Monday’s trading session has started with stocks in the red as crude oil also declines.
Near 9:43 a.m. ET, the Dow was off about 75 points, the S&P 500 was down 10 points, and the Nasdaq was down 10 points. These were all declines of less than 1%.
Caterpillar was the leading decliner on the Dow in early going, down about 3% after Goldman analysts downgraded the stock on concern that it’s stock is set to plunge as a new “commodity deflation cycle” starts.
Crude oil was meanwhile giving back some of its huge rally of the last few days. West Texas Intermediate crude futures in New York were down about 3.5%, or $1 a barrel to as low as $30.71 per barrel.
Oil prices surged 25% late last week and entered a bull market, defined as a 20% rally from the recent lows of a bear market.
This morning, we got earnings results from Halliburton, which recorded a fourth-quarter loss amid low oil prices, and from McDonald’s, which posted a 5%+ gain in US sales, boosted by all-day breakfast.
The data calendar is light today. The latest Dallas Fed manufacturing survey is due at 10:30 a.m. ET.
Everything gets busier later this week, with the highlights being the Fed’s latest policy statement on Wednesday afternoon, and fourth-quarter GDP numbers on Friday morning.
In earnings, tech takes center stage this week, with Apple on Tuesday, Facebook on Wednesday, and Amazon on Thursday.
Twitter shares were getting crushed, down 5% this morning to a new all-time low, after CEO Jack Dorsey confirmed that a number of executives are leaving the company.
We have a full preview of all the big market-moving events of the week here.