Even as the Dow Jones Industrial Average slid more than 300 points Monday, several stocks in the index ended the day with gains.
The Dow lost 324 points today, closing at 34,002.9. Of the 30 stocks in the Dow, Merck (ticker: MRK), IBM (IBM), Chevron (CVX), Verizon Communications (VZ), McDonald’s (MCD), and Nike (NKE) were the only ones that finished the day higher.
Shares of Merck gained 2% Monday, riding a surge fueled by Friday’s news that the company plans to submit its oral Covid-19 antiviral pill to the Food and Drug Administration. The pill was found to reduce death and hospitalization due to Covid by 50% in late-stage clinical trials.
IBM stock closed at $144.11, marking a 0.6% increase in the wake of a shareholder meeting Monday morning where chairman and chief executive officer Arvind Krishna said the company planned on generating $35 billion of free cash flow over the next three years.
Oil prices are seeing multiyear highs this week, giving a boost to energy sector stocks, Chevron among them. The California-based oil company closed trading at $104.72, up 0.4% today. Verizon also inched 0.4% higher, its second straight day of gains.
McDonald’s and Nike also eked out gains Monday, advancing 0.6% and 0.5%, respectively.
The selloff Monday may have been sparked by several risks. Companies are struggling with supply-chain constraints that may negatively impact sales goals and harm profit margins. Similarly, investors are worried about the imminent risk of a potential U.S. default, and turmoil over President Joe Biden’s infrastructure and social spending bills spooked investors. Accompanying Biden’s spending bills is the threat of higher corporate taxes.
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