Shares of industrial and transportation companies sank.
Airline stocks were broadly lower as the number of weekly travelers fell for the first time since the post-Labor Day bump amid growing concerns over the potential fallout from the surge in new Covid-19 cases.
The daily tally of new Covid-19 cases in the U.S. rose to records over the weekend, and a number of European countries moved to tighten restrictions as the continent was hit with a spike in cases.
Also weighing on airline stocks is uncertainty over government stimulus, which has been a key driver of the sector in recent months.
Meanwhile, commercial aircraft orders for the third quarter sank to the lowest on record, with just 13 aircraft orders placed worldwide, as the Covid-19 pandemic paralyzed demand for travel, forcing airlines to delay accepting new jets. There were no orders for new aircraft in September.
Investors also are still tuned into third-quarter earnings season. A heavy calendar this week includes Caterpillar and 3M.
China said it will sanction three American defense contractors over proposed arms sales to Taiwan, retaliating against U.S. efforts to deepen security ties with the island democracy that Beijing claims as its territory. Chinese Foreign Ministry spokesman Zhao Lijian said Monday that Beijing has decided to impose sanctions on Lockheed Martin, Boeing and Raytheon, as well as other U.S. entities involved in the planned $1.8 billion weapons package.
Elevator and escalator company Otis Worldwide said its profit and sales fell for the September quarter, though it raised its sales and adjusted earnings outlook on an anticipated recovery from the effects of the Covid-19 pandemic.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
10-26-20 1701ET
