Stocks fall, oil collapses

U.S. stock indices fell on Monday as the U.S. Senate struck an infrastructure deal amid growing concerns about the spread of COVID-19 infections in Asia.

Over the weekend, senators voted 69-28 in favor of provisions in the bipartisan $ 1,000 billion infrastructure bill that would provide money to repair roads and bridges and extend coverage to broadband, among others.


The Dow Jones Industrial Average fell more than 60 points, or 0.19%, while the S&P 500 Index and the Nasdaq Composite Index were little changed. The Dow Jones and S&P 500 both closed at record highs on Friday after the July jobs report blew up earlier estimates.

The strong jobs report sent the US dollar to a more than four-month high against the euro, with traders betting the Federal Reserve could start cutting asset purchases this year and raising rates. ‘by the end of next year.

The rising dollar coupled with concerns that the spread of the delta variant in China would weigh on global energy demand has hit oil prices, with West Texas Intermediate crude falling $ 1.95 to $ 66.33 per barrel. Oil majors, including Exxon Mobil Corp. and Chevron Corp., were down.

Meanwhile, gold fell from $ 18.10 to $ 1,745 an ounce.

In terms of profits, Barrick Gold Corp. announced quarterly profits above expectations and reaffirmed its annual forecast for gold and copper production.

In the deals, Brookfield Asset Management Inc.’s reinsurance unit agreed to buy insurer American National Group Inc. for $ 5.1 billion in cash, or $ 190 per share, or a 10% premium. from Friday’s closing price.

Sanderson Farms Inc. has struck a deal to sell for about $ 4.5 billion, or $ 203 per share.

Elsewhere, DraftKings Inc. has announced that it will buy Golden Nugget Online Gaming for $ 1.56 billion in shares. At closing, Golden Nugget shareholders will receive 0.365 shares of newly issued DraftKings shares for each share held.

The overseas markets were mixed.


European stock markets were down overall with the UK FTSE 100 down 0.4%, the German DAX down 0.15% and the CAC 30 in France down 0.09%.

In Asia, Japan’s Nikkei 225 rose 0.33%, Hong Kong’s Hang Seng index 0.4% and China’s Shanghai Composite rose 1.05%.

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