Wall Street falls as energy tracks oil lower, tech weighs
US stocks fell yesterday as energy sector shares dropped for a fourth straight session, tracking crude prices, while tech, the best performing sector this year, weighed the most on the S&P 500.NEW YORK, Nov 15 —
Oil prices fell for a fourth session after data showed an unexpected increase in crude and gasoline stockpiles. The S&P 500 energy sector notched a four-day decline of 4 percent, its weakest such period in 14 months.
“Oil coming off recent highs and as crude prices move so (do) the big energy stocks,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
Exxon fell 1.3 per cent to US$81.21 (RM340.63) and Schlumberger dropped 2.0 per cent to US$61.55 after touching US$61.11, its lowest since January 2016.
Brent and US crude both fell after touching last week their highest in almost 2-1/2 years.
The tech sector was the largest weight on the S&P 500, something Jankovskis attributed partly to their “very strong run this year; perhaps some people are taking profits.”
The Dow Jones Industrial Average fell 138.19 points, or 0.59 per cent, to close at 23,271.28, the S&P 500 lost 14.25 points, or 0.55 per cent, to 2,564.62 and the Nasdaq Composite dropped 31.66 points, or 0.47 per cent, to 6,706.21.
Republican US Senator Ron Johnson said he opposes his party’s Senate tax revamp proposal, the Wall Street Journal reported, leaving the passage of the proposal in limbo as the GOP holds a slim majority. Analysts have said the slashing of the corporate tax to 20 per cent from its current 35 per cent would likely be a boon for the stock market.
The CBOE Volatility index, a widely followed measure of market anxiety, hit a more than two-month high at 14.51 and was last up 1.5 points at 13.13.
A rise in both inflation and retail sales sent a signal to the Federal Reserve, which had been concerned about a recent disinflationary trend, setting the US central bank on a path to raise benchmark interest rates in December.
Among the few Wall Street gainers yesterday were financial stocks, which rose on prospects of further rate hikes. The S&P 500 bank index added 0.61 per cent.
High-yielding sectors like utilities and consumer staples, among the so-called bond proxies, were the largest decliners outside of energy.
Target shares tumbled 9.9 per cent to US$54.16 after it issued a disappointing profit forecast for the key holiday quarter.
After the closing bell, Cisco shares rose 3.4 per cent after the company reported a 3.1 per cent rise in quarterly profit driven by growth in its newer business areas.
Declining issues outnumbered advancing ones on the NYSE by a 1.78-to-1 ratio; on Nasdaq, a 1.60-to-1 ratio favoured decliners.
The S&P 500 posted 35 new 52-week highs and 19 new lows; the Nasdaq Composite recorded 45 new highs and 84 new lows.
About 6.55 billion shares changed hands in US exchanges, compared with the 6.78 billion daily average over the last 20 sessions. — Reuters
Source: The Malay Mail Online