The US stock market closed mixed on Monday, as investors awaited the release of the July consumer price index (CPI) data on Tuesday. The CPI is expected to show a 0.5% increase in inflation from June, and a 5.3% rise from a year ago, according to a Reuters poll.
The Dow Jones Industrial Average gained 110.02 points, or 0.31%, to end at 35,625.40, a new record high. The S&P 500 index edged up 11.71 points, or 0.26%, to close at 4,479.71, also a fresh all-time high. The Nasdaq Composite index slipped 29.14 points, or 0.2%, to finish at 14,793.76, snapping a four-day winning streak.
Energy and financials lead the gains
Among the 11 major sectors of the S&P 500, energy and financials were the best performers, rising 2.6% and 1.1%, respectively. Energy stocks were boosted by higher oil prices, as Brent crude futures rose 1.3% to $69.32 a barrel, and West Texas Intermediate (WTI) crude futures advanced 1.1% to $66.48 a barrel.
Financial stocks benefited from a steepening yield curve, as the 10-year Treasury yield rose to 1.32%, while the 2-year yield fell to 0.21%. A steeper yield curve implies higher profitability for banks and other lenders.
Technology and consumer discretionary lag behind
On the other hand, technology and consumer discretionary were the worst-performing sectors, dropping 0.4% and 0.3%, respectively. Technology stocks were weighed down by some profit-taking after recent gains, as well as concerns about rising inflation and regulatory pressures.
Consumer discretionary stocks were dragged down by Amazon.com Inc (AMZN), which fell 2% after a Reuters report said that the US Federal Trade Commission (FTC) is investigating whether the e-commerce giant’s acquisition of MGM Studios would harm competition in the streaming market.
Zomato surges on strong earnings
Among the individual movers, Zomato Ltd (ZOM) surged 11% after the Indian food delivery company reported a narrower-than-expected quarterly loss and a 26% increase in revenue. The company also said that it expects its revenue growth to accelerate in the second half of the year, as it benefits from the easing of pandemic-related restrictions and increased consumer spending.
Yellow Trucking files for bankruptcy
On the downside, Yellow Corp (YELL) plunged 27% after the trucking company filed for Chapter 11 bankruptcy protection on Sunday, citing liquidity issues and rising costs. The company said that it has secured $150 million in debtor-in-possession financing from its existing lenders, and that it intends to continue its operations during the restructuring process.
What’s next?
Investors will be closely watching the inflation data on Tuesday, as well as the earnings reports from several companies, including Coinbase Global Inc (COIN), Palantir Technologies Inc (PLTR), and Walt Disney Co (DIS).
