Nio Is Dropping, CureVac Is Popping — and What Else Is Happening in the Stock Market Monday
Stocks look set for a lower open as the pace of growth in China slowed and Afghanistan fell back under Taliban control.
S&P 500 futures have fallen 0.3%, Dow Jones Industrial Average futures have declined 0.3%, and Nasdaq Composite futures have dropped 0.3%. As a sign that something is worrying investors, the 10-year Treasury yield fell 0.015 percentage point to 1.282%.
The world needs China, its second-largest economy, to be performing well for the global economy to succeed. Unfortunately, economic data out of China Monday was on the disappointing side. Though all are still growing, retail sales miss, industrial production, and fixed asset investment all came in on the disappointing side. “Chinese economic data weakened across the board in July as disruptions caused by extreme weather exacerbated the country’s wider economic slowdown,” according to the folks at Gavekal. “Such moves have helped dampen market enthusiasm.”
Though they’re unlikely to have a material impact on the markets, the images out of Afghanistan could have an impact on market sentiment. It’s also possible that the situation creates political impediments to Biden’s $3.5 trillion budget bill. “For Biden, the developments in Afghanistan have created some unwelcome headlines just as further progress was being made on his economic agenda, with the Senate passage of the infrastructure bill with bipartisan support last week,” says Deutsche Bank’s Jim Reid.
Here are five stocks on the move Monday morning:
T-Mobile US (TMUS) has fallen 1.3% after revealing a data breach.
CureVac (CVAC) has gained 9.4% after the company and its partner GlaxoSmithKline said preclinical study on a Covid vaccine in animals performed well. Glaxo stock has declined 0.5%
NIO (NIO) has dropped 4.4% after reports that a passenger died in an accident while using the company’s autopilot feature.
Sonos (SONO) has jumped 9.7% after a jury ruled that Alphabet’s (GOOGL) Google had infringed on its patents. Alphabet stock had declined 0.3%.
Tencent Music Entertainment Group (TME) has slipped 1.8% after delaying its Hong Kong IPO.
Write to Ben Levisohn at [email protected]
