A steepening slide in crude oil prices weighed on U.S. stocks Monday, sending major indexes lower in afternoon trading. Energy stocks were among the biggest decliners. The price of U.S. crude slumped more than 3 percent amid speculation that oil supplies will rise further once Iran’s economic sanctions are removed.
KEEPING SCORE: The Dow Jones industrial average lost 50 points, or 0.3 percent, to 17,502 as of 1:24 p.m. Eastern. The Standard & Poor’s 500 index fell seven points, or 0.4 percent, to 2,053. The Nasdaq composite shed 20 points, or 0.4 percent, to 5,028.
THE QUOTE: Investors worry that falling oil prices could be a signal of further economic weakness ahead, said Paul Christopher, head global market strategist at Wells Fargo Investment Institute. “We don’t think that’s the case, but we think that’s what’s weighing on the market today,” Christopher said.
SECTOR VIEW: Eight of the 10 sectors in the S&P 500 index moved lower. Energy stocks fell the most, 1.7 percent. The sector is down 23 percent this year. Telecommunications services and utilities stocks edged higher.
FALLOUT: Several energy and mining companies were trading lower. Chevron fell $1.53, or 1.7 percent, to $90.52, the most in the Dow. Exxon Mobil lost 60 cents, or 0.8 percent, to $78.73. Consol Energy tumbled 75 cents, or 8.7 percent, or $7.90, while Chesapeake Energy slid 39 cents, or 8.8 percent, to $4.06.
EXECUTIVE SHAKEUP: Freeport-McMoRan fell 7.7 percent following news that James R. Moffett, the mining company’s executive chairman and co-founder, is stepping down. Plunging commodity prices have led to mass layoffs across the entire industry. The move follows the recent revelation that activist investor Carl Icahn has taken a huge stake in the company. The stock shed 58 cents to $6.99.
SICK LEAVE: Valeant Pharmaceuticals lost 10.3 percent after the company announced that CEO J. Michael Pearson is taking a medical leave of absence. Pearson was hospitalized with pneumonia last week. Three executives will take over for Pearson during his absence. The company’s stock fell $11.71 to $102.40.
DISCOURAGING RESULT: Chimerix plunged 80 percent after the biotechnology company’s oral antiviral drug for infections associated with stem cell transplants failed in a late-stage study. The stock shed $28.70 to $6.87.
THE FORCE EFFECT: Disney rose 1.3 percent. The media giant’s blockbuster “Star Wars” sequel reached $1 billion at the box office over the weekend. Disney gained $1.34 cents to $107.20.
OVERSEAS: In Europe, Germany’s DAX fell 0.7 percent, while France’s CAC 40 was off 1 percent. In Asia, Japan’s Nikkei added 0.6 percent, while the Shanghai Composite Index lost 2.6 percent. Hong Kong’s Hang Seng slipped 1 percent. The London Stock Exchange remained closed for the holiday break, as did exchanges in Ireland and Australia.
THE GLUT GOES ON: After recovering a bit last week, oil prices slid again amid reports that Iran intends to increase exports by 500,000 barrels per day once economic sanctions are removed. That would only add to excess global supplies that have helped depress oil prices.
ENERGY: Benchmark U.S. crude shed $1.43, or 3.8 percent, to $36.67 per barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, lost $1.03, or 2.7 percent, to $36.86 per barrel in London.
BONDS AND CURRENCIES: Bond prices rose. The yield on the 10-year U.S. Treasury note fell to 2.23 percent from 2.25 percent. The dollar slipped to 120.37 yen while the euro fell to $1.0975.
Comment count on this article reflects comments made on Breitbart.com and Facebook. Visit Breitbart's Facebook Page.