Rare total eclipse of the sun served as a backdrop to the start of the week as Dow and S&P 500 regain equilibrium after a mixed day of trading with energy and financials taking a toll. While the Nasdaq ended lower burdened by a tech sell off.
- Energy and financials weigh on S&P 500
- Oil price gives up gains
Dow was up +0.13% and the S&P 500 went up +0.12% and Nasdaq fell -0.06%. Financials and energy were among the worst performers down respectively -0.24% and -0.55%. Mining were among the leaders with Freeport-McMoRan up +4.10% and Newmont Mining up +2.18%. Meanwhile, Fiat Chrysler Automobiles was up +6.92% on rumours of a potential deal with China's Great Wall.
- Dow 21,703 +0.13%
- S&P 500 2,428 +0.12%
- Nasdaq 6,213 -0.05%
- Russell 2000 1,356 -0.07%
- NYSE Composite 11,719 +0.17%
- Gold 1,296 +0.37%
- Oil WTI $47 -2.39%
- 10-Year Treasury Yield 2.18% -0.01%
Delicate oil balance act?
Oil prices retreated -2.39% on Monday after a rally on Friday when prices had surged to 3% after US shale oil inventories fell. Members of OPEC and non-members met in Vienna today to review the multilateral deal to bring crude oil prices back in line with a five-year average.
Oil looks hidebound to float between the $45-$50 range as questions remain over OPEC members ability to keep to the production cuts. Balance is delicate as non-members Algeria, Iraq and the United Arab Emirates according to a report by Forbes had weaker compliance.
The article appearing in the Hellenic Shipping News said "the International Energy Agency (IEA) and data aggregators noted that OPEC members’ compliance for July had fallen to 75%; the lowest on record since the current round of cuts began in January.
“There would be more confidence that re-balancing is here to stay if some producers party to the output agreements were not, just as they are gaining the upper hand, showing signs of weakening their resolve,” the think-tank wrote in its monthly market assessment report.
On Wednesday the latest data on inventories will be released by the US Energy Information Administration.