Stocks Slip as Reopening Sentiment Turns Shaky

Worse-than-expected jobs data didn't help matters

Deputy Editor
Jul 8, 2021 at 4:31 PM
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The Dow finished 259 points lower today as economic reopening sentiment shrunk away from its recent optimism. Jobs data came as an unpleasant surprise, with initial jobless claims coming in at 373,000 last week, compared to analysts' anticipated 350,000. The S&P 500 and Nasdaq both slipped from yesterday's record closes to finish the day in the red. Plus, bond yields continued their tumble, with the 10-year Treasury yield earlier dropping to its lowest level since late February. Meanwhile, the Cboe Volatility Index (VIX) -- Wall Street's "Fear Gauge" -- jumped above the psychologically significant 20 level today before pulling back to settle with strong gains. 

Continue reading for more on today's market, including:

  • Checking in with the oil sector amid OPEC+ meeting drama. 
  • Is Conagra stock a good pre-earnings pick for bulls?
  • Plus, what's new with crypto; another antitrust suit weighs on GOOGL; and flight name brushing off bull notes. 

The Dow Jones Average (DJI - 34,421.93) fell 259.9 points, or 0.8% for the day. Of the 30 Dow components, Boeing (BA) saw the biggest jump, adding 2.2%, while Travelers Companies (TRV) fell to the bottom, shedding 2.4%.

Meanwhile, the S&P 500 Index (SPX - 4,320.82) lost 37.3 points, or 0.9% on the day, and the Nasdaq Composite (IXIC - 14,559.79) dropped 105.3 points, or 0.7%, for the day. 

Lastly, the Cboe Volatility Index (VIX - 19.00) added 2.8 points, or 17.3%. 

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  1. Senator Elizabeth Warren of Massachusetts has become the latest government official to chime in on cryptocurrency regulation in a letter to Securities Exchange Commission (SEC) Chairman Gary Gensler yesterday.  (Marketwatch)
  2. The city of Tokyo, Japan declared a state of emergency due to Covid-19, and it will have an effect on the upcoming Olympic Games. (Reuters
  3. Why CoinBase stock has been struggling of late.
  4. GOOGL takes on the company's fourth antitrust lawsuit this year.
  5. Analysts weigh in on UAL and its sector peers. 

There are no earnings of note today.

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Gold Snaps Five-Day Win Streak

Oil prices finished the day higher, after the Energy Information Administration (EIA) reported a drop in inventories by 6.9 million barrels. Investors also eyed the continued dispute over global supplies between members of the Organization for Petroleum Exporting Countries (OPEC). August-dated crude added 74 cents, or 1%, to close at $72.94 a barrel. 

Gold futures pulled back from earlier gains to settle lower, as anxieties over a sluggish economic reopening gripped Wall Street, and may have led some investors to liquidate some of their winning assets, such as gold. August-dated gold snapped its five-day win streak, dropping $1.90, or 0.1%, to settle at $1,800.20 an ounce.  

 

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