Stocks slide as oil prices surge to 7-year high

Beverly Goodman advises investors to look at high yield municipal bond fund

Barron’s editorial director suggests with the tax increase, investor should pay attention to high yield munis

U.S. stock futures were modestly lower Monday morning as oil prices climbed to their highest level in seven years.

Dow Jones Industrial Average futures slipped 110 points, or 0.32%, while S&P 500 futures and Nasdaq 100 futures declined 0.49% and 0.69%, respectively. The losses come after the S&P 500 last week gained 1.2%, making for the best weekly performance since late June. 

In stocks, Diamondback Energy Inc., ExxonMobil Corp. and Cabot Oil & Gas Corp. were among the early leaders as West Texas Intermediate crude soared $2.02 to $81.37 per barrel, a seven-year high. 

Elsewhere in the space, Chevron Corp. announced it would target zero net emissions for some upstream gas emissions by 2050. A number of other energy companies have already announced plans to reduce greenhouse gas emissions. 

Southwest Airlines Co. blamed air traffic control problems, bad weather in Florida and staff shortages for more than 1,600 flights being canceled over the weekend. 

Merck & Co. said it has applied for emergency use authorization for its COVID-19 tablet. If approved, the drug would be the first oral antiviral drug for the disease. 

Honeywell International Inc. raised its business jet delivery forecast for 2022 to 2031 by 1% to 7,400 planes worth $238 billion. 

The U.S. Treasury market is closed for Columbus Day. 

Overseas markets were mixed. 

European trading was choppy with Britain’s FTSE 100 up 0.33% while France’s CAC 40 and Germany’s DAX 30 declined 0.24% and 0.31%, respectively. 

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In Asia, China’s Shanghai Composite index slipped 0.01%, Japan’s Nikkei 225 rose 1.6% and Hong Kong’s Hang Seng index jumped 1.96%. 

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