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US STOCKS-Wall Street slides after Saudi attacks; energy stocks surge

Published 16/09/2019, 15:03
© Reuters.  US STOCKS-Wall Street slides after Saudi attacks; energy stocks surge
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* Energy stocks soar as oil prices jump 10%

* Airlines, cruise operators fall on prospects of higher

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

* Energy sector sole gainer among major S&P sectors

* Indexes down: Dow 0.38%, S&P 0.32%, Nasdaq 0.35%

(Updates to open)

By Medha Singh

Sept 16 (Reuters) - Wall Street slipped on Monday on global

growth worries after the weekend attack on Saudi Arabian crude

facilities knocked out 5% of the world's supply, while a more

than 10% jump in oil prices lifted beaten-down energy stocks.

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

prices up as much as 20% before they eased off their peaks as

U.S. President Donald Trump authorized the use of the country's

emergency oil stockpile to ensure stable supplies. O/R

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

sectors this year, soared 3.18%, its best day since Jan. 4.

At least 14 of the top advancers on the S&P 500 were energy

stocks. Shares of Marathon Oil Corp MRO.O and Devon Energy

Corp DVN.N rose more than 8% each and led the gains.

The supply disruptions should put a bid into U.S. energy

stocks, which have meaningfully lagged the broader market, JPM

analysts wrote in a note.

"In particular, we could see a positive move in the oily

small and mid-cap group."

Meanwhile, 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% and 5%.

Ten of the major S&P sectors were lower, with technology

shares .SPLRCT weighing the most.

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 1%. US/

At 9:44 a.m. ET, the Dow Jones Industrial Average .DJI was

down 104.17 points, or 0.38%, at 27,115.35, the S&P 500 .SPX

was down 9.48 points, or 0.32%, at 2,997.91. The Nasdaq

Composite .IXIC was down 28.40 points, or 0.35%, at 8,148.32.

This week's centerpiece is the Federal Reserve's monetary

policy decision on Wednesday where the central bank is widely

expected to deliver the second interest rate cut this year of a

quarter basis points.

Hints on whether the central bank will keep easing its

monetary policy will be crucial in determining how long Wall

Street's strong rally will last.

Cooling trade tensions between the United States and China

last week has brought the benchmark S&P 500 .SPX about 1%

below its record high.

Among other movers, General Motors Co GM.N fell 2.7% after

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

first nationwide strike at GM in 12 years. Declining issues outnumbered advancers for a 1.11-to-1 ratio

on the NYSE and a 1.23-to-1 ratio on the Nasdaq.

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

low, while the Nasdaq recorded 12 new highs and eight new lows.

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