Business

Wall St is falling as declines in cyclical stocks outweigh growth boost

The Wall Street main index reversed early gains on Friday with a decline in cyclical stocks offsetting gains in growth stocks, while data showing an unexpected rise in U.S. retail sales in June kept the decline in check.

The Commerce Department said retail sales rose 0.6% again last month as spending shifted back to services, boosting expectations that economic growth accelerated in the second quarter.

Markets have largely cheered for a steady recovery in the labor market this year, but concerns about higher inflation due to a faster-than-expected rebound have hurt sentiment with investors having previously fluctuated between “value” and technically heavy “growth”. get sessions.

“We have a lot of optimism about earnings, but then you’re afraid of inflation, and that’s how we are entering a whipsaw market,” said Dennis Dick, a proprietary trader at Bright Trading LLC.

Following earnings from major banks this week, the focus shifts to earnings reports from technology-focused companies, including International Business Machines Corp, Netflix Inc, Verizon Communications, AT&T, Intel Corp, Snap Inc and Twitter Inc.

Wall St is falling as declines in cyclical stocks outweigh growth boost

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“Technical earnings starting next week may cause the market to forget that fear (inflation),” said Bright Handels Dick.

Six of the 11 largest S&P 500 sectors were lower in early trading, with energy stocks falling 1.2%. The sector index has fallen more than 5% so far this week and is the biggest loser among the 11 largest sectors, followed by consumer estimates and materials.

On the other hand, defense, real estate and consumer founders were the most winning sectors as an increase in coronavirus cases, led by the new Delta variant across the globe, revived concerns about a delay in the economic recovery.

Los Angeles County will reintroduce its mask mandate over the weekend in the latest sign that public health officials are struggling with an increase in cases to worrying levels in many parts of the United States.

Kl. 10:15 ET, the Dow Jones industrial average fell 65.61 points, or 0.19%, to 34,921.41, the S&P 500 fell 6.50 points, or 0.15%, to 4,353.53, and the Nasdaq Composite fell 9.94 points. or 0.07% at 14,533.20.

Moderna Inc jumped 9.4% after the S&P Dow Jones Indices said the drugmaker would join the S&P 500 index from the start of trading on July 21 and replace Alexion Pharmaceuticals.

Didi Global Inc fell 0.9% as China sent government officials from at least seven departments to the giant giant for a cybersecurity report.

Intel Corp. added 1.6% after a media report the chipmaker is in talks to buy semiconductor maker GlobalFoundries Inc for about $ 30 billion.

Forward issues exceeded the number of declines by a ratio of 1.56 to 1 on the NYSE. Forward issues exceeded the number of declines by a 1.47-to-1 ratio on the Nasdaq. The S&P index recorded 33 new 52-week highs and no new lows, while the Nasdaq recorded 25 new highs and 32 new lows.

(Report by Devik Jain and Shreyashi Sanyal in Bengaluru; edited by Maju Samuel)

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