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Sept. 20, 2021, 4:59 p.m. EDT

Dow books worst day in 9 weeks as debt woes for China’s Evergrande rattle stock market

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By Joy Wiltermuth and Mark DeCambre

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Check out : Evergrande isn’t the only reason the stock market is headed for its worst day in 2 months. Here are 5 other reasons

The economy has been giving off mixed signals, though, amid rising cases of coronavirus due to the delta variant. Friday’s losses for Wall Street came as a reading on consumer sentiment held close to  a roughly 10-year low .

Analysts also were discussing the inability, so far, of Congress to increase the debt ceiling.

“We are probably out of the Goldilocks stages, where stocks were putting in a straight line higher,” said Michael Reynolds, vice president, investment strategy at Glenmede, in a phone interview. “This is almost a return to normal.”

Reynolds said discord in Washington, including over President Joe Biden’s planned $3.5 trillion spending plan could mean “volatility is here for now.” But he also thinks the fundamentals of the economic recovery remain “in relatively good shape,” meaning that a sustained pullback might make for a good time to add risk.

Read : It is the ‘golden age’ of U.S. consumer credit, says this Voya portfolio manager

Investors also were weighing an upbeat report from Pfizer Inc. /zigman2/quotes/202877789/composite PFE +2.07%  and German partner BioNTech SE /zigman2/quotes/214419716/composite BNTX +2.75% on Monday, announcing positive results in a Phase 2/3 trial of their COVID-19 vaccine in children aged 5 to 11, and said the vaccine was safe, well tolerated and produced “robust” neutralizing antibody response. 

In economic news , the National Association of Home Builders’ monthly confidence index increased one point to a reading of 76 in September, the trade group said Monday. The slight uptick comes following a three-month decline in optimism among home builders.

Which companies were in focus?

  • Twitter Inc.   TWTR, -2.61%  announced Monday that it had entered an agreement to settle a class-action lawsuit that began in 2016. Shares fell 2.4%. 

  • Shares of China-based electric vehicle makers fell, and Tesla IncTSLA, -2.97% shares ended 3.9% lower Monday, as Li Auto Inc. ‘s warned of a deliveries miss  and Shares of NIO Inc.  NIO  sank 6.2%.

  • GameStop Corp.   GME said Monday it plans to hire 500 employees at its new customer service center in Pembroke Pines, Fla. Shares fell 6.2%

  • The airline sector outperformed amid  a broader-market selloff , after reports that Biden will end travel bans for fully vaccinated individuals. Exchange traded U.S. Global Jets ETF J ETS rose 0.6%.

  • Financial stocks slumped, with Berkshire Hathaway   BRK. A, JPMorgan Chase   JPM , Bank of America   BAC,   Wells Fargo   WFC , Morgan Stanley  MS , Citigroup   C, Goldman Sachs   GS, and BlackRock   BLK all down. The Financial Select SPDR Fund /zigman2/quotes/209660484/composite XLF -2.10% shed 2.3%, outpacing the drop by the S&P 500.

How did other assets fare?

  • The yield on the 10-year Treasury note  TMUBMUSD10Y fell 6.1 basis points to around 1.308%. Yields and debt prices move in opposite directions.

  • The ICE U.S. Dollar Index  DXY , a measure of the currency against a basket of six major rivals, rose by less than 0.1.

  • Oil future settled lower on Monday, with the U.S. benchmark  CL00 closing 2.3% lower at $70.29 a barrel. Gold futures  GC00  climbed 0.7% to settle at $1,763.80 an ounce.

  • In European equities, the Stoxx Europe 600 index  SXXP closed 1.7% lower, it’s largest daily plunge since mid-July. The FTSE 100  UKX slumped 0.9%.

Barbara Kollmeyer contributed reporting

/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 54.14
+1.10 +2.07%
Volume: 21.71M
Dec. 3, 2021 2:21p
P/E Ratio
16.06
Dividend Yield
2.88%
Market Cap
$297.71 billion
Rev. per Employee
$533,860
loading...
/zigman2/quotes/214419716/composite
US : U.S.: Nasdaq
$ 342.66
+9.17 +2.75%
Volume: 2.27M
Dec. 3, 2021 2:21p
P/E Ratio
9.90
Dividend Yield
N/A
Market Cap
$80.88 billion
Rev. per Employee
$283,276
loading...
/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 37.85
-0.81 -2.10%
Volume: 54.18M
Dec. 3, 2021 2:21p
loading...

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