US Stocks Begin Week Lower as Treasury Yields Climb With Crude Futures

Last Updated: Monday, June 27, 2022 4:45 PM | MT Newswires

US equity benchmarks closed lower in the first trading session of the week while government bond yields rose and crude oil futures advanced.

The Dow Jones Industrial Average fell 0.2% to 31,438.26, the S&P 500 down 0.3% to 3,900.11 and the Nasdaq Composite 0.7% lower at 11,521.74 on Monday. The DJIA and the S&P 500 were climbing around midday before returning shortly to negative territory, failing to keep a rally going from last week when growth-oriented sectors shined.

Communication services and consumer discretionary were among the steepest decliners, while energy led the gainers.

The US 10-year yield jumped 8 basis points to 3.2%.

West Texas Intermediate crude oil futures advanced 2.1% to $109.84 per barrel.

In economic news, US durable goods orders rose more than expected in May. New orders increased 0.7% to $267.2 billion last month after gaining 0.4% in April, the Census Bureau said Monday. The Econoday consensus indicated a 0.1% rise.

Pending US home sales rose 0.7% in May, a report from the National Association of Realtors said Monday. That's a surprise gain compared with the 4% decrease expected in a survey compiled by Bloomberg after a 4% decline in April.

The Dallas Fed's manufacturing survey fell to -17.7 in June from -7.3 in May. Other manufacturing data already released have been mixed. The ISM's national index for June will be released on Friday, July 1.

Tuesday's economic calendar includes a pair of data points that will likely show that homes became increasingly more expensive in April, while consumer confidence is expected to have deteriorated to its lowest level in 15 months.

Meanwhile, Russia defaulted on its foreign-currency sovereign debt for the first time in a century as the grace period on two Eurobond coupons expired Sunday, a research note from DA Davidson said Monday. The Group of Seven, or G7, will agree on Tuesday to additional actions to increase pressure on Russia and finalize a price cap on Russian oil, Reuters reported Monday, citing a senior US official.

In corporate news, shares of Etsy (ETSY) were down 3.6%, the biggest on the S&P 500 after Needham downgraded its investment rating for Etsy (ETSY) to hold from buy. The firm removed its $150 price target on the stock.

The US Supreme Court rejected Apple's (AAPL) appeal to cancel two of Qualcomm's (QCOM) smartphone patents, according to media reports. Shares of Qualcomm were up 1.7%, among the top gainers on the Nasdaq 100.

Gold was down 0.4% to $1,823.90 per troy ounce while silver was about 0.1% higher to $21.17 per ounce.

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