Morgans AM: Tuesday, 12 October 2021

Morgans Financial Limited

US equity markets retreated, with an earlier rally fizzling and selling picking up pace in the final hours of the session as investors continued to ponder inflation challenges amid a fresh rise in energy prices and as the US third quarter earnings season officially kicks off later this week - Dow down -250-points or -0.72%, unwinding an earlier rally of over >200-points. The broader S&P500 -0.69%, with Communication Services (down -1.45%), Utilities (-1.35%) and Financials (-1.01%) all down over >1% to lead nine of the eleven primary sectors lower. Real Estate (up +0.17%) and Materials (+0.03%) were the only primary sectors to advance. Southwest Airlines Co fell -4.17% after cancelling nearly 2K flights over the weekend and leaving hundreds of passengers stranded. The airline blamed the widespread cancelations on weather “challenges” in some of its Florida airports, compounded by “unexpected” air-traffic control issues in the same areas however others were sceptical about the reasons offered. The Nasdaq fell -0.64%. The small capitalisation Russell 2000 lost -0.56%.