Dow futures drop over 350 points as spread of delta variant continues

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Stock-index futures pointed to a little commencement Monday, with concerns astir the planetary dispersed of the delta variant of the coronavirus that causes COVID-19 getting overmuch of the blasted arsenic investors prepared for different large week of firm earnings.

What are large indexes doing?
  • Futures connected the Dow Jones Industrial Average YM00, -1.40% fell 366 points, oregon 1.1%, to 34,198.
  • S&P 500 futures ES00, -1.17% were down 36.60 points, oregon 0.9%, astatine 4,282.
  • Nasdaq-100 futures NQ00, -0.96% dropped 83.50 points, oregon 0.6%, to 14,587.

Stocks ended little Friday, with each 3 large indexes down for the week, ending a drawstring of three, consecutive play wins. The Dow DJIA, -0.86% saw a 0.5% play decline, portion the S&P 500 SPX, -0.75% slid 1% and the Nasdaq Composite COMP, -0.80% shed 1.9%.

What’s driving the market?

Pressure connected planetary equity markets Monday was attributed mostly to the continued emergence successful the fig of COVID-19 cases world-wide.

“Markets look to beryllium grappling with the fearfulness that the microorganism isn’t going distant contempt wide vaccinations successful the large economies,” said Marios Hadjikyriacos, elder concern expert astatine XM, successful a note.

“New and much resilient mutations mightiness beryllium a perpetual improvement that wreaks havoc, particularly successful processing countries, yet keeping a lid connected the recovery,” helium said. “The overwhelming firepower from governments and cardinal banks was capable to combat the pandemic, but not capable to annihilate it.”

Concerns astir the microorganism are peculiarly problematic for sectors and industries, specified arsenic travel, that were expected to payment the astir from the reopening of the planetary economy.

Meanwhile, Treasurys continued to rally, keeping unit connected yields, which determination successful the other absorption of prices. The output connected the 10-year Treasury enactment TMUBMUSD10Y, 1.230% was down much than 5 ground points adjacent 1.25%.

Read: Does the enslaved marketplace person it incorrect astir inflation?

Earnings play picks up steam this week, with astir a 3rd of the 30 Dow Jones Industrial Average components and much than 80 S&P 500 companies are expected to study successful the week ahead. Performance truthful acold this 4th has been strong, with 85% of S&P 500 companies that person reported beating expectations and nary providing guidance little than expectations truthful far, according to John Butters, elder net expert astatine FactSet.

Earnings highlights for the week up see Netflix Inc. NFLX, -2.33% connected Tuesday and Intel Corp. INTC, -1.51% connected Thursday.

Earnings Preview: What does a mature streaming work look like? Netflix is astir to amusement us

A engaged week of lodging information kicks disconnected with the July speechmaking of the National Association of Home Builders scale astatine 10 a.m. Eastern.

Which companies are successful focus?
  • Shares of Five9 Inc. FIVN, +0.58% surged much than 8% successful premarket trading aft the announcement of a $14.7 cardinal all-stock buyout woody by Zoom Video Communications Inc. ZM, over the weekend. Zoom shares slumped 2%.
  • Bill Ackman’s Pershing Square Tontine Holdings PSTH, -1.81% said Monday that it was abandoning a deal to bargain a 10% involvement successful Universal Music Group, citing regulatory and shareholder concerns. PSTH shares were up marginally successful premarket commercialized Monday.
  • Cal-Maine Foods Inc. CALM, -0.44%  reported Monday a astonishment fiscal fourth-quarter nonaccomplishment and gross that fell beneath expectations, with ovum income dropping arsenic the lifting of COVID-19-related restrictions led to little meals prepared astatine home. Shares were down 0.2%.
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