November 27, 2021

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S&P 500 Cuts Losses as Tech, Energy Gain By

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By Yasin Ebrahim – The S&P 500 cut some intraday losses Monday, led by energy and tech stocks ahead of busy week of quarterly results from corporates.

The was up 0.21%, the fell 0.15%, or 51 points, and the added 0.63%.

Energy continued to add to recent gains as elevated energy demand amid tight supplies is expected to continue to keep oil prices trending higher.

“The tight market situation, as confirmed by OPEC and the IEA in their monthly reports last week, argues against any end to the rising and oil product prices in the near future,” Commerzbank (DE:) said in a note. 

Marathon Oil (NYSE:), APA (NASDAQ:), and Occidental Petroleum Corporation (NYSE:) were up sharply, with the latter up nearly 6%.

Big tech also supported the broader market as investors shrugged off rising U.S. treasury yields, the enemy of growth stocks.

Apple (NASDAQ:), Google-parent Alphabet (NASDAQ:), Facebook (NASDAQ:), Microsoft and Amazon (NASDAQ:) were in the green.

Apple was also in focus as the tech giant revealed a new range of Macbook Pros boasting upgraded M1 chips after transitioning away from Intel-based chips. Apple also revealed updated third-generation Airpods. 

The started the week on the front foot, rising to nearly 1.6%.

Other cyclicals sectors including consumer discretionary stocks and financials were in the green even as economic data fell short of expectations.

September industrial production fell 1.3% and manufacturing output slipped 0.7%, confounding expectations for rise of 0.1%, owing to ongoing supply disruptions.

“Semiconductor shortages, labor availability, and delays in port offloads and ocean traffic continue to be a drag on manufacturing production,” Jefferies (NYSE:) said in a note.

The choppy action on Wall Street comes as investors look ahead to the a busy week on the corporate earnings calendar, with Netflix (NASDAQ:) and Tesla (NASDAQ:) set to report earnings the Tuesday and Wednesday respectively.

“The third quarter earnings season ramps up in the coming weeks and, despite rising costs, we expect another quarter of strong profit growth,” Wells Fargo (NYSE:) said.

In others news, Walt Disney (NYSE:) slipped 3% following downgrade from Barclays (LON:). The bank downgraded Disney to equal weight from overweight, and slashed its price target on the stock to $175 from $210.

Disney was also pressured by reports of further production setbacks as the company delayed its batch of Marvel films including Doctor Strange 2, Thor 4, Black Panther: Wakanda Forever Sequel, and Indiana Jones 5.

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