US open: Energy stocks, McDonald's weigh as indices retreat from records
Weak global economic data prompted US stock indices to retreat from record levels on Monday as the post-jobs report euphoria began to fade, with energy stocks weighing on markets as oil prices continued their slide.
Anadarko Petroleum Corp.
$0.00
14:25 11/03/24
Chevron Corp.
$165.28
11:10 25/04/24
ConocoPhillips
$130.11
11:10 25/04/24
Cubist Pharmaceuticals Inc.
$0.00
20:15 21/03/24
Dow Jones I.A.
38,085.80
04:30 15/10/20
Exxon Mobil Corp.
$121.33
11:09 25/04/24
Hess Corp.
$161.45
11:10 25/04/24
Marathon Oil Corp.
$27.74
10:59 25/04/24
McDonald's Corp.
$275.60
11:04 25/04/24
Merck & Co. Inc.
$130.72
10:59 25/04/24
Nonequity Investment Instruments
0.00
17:17 25/09/06
Prospect Japan Fund Ltd.
$1.30
15:24 27/07/17
Schlumberger Ltd.
$49.44
11:04 25/04/24
By 10:08 in New York, the Dow Jones Industrial Average was down 0.04%, the S&P 500 was 0.06% lower, while the Nasdaq gained 0.09%.
The Dow and S&P 500 both set new all-time highs on Friday after the news that the US economy added 321,000 jobs in November, its biggest monthly gain in three years. The Dow in particular rose 0.3% to 17,958.79, coming close to the milestone of 18,000.
"With the dollar closing out last week at over 121 against the yen, it will only take one or two pieces of good news for the US markets to see the Dow finally breach that psychologically significant level. However, on a data-light day, the US will be looking for positivity from elsewhere if it hopes to reach that mark today," said analyst Connor Campbell from Spreadex.
US markets were tracking European indices lower after data showed that Japan's recession was deeper than originally thought, Chinese export and import growth was worse than expected, and German industrial output growth came in shy of forecasts.
With no major economic releases scheduled for Monday, the attention will be on Atlanta Federal Reserve president Dennis Lockhart, who is set to speak at 12:30 ET. Lockhart is one of the more dovish members of the Fed, although he currently is not a voting member of the Federal Open Market Committee.
Energy sector tracks crude lower
Energy stocks were under pressure such as oil producer Exxon Mobil and oilfield services group Schlumberger as crude prices dropped to their lowest in five years. Sector peers such as Chevron, Conocophillips, Hess Corp, Marathon Oil and Anadarko Petroleum were also trading in the red.
Fast-food giant McDonald's was also suffering steep losses early on after its November sales declined by more than expected. Global sales dropped 2.2% with the US suffered a 4.6% slide.
Wynn Resorts retreated after the government of Macau, where the firm generates over two thirds of its sales, forecast lower gaming revenue for 2015.
Cubist Pharmaceuticals soared after Merck & Co. agreed to acquire the firm for a deal worth $8.4bn. Merck will begin a $102-a-share tender for the group on Monday.
West Texas Intermediate (WTI) and Brent crude were trading at levels not seen since 2009 on Monday, with WTI falling as much as 2.6% to $64.20 a barrel and Brent dropped 3.1% to $66.94 a barrel.
The yield on a benchmark 10-year US Treasury was down one basis point at 2.30%.