- Stocks were lower in early trading as traders returned from the Labor Day holiday.
- Stocks rose over the summer, aided by better-than-expected earnings from major corporations
Stocks were lower in morning trading as traders return from the Labor Day weekend; Industrial and health care stocks were the biggest drag on the market in the early going, reports ABC News.
Stocks declining
The Eastern, the S& P 500 index was down 0.5 percent. The Dow Jones Industrial Average sank 0.8 percent, while the Nasdaq Composite Index, heavily weighted in technology, fell 0.1 percent. Apple gained 1%, and Netflix gained 3%, helping to limit Nasdaq’s losses to a minimum. Energy prices were down broadly. Crude oil fell 1.9% while natural gas prices fell 2.7%.The yield on the 10-year Treasury note rose to 1.37% from 1.32% and Bank of America to 1.6%.Paint and coatings maker PPG Industries fell 3.3% after warning investors that supply chain problems and higher costs will hurt third-quarter sales.
Growing expectations
Traders have returned from their summer vacations, and volatility is expected to increase in the days and weeks ahead. Stocks rose over the summer, aided by better-than-expected earnings from major corporations and Federal Reserve guidance that the central bank intends to keep interest rates low. The August jobs report, which showed that companies employed fewer people than projected, had a minor negative impact on the market.
“We’re still kind of digesting Friday’s weak job number and the potential impact that might have with the economy,” said Ryan Detrick, chief market strategist for LPL Financial. “The economy has been showing signs of weakening and we’re seeing a clear impact from the delta variant seeping into economic data.”
Bank stocks were aided by a rise in bond yields. The 10-year Treasury note yield increased to 1.38 percent from 1.33 percent. JPMorgan Chase, Citigroup, Wells Fargo, and Truist Financial all rose by at least 1%.
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Source: ABC News
