BofA Securities head of U.S. economics Michelle Meyer and ‘Barron’s Roundtable’ panelists discuss state of the economy.
U.S. stock futures were modestly lower Monday as oil prices surged and China’s economy slowed.
Dow Jones Industrial Average futures fell 90 points, or 0.25%, while S&P 500 futures and Nasdaq 100 futures lost 0.26% and 0.28%, respectively.
The Chinese economy grew at a 4.9% pace in July through September from a year earlier, down from 7.9% in the previous quarter, as ongoing supply bottlenecks and the Evergrande debt crisis weighed on confidence. Economists surveyed by Refinitiv were expecting 5.2% growth.
CHINA’S ECONOMY STUMBLES ON POWER CRUNCH, PROPERTY WOES
In stocks, oil companies, including Chevron Corp. and Diamondback Energy Inc., rallied as West Texas Intermediate crude oil surged $1.35 to $83.63 a barrel, a seven- year high. Gold, meanwhile, slipped $5.20 to $1,763.10 an ounce.
Elsewhere, financials were in focus as the yield on the 10-year Treasury note climbed 3 basis points to 1.6% and was holding near a four-month high.
Walt Disney Co. was cut to “equal-weight” from “overweight” at Barclays, which also lowered its price target to $175 from $210 amid concerns over slowing subscriber growth for its streaming service.
American Airlines Group Inc., Johnson & Johnson, Netflix Inc and Tesla Inc. are among the companies reporting their quarterly results later this week.
Overseas markets were mostly weaker.
European bourses were lower across the board with Britain’s FTSE 100 sliding 0.26%, Germany’s DAX 30 declining 0.63% and France’s CAC 40 falling 0.89%.
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In Asia, China’s Shanghai Composite index and Japan’s Nikkei 225 lost 0.12% and 0.15%, respectively, while Hong Kong’s Hang Seng index edged up 0.31%.
