Energy Stocks Drag Down Markets to Begin Shortened Week

It was a tough start for U.S. equities following the long holiday weekend as shares of both traditional and alternative energy companies stumbled. Bond yields also fell ahead of upcoming Congressional testimony from Federal Reserve Chair Jerome Powell after last week’s mixed decision by the Fed on interest rate hikes. 

Sliding oil futures dragged down crude producers including Chevron (CVX), APA (APA) and Devon Energy (DVN), as well as oilfield services providers Halliburton (HAL), Baker Hughes (BKR), and SLB (SLB). Solar power company shares also retreated, with SolarEdge Technologies (SEDG) and Enphase Energy (ENPH) leading the S&P 500 lower. 

Intel (INTC) announced it was almost doubling what it will spend on a new German production site, sending shares lower. Boeing (BA) declined 3% as rival Airbus won a record-setting 500 plane order from India’s IndiGo airline. Shares of Nike (NKE) tumbled on concerns about its inventory backlog. 

Generac Holdings (GNRC) took off on reports of potential widespread blackouts in the Southern U.S. because of searing heat and damaging storms. Shares of EV makers (TSLA) and Rivian (RIVN) gained as Rivian became the latest EV firm to adopt Tesla’s charging station standard.

D.R. Horton (DHI) and other home builders saw their shares rise after the Commerce Department reported a bigger-than-expected jump in housing starts and building permits. Shares of DICE Therapeutics (DICE) hit an all-time high as Eli Lilly (LLY) agreed to pay $2.4 billion for the biopharma company.

Prices for gold and other precious metals dropped. The U.S. dollar was up against the euro and pound, but declined versus the yen. Most major cryptocurrencies advanced in the afternoon and traded in positive territory.