpaced a reduced holiday week that has seen the Dow and the S&P 500 suffer losses for four consecutive days, the longest loss since June 18.
The fall of the week comes amid concerns about the impact of the delta variant of the coronavirus on global economic growth in recent months.
Biden announced new vaccination warrants on Thursday, including the requirement for executive branch employees and federal contractors to be vaccinated, with no alternative test. It is also discussing a Department of Labor rule that requires companies with 100 or more employees to ensure their employees are vaccinated or that they show a negative weekly test result or more often.
The United States averages just under 150,000 new cases a day, with 53% of the population fully vaccinated, far behind many European and Canadian countries, according to a New York Times tracker.
While the focus is on the increase in COVID cases, markets are also looking at the Federal Reserve as an indication of when it could reduce its bond purchases. Investors will have to wait until September 21-22 for the next meeting of the Federal Open Markets Committee. However, there is already speculation that the Fed will set the stage for the next meeting to announce a plan to reduce monthly asset purchases at the November meeting, according to the Wall Street Journal.
Read: Fed’s Kaplan, Rosengren, will sell shares to prevent the perception of conflicts of interest
Meanwhile, a report on wholesale inflation came in hotter than expected. The US producer price index rose 0.7% in August, the Department of Labor said Friday, below a 1% jump in July but higher than forecast average of economists surveyed by WSJ by an increase of 0.6%.
Some Fed officials have described inflation as short-lived and economists are starting to talk about peak prices in the wholesale sector. However, growers continue to struggle with shortages, bottlenecks and transportation problems.
“We expect major central banks to continue to support growth, keeping rates lower for longer. This is positive for equity markets, especially cyclical and market value areas,” Mark Haefele said on Friday. investment director of UBS Global Wealth Management.
The European Central Bank said on Thursday it would make purchases of assets under its pandemic emergency purchase program, or PEPP, at a “moderately slower pace” after accelerating purchases in recent quarters.
Sentiment also seemed to be recovering from geopolitics, with big gains across Asia following a phone call between Biden and his Chinese counterpart Xi Jinping. “The call lasted 90 minutes, with both parties giving the call a twist of its own, although the civilized tone seemed to serve as a general boost to the sense of risk at night,” said Steen Jakobsen, chief investment officer. of Saxo Bank, in a note to customers.
Which companies are concentrated?
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Actions of Echo Global Logistics Inc. ECHO soared higher on Friday, after the transport and supply chain company announced a deal that would acquire private equity firm The Jordan Company LP in a deal valued at $ 1.3 billion.
- Kroger Co.. KR reported second-quarter net income of $ 467 million, or 61 cents per share, below $ 819 million, or $ 1.03 per share last year.
- Wells Fargo Corp. WFC shares, + 1.23%, rose on Friday despite a $ 250 million civil penalty by the Office of the Comptroller of the Currency for failing to meet the requirements of its 2018 action against the bank.
-
Actions of Bumble Inc. BMBL traded lower on Friday, after the quote app said the size of the previously announced stock offer increased 20% and announced the offer price at $ 54.00 per share.
- Vista Outdoor Inc.. VSTO on Friday announced a deal to buy San Diego-based company Foresight Sports to conduct performance analysis and game improvement for $ 474 million.
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Children’s clothing brand OshKosh B’Gosh has joined the Kith lifestyle brand to get a collection of 28-piece capsules that will be available Friday at all Kith stores, the Kidset website and the site Kith European e-commerce. OshKosh B’Gosh, a 126-year-old brand, is part of Carter’s Inc.’s CRI portfolio.
How are other assets traded?
-
10-year Treasury note TMUBMUSD10Y,
1.328%
increased 2.4 basis points to 1.32%. Yields and debt prices are moving in opposite directions. -
The dollar was trading less than 0.1% lower, as measured by the US Dollar Index ICE DXY,
-0.06% ,
which stood at around 92.45. -
Gold futures were lower, with the December GC00 contract,
-0.16%
0.2% discount to $ 1,796.50 an ounce. -
CL00 oil futures,
+ 2.19%
rose, with West Texas Intermediate crude by 2.4%, to $ 69.73 a barrel. -
The Hang Seng HSI,
+ 1.91%
closed 1.9% higher. Elsewhere in Asia, the Shanghai Composite SHCOMP,
+ 0.27%
finished 0.3% and the Japanese Nikkei 225 NIK advanced 1.2%. -
European stocks were flat with the Stoxx Europe 600 SXXP,
+ 0.02%
rising less than 0.1% and the FTSE 100 UKX,
+ 0.20%
gaining 0.2%.