S&P 500 near flat; hedge fund default concerns hit banks
By Caroline Valetkevitch NEW YORK (Reuters) - The S&P 500 was nearly flat in Monday afternoon trading, with bank shares falling amid warnings of potential losses from a hedge fund's default on margin calls, while optimism over the economy limited the day's declines. The Dow was higher, with shares of planemaker Boeing Co up 1.9% after the company reached a deal with U.S.
By Caroline Valetkevitch
NEW YORK (Reuters) - The S&P 500 was nearly flat in Monday afternoon trading, with bank shares falling amid warnings of potential losses from a hedge fund's default on margin calls, while optimism over the economy limited the day's declines.
The Dow was higher, with shares of planemaker Boeing Co up 1.9% after the company reached a deal with U.S. budget carrier Southwest Airlines Co for a variant of the 737 MAX aircraft.
Nomura and Credit Suisse are facing billions of dollars in losses after a U.S. hedge fund, named by sources as Archegos Capital, defaulted on margin calls, putting investors on edge about who else might have been caught out.
Shares of Morgan Stanley were down 2.5% after the Financial Times reported it had also sold billions of shares, while the banks index shed about 1.9%.
"There's still chatter as to whether or not, and which, American banks may be affected. That is a question that's lurking. But so far the market has taken (the news) in stride essentially," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
Optimism about speedy vaccinations and record stimulus, which drove the Dow and the S&P 500 to record closing highs on Friday, helped keep a floor in the market, she said.
The Dow Jones Industrial Average rose 103 points, or 0.31%, to 33,175.88, the S&P 500 lost 4.21 points, or 0.11%, to 3,970.33 and the Nasdaq Composite dropped 102.52 points, or 0.78%, to 13,036.21.
Discovery Inc, ViacomCBS, U.S.-listed shares of Baidu and VIPShop, all linked to Archegos, were lower, extending recent losses.
Wall Street's fear gauge rose.
The Nasdaq is set to post its first monthly decline in five months while the S&P 500 and Dow are headed for their second consecutive monthly gains.
Declining issues outnumbered advancing ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 3.11-to-1 ratio favored decliners.
The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 81 new highs and 50 new lows.
(Reporting by Caroline Valetkevitch in New York; Additional reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel and Matthew Lewis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.