July 11 (UPI) — The Nasdaq Composite snapped a five-day winning streak Monday with technology stocks tanking as investors await major corporate earnings.
The tech-heavy index closed the day down 2.26%, while the S&P 500 dropped 1.15% and the Dow Jones Industrial Average declined 164.31 points, or 0.52%.
Twitter stock plummeted 11.4% after billionaire Elon Musk announced he would back out of an agreement to buy the social platform for $44 million.
Shares of Tesla also fell 6.55%. Musk is the CEO of the electric vehicle maker.
Elsewhere shares of Amazon dropped 3.28% and Google parent, Alphabet, slid 3.08%.
Disney stock fell 2.32% and Boeing declined 1.5% to drag down the Dow.
Casino stocks were also on the decline as Wynn Resorts fell 6.46% and Las Vegas Sands dropped 6.23% amid rising concerns about increasing COVID-19 cases, including lockdowns in China.
Oil prices also fell amid COVID-19 concerns in China with West Texas Intermediate crude futures — the U.S. benchmark — falling 1% to $103.70 per barrel and the international benchmark, Brent Crude fell 0.3% to $106.71 per barrel.
Investors on Monday were looking ahead to earnings from Pepsi and Delta Air Lines on Tuesday and Wednesday, followed by major bank stocks JPMorgan Chase, Morgan Stanley, Wells Fargo and Citigroup later in the week.
“It’s always about earnings,” Tim Lesko of Mariner Wealth Advisors told CNBC. “The expectation has been for a year now that it’s not about the trailing earnings, it’s about the future economic expectations. It really hasn’t mattered what people have reported in the way of revenue earnings. It’s been the talk that they’ve had about how they expect their future business to look.”
Monday saw the 2-year treasury yield hover near 3.064% above the 10-year treasury yield at 2.98%, creating an inversion that is seen as an indicator for a possible recession.
Investors are also looking forward to the release of June’s consumer price index Wednesday, which is expected to show headline inflation, which includes food and energy, rising to 8.8%.
