Wednesday, October 20, 2021

Dow Jones falls 300 points as consumer confidence declines

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The Dow Jones Industrial Average fell 360 points, or 1.03%, while the S&P 500 index and the Nasdaq Composite index declined 1.44% and 2.03%, respectively.  U.S. stock indexes were under pressure Tuesday as Federal Reserve Chairman Jerome Powell voiced concerns on inflation after a sharp drop in consumer confidence. 

Powell told the Senate Banking Committee on Tuesday morning that inflation is larger and longer-lasting than anticipated and that the central bank will use available tools, if necessary. 

Ticker Security Last Change Change % I:DJI DOW JONES AVERAGES 34552.88 -316.49 -0.91%SP500 S&P 500 4379.81 -63.30 -1.42%I:COMP NASDAQ COMPOSITE INDEX 14645.322861 -324.65 -2.17%

The Fed chair’s comments came shortly after the Conference Board said consumer confidence fell to 109.3 in September from an upwardly revised 115.2 in August. The reading, which was the lowest since February, was below the 114.5 that analysts surveyed by Refinitiv were expecting.  

The selling of U.S. Treasurys continued, with the yield on the 10-year note up 5 basis points to 1.54% and was on track to close at a more than three-month high. 

In stocks, financials, which benefit from a steeper yield curve, outperformed.

Ticker Security Last Change Change % BAC BANK OF AMERICA CORP. 43.49 +0.23 +0.54%CFG CITIZENS FINANCIAL GROUP, INC. (RHODE ISLAND) 47.58 +0.48 +1.02%C CITIGROUP, INC. 72.28 -0.01 -0.02%

Ticker Security Last Change Change % AAPL APPLE, INC. 143.15 -2.22 -1.53%MSFT MICROSOFT CORP. 285.89 -8.28 -2.81%AMZN AMAZON.COM, INC. 3,332.62 -73.18 -2.15%

Meanwhile, mega-cap technology stocks, like Apple Inc., Microsoft Inc. and Amazon Inc., lagged as rising yields are a negative for growth names. 

Oil companies like Cabot Oil & Gas Corp., Diamondback Energy Inc. and Kinder Morgan Inc. were higher as West Texas Intermediate crude oil jumped 18 cents to $75.63 a barrel. 

Ticker Security Last Change Change % COG CABOT OIL & GAS CORP. 22.50 +0.43 +1.97%FANG DIAMONDBACK ENERGY, INC. 94.58 -0.91 -0.95%KMI KINDER MORGAN, INC. 17.02 +0.07 +0.38%

Ford Motor Co. and Korean battery partner SK Innovation will invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the U.S. in an effort to speed up the automaker’s shift to electric vehicles.

Ticker Security Last Change Change % F FORD MOTOR CO. 14.44 +0.29 +2.05%

In earnings, Thor Industries Inc. reported earnings and revenue that exceeded Wall Street estimates and said its order backlog was at an all-time high. 

Ticker Security Last Change Change % THO THOR INDUSTRIES, INC. 123.14 +10.21 +9.04%

European bourses were weaker across the board with France’s CAC 30 tumbling 1.84%, Germany’s DAX 40 sliding 1.44% and Britain’s FTSE 100 declining 0.21%. 

Overseas markets were mixed. 

In Asia, Japan’s Nikkei 225 slipped 0.19% while China’s Shanghai Composite index and Hong Kong’s Hang Seng index jumped 0.54% and 1.2%, respectively. 

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