Dow Futures Tumble as Delta Infections Trigger Growth Concerns, Oil Slumps

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Publish date:Jul 19, 2021 5:56 AM EDT

Stocks look acceptable to commencement a engaged net week connected a cautious enactment Monday, arsenic rising Delta infections and slumping lipid prices tame bulls.

The Monday Market Minute

  • Global stocks slump arsenic investors turn tense astir maturation prospects amid a surge successful Delta-variant coronavirus infections and stubbornly-high ostentation rates astir the world.
  • Britain drops COVID restrictions arsenic cases deed a world-high 48,000, with Prime Minister Boris Johnson isolating aft coming into adjacent interaction with an infected colleague.
  • Around 90% of the 21 S&P 500 companies reporting truthful acold person beaten Street forecasts, with analysts expecting corporate net to emergence 72% from past twelvemonth to conscionable nether $400 billion.
  • Oil prices crook sharply little aft a play statement from OPEC members to pare their accumulation cuts from August, adding 400,000 barrels to the marketplace each day.
  • U.S. equity futures suggest a weaker unfastened connected Wall Street up of a engaged week for firm earnings, with updates from IBM, Netflix, Johnson & Johnson, Microsoft and Intel.

Wall Street futures turned sharply little Monday, portion lipid prices retreated from multi-year highs and Treasury enslaved yields fell, arsenic investors kicked disconnected a engaged net week successful a cautious temper arsenic coronavirus infections accelerate and ostentation remains stubbornly high.

Stocks besides tracked little aft the United States, on with respective NATO allies, accused China of orchestrating a blase bid of cyberattacks that exploited vulnerabilities successful Microsoft's  (MSFT) - Get Report exchange server system.

Britain, which dropped astir each of its home restrictions connected concern and question arsenic of Monday, grounds a world-high 48,000 caller infections connected Sunday, mostly arsenic a effect of the fast-spreading Delta variant. Gains were recorded crossed Europe and Asia, arsenic well, with galore countries either imposing oregon considering caller lockdowns to tame the spread.

Alongside faster ostentation prospects -- and a abruptly cautious user -- investors are present wondering conscionable however agelong the planetary economical betterment tin last, peculiarly if cardinal banks were to move excessively rapidly connected removing cardinal portions of their monetary stimulus.

Against that backdrop, OPEC's play statement to pare output reductions by 400,000 barrels per time starting successful August, with the purpose of returning to mean output schedules successful September of adjacent year, volition supply a near-term boost for maturation prospects, but a much immediate-term deed for lipid stocks and the Dow Jones Industrial Average.

Earnings could besides supply an avenue for shares to retrieve this week arsenic 81 companies are expected to study June 4th profits, including IBM  (IBM) - Get Report after the adjacent of trading today. Netflix  (NFLX) - Get Report, Johnson & Johnson  (JNJ) - Get Report, AT&T  (T) - Get Report, Microsoft and Intel  (INTC) - Get Report will travel aboriginal successful the week.

So far, 90.2% of the 21 S&P 500 companies reporting person beaten Street forecasts, with analysts expecting corporate net to emergence 72% from past twelvemonth to a share-weighted $393 billion,

Futures tied to the Dow benchmark, successful fact, are priced for a 480 constituent opening doorbell diminution portion those linked to the S&P 500 are indicating a 50 constituent pullback. 

WTI futures for August transportation were marked $2.69 per tube little astatine $69.12 each portion Brent contracts for September were seen $2.52 little astatine $71.07 per barrel.

Tech stocks look acceptable to get astatine slightest immoderate alleviation from the retreat successful Treasury enslaved yields, which traded astatine 1.229% successful overnight dealing, arsenic Nasdaq Composite futures bespeak a 140 constituent slip. 

Zoom Video Communications  (ZM) - Get Report were progressive aft the conferencing radical agreed to a $14.7 billon all-stock takeover of telephone halfway relation FIVE9 Inc.  (FIVN) - Get Report, portion Bill Ackman's Pershing Square Tontine Holdings was little aft the billionaire capitalist scrapped plans to usage the SPAC to acquisition a stock of Universal Music Group.

 In Europe, rising infections and muted maturation forecasts person the Stoxx 600 down 1.9% to a six-week low, portion the MSCI ex-Japan benchmark successful Asia fell 1.55% heading into the adjacent of trading. 

The Nikkei 225 successful Tokyo closed 1.25% little astatine 27.652.74 points. 

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