US stocks pared gains and turned negative on Friday, weighed down by energy stocks as oil prices dipped below $33 a barrel -their lowest in more than a decade. Oil erased earlier gains, pressured by persistent global oversupply and a bleak demand outlook. They have lost about 70 percent since mid-2014. Exxon and Chevron fell about 1.5 percent weighing the most on the Dow and S&P 500. Stocks had been higher earlier in the day as market tumult in China eased and data showed robust US job growth.
Nonfarm payrolls surged in December and unemployment rate held steady at 5 percent. October and November payrolls were revised sharply higher. The upbeat report suggested that a recent manufacturing-led slowdown in economic growth would be temporary. Investors have been jittery as markets got off to their worst four-day start to a year and economists slashed fourth-quarter US growth estimates. "The market's reaction is something between curious and concerning," said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago.
"You are not getting that much of a lasting reaction in markets. The week has witnessed some of the most concerning phenomenon in some time. People are skittish in holding positions." At 11:31 am ET (1431 GMT) the Dow Jones industrial average was down 44.14 points, or 0.27 percent, at 16,469.96, the S&P 500 was down 5.5 points, or 0.28 percent, at 1,937.59 and the Nasdaq Composite index was down 13.05 points, or 0.28 percent, at 4,676.38. Nine of the 10 major S&P 500 sectors were lower, with the energy index's 1.34 percent loss making it the top decliner. Apple shares snapped their three-day losing streak and were up 0.8 percent. They rose as much as 2.8 percent earlier in the session.
Comments
Comments are closed.