View the article online at http://citywire.co.uk/money/article/a874909
Overnight Markets: Wall Street ends flat as oil stocks plummet
Crude at 12-year lows is stoking fears on Wall Street of deeper losses for energy companies.
Wall Street ended flat after a choppy session on Tuesday as another plunge in oil prices battered energy stocks and an economic report showed slower growth in China.
The Dow Jones industrial average ended up 0.17% at 16,016 points. The S&P 500 gained one point to end at 1,881. The Nasdaq Composite fell 0.26% to 4,477.
Materials and oil stocks plummeted after US benchmark crude dropped more than 3% to below $29 a barrel. Oil at 12-year lows is stoking fears on Wall Street of deeper losses for energy companies and the potential that some may fail to pay their debts.
Exxon Mobil dropped 1.52% and was the largest drag on the S&P 500. Chevron fell 2.58%. Gold miner Newmont Mining lost 7.9% and copper producer Freeport-McMoRan gave up 9%.
In China, growth in 2015 was the slowest in 25 years but in line with expectations, a report showed. That can affect demand for everything from energy to metals to consumer goods and heavy machinery.
After the bell, Netflix surged 8% after the streaming service's fourth-quarter subscriber additions topped expectations thanks to strong international growth.
Bank of America fell 1.52% despite beating fourth-quarter profit expectations, after it expressed concerns about weak oil prices.
UnitedHealth added 3.02%, limiting losses on the Dow and S&P after the health insurer reported a 30% rise in quarterly revenue. Tiffany lost 5.07% after the upscale jeweller said holiday season sales fell 6%.
Safe-play stocks like utilities and telecommunications companies rose the most. AT&T added 1.5% and NextEra Energy gained 2.4%. Consumer goods maker Procter & Gamble rose 2.3%.
In Asia, shares were down in morning trade on Wednesday as investors digest the deluge of data out of China on Tuesday.
In Japan, the Nikkei 225 was lower by 0.72%, while in South Korea, the Kospi fell 0.53%. In China, Shanghai Composite Index opened 0.15% lower, while Hong Kong’s Hang Seng Index was trading 2.16% down. In Australia, ASX 200 fell 0.65%.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.