Home Entertainment company Stocks slide to start Thanksgiving week as oil slide drags down energy names

Stocks slide to start Thanksgiving week as oil slide drags down energy names


Shares fell in a volatile session on Monday to start a short week of trading due to the Thanksgiving holiday.

Fears that China could tighten Covid restrictions again after reporting deaths from the virus weighed on markets, driving down energy stocks and oil prices. Traders also looked for other signals from the Federal Reserve regarding future interest rate hikes.

The Dow Jones Industrial Average lost 82 points, or 0.24%. The losses for the average of the 30 stocks were somewhat mitigated by a jump of disney shares. The S&P 500 lost 0.53% and the Nasdaq Composite fell 1.18%.

“It puts a damper on the story of the global economic recovery that we hoped would usher in a reopening in China,” said Art Hogan, chief market strategist at B. Riley Financial.

Disney shares rose more than 7% after the company announced that former CEO Bob Iger would return to lead the entertainment giant, replacing Bob Chapek immediately. Iger’s return to Disney ends a brief and turbulent tenure for Chapek, who took over as CEO in February 2020.

The recent bear market rally is likely on hold due to a shorter Thanksgiving holiday trading week, which could lead to increased volatility and lower volumes as traders take time off. Earlier in the month, stocks rose with October’s Consumer Price Index reading and gained momentum with last week’s wholesale price reading.

Last week, traders were stymied by messages from Federal Reserve officials, who were less impressed with the numbers and reassessed their optimism about the possibility of slowing inflation. The market will get more information on the central bank’s way forward to digest when Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard speak on Tuesday.

“With 375 basis points of Fed rate hikes so far, an inverted yield curve, inflation spikes and commodity prices still part of the story, we can almost conclude that we are behind. in the economic cycle,” Liz Young, SoFi’s chief investment strategist, said in a note over the weekend.

The New York Stock Exchange will be closed Thursday for Thanksgiving and will have a shortened trading day on Friday. This week, traders will digest more speeches from Federal Reserve leaders as well as earnings reports from Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree.