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U.S. equity markets turned lower Tuesday amid signs of a slowdown in the services sector.
The Dow Jones Industrial Average fell 337 points, or 0.97%, while the S&P 500 and the Nasdaq were lower by 0.62% and 0.17%, respectively. All three major indexes closed at record highs on Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 34505.22 | -281.13 | -0.81% |
| SP500 | S&P 500 | 4333.42 | -18.92 | -0.43% |
| I:COMP | NASDAQ COMPOSITE INDEX | 14626.53046 | -12.79 | -0.09% |
The Institute for Supply Management said the services sector, which accounts for more than two-thirds of economic activity, cooled last month as the supply-chain issues caused by COVID-19 continued to cause disruptions. The reading for the institute’s nonmanufacturing index fell to 60.1 last month after hitting a record 64.0 in May. Any reading above 50 indicates the sector is expanding.
West Texas Intermediate crude oil prices turned sharply lower after spiking as much as $1.82 to $76.98 a barrel after production talks between OPEC and its allies broke down. The rift in the group comes as the United Arab Emirates, the world’s fourth-largest producer, declined Saudi Arabia’s deal to raise output, instead wanting to pump out more of its oil under any agreement. WTI was trading near $73.35 a barrel.
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In stocks, oil related-companies, including Chevron Corp., Halliburton Corp. and Occidental Petroleum Corp., were in focus.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 103.83 | -2.27 | -2.14% |
| HAL | HALLIBURTON CO. | 22.45 | -1.33 | -5.59% |
| OXY | OCCIDENTAL PETROLEUM CORP. | 30.83 | -1.77 | -5.43% |
Elsewhere, Didi Global Corp. was sharply lower after Chinese regulators said new users in the country could not download the app before a cybersecurity review of the company was completed. Shares had fallen 6.73% during the first three days of trading.
Other Chinese companies, like Alibaba Group Holdings, Baidu Inc. and Nio, were all trading lower amid concerns of a wide-reaching crackdown by the Chinese government.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIDI | DIDI GLOBAL INC | 12.32 | -3.20 | -20.64% |
| BABA | ALIBABA GROUP HOLDING LTD. | 210.90 | -6.86 | -3.15% |
| BIDU | BAIDU, INC. | 188.10 | -8.60 | -4.37% |
| NIO | NIO, INC. (CHINA) | 50.03 | -0.36 | -0.72% |
Meanwhile, Amazon Inc. founder Jeff Bezos stepped down as CEO on Monday, 27 years after founding the company. Bezos, who is now executive chairman, will be replaced by cloud-computing chief Andy Jassy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM, INC. | 3,670.60 | +159.62 | +4.55% |
| PFE | PFIZER INC. | 39.12 | -0.58 | -1.46% |
The effectiveness of Pfizer Inc.’s COVID-19 vaccine has fallen to 64% since June 6, Israel said on Monday. Still, the vaccine has 95% protection against serious illness and preventing hospitalization.
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Overseas markets were broadly lower.
Germany’s DAX paced the decline in Europe, trading down 0.15% while France’s CAC and Britain’s FTSE 100 both lost 0.12%.
In Asia, Hong Kong’s Hang Seng index slipped 0.25%, China’s Shanghai Composite fell 0.12% and Japan’s Nikkei 225 ticked up 0.16%.
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