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Disney up on Iger's return as CEO
S&P 500 energy index leads sectoral falls
Grindr slips after rocketing in debut
Tesla down on vehicle recall, China COVID concerns
Indexes down: Dow 0.22%, S&P 0.51%, Nasdaq 1.06%
Nov 21 (Reuters) - Wall Street's main indexes started
the week lower due to a rise in COVID-19 cases in China and
declines in energy stocks following a report of a likely
increase in oil output, while gains in Disney helped ease
pressure on the Dow and S&P 500.
The S&P 500 energy sector index slid 2.71% on Monday
to its lowest level in four weeks as oil prices
tumbled more than 5% after a report that Saudi Arabia and other
OPEC oil producers were discussing an output increase.
Energy was the only major S&P 500 sector eying gains for the
year, surging around 58%.
Global markets were spooked as Beijing warned it was facing
its most severe test of the pandemic, shutting businesses and
schools in hard-hit districts and tightening rules for entering
the city as infections ticked higher.
"You're going to have disruption of goods, all the more
incentive for companies to find near-shoring and on-shoring
opportunities to better diversify their supply chains," said
Jonathan Waite, fund manager at Frost Investment Advisors.
U.S. casino operators with businesses in China including
Wynn Resorts Ltd, Las Vegas Sands Corp, MGM
Resorts International and Melco Resorts & Entertainment
Ltd slipped between 2.4% and 7.1%.
Travel stocks including American Airlines Group Inc
and Norwegian Cruise Line Holdings Ltd fell 0.5% and
Keeping declines on the Dow Jones Industrial Average
and S&P 500 in check was a 5.8% jump in Walt Disney Co
after Bob Iger's return as chief executive to the
At 12:13 p.m. ET, the Dow was down 75.76 points, or 0.22%,
at 33,669.93, the S&P 500 was down 20.18 points, or 0.51%, at
3,945.16, and the Nasdaq Composite was down 118.22
points, or 1.06%, at 11,027.85.
The S&P 500 extended its fall from the previous week when
multiple Federal Reserve officials reiterated the central bank's
pledge to raise rates until inflation was in check, as investors
now await the release of minutes from the Fed's November meeting
Traders are widely betting on a 50-basis point hike in the
December meeting, with a peak for rates expected in June.
Among other stocks, Tesla Inc shed 5.2% after the
electric-car maker said it will recall vehicles in the U.S. over
an issue that may cause tail lights to intermittently fail to
Gay dating app Grindr plummeted 27.2% amid a
broader market weakness, after skyrocketing in its debut on the
New York Stock Exchange in the previous session.
Trading volumes are likely to be thin this week as markets
will be closed on Thursday for Thanksgiving and will be open for
half day on Friday.
Declining issues outnumbered advancers for a 1.61-to-1 ratio
on the NYSE and a 1.69-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and two new
lows, while the Nasdaq recorded 68 new highs and 156 new lows.
(Reporting by Ankika Biswas, Shubham Batra and Shreyashi Sanyal
in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)