Energy, financials drag Wall Street as tech rebound fades | Reuters - Firstpost
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Energy, financials drag Wall Street as tech rebound fades | Reuters

Updated: Feb 10, 2016 00:00 IST

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Wall Street was lower on Tuesday, after bouncing between gains and losses in a choppy session, as the beaten-down energy and financials stocks fell further and a rebound in technology faded.

Five of the 10 major S&P sectors were lower, with energy .SPNY down 2.9 percent and financials .SPSY off 0.9 percent.

Benchmark Brent crude prices were down 5 percent. The continued slide in oil prices has roiled energy stocks and also weighed on the broader market for most of this year.

But, the financial sector has taken the biggest beating this year, falling 15 percent, as fears of a recession compounded concern about banks' exposure to the energy sector and expectations that interest rates are unlikely to rise quickly.

"We're starting to feel some of the knock on effects from energy and distress in those markets," said Steven Baffico, chief executive officer at Four Wood Capital Partners in New York.

"Over the last couple of days, that's spread into the financial system. It's difficult to find a lot of momentum to the upside for any sustained period of time," he said.

U.S. stock indexes have struggled for most of 2016, falling sharply in the previous two sessions, on increasing worries of a sustained global slowdown and falling oil prices.

At 12:30 p.m. ET, the Dow Jones industrial average .DJI was down 79.96 points, or 0.5 percent, at 15,947.09.

The S&P 500 .SPX was down 8.99 points, or 0.49 percent, at 1,844.45. The index is down 13.18 percent from its record high in May through Monday's close.

The Nasdaq Composite index .IXIC was down 23.59 points, or 0.55 percent, at 4,260.17. The index has fallen 18.12 percent from its record in July through Monday's close.

Facebook (FB.O), Alphabet (GOOGL.O) and Microsoft (MSFT.O) gave up early gains to trade down about 1 percent.

Chevron (CVX.N), down 3.5 percent, and Exxon (XOM.N), off 1.7 percent, weighed heavily on the S&P and the Dow. JPMorgan (JPM.N) and Citigroup (C.N), both down 1.7 percent, led the decline in bank stocks.

Viacom (VIAB.O) tumbled 15.4 percent, set for its worst day in more than 7 years, and Twenty-First Century Fox (FOXA.O) dropped 3 percent after the two media companies posted lower-than-expected revenue.

Other media stocks also fell. Disney (DIS.N), scheduled to report after the close, was off 1.3 percent. Investors will watch for its ESPN subscriber trends.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Savio D'Souza)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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