Dow’s biggest dip since October as stocks hit by oil

08.12.2014 23:11

U.S. stocks fell sharply on Monday, with benchmarks retreating from records and the energy sector slammed as the price of crude fell below $63 a barrel for the first time since July 2009.

“We’re seeing a last gasp pullback in energy, and that 13 percent of the S&P 500 that is represented by energy companies,” said Art Hogan, chief market strategist at Wunderlich Securities.

“Over the near term, it’s a big help for the consumer, who haven’t had any income or wage growth in a while. If it trades below $60 for months, I would think that would be problematic,” Bruce Bittles, chief investment strategist at RW Baird & Co., said of crude’s ongoing decline.

Crude for January delivery fell $2.79, or 4.2 percent, to settle at $63.05 a barrel.

McDonald’s fell after the fast-food chain reported global comparable sales declined 2.2 percent last month. Merck & Co. said it would acquire Cubist Pharmaceuticals in a deal valued at $9.5 billion.

Apple fell sharply, with the consumer-technology maker leading the technology sector lower.

Chinese overseas shipments climbed 4.7 percent from a year earlier in November, the customs administration said.

Separately, Japan’s economy contracted more than anticipated in the third quarter.

Symbol
Name
Price
Change
%Change
DJIA Dow Jones Industrial Average 17852.48 -106.31 -0.59%
S&P 500 S&P 500 Index 2060.31 -15.06 -0.73%
NASDAQ Nasdaq Composite Index 4740.69 -40.06 -0.84%

After a 154-point drop, the Dow Jones Industrial Average shed 0.6 percent, McDonald’s and Chevron leading blue-chip losses that extended to 19 of 30 components.

The S&P 500 fell 14.93 points, or 0.7 percent, to 2,060.44, with energy and materials falling hardest and utilities and financials faring best among its 10 major industry groups.

The Nasdaq shed 40.06 points, or 0.8 percent, to 4,740.69.

For every share rising, more than two dropped on the New York Stock Exchange, where 743 million shares traded. Composite volume neared 3.7 billion.

Trader on the floor of the New York Stock Exchange.

Brendan McDermid | Reuters
Trader on the floor of the New York Stock Exchange.

The U.S. dollar declined against the currencies of major U.S. trading partners; the yield on the 10-year Treasury note fell 5 basis points to 2.2552 percent.

Gold futures for February delivery rose $4.50, or 0.4 percent, to $1,194.90 an ounce on the New York Mercantile Exchange.





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