Energy names for business

Stocks Crumble as Oil, Bank Names Drop

Wall Street was sharply lower on Tuesday as U.S. oil prices hovered near $30 a barrel and energy names weighed.

The Dow Jones Industrial Average shed 294 points, or 1.79% to 16154. The S&P 500 dropped 36 points, or 1.87% to 1903, while the Nasdaq Composite plunged 103 points, or 2.24% to 4516.

All 10 S&P 500 sectors were in negative territory as energy fell more than 4%.

Today’s Markets

U.S. equity markets were in steep decline on Tuesday as oil prices plunged and energy names dropped.

West Texas Intermediate crude tumbled 5.50% to $29.88 a barrel. Brent, the international benchmark, meanwhile, dropped 4.44% to $32.72 a barrel.

Continue Reading Below

The U.S. benchmark flirted with the psychologically-significant $30 level, ultimately settling just below it, as worries over the global supply glut continued to remain in focus a day after data out of China sparked renewed fears over slowing demand from the world’s second-biggest economy.

Combined with Monday’s 5.95% drop, oil prices saw the biggest two-day percentage decline since March 2009, down more than 11% over two trading sessions.

Meanwhile, hopes were dashed for an emergency meeting among members of the Organization for Petroleum Exporting Countries (OPEC) to discuss the possibility of production cuts to help alleviate the pressure from worldwide oversupply. Reuters reported that while energy ministers of Russia and Venezuela were open to holding talks between OPEC and non-OPEC members, Goldman Sachs (GS) said it was “highly unlikely” OPEC members would cooperate.

It’s red alert for the oil patch once again, Chris Beauchamp, IG market analyst, said in a note.

“Major indices are rapidly shedding the gains they made in the second half of January as a cocktail of worries returns. The first of these is the oil price, which has rediscovered its old habit of diving like a stone, helped in no small part by the absence of any rumors about another OPEC meeting, ” he said.

Bill Merz, alternative investment strategist at U.S. Bank, said market volatility will continue until oil finds a bottom and clear signs emerge that production is leveling off.

“It takes some time for wells and drills for fracking to go offline, but the timeline is short compared to other methods used outside the U.S. By the time we reach the end of 2016, there will have been more wells coming offline in the U.S. and supply will have more opportunity to drop in earnest, ” he said.

He continued by saying the supply side of the equation is still seeing production from wells drilled before the most recent selloff in oil. In other words, the market has yet to see that runoff happen.

The rapidly-deteriorating price of oil and weak fourth-quarter results put pressure on the energy sector, which was the worst performing of the 10 S&P 500 sectors on the session, falling nearly 4% in recent action.

Ahead of the bell, ExxonMobil (XOM) reported fourth-quarter earnings that beat expectations. Earnings per share of 67 cents on revenue of $59.81 billion came in well above analysts’ expectations for 63 cents in profits per share on sales of $51.35 billion. Despite the beat, the world’s biggest publicly-traded energy company logged the smallest profit since 2002, and a 58% drop from the same time the year prior. Exxon said during the period, its oil and gas output increased 4.8%.

Meanwhile, British Petroleum (BP) saw its biggest annual loss in 2015, and moved to slash 7, 000 jobs, nearly 9% of its workforce, by the end of next year. In 4Q, the company booked a $6.5 billion loss. The company’s CEO said in a statement BP continues to move “rapidly” to adapt and rebalance the changing environment, while also trying to keep costs low. The results come a day after Standard & Poor’s rating agency put the company on the path to a credit downgrade.

“ExxonMobil, which is down 3% as the earnings beat fades amidst the stark reality of a remarkable slump in profits, ” Beauchamp wrote. “As crude prices slide once more thanks to markets suddenly waking up and remembering the massive oversupply story, it looks like this sector will be the trailblazer for any renewed slump in stock markets.”

Exxon (XOM) was among the top 10 losers and shaving 11 points off the Dow, while Chevron (CVX) was the second-biggest decliner, accounting for 27 points of the index’s declines.

As the downward momentum in equities held, traders flocked to safe-havens including U.S. Treasury bonds. The yield on the benchmark 10-year fell 0.087 percentage point to 1.879%. Yields move in the opposite direction of prices.

Top Plaza Top Plaza Men,Women 8mm Lava Rock Beads Chakra Bracelet Black Healing Energy Stone Gemstone Bracelet (Lava Chakra Bracelet)
Jewelry (Top Plaza)
  • Handmade Link Stretch Lava Rock Beads Bracelet with Semi-preciouse Gemstones
  • Buddha head/Lion head/Hamsa hand Evil Eye (Hand of Fatima) Charm Lava Beads Charka Bracelets. 7 8 chakra stones bracelets. Unisex, Good Matching for Men and Women
  • 6 - 7 inches for the length but elastic;Fits Most of the Size
  • Natural Black Lava Rock Beads Bracelet for Men, Women.Each order comes with a grey velveteen gift pouch printed with the brand name Top Plaza
  • Orders could be expected to arrive within 7-14 business days, but may delay for irresistible factors occasionally.
Blue LED Name Tag , MECO EZ01 Name Badge reuseable Price Tag rechargeable ID Tag office megnetic name tags, MicroUSB programming Digital Sign 11x44, w/ Magnet and Pin Blue 11X44
Office Product (TopMall)
  • [ Want Attract more Attention? ] ✔ You ll Be Catch More Eyesight When You Wear It On Party, Concert, Airport, Classroom, Roadside, Ideal for Leave Message, Prompt...
  • [ No CD Driver Required and Easy Programming ] ✔ Software Stored in the device, Free Drive, Connect to your computer, Find the HDSmart and Play. Multi-language Support...
  • [ No Batteries Required and Energy Savings ] ✔ With a Rechargeable 230mAh Lithium battery (Built in),it can run 12 hours or more in full brightness mode(Brightness...
  • [ Built-in Magnet + Pin ] ✔ With Magnet,it s easy fixed on Refrigerator or cloth, or irony things, would not Damage it, and it also have pins,you can put it on your...
  • [ Certification: ROHS,CE,MSDS ]✔ THOUSANDS of Happy Customers, 100% POSITIVE AMAZING SELLER RATINGS. 100% SATISFACTION GUARANTEE & 40Days Money Back Guarantee...
Pink Lizard Products Pink Lizard Business Name ID Credit Card Holder Book Case Organizer Black
Home (Pink Lizard Products)
  • Business Name ID
  • Credit Card Holder
  • Energy Star Qualified Air Conditioners
  • Please Allow 7-23 Business Days For Delivery
  • Package Contains One Item
Vandor DRINK COFFEE Do stupid Things Faster with More Energy Business Card Case Credit Card Holder
Office Product (Vandor)
  • This ID Case measures approximately 4 x 2 7/8 x 7/8
  • Perfect for gift giving
Yuting Solar Energy Power LED lighting Pet Collar with USB Charing 30 Minutes Water Resistant Durable Flashing Lights Collars for Small Medium Large Dogs (L, orange)
Pet Products (Yuting International Business Ltd)
  • USB and Solar both can recharge the collar, USB recharge to full about 2 hours, solar recharge to full about 8 hours
  • High quality movement and lithium battery, flashing time can up to 14 hours after full charging, reflective stripe + light flashing design
  • 30 mins ordinary life waterproof (need cover the USB interface)
  • Please remove the collar when you bath the pet
  • Size:S:35-40cm (13.7 -15.7 ) Recommend weight 15kg-30kg/ M:40-50cm (15.7 -19.5 ) Recommend weight 30kg-50kg / L:50-60cm (19.5 -23.6 ) Recommend weight 50kg-80kg
Related Posts