Stocks on Wall Street open sharply lower

On the New York Stock Exchange, Dow members Chevron and ExxonMobil lost 3.2 per cent and 1.8 per cent, respectively, and Schlumberger fell 2.3 per cent.

The Standard & Poor’s 500 Index fell the most in more than two months amid a deepening retreat in commodities, and as investors prepare for next week’s Federal Reserve interest rate decision.

Dec 11 All three major indexes fell more than 1 percent on Friday and were on track for their worst weekly performance in a month as growing oversupply concerns dragged down crude oil prices to their 7-year lows.

In other energy futures market, Brent crude, the global oil benchmark, fell $1.80, or 4.5 percent, to $37.93 a barrel in London.

Chemical giants DuPont and Dow Chemical Co agreed to merge in an all-stock deal valuing the combined company at $130 billion in a win for activist investors that could spark further consolidation in the farm chemicals industry.

Nine of the 10 major S&P 500 sectors were lower, with the energy index’s 2.06 percent fall leading the decliners.

As of 9:30 a.m. ET, the Dow Jones Industrial Average was 27 points higher, or 0.15% to 17598.

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The South African rand fell sharply against the USA dollar after President Jacob Zuma unexpectedly fired the country’s respected finance minister a day ago. Indonesian shares also saw gains disappear, and was down 0.1 per cent, while Korea’s Kospi erased earlier losses to finish 0.2 per cent higher. Central bankers are expected to announce a quarter percent increase in short-term interest rates at the conclusion of the two-day policy meeting.

Legg Mason, BlackRock and Charles Schwab traded more than 3 percent lower in late-morning trade.

Meanwhile, according to the US Commerce Department, advance estimates of the US retail and food services sales for November rose 0.2 percent from the previous month to $448.1 billion, also below market expectations. The Dow gave up 117.12 points, or 0.7 percent, to 17,730.51.

The economic data calendar was light on Wednesday as traders looked ahead to import/export prices Thursday, and retail sales, consumer sentiment, and producer prices on Friday to round out a quiet week ahead of next week’s all-important FOMC meeting.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up about 0.1% in early trading.

A gauge of US consumer spending rose solidly in November as the holiday shopping season got off to a fairly brisk start. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plummeted by 10 basis points to 2.139 percent. Gold edged up $3.70 to $1,075.70 an ounce, silver fell 23 cents to $13.88 an ounce and copper rose four cents to $2.12 a pound.