The Dow New York Stock Exchange ended lower overnight (Oct. 11) as investors worried the surge in oil prices could hurt corporate earnings and consumer spending. Still delaying trading before major US banks release results this week. This includes JPMorgan Chase.
The Dow Jones Industrial Average closed at 34,496.06 points, down 250.19 mines, or -0.72%. The S&P500 closed at 4,361.19, down 30.15, or -0.69%. The Nasdaq closed at 14,486.20, down 93.34, or -0.64%.
Neil Beveridge, an analyst at Bearstern, said: The surge in oil prices has also resulted in higher energy costs. It is one of the causes of recession in the past. And such an event may repeat itself if oil prices continue to rise. The higher oil prices will affect the income of private companies. and undermine consumer spending.
The market was also negative as Goldman Sachs lowered its forecast for US gross domestic product (GDP) growth in 2021 to 5.6 percent from 5.7 percent year-on-year. and cut GDP in 2022 to 4% from 4.4%, stating that US consumer spending is likely to recover slower than expected. due to the impact of the COVID-19 epidemic
Nine of the 11 stocks calculated in the S&P500 closed in negative territory, led by the communications group index down 1.45 percent, with Twitter down 2.47 percent, Snap down 1.95 percent, and Facebook down 1.39. Netflix shares were down 0.89%, while Pinterest was down 1.34 percent.
The Utilities Index fell 1.34 percent, with PG&E Corporation down 5.23 percent, Portland General Electric down 2.13 percent, and Excelon Corporation down 1.61 percent.
Energy stocks weaken after strong intraday rally. ConocoPhillips fell 1.27 percent, Devon Energy was down 1 percent, Exxon Mobil was down 1.01 percent and Chevron was down 0.87%.
Financial stock indexes fell 1% before major US banks released results this week. Mastercard was down 2.20 percent, Visa was 2.24 percent, JPMorgan was down 2.09 percent, Goldman Sachs was down 1.92 percent, Bank of America was down 1.26 percent, and Morgan Stanley was down. 2.74%
JPMorgan is scheduled to release third-quarter results on Wednesday, while Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citi Group will release results later in the week. this
Investors will keep an eye on US economic data this week, including August job openings and labor turnover rates (JOLTS), September inflation, September Federal Reserve meeting minutes. US (Fed), weekly unemployment claims, producer price index (PPI) September, September retail sales, September import and export prices, sector index. Produced (Empire State Manufacturing Index) Oct. from the New York Fed; Consumer Confidence Index Oct. from the University of Michigan. and business inventory stock in August
.
