U.S. Stocks Drop as Slumping Oil Prices Weigh on Energy Shares

  • S&P 500 Index retreats for the first time in four days
  • Tech, industrials only groups finishing higher on day

U.S. stocks fell in tandem with world equity markets Monday as nine of 11 industry groups in the S&P 500 Index declined, coming off a mixed week that ended with the best day for financial stocks since November.

The benchmark gauge for American equity fell 0.2 percent to 2,292.56 at 4 p.m. in New York, while the Dow Jones Industrial Average ended 19 points lower at 20,052. Stocks drifted lower in Europe on Monday as investors turned cautious on the region’s assets including bonds and the euro as their focus shifted to potential political risks.

  • Energy shares weighed on stocks with biggest sector decline, down 0.9% as oil drops 1.5%
  • Industrial and financial shares pared or reversed earlier gains, with industrial stocks little changed and financials down 0.4%
  • S&P 500 hasn’t seen a move of 1% in either direction since Jan. 7, longest stretch since September
  • VIX up 3.7% to 11.4
  • With 6 billion shares trading hands, smallest day of volume in more than a week
  • “Fed officials will see good labor-hours growth as confirming their view that the economy is approaching full employment and that rate hikes are in order,” David Sloan, a senior economist at 4CAST-RGE, said in a note; “The fly in the ointment is that average hourly earnings growth weakened in January, a problem for the reflationary outlook”
  • Investors are keeping a close eye on the rhetoric coming from President Donald Trump’s administration; some who were bullish in the immediate aftermath of his election have since warned his pledges could ignite a trade war
  • Nine S&P 500 members are reporting quarterly results Monday, including 21st Century Fox Inc. With more than half of the gauge’s members having released earnings this season, about three-quarters beat profit estimates and about half beat sales estimates, according to data compiled by Bloomberg
  • EARNINGS:
    • After-market Monday: Tesoro (TSO), FMC (FMC), Twenty-First Century Fox (FOXA), Macerich (MAC)
    • Pre-market Tuesday: AMETEK (AME), Fidelity National Information Services (FIS), Cardinal Health (CAH), Centene (CNC), Vulcan Materials (VMC), Cynosure (CYNO), TransDigm Group Inc (TDG), Church & Dwight (CHD), Sabre (SABR), Aramark (ARMK), Omnicom Group (OMC), Mallinckrodt (MNK), Emerson Electric (EMR), National Oilwell Varco (NOV), Archer-Daniels-Midland (ADM), Mosaic (MOS), S&P Global (SPGI), General Motors (GM), Intercontinental Exchange (ICE)

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