Stocks, which had surged more than 500 points earlier in the day Monday in a solid rally, reversed course suddenly and late in the session on dishearteninng news that California was reinstating a lockdown as COVID-19 cases continued to rise in the state.
California Coronavirus Update: Governor Gavin Newsom Orders Indoor Service At All Restaurants, Bars, Movie Theaters In State To Close Again; No End Date Given
The move came as the state revealed 8,358 new cases reported over the past 24 hours and 7,000 deaths.
Other states are tightening up social distancing restrictions and big Wall Street firms are joining health officials in noting the urgency of masks. Goldman Sachs said last week that a national mask mandate could prevent a 5% drop in GDP.
The DJIA ended the day basically flat (up 10 points), while the S&P 500 closed down by 0.94%. The Nasdaq was hardest hit, finishing the session down 2.3%.
It was the unoffical kickoff of earnings that included strong numbers for PepsiCo, which revealed an unsurprising bonanza in snack sales last quarter. Banks report tomorrow. Netflix, the first big-cap media company in the lineup, announces earnings Thursday. Its shares closed down 4.23%, a major dip for the streaming giant that’s been a sector leader throughout the pandemic.
Disney fell 2.6%. The company opened Walt Disney World this weekend despite a record spike in coronavirus cases in the state. Things change daily. Today, Hong Kong said Hong Kong Disneyland will close as the virus took new hold in some foreign markets.
Apple and Amazon hit highs before succumbing to the selloff. Amazon ended down 3% and Apple was off 0.46%.
Comcast held in positive territory, ending a hair higher, up 0.7% at $40.54.
Amazon hit a new high before reversing course.