US stocks deteriorate on energy woes
US stocks faced a broad selloff Monday as the energy sector tumbled on weak commodity prices. Energy stocks registered the biggest decline among the ten sectors of the Standard and Poor’s 500 Index.
Apache Corp led the energy sector’s decline, incurring a loss of 4.58 percent to settle at $75.37 a share. Apache (NYSE:APA) , a global oil and gas exploration company operating in the North America, Europe and North Africa, declined for a fifth consecutive day after its rating was cut by Stifel Nicolaus & Co. Marathon Oil Corp (NYSE:MRO) declined to its lowest level since May, losing more than 4.2 percent to $32.61 a share. Cobalt International Energy Inc (NYSE:CIE) slumped more than 15 percent after its oil exploration in the Gulf of Mexico came up empty.
The benchmark indices continued their downward spiral Monday, with the Dow Jones Industrial Average extending its recent woes. The DJI is coming off its biggest weekly decline in 14 months. It closed Monday’s New York session at 15,010.70, a loss of almost half a percent. The S&P 500, coming off its worst weekly performance since November, tumbled another 0.59 percent to 1,646.06.
The NASDAQ Composite posted a rally on tech stocks before the weight of Federal Reserve speculation sent it tumbling. The NASDAQ would eventually decline 0.38 percent to 3,589.09. Intel Corp rose more than 1.6 percent after its ratings were bumped up to neutral. Apple Inc. soared more than 1 percent to $507.74 a share, extending its weekly gains on the heels of Carl Icahn.
Trade volume is likely to remain light following a better-than-expected earnings season. The market has entered into a difficult period, according to Chris Hyzy, chief investment officer at US Trust. Market participants are shifting their attention away from quarterly earnings and toward the major policy debates, chief among them being the Fed’s next policy decision. Market participants will have a chance to preview the Fed’s next move Wednesday with the release of the July FOMC meeting minutes.
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