Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US STOCKS-Wall St drops after Saudi attacks; energy stocks limit losses

Published 16/09/2019, 17:06
© Reuters.  US STOCKS-Wall St drops after Saudi attacks; energy stocks limit losses
US500
-
DJI
-
IXIC
-
US10YT=X
-
AAL
-
SPNY
-

(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window.)

* Energy sector jumps more than 2%

* Airlines, cruise operators fall on cost concerns

* Defense cos rise amid geopolitical tensions

* United Auto Workers call for strike on GM; shares fall

* Indexes down: Dow 0.49%, S&P 0.35%, Nasdaq 0.30%

(Changes comment, adds details; Updates prices)

By Medha Singh and Ambar Warrick

Sept 16 (Reuters) - U.S. stocks fell on Monday on global

growth worries after weekend attacks on Saudi Arabia's crude

facilities hit 5% of the world's supply, but a sharp jump in

crude prices lifted beaten-down energy stocks and kept losses in

check.

The attack on the world's biggest oil exporter sent oil

prices up more than 20% before easing as various nations said

they would tap emergency reserves to ensure stable supplies.

The S&P 500 energy .SPNY , one of the worst performing

sectors so far this year, soared 2.36%. Shares of Apache Corp

APA.N , Marathon Oil Corp MRO.O and Hess Corp HES.N jumped

between 8.8% and 10.1% and were the leading gainers on the

benchmark index.

"The oil spike - higher prices globally - could slow world

spending on items other than oil and that's the main concern,"

said Rick Meckler, partner at Cherry Lane Investments, a family

investment office in New Vernon, New Jersey.

Market spotlight shifted to the drone attacks from this

week's centerpiece, the U.S. Federal Reserve's two-day monetary

policy meeting where expectations of a quarter point interest

rate cut remain high.

Anticipation of higher fuel costs drove down shares of

airlines and cruise line operators. American Airlines Group Inc

AAL.O , Delta Air Lines Inc DAL.N and Carnival Corp CCL.N

fell between 2.2% and 5.1%.

Investors' flight to safety pulled the U.S. benchmark

10-year Treasury bond yields US10YT=RR down from their

multi-week highs, sending the interest-rate sensitive bank

sub-sector .SPXBK down about 0.6%. US/

Shares of defense companies Raytheon RTN.N , Lockheed

Martin Corp LMT.N , Northrop Grumman Corp NOC.N rose between

1.1% and 2.6%. J.P. Morgan upgraded Raytheon shares to

"overweight".

At 11:34 a.m. ET, the Dow Jones Industrial Average .DJI

was down 133.39 points, or 0.49%, at 27,086.13, the S&P 500

.SPX was down 10.50 points, or 0.35%, at 2,996.89. The Nasdaq

Composite .IXIC was down 24.42 points, or 0.30%, at 8,152.29.

Nine of the 11 major S&P sectors were trading lower.

Wall Street's more than a decade-long rally continues to

hinge on whether the Fed will keep cutting interest rates and on

the progress in U.S.-China trade talks. The recent easing in

trade tensions has brought the benchmark S&P 500 .SPX about 1%

below its record high.

Among other movers, General Motors Co GM.N fell 3.1% after

the United Auto Workers (UAW) went on strike on Sunday, the

first nationwide strike at GM in 12 years. Advancing issues outnumbered decliners by a 1.14-to-1 ratio

on the NYSE and a 1.14-to-1 ratio on the Nasdaq.

The S&P index recorded four new 52-week highs and one new

lows, while the Nasdaq recorded 32 new highs and 17 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.