Wall St drops as weak oil weighs on energy shares

All three major U.S. stock indexes closed at record highs on Thursday for the first time since 1999 as surging oil prices and strong earnings from department stores Macy’s and Kohl’s buoyed investor sentiment. Banking, health care and technology companies also declined, while consumer-focused stocks and phone companies posted gains.

The Dow Jones industrial average traded 24 points lower, or 0.14 percent, at 18,507, with ExxonMobil leading decliners and Wal-Mart the top advancer. The Standard & Poor’s 500 is down 2 points, or 0.1 percent, to 2,184. The Nasdaq composite is down 8 points, or 0.2 percent, to 5,220.

The Dow is down 47.87 points, or 0.3 percent. The S&P 500 closed at 2,185.78, a new record high which beat Friday’s record by just a few points.

CHINA CHURN: A Chinese official sought to reassure companies and investors that the growth in the world’s second-largest economy is stable after the government reported retail sales rose 10.2 percent in July from a year earlier, down from June’s 10.6 percent growth. The Nasdaq composite underperformed, trading about 0.3 percent lower. Hong Kong’s Hang Seng edged up 0.1 percent, while Australia’s S&P ASX 200 fell 0.2 percent.

Most companies have delivered their quarterly report cards, and earnings and revenue have been relatively good. Fossil added 41 cents, or 1.4 percent, to $30.78, while Ralph Lauren gained $9.91, or 10.4 percent, to $104.98.

Oil prices also rebounded off its lows for the day, and jumped $1.80, or 4.3%, to $43.51 a barrel. The pan-European Stoxx Europe 600 index advanced 0.8 percent.

West Texas Intermediate, the US benchmark, rose 2.67% to $44.67 a barrel on Friday, ending the day at three-week highs.

All three main indexes closed at record highs on the same day for the first time since Dec 31, 1999. India’s Sensex gained 1 precent to 28,125.90 and markets in Southeast Asia were mostly higher.

The S&P 500 gained 0.5 per cent to 2,185.79, extending this year’s advance to 6.9 per ent. Brent crude, used to price worldwide oils, was up 70 cents, or 1.5 percent, at $46.74 a barrel in London. Brent crude, used to price worldwide oils, lost 17 cents at $44.81 per barrel in London.

The Kiwi was up 1.1 percent to 72.87 US cents, after reaching as high as 73.41 USA cents, its strongest level since May 2015.

CURRENCIES: In currency markets, the dollar weakened to 101.19 yen from 101.20 on Wednesday.

The yield on the 10-year United Kingdom government bond fell to a record low of 0.524%, according to Tradeweb.

The dollar index fell for the second straight day as weak USA productivity data on Tuesday somewhat dimmed the prospects of economic growth and would likely deter the Federal reserve from raising interest rates. The euro rose to $1.1157 from $1.1137.