3 hours ago
Dow is likely to underperform in January due to Boeing's drag
Selloffs in Boeing and a handful of other stocks have limited the Dow's gains this month.
The blue-chip average is expected to end the January trading month, which ends with the closing bell on Wednesday, up about 1.7%. By comparison, the broad S&P 500 and the tech-heavy Nasdaq Composite are on track to rise 3.3% and 4.1%, respectively.
See grafic…
The Dow in January
Part of these limited gains for the Dow can be attributed to Boeing, which has plunged 21% this month. Stocks plunged after a door plug on a 737 Max 9 plane exploded in mid-flight.
Walgreens and Intel also weighed on the 30-stock index, each slipping about 13%. A dozen Dow members are on track to end the month in the red.
These declines have somewhat mitigated the gains seen elsewhere. Notably, IBM led the index with a rally of more than 14%. Verizon and Merck were the next biggest gainers, up about 11% each.
—Alex Harring
7 hours ago
Oil prices fall as China's housing crisis overshadows geopolitical risk
Oil prices plunged on Monday as concerns grew about the impact of China's housing crisis on the Chinese economy.
The March West Texas Intermediate contract fell $1.01, or 1.29%, to trade at $77 a barrel. The March Brent contract fell 94 cents, or 1.13%, to trade at $82.61.
Crude oil prices fell after a Hong Kong court ordered the liquidation of Evergrande, once China's largest property developer. Traders fear China's housing crisis is weighing on the economy and the slowdown could weaken oil demand this year.
Oil prices rose more than 1% early in the session after three U.S. soldiers were killed in a drone strike on a base in Jordan. The US blamed militants allied with Iran for the attack.
“It's a critical turning point for the Biden administration because we really need to see whether he's going to respond to this attack in a serious and escalatory manner,” Helima Croft of RBC Capital Markets told CNBC's “Worldwide Exchange” on Monday.
–Spencer Kimball
9 hours ago
Energy stocks are weighing on the S&P 500
Energy stocks weighed on the S&P 500 in Monday's session.
The broad index edged up about 0.1% in morning trading. However, it was weighed down by a decline in energy stocks, with the sector losing 0.7%.
All stocks in the energy sector traded lower during the session. APA was the biggest loser, down 1.7%.
On the other hand, the Consumer Discretionary sector was the best performing sector with a gain of 0.3%. Tesla led the sector with a gain of more than 2%, regaining some ground after falling more than 13% on earnings last week.
—Alex Harring
4 hours ago
The Treasury Department reduces its borrowing estimate in the first quarter
The U.S. Treasury expects to borrow $760 billion in the first quarter, according to a press release issued Monday afternoon. That's below the previous estimate of $815 billion, “primarily due to forecasts of higher net cash flows and higher cash balances early in the quarter,” the release said.
The reduced estimates appeared to trigger a rally in bonds and stocks. The 10-year Treasury yield fell to its lowest level of the day at about 4.07%, while the S&P 500 is now up about 0.7%.
The Treasury Department will provide more details on its quarterly refund plans on Wednesday.
–Jesse Pound