Stocks gave back earlier gains heading towards market close on Monday, with the Dow Jones Industrial Average turning negative and dropping nearly 100 points as investors became more concerned about the spreading Delta variant in the United States.
The U.S. is averaging more than 63,000 new COVID cases per day over the last seven day, according to Centers for Disease Control and Prevention (CDC) data released Monday. This is the highest seven-day average since April 2021.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): -0.18% or -8.10 points to 4,387.16
Dow Jones Industrial Average (NYSE: DIA): -0.28% or -97.31 points to 34,838.16
Nasdaq Composite Index (NASDAQ: QQQ): +0.06% or +8.39 points to 14,681.07
Google to build its own smartphone processors for Pixel models:
Google announced Monday that the tech gian will build its own smartphone processor to power its new Pixel 6 and Pixel 6 Pro smartphones that are set to be released this fall, moving away from Qualcomm (NASDAQ: QCOM).
The new processor, called Google Tensor, is part of a new strategy shift for Google to help increase the affordability of its Pixel smartphones to better compete with other smartphone giants like Apple (NASDAQ: AAPL) and Samsung.
Google plans to reveal more details about the Pixel 6 and Pixel 6 Pro closer to the phones' launch in October.
ISM Manufacturing index unexpectedly declines in July:
The Institute for Supply Management's (ISM) manufacturing index for July unexpectedly declined compared to June, with survey respondents citing supply issues harming activity despite strong demand for goods.
The survey's reading of 59.5 in July from 60.6 in June failed to meet consensus economists estimates for a rise of 61.0, according to Bloomberg data. Still, readings above the neutral level of 50.0 indicate expansion in the sector.
"As we enter the third quarter, all segments of the manufacturing economy are impacted by near record-long raw-material lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products," Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a press statement. "Worker absenteeism, short-term shutdowns due to parts shortages and difficulties in filling open positions continue to be issues limiting manufacturing-growth potential."
IHS Markit's manufacturing PMI reaches highest level on record for July:
The IHS Markit's monthly survey tracking U.S. manufacturing sector activity reached the highest level on record in July, based on data extending back 14 years. Markit's manufacturing purchasing managers' index (PMI) for July rose to 63.4, up from 61.2 in June.
"Contributing to the uptick in the headline figure was a sharper expansion in production at the start of the third quarter," according to IHS Markit's press release on Monday. "The upturn was reportedly linked to stronger client demand and efforts to clear backlogs of work. The rate of growth was the steepest for six months and maked overall."
However, output is falling behind order book growth, the institution added, with delivery delays and supply chain issues affecting overall growth.
Here's how the market starting trading shortly after opening bell:
S&P 500 Index: +0.60% or +26.34 points to 4,421.60
Dow Jones Industrial Average: +0.48% or +168.17 points to 35,103.64
Nasdaq Composite Index: +0.49% or +72.05 points to 14,746.69