By March 24, 2016 Read More →

Oil prices fall over concerns of excess supplies, stocks continue broad decline

Oil prices fall after release of U.S. stockpiles data

oil prices

After a steady climb in oil prices, the price of crude dropped during trading on Thursday morning.  Statoil photo.

NEW YORK _ A slide in banks and other financial services companies led a broad decline for U.S. stocks in midday trading Thursday, steering the market on course for its first weekly loss in five weeks. Investors were poring over the latest batch of company earnings and economic news, including government data indicating that orders for long-lasting manufactured goods fell more than expected last month.

KEEPING SCORE: The Dow Jones industrial average fell 68 points, or 0.4 per cent, to 17,434 as of 11:57 a.m. Eastern Time. The Standard & Poor’s 500 index lost nine points, or 0.5 per cent, to 2,026. The Nasdaq composite dropped 14 points, or 0.3 per cent, to 4,754. U.S. financial markets will be closed Friday for the Good Friday holiday.

BIG DECLINERS: Natural gas producer Williams Companies was the biggest decliner in the S&P 500 index. The company fell $1.11, or 6.8 per cent, to $15.15. Range Resources fell $1.33, or 4.3 per cent, to $29.85.

FINANCIALS DOWN: Prudential Financial lost $3.47, or 4.8 per cent, to $69.36, while Morgan Stanley shed 83 cents, or 3.3 per cent, to $24.44.

BAD RUN: Sportsman’s Warehouse sank 11.1 per cent after the company released a disappointing forecast. The stock shed $1.53 to $12.26.

OPTIMISTIC: Shares in Office Depot and Staples vaulted on mounting optimism that a court will allow the office supply competitors to combine even though regulators oppose the deal. Office Depot gained 71 cents, or 11.1 per cent, to $7.05. Staples climbed 88 cents, or 8.8 per cent, to $10.93.

BRICKS & STICKS: KB Home climbed 5 per cent after the homebuilder reported strong first-quarter results. The stock gained 66 cents to $13.76.

SHINY HAPPY JEWELER: Signet Jewelers rose 3 per cent after the retailer posted solid quarterly results and its annual profit forecast was better than expected. The stock added $3.50 to $121.51.

FASHIONABLE RESULTS: PVH, owner of the Calvin Klein and Tommy Hilfiger brands, rose 7.4 per cent after it reported better-than-anticipated quarterly profit and revenue. The stock gained $6.45 to $94.07.

ECONOMIC BELLWETHER: The Commerce Department said that orders to U.S. factories for long-lasting manufactured goods fell 2.8 per cent in February, with a key category that tracks business investment dropping by the largest amount since December.

OVERSEAS MARKETS: Stock markets in Europe were posting sizable losses. Germany’s DAX dropped 1.4 per cent, while France’s CAC-40 fell 2 per cent. Britain’s FTSE 100 was down 1.4 per cent. In Asia, Hong Kong’s Hang Seng slid 1.3 per cent. Sydney’s S&P ASX 200 fell 1.1 per cent, while Seoul’s Kospi was off 0.5 per cent. Tokyo’s Nikkei 225 shed 0.6 per cent.

ENERGY: After a period of sustained gains, oil prices were headed lower again as concerns over excess supplies returned following the latest U.S. stockpiles data. Benchmark U.S. crude was down $1.01, or 2.5 per cent, to $38.78 a barrel in New York. Brent crude, the benchmark for international oils, was down 58 cents, or 1.4 per cent, to $39.89 a barrel in London.

BONDS AND CURRENCIES: Bond prices rose. The yield on the 10-year Treasury note fell to 1.88 per cent from 1.88 per cent late Wednesday. The euro was down to $1.1169 from $1.1183, while the dollar rose to 112.56 yen from 112.39.

The Canadian Press

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