Indexes reversed lower in afternoon trading, as the stock market tried faces a hard time extending last week’s bounce. Oil stocks and Alphabet (GOOGL) were in focus.
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The S&P 500 and the Nasdaq composite were up 0.5% at midday, but then started giving back gains. Monday’s stock market continues to fade. The Nasdaq was off 0.3% and the S&P 500 lost 0.2%. Volume was lower on the Nasdaq and higher on the NYSE compared with the same time on Friday.
The energy sector also reversed lower, even after the price of U.S. crude topped $80 a barrel for the first time in seven years. Oil futures were up more than 2% Monday afternoon to $81.15 a barrel. Global oil supplies are tight as the global economy rebounds, forcing prices higher.
Energy Select Sector SPDR (XLE) reversed to a 0.2% loss. Earlier, it rose above a cup base with a 56.75 buy point.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34617.55 | -128.70 | -0.37 |
| S&P 500 | (0S&P5) | 4374.79 | -16.55 | -0.38 |
| Nasdaq | (0NDQC ) | 14550.26 | -29.28 | -0.20 |
| Russell 2000 | (IWM) | 221.59 | +0.01 | +0.00 |
| IBD 50 | (FFTY) | 46.56 | -0.14 | -0.30 |
Last Update: 1:50 PM ET 10/11/2021 |
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The energy sector has produced a number of breakouts, making it one of the few areas where investors have found some opportunities.
Oil Stock Breakouts In Stock Market
Williams Cos. (WMB) broke out of a cup base with a 28.45 buy point. The pipeline operator was discussed in Income Investor last week.
Hess (HES) topped the 91.19 buy point of a cup base but sank back into the base. The stock was down a fraction.
Callon Petroleum (CPE) and EOG Resources (EOG) are near a buy point. Denbury (DEN) is forming a base with an 81.47 buy point.
But for many other industries, high oil prices act as a headwind. It also hurts consumers, who account for roughly two-thirds of the U.S. economy. Consumer stocks, however, were higher Monday. Consumer Discretionary Select Sector SPDR (XLY) and Consumer Staples SPDR (XLP) were higher earlier today, but down slightly in afternoon trading.
Airline Stocks Drag Stock Market
Airline stocks fell after the spike in oil prices. Southwest Airlines (LUV) gapped down more than 2% after the discount airline canceled more than 2,000 flights over the weekend, and disruptions continued into today.
Southwest blamed weather and staffing issues in Florida. Some reports suggested pilots and other staff staged a sickout to protest a vaccine mandate, but Southwest’s pilots union denied such a move. The stock remains in a correction, 19% below a new high.
The Dow Jones Industrial Average fell 0.3% in afternoon quotes.
Dow component Merck (MRK) reversed lower even though the pharmaceutical company and partner Ridgeback Biotherapeutics said Monday they filed an application with the Food & Drug Administration for approval of their Covid-19 pill. A late-stage trial showed that the antiviral cut the risk of hospitalization or death by about half in high-risk Covid patients.
The…
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