Stocks close mixed as oil prices, energy companies fall sharply

S&P, Dow fall as oil drop hurts energy; chipmakers boost Nasdaq
May 25, 2018
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May 29, 2018

Stocks close mixed as oil prices, energy companies fall sharply

“The OPEC members and their partners are beginning to discuss the possibility to increase their production which is quite bearish for oil prices and the energy sector”, Peter Cardillo of Spartan Capital told AFP, referring to the Organization of the Petroleum Exporting Countries.

The S&P 500 banks index .SPXBK fell 0.4 percent after U.S. Treasury yields hit their lowest in three weeks.

USA crude tumbled 4 percent to settle at $67.88 a barrel after Saudi Arabia and Russian Federation said they were ready to ease supply curbs that have pushed prices to their highest since 2014. Exxon Mobil fell 2.3 per cent.

A 20.2 per cent surge in shares of Foot Locker boosted the S&P consumer discretionary index, which rose 0.2 per cent, after the company reported a better-than-expected quarterly profit and helped shares edge higher in Nike, which has a partnership with the footwear retailer.

At 12:58 p.m. ET, the Dow Jones Industrial Average was down 69.89 points, or 0.28 percent, at 24,741.87, the S&P 500 was down 7.75 points, or 0.28 percent, at 2,720.01 and the Nasdaq Composite was up 16.25 points, or 0.22 percent, at 7,440.68.

For the week, the Dow was up 0.2 percent, the S&P 500 was up 0.3 percent and the Nasdaq gained 1.1 percent.

The Nasdaq .IXIC was boosted by chipmakers, including Broadcom, which rose 2.7 percent.

Gold has managed to hang onto its gains, up 1.2%, and the 10-year Treasury yield remains down 1.6 basis points to 2.978%.

Stocks are mostly lower as energy companies sink following reports OPEC countries plan to produce more oil soon. Alaska Air jumped 4.3 percent and Delta rose 2.6 percent. Gap is tumbling after it had a weak first quarter as its namesake brand continued to struggle.

The S&P energy index slid 3.3 percent, on track for its biggest one-day percentage decline since February 5.

The Dow Jones industrial average lost 34 points, or 0.1 per cent, to 24,777.

Germany’s DAX rose 0.6 percent and the CAC 40 in France fell 0.1 percent.

Stocks are opening on a weak note as falling oil prices pull energy companies lower.

Chevron lost 2.3 per cent early Friday and Exxon Mobil gave up 1.9 per cent.

That came as the price of US crude fell 2.7 per cent to $68.74 a barrel. Oil fell following reports that OPEC and Russian Federation could start pumping more oil soon.

RETAIL ROUNDUP: Gap dropped 10.9 percent to $29.36 following a drop in sales for Gap brand stores.

Fiat Chrysler fell 2 percent to $21.82 after saying it’s recalling 4.8 million vehicles in the USA because in rare circumstances drivers may not be able to turn off the cruise control.

The Dow Jones industrial average lost 70 points, or 0.3 per cent, to 24,739. The Nasdaq composite edged down 3 points, or 0.1 per cent, to 7,420.