US STOCKS-S&P 500, Dow set for lukewarm start as virus fears weigh in

(For a Reuters live blog on the US, UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* Energy stocks hit by rising COVID-19 cases

* Sanderson Farms wins after $4.53 billion takeover bid

* Futures: Dow 0.30% down, S&P 0.16% down, Nasdaq up 0.08% (Adds comments, details; updates prices)

By Ambar Warrick and Devik Jain

Aug. 9 (Reuters) – The S&P and Dow indices are set to pull back from record highs on Monday as concerns over rising COVID-19 cases weighed on sentiment, with oil stocks reeling from a more than 4% drop in price of crude oil.

Energy companies Exxon Mobil Corp, Chevron Corp, Halliburton Co and Schlumberger NV fell between 1.3% and 2.2% in premarket trading as an increase in coronavirus cases, particularly in China, raised fears for new restrictions that could harm demand.

Metal miners also came under pressure from sharp declines in copper and gold prices amid concerns over Chinese demand. Freeport-Mcmoran Inc, the world’s largest publicly traded copper producer, fell about 1.7%.

In the United States, COVID-19 infections rose by at least 22,783 to 35.94 million total cases on Sunday, according to a Reuters tally.

“The predominant trepidation still comes from Delta (variant) and the market is just a little cautious here despite the strong jobs report,” said Thomas Hayes, managing member at Great Hill Capital in New York.

Investors waited for new catalysts to propel the market higher after strong jobs data sent the S&P 500 and Dow Jones to record highs last week.

A meeting of Federal Reserve leaders in Jackson Hole, Wyoming later this month is also expected to shed more light on the central bank’s potential plan to wind down its stimulus program in the wake of rising inflation and strong job market.

“The market is probably looking to Jackson Hole to see whether or not the Fed will plan to change course, and may talk about taper sooner rather than later,” Hayes said.

Story continues

The focus was also on passing a bipartisan $1 trillion US infrastructure bill with a vote possible by Tuesday, after details of the bill gained support in the Senate over the weekend.

At 8:08 a.m. ET, Dow’s e-minis were down 105 points or 0.3%, the S&P 500’s e-minis were down 7.25 points, or 0.16%, and Nasdaq 100 e-minis were up 12. .5 points or 0.08%.

A stellar earnings season has seen US equities soar to record highs over the past two weeks, as several consensus-surpassing results from major companies bolstered confidence in a post-COVID-19 economic recovery this year.

Analysts expect 92.9% earnings growth for S&P 500 companies in the second quarter, according to IBES data from Refinitiv. Of the 427 companies in the index that have reported earnings to date, 87.6% exceeded analyst expectations, the highest ever.

Sanderson Farms Inc gained 8% after it agreed to be bought for $4.53 billion by commodities trader Cargill Inc and investment firm Continental Grain Co at a time when meat prices were soaring due to strong demand.

American National Group Inc rose 8.2% after Brookfield Asset Management Inc’s reinsurance unit agreed to buy the US insurer for approximately $5.1 billion.

Cryptocurrency stocks, including crypto exchange Coinbase Global Inc and miners Riot Blockchain Inc, Marathon Digital Holdings Inc, added between 4.2% and 7.4% as bitcoin peaked in three months. (Reporting by Devik Jain and Ambar Warrick; editing by Shounak Dasgupta)