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US STOCKS-S&P 500, Dow dip on oil price crash, earnings anxiety

WASHINGTON: The S&P 500 and Dow Jones fell on Monday after a strong two-week rally as oil prices collapsed and investors became cautious at the start of a week that is likely to bring more quarterly reports of quarterly earnings and data. economic.
Energy stocks shed 0.9% and were on the way to their sixth drop in seven sessions as the US West Texas Intermediate (WTI) contract. USA It fell more than 40% to its lowest level since 1998 on concerns of oversupply.
Nasdaq outperformed the broader market in gains at Amazon.com Inc and Netflix Inc, considered "stay at home" actions, as widespread blockades fueled demand for online streaming and home delivery of groceries.
S&P 500 firms have recovered about 30%, or $ 5.8 trillion, in market value, since a March low in a series of global stimuli and expect the virus to be peaking in the United States.
But the benchmark index remains approximately 15% below its all-time high and analysts have warned of a deep economic slump due to the stop in commercial activity and millions of layoffs.
Unemployment claims from the United States reached 22 million in the four weeks to April 11, and analysts have forecast up to 5 million more in the past week. A reading from an April manufacturing survey in the United States, also due Thursday, is expected to drop to recession-era levels.
"Today is very much a return of some of the previous earnings, as people are trying to assess whether it will be six months or nine months or 12 months until the economy is back on its feet," said Dev Kantesaria, Founding Portfolio Manager for Valley Forge Capital Management Hedge Fund in Wayne, Pennsylvania.
After US banks kicked off the quarterly earnings season with painful forecasts for 2020, investors will keep a close eye on reports from Delta Air Lines Inc, Southwest Airlines Co and Netflix later in the week.
Overall, analysts expect S&P 500 firms' earnings to fall 13.5% in the first quarter, according to Refinitiv's IBES data, while Goldman Sachs forecast that share buybacks will halve and dividends will drop a 23% in 2020.
At 11:24 a.m. ET, the Dow Jones Industrial Average was down 211.69 points, or 0.87%, to 24,030.80, the S&P 500 was down 13.25 points, or 0.46%, to 2,861.31 and the Nasdaq Composite was up 17.93 points, or 0.21%, to 8,668.07.
Hopes have also risen for a gradual reopening of the economy after President Donald Trump cited signs of stagnation in the virus outbreak last week and outlined new guidelines for states to withdraw from closings.
But his plan was sparse in detail and he left the decision largely to state governors. New York City Mayor Bill de Blasio said Monday that it could be weeks, if not months, before the country's most populous city reopens due to a lack of widespread evidence.
"The recovery will be much slower than the current market price simply because social distancing measures can be relaxed but not removed until we have a very effective vaccine or cure," said Andrea Cicione, chief strategy officer for TS Lombard in London. .
Most of the falls at noon were led by defensive actions such as utilities and real estate, which fell about 2% each.
Bank stocks, on the other hand, recorded a decline in benchmark 10-year Treasury yields.
The decline in emissions outnumbered those of overtakers more than 2 to 1 on the New York Stock Exchange, while early emissions matched declines on the Nasdaq.
The S&P Index recorded seven new 52-week highs and no new lows, while the Nasdaq recorded 33 new highs and eight new lows.

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