U.S. stock indexes traded mixed Monday, with the Nasdaq Composite turning solidly lower, as investors digested the latest news on the spread of the coronavirus and prepared for new inflation data later in the week.

What’s happening
  • The Dow Jones Industrial Average
    DJIA,
    +1.71%

    surged 455 points, or 1.3%, to 35,026.

  • The S&P 500
    SPX,
    +1.05%

    was trading 22 points, or 0.5%, higher at 4,561.

  • The Nasdaq Composite Index
    COMP,
    +0.44%

    was trading 48 points, or 0.3%, lower to reach 15,039, but had touched an early intraday nadir at 14,931.61.

Last week, the Dow fell 0.9%, the S&P 500 declined 1.2%, and the Nasdaq Composite dropped 2.6%.

What’s driving markets

Dr. Anthony Fauci told CNN’s “State of the Union” that the early reports of the spread of the omicron variant of coronavirus suggest it might be less dangerous than the delta wave. Reports from South Africa show that while the virus is rapidly spreading, hospitalizations are not.

Traders were left trying to parse the implications of Friday’s mixed report on jobs, which showed slowing jobs growth but a steep decline in unemployment, as they prepare for Friday’s release of consumer price data. There also was critical news from China, where the central bank cut reserve requirements for banks while China Evergrande
3333,
-19.56%

admitted it might not be able to repay creditors.

Luca Paolini, chief strategist at Pictet Asset Management, said economies have adapted well to the pandemic. “Consumer and industrial demand is robust, supply bottlenecks look set to ease, and corporate earnings and margins remain healthy,” he said. The firm is neutral on equities and negative on bonds.

Which companies are in focus?
  • Shares of Lucid Group Inc. LCID took a dive in after the California-based electric vehicle maker disclosed that it was subpoenaed by the Securities and Exchange Commission related to an investigation. 

  • Jack in the Box Inc. JACK said Monday it will pay $12.51 a share for Del Taco Restaurants IncTACO in a deal valued at about $575 million.

  • BuzzFeed Inc. BZFD
    BZFDW,
    +34.68%

    said its shares would begin trading Monday on the Nasdaq after the digital media company closed its business combination with 890 5th Avenue Partners Inc., a special-purpose acquisition company.

  • Becton Dickinson & CoBDX said Monday that the spinoff of its diabetes care business will be named “embecta.”

How are other assets trading?
  • The yield on the 10-year Treasury note BX:TMUBMUSD10Y rose Monday to 1.38%, up from 1.342%. Prices for Treasurys fall as yields rise.

  • The ICE U.S. Dollar Index DXY, a measure of the currency against a half-dozen other monetary units, was up 0.1%

  • In oil futures, West Texas Intermediate crude CL00 for January delivery CLF22 rose 2.2% early Monday at $67.78 a barrel, notching a sixth straight week of declines.

  • Gold futures GC00 for February delivery GCF22 fell 0.3% to $1,778.20 an ounce.

  • The Stoxx Europe 600 Index SXXP was trading 1.1% higher on Monday. London’s FTSE 100 Index UKX was advancing 1.2%.

  • In Asia, the Shanghai Composite Index SHCOMP closed 0.5% lower, while the Hang Seng Index HSI ended 1.8% lower in Hong Kong. Japan’s Nikkei 225 Index NIK fell 0.4%.



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