Stocks wobble as Wall Street's momentum slows down

Posted 10/18/21

Stocks wobbled in midday trading on Wall Street Monday as the market’s momentum slows following its best week since July.

The S&P 500 rose 0.2% as of 11:40 a.m. Eastern. The Dow Jones Industrial …

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Stocks wobble as Wall Street's momentum slows down

Posted

Stocks wobbled in midday trading on Wall Street Monday as the market’s momentum slows following its best week since July.

The S&P 500 rose 0.2% as of 11:40 a.m. Eastern. The Dow Jones Industrial Average fell 43 points, or 0.1%, to 35,254 and the Nasdaq rose 0.3%.

Technology stocks and companies that rely on direct consumer spending made broad gains, but were tempered by losses from health care and other companies. Chipmaker Nvidia rose 1.2% and Target rose 2.2%. Medical device company Medtronic fell 4.9%.

Energy stocks gained ground as U.S. crude oil prices edged 0.3% higher. Prices have soared nearly 70% so far this year. Occidental Petroleum rose 4.7%. A mix of retailers and other companies that rely on consumer spending also rose.

The yield on the 10-year Treasury rose to 1.59% from 1.57% late Friday.

The broader market has been choppy for weeks as investors try to figure out the economy's path ahead as COVID-19 remains a lingering threat, while businesses and consumers face rising inflation. The S&P 500 rose 1.8% last week for its best week since July, though it shed 2.2% just two weeks prior.

Investors are busy reviewing the latest round of corporate earnings for a better picture of how companies fared through the surge of virus cases last quarter and how many are dealing with rising inflation's impact on costs.

A wide range of companies have warned that supply chain problems have been crimping operations and could dent their finances through the rest of the year. Wall Street is concerned that as businesses face higher costs they will pass them along to consumers and that could stymie spending and the broader economic recovery.

Health care giant Johnson & Johnson will report its latest results on Tuesday, as will streaming entertainment service Netflix. Investors will get a better sense of how airlines are recovering when several major carriers report results this week. United Airlines will report its latest results on Tuesday, with American Airlines and Southwest Airlines reporting their results on Thursday.

A mix of news outside of earnings impacted several stocks. Television broadcasting company Sinclair Broadcasting fell 3.8% after . Toyota rose 1.1% after in the U.S. to make batteries for gas-electric hybrid and fully electric vehicles.

Investors also have several pieces of economic data to review this week. The Federal Reserve on Monday reported a . Nearly half of the 1.3% drop was caused by the lingering effects of Hurricane Ida.

Wall Street will also get more information on the housing market's health this week with the Commerce Department's report on housing starts for September on Tuesday and the National Association of Realtors' report Thursday on sales of previously occupied homes in September.

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