Stocks are flat despite drop in consumer sentiment figures

SINGAPORE —
Stocks were little changed in early trading Friday, as gains for communications and health care companies are checked by weakness in energy and other sectors.

Investors had little reaction to economic data that showed a drop in consumer confidence last month due to the delta variant of the coronavirus.

The S&P 500, Dow Jones Industrial Average and the Nasdaq were all up less than 0.1%. The three indexes were all wavering between small gains and losses in the first 30 minutes of trading.

Disney rose 3% after the company returned to a profit last quarter, helped by the reopening of its theme parks and more subscribers to its Disney+ service.

Investors got an unexpectedly bad reading on the University of Michigan consumer sentiment index, which fell to 70.2 from its previous level of 81.2 in July. That was the largest drop in sentiment since April 2020, when the pandemic took its initial grip on the country.

The drop in the survey’s reading was almost entirely due to the spread of the delta variant of the coronavirus, which has caused hospitals to fill up with unvaccinated patients across the U.S.

Trading is likely to remain quiet while many on Wall Street take a traditional vacation in late August before things pick up again in September.