Investors ahead of Wall Street Week will look at the shaky energy sector as a measure of Delta fears.

The Wall St. logo will be displayed outside the New York Stock Exchange (NYSE) on March 2, 2020 in New York City, USA. REUTERS / Brendan McDermid

NEW YORK, Sept. 10 (Reuters) – The so-called reopening trade, the so-called reopening trade, is becoming a wake-up call for energy supplies worried about the deep-seated coronavirus delta. This year has continued to stumble.

The S&P 500 Energy Sector (.SPNY) is down 12.3% for the quarter for the S&P 500 (.SPX). This is in line with the sector’s performance in the quarter, which is expected to increase energy demand for vaccinated economy.

The fall of the 2% fall in Brent crude prices has led some investors to believe that the recovery of the US economy may be due to a resurgence of coronavirus, which has led them to focus on the slow pace of simple monetary policy. S and PIN have helped more than double since the March 2020 downturn.

Investors have returned to the high-tech stocks that have dominated the market for years, and other reopening events such as airlines and hotels have stalled. The S&P technology sector (.SPLRCT) grew 6.8% this quarter.

For his part, Charles Schwabb’s chief investment officer, Jeffrey Kleintop, said: You see, when stocks are reopened, they are working hard.

Investors will have more readings on the health of the US economy next week by identifying consumer price indexes, retail sales and consumer sentiment.

To what extent can the declining economy now affect property prices?

Morgan Stanley raised concerns about a slowdown in last week’s decision on U.S. stocks, with Goldman Sachs economists forecasting US economic growth in the third quarter to 5.5% from 9% by the end of August.

Those concerns were weighed on energy stocks, with companies such as Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) falling more than 13% for the quarter.

For the past two months, the past two months have been a painful one for investors, “said Garrett Melson, a portfolio strategist with the solutions for Nactics Investment Managers.

However, some investors continue to thrive because of the potential for a slowdown in coronavirus counts.

Melson is expanding his position in energy storage because he believes growth will continue to be relatively strong, and the economy will expand in support of oil prices.

Overall prices in the energy sector appear to reflect $ 50 per barrel, below $ 72.50 a barrel for Brent Oil.

He said that the imbalances would relieve some of these fears, and that it would “reduce the risk of a slight fall in stocks.”

“When the global consumer returns to the old economic system, there will be a difficult supply chain to meet demand,” he said.

The downturn made some energy reserves much cheaper than they had at the beginning of the year. Exxon, for example, is currently trading at 12.6 forward-to-earnings ratio compared to 30.9 in early March. S&P 500, by 22 percent in comparison transactions.

Energy stocks could continue to decline in the short term, according to Burns McKinney, senior portfolio manager of the NFJ Investment Group.

He added that the sector is growing in demand for more efficient emission standards and electric vehicles than the Biden administration.

McKinney said he was focusing on companies that had recently increased their profit margins rather than betting heavily on energy, a sign that corporations believe their balance sheets will be enough to withstand the recession.

Reported by David Randall; Edited by Ira Yosebashvili and Aurora Ellis

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