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Wednesday, 13 January 2016 | MYT 2:28 AM

Wall Street rally loses steam as oil prices tumble

At about 1pm on Tuesday in New York, the Dow Jones industrial average was down 17.22 points, or 0.11%, at 16,381.35. The EPA photo shows a trader working on the floor of the New York Stock Exchange.

At about 1pm on Tuesday in New York, the Dow Jones industrial average was down 17.22 points, or 0.11%, at 16,381.35. The EPA photo shows a trader working on the floor of the New York Stock Exchange.

BENGALURU: US stocks were flat in early afternoon trading on Tuesday, after an early rally was wiped out as crude oil prices once again held the markets hostage.

Crude prices were on a roller coaster ride. Earlier gains were erased as they retreated towards US$30 per barrel, piling the pressure on already beleaguered energy companies and casting a pall on other sectors as well.

US stocks have mirrored the movement of oil prices over the past two sessions: opening higher, only to reverse course later on sharp turns in oil prices.

Seven of the 10 major S&P sectors were lower, led by a 1.9% drop in the energy sector.

Still, the S&P 500 held above the key 1,900 level, as it did on Monday, which helped the rally at the start of the day, said said Peter Cardillo, chief market economist at First Standard Financial in New York.

“We managed to successfully close above it (on Monday) and that’s bringing in some buying this morning, just from a very oversold condition,” Cardillo said.

At 1:01pm ET (1801 GMT), the S&P 500 was down 1.93 points, or 0.1%, at 1,921.74. The index hit a low of 1,901.10 on Monday.

The Dow Jones industrial average was down 17.22 points, or 0.11%, at 16,381.35 and the Nasdaq Composite index was up 6.73 points, or 0.15%, at 4,644.72.

Only two stocks in the S&P energy sector were up. Kinder Morgan tumbled 8% and Williams Cos slumped 14%, leading the decliners.

There were a few bright spots.

The consumer discretionary sector eked out a 0.5% gain, led by a 2% jump in Starbucks to US$58.98 after the coffee chain said it has not seen a slowdown in China.

The health sector, up 0.22%, gave up most of its early gains and the Nasdaq biotech index turned negative.

Anthem’s raised 2016 profit forecast led a rally in health insurers, keeping health stocks up. Anthem rose 4.5%, Aetna was up 2.8% and Cigna 2.4%. 

UnitedHealth rose 1.7%, providing the biggest boost to the Dow.

Apple was up 0.8% at US$99.35, while Intel rose 0.9% to US$32.35 after positive ratings from BofA Merrill and JP Morgan, respectively.

Declining issues outnumbered advancing ones on the NYSE by 2,155 to 855. On the Nasdaq, 1,705 issues fell and 1,032 rose.

The S&P 500 index showed no new 52-week highs and 51 new lows, while the Nasdaq recorded 11 new highs and 229 lows. - Reuters

Tags / Keywords: Foreign News , Stocks

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