US Stocks Follow Global Markets Lower as Oil Prices Weigh

The Dow Jones Industrial Average and S&P 500 Index closed lower Monday as oil prices slipped, while the Nasdaq Composite Index finished at its highest level in more than a year. However, the gains could not be contained owing to a slump in US crude CLc1, which fell under $40 per barrel which is its lowest level since April.

The wider S&P 500 index fell 5.02 points to 2,165.82, while the Nasdaq dropped 4.61 points to 5,179.59.

The S&P 500 Index retreated 0.6 per cent to 2157.06 at 4pm in NY, marking the first back-to-back declines since the Brexit vote. Dow e-minis were up 31 points, or 0.17 percent, with 22,946 contracts changing hands.

The S&P 500 gained 3.6 percent in July, its best month since March, touching record intraday highs seven times, as the US economy showed signs of picking up and corporate earnings were not as bad as had been initially feared.

Oil prices fell about 3.6 percent due to an increase in OPEC production and USA oil rig additions.

Fleetmatics Group, which sells software to manage commercial vehicle fleets, soared 38.7 on news it will be acquired by Verizon Communications for US$2.4 billion.

Stock losses deepened as Tuesday wore on, with traders absorbing earnings reports, a disappointing Japanese stimulus plan and personal income and spending data, while hard-hit oil prices kept sliding.

Five of the 10 major S&P sectors were higher, with the health index’s.SPXHC 0.54 percent rise leading the advancers.

Other biotech shares were also strong, with Gilead Sciences advancing 1.3 per cent and Celgene 2.2 per cent. In Japan, the Nikkei 225 dropped 0.96%, while across the Korean Strait, the Kospi was lower by 0.47%.

But Apple climbed 1.6 per cent and Netflix 3.4 per cent, suggesting a rotation by investors into technology shares. Natural gas gave up 11 cents, or 3.7 percent, to $2.77 per 1,000 cubic feet.

The dollar was recently down 1.4% against the yen at Yen100.920. Specifically, gold for December delivery tacked on $13, or 1%, to settle at $1,372.60 per ounce – its highest close since March 2014 – as investors sought “safe havens”. Its stock fell $1.29, or 4.8 percent, to $25.41 and Tesla Motors lost 4 cents to $234.75. The euro fell to $1.1168 from $1.1179.