ExxonMobil Corp and Chevron Corp were among the top decliners on the Dow
U.S. stocks ended deep in the red on Wednesday, 10 December 2014. Stocks fell as a renewed slump in oil prices slammed energy companies while investors fretted that a stunning drop in oil prices signals a more worrisome global-economic slowdown. For the second day in a row, the major averages slumped at the start, but unlike yesterday, the key indices could not stage a comeback with a big drop in the energy sector keeping the market under pressure throughout the session.
The Dow Jones Industrial Average dropped 268.05 points, or 1.5%, to 17,533.15. The Nasdaq Composite ended the day with a loss of 82.44 points, or 1.7%, to 4,684.03. The S&P 500 fell 33.68 points, or 1.6%, to 2,026.14.
ExxonMobil Corp and Chevron Corp were among the top decliners on the Dow Jones Industrial Average. Small and mid-cap energy companies were among the biggest decliners.
Growth concerns were also visible in the foreign exchange market with the Dollar Index recording its third consecutive decline. Notably, the retreat in the dollar gave a big boost to the yen and pressured the dollar/yen pair.
Economic data was limited to the MBA Mortgage Index and the Treasury Budget. The weekly MBA Mortgage Index spiked 7.3% to follow last week's 7.3% decline The Treasury budget showed a deficit of $56.80 billion in November, down from a deficit of $135.2 billion in November 2013. The Treasury data are not seasonally adjusted, and the November data cannot be compared to the $121.7 billion deficit in October The Consensus expected a budget deficit of $59.0 billion. The November deficit was slightly smaller than the CBO's forecast of a $59.0 billion deficit.
Safe haven demand boosted Treasuries with the 10-yr yield falling six basis points to 2.16%.
More From This Section
The selloff invited above-average participation with more than 890 million shares changing hands at the NYSE floor.
Bullion prices ended mixed at Comex on Wednesday, 10 December 2014 at Comex. Gold ended the U.S. day session modestly lower on Wednesday, on a mild downside correction following sharp gains on Tuesday that pushed prices to a six-week high. Gold retreated on Wednesday as investors took profits following a strong run-up in the previous session in response to a global equities meltdown.
Gold for February delivery slipped $2.60, or 0.2%, to settle at $1,229.40 an ounce. March silver rose 5 cents to $17.19 an ounce.
Crude-oil futures fell on Wednesday, 10 December 2014 at Nymex and ended at a fresh five-year low on Wednesday, dragged down by a surprise inventories increase and news the Organization of the Petroleum Exporting Countries cut its 2015 demand expectations for crude.
Light, sweet crude for delivery in January declined $2.88, or 4.5%, to settle at $60.94 a barrel on the New York Mercantile Exchange. That was oil's lowest settlement since July 2009.
As per weekly inventyory report, the U.S. Energy Information Administration said Wednesday oil inventories rose by 1.5 million barrels in the week ending 5 December 2014. Market had expected a decrease in supplies of around 3 million barrels. The EIA also said gasoline supplies rose by 8.2 million barrels, and supplies of distillates, which include heating oil, rose by 5.6 million barrels.
OPEC said earlier Wednesday it sees less demand for its own oil in 2015. It predicts that demand for OPEC oil would drop to 28.9 million barrels a day next year, compared with 29.4 million barrels a day in 2014. In its latest monthly report, OPEC said crude production from member countries declined by 390,100 barrels a day to 30.05 million barrels a day in November, compared with October.
The German government auctioned two-year notes (Schatz) Wednesday for an average yield of minus 0.04%. The negative yields on recent German bond auctions underscore the ill health of the European Union economy. In other news, China's consumer price index rose by 1.4% in November, year-on-year, following a 1.6% increase in October.
Tomorrow, weekly Initial Claims (consensus 295K), November Retail Sales (consensus 0.4%), and November Import/Export prices will be reported at 8:30 ET while the Business Inventories report for October (consensus 0.2%) will be released at 10:00 ET.
Powered by Capital Market - Live News