Shares pointed sharply decrease Monday as new information confirmed a bounce in COVID-19 circumstances in each the U.S. and Europe. Restrictions tightened throughout main international locations abroad, elevating the specter of an extra pullback in enterprise operations and deeper anchor on international financial exercise.
Shares of corporations set to learn from a broader financial reopening together with airways like American Airways (AAL), cruise strains together with Norwegian Cruise Line Holdings (NCLH) and resorts like Wynn Resorts (WYNN) sank. Shares of AstraZeneca (AZN), alternatively, outperformed after the Monetary Instances reported that its COVID-19 vaccine candidate developed with the College of Oxford produced a strong immune response in aged people.
The U.S. posted back-to-back days of record-high new virus circumstances over the weekend, with new virus circumstances topping 80,000 for every of Friday and Saturday. States within the West and Midwest have been hardest hit by the newest bounce in circumstances.
France endured its personal record-high day for brand spanking new coronavirus circumstances on Sunday, when the nation reported greater than 52,000 constructive circumstances over a 24-hour interval. Two-thirds of the nation grew to become topic to a beforehand introduced 9 p.m. curfew beginning Friday evening. In Italy, which hit a record-high for brand spanking new circumstances final week, new enterprise restrictions got here into impact Sunday. Spain declared a state of emergency over the weekend, which additionally included a country-wide curfew.
“Markets finally care in regards to the financial impression of pandemic information,” UBS economist Paul Donovan mentioned in a observe Monday morning. “Italy and Spain have adopted France in adopting the ‘Buffy the Vampire Slayer’ method (it isn’t protected to be outdoor after darkish). That is clearly dangerous information for bars and eating places, however extra constructive for supermarkets and residential leisure.”
Elsewhere, shares of Boeing (BA), Lockheed Martin (LMT) and Raytheon Applied sciences (RTX) got here beneath stress in early buying and selling after China mentioned it might impose sanctions on the protection models of each corporations, following the U.S. approval of a $1.Eight billion arms sale to Taiwan final week. China, which considers Taiwan to be a part of its territory, has not but specified the sanctions that shall be put into place.
10:07 a.m. ET: New dwelling gross sales unexpectedly declined in September for the primary time in 5 months
New-home gross sales within the U.S. dropped 3.5% in September to a seasonally adjusted annualized fee of 959,000, the Commerce Division mentioned Monday, after a 4.8% bounce to a fee of 1.011 million through the earlier month. This marked the primary month-over-month drop in new-home gross sales since April, on the peak of the pandemic.
Consensus economists have been anticipated new-home gross sales to rise one other 1.4% to increase the multi-month run of outperformance within the housing market relative to different areas of the financial system.
The drop in seasonally adjusted new-home gross sales was led by the Northeast, the place gross sales fell almost 29% in September from August. Gross sales within the Midwest and South every additionally fell by better than 4% through the interval. These within the West rose 3.8%, although this was not sufficient to offset the drops elsewhere.
The median sale worth for houses in September was $326,800, up from $315,700 throughout the identical month in 2019.
10:00 a.m. ET: Hasbro shares sink after reporting drop in gross sales, every week after Mattel reported development
Hasbro (HAS) posted a drop in third-quarter income that dissatisfied Wall Avenue, after rival toy-maker Mattel (MAT) final week posted a 10% bounce in gross sales throughout the identical interval.
Hasbro’s income dropped 4% to $1.78 billion, which nonetheless was barely forward of consensus expectations for $1.74 billion, based on Bloomberg information. The decline was led primarily by a drop in leisure, licensing and digital income, with this section’s gross sales down 23% over final yr as a drought of latest film releases weighed on Hasbro’s capability to market toys related to function movies.
Shares of Hasbro dropped greater than 9% Monday morning, and have fallen greater than 19% thus far for the yr so far.
9:31 a.m. ET: Shares open decrease as virus considerations spike
Right here have been the principle strikes in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): -32.73 factors (-0.94%) to three,432.66
Dow (^DJI): -298.90 factors (-1.05%) to 28,036.67
Nasdaq (^IXIC): -90.08 factors (-0.77%) to 11,458.82
Crude (CL=F): -$0.81 (-2.03%) to $39.04 a barrel
Gold (GC=F): -$1.80 (-0.09%) to $1,903.40 per ounce
10-year Treasury (^TNX): -2.5 bps to yield 0.816%
8:28 a.m. ET: Ant Group costs IPO on monitor to lift almost $35 billion in file public debut
Ant Group, the Chinese language monetary know-how firm began by Jack Ma, on Monday priced its twin preliminary public choices in Shanghai and Hong Kong, placing the agency on monitor to lift about $35 billion on this planet’s biggest-ever share sale.
The Shanghai inventory was priced at 68.Eight yuan, or $10.27, a share, whereas the Hong Kong shares have been priced at HK$80, or $10.32 every. Every IPO will subsequently elevate greater than $17.2 billion, placing the corporate on monitor for an IPO of almost $35 billion to prime even the general public debut of oil big Saudi Aramco final yr. Based on Bloomberg information, Ant shall be valued at about $280 billion forward of its IPO.
7:28 a.m. ET Monday: Dow futures shed 200+ factors as COVID-19 circumstances bounce
Right here have been the principle strikes in markets, as of seven:28 a.m. ET:
S&P 500 futures (ES=F): 3,423.00, down 28.75 factors or 0.83%
Dow futures (YM=F): 27,943.00, down 246 factors or 0.87%
Nasdaq futures (NQ=F): 11,585.5, down 78 factors or 0.67%
Crude (CL=F): -$0.78 (-1.96%) to $39.07 a barrel
Gold (GC=F): +$0.30 (+0.02%) to $1,905.50 per ounce
10-year Treasury (^TNX): -2.7 bps to yield 0.814%
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