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December 13, 2017
Monday, January 12, 2015

Wall Street falls, led by decline in energy shares

US stocks fell for a second straight session today, led by another sharp decline in energy shares as oil prices tumbled about 5 percent and concern grew ahead of corporate earnings season.

Oil prices extended their recent free-fall after Goldman Sachs slashed its short-term price forecasts and Gulf producers showed no signs of curbing output.

The S&P energy index dropped 2.8 percent, the biggest drag on the S&P 500. Brent fell 5.3 percent to settle at $47.43 and US crude dropped 4.7 percent to $46.07.

Profit forecasts for S&P 500 energy companies have dropped sharply in recent months, with fourth-quarter earnings for the sector now expected to have declined 21.1 percent from a year ago, Thomson Reuters data showed. Earnings for all of the S&P 500 are expected to have increased just 3.8 percent over the year-ago period.

The Dow Jones industrial average fell 96.53 points, or 0.54 percent, to 17,640.84, the S&P 500 lost 16.55 points, or 0.81 percent, to 2,028.26 and the Nasdaq Composite dropped 39.36 points, or 0.84 percent, to 4,664.71.

The S&P 500 is down 3 percent since its Dec. 29 record high, pressured by concerns about plunging oil prices, global economic weakness and Greece's potential exit from the euro zone.

After the bell, shares of Alcoa rose 1.7 percent to $16.44 following the release of its results.

European shares ended higher in volatile trade as slumping oil prices lifted shares of companies that benefit from lower fuel prices, such as airline Lufthansa, helping to offset a fall in energy companies' shares.

Energy shares mirrored the fortunes of Brent crude, which slid to a new low at $47.61/barrel before staging a modest recovery late in the European day.

Traders blamed a report by analysts at bank Goldman Sachs, who cut their three-month forecasts for Brent to $42 a barrel from $80.

The STOXX 600 Oil & Gas index closed 1.3 percent lower, off its daily trough.

The FTSEurofirst 300 index of pan-European shares ended 0.6 percent higher at 1,357.09 points after trading as much as 1.1 percent higher in early trade and as low as 0.4 percent down as the U.S trading day got underway.

German airline Lufthansa rose 1.7 percent in brisk volume after saying it expects the lower price of oil to cut its fuel bill for 2015 by 13 percent after the cost of hedging, setting it on course for a rise in profit this year.

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Tags:  Stocks  shares  FTSEurofirst  Nikkei  US  Dow Jones  





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Edition No. 5055 - This publication is a property of NEFIR S.A. -RNPI Nº 5343955 - Issn 1852 - 9224 - Te. 4349-1500 - San Juan 141 , (C1063ACY) CABA - Director Perdiodístico: Ricardo Daloia