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Overnight Markets: Wall Street slides with falling oil prices

Shares of Exxon plunged 2.2% after the oil major reported its smallest quarterly profit in more than a decade.

 
Overnight Markets: Wall Street slides with falling oil prices

Wall Street declined on Tuesday after another steep fall in oil prices and a disappointing spending forecast from Exxon Mobil.

The Dow Jones industrial average closed down 296 points, or 1.8%, to 16,154, the S&P 500 lost 36 points, or 1.87%, to 1,903 and the Nasdaq Composite dropped 103 points, or 2.24%, to 4,517.

Energy stocks slid 3.3% after oil prices fell sharply as hopes faded for a deal between OPEC and Russia to cut output.

Shares of Exxon (XOM.N) plunged 2.2% after the oil major reported its smallest quarterly profit in more than a decade, forecast a 25% drop in capital spending from 2015 levels and suspended share repurchases. Earlier on Tuesday, BP Plc (BP.N) reported an annual loss of $6.5 billion, its largest ever. BP’s stocks tumbled 8%.

The Dow Jones transportation average ended 2.9% lower following news of the first US transmission of the Zika virus.

The financial sector was also hit hard. Bank of America and Goldman Sachs were down 5.2% and 4.9%, respectively. JP Morgan, one of the largest banks in the world, fell about 3%.

Bucking the day's trend, Alphabet (GOOGL.O) was up 1.3%. Quarterly profit beat estimates late Monday and the Internet major surpassed Apple (AAPL.O) as the most valuable US company.

After the bell, shares of Chipotle (CMG.N) fell 3% after it reported its first fall in quarterly sales at established restaurants since it went public.

Also, Yahoo (YHOO.O) dipped 1% in extended trading following its results.

In Asia, shares traded sharply lower on Wednesday in morning trade after Wall Street sold off as much as 2% overnight amid a plunge in oil prices.

Japan's Nikkei 225 dropped 3.66%, while the Topix fell 3.46%. Across the Korean Strait, the Kospi slumped 1.11% in morning trade.

Australia's ASX 200 traded down 1.91%, with all sectors in the red. Chinese markets opened firmly down, with the Shanghai composite lower by 1.09%. Hong Kong's Hang Seng index declined 3.32%.

3 comments so far. Why not have your say?

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Feb 03, 2016 at 09:51

The failure of OPEC to secure a deal with russia to cut oil output tells a story about opec for years the control of oil flow has increased the price of fuel in the uk we in the uk need 80 pence a litre this will help transport companies to keep their services at minimum cost .this will create stability throughout the uk and enable planned buisness to provide jobs .

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Neil Gardner

Feb 03, 2016 at 11:00

So if I understand the comment correctly you maintain that the low oil prices at present will benefit UK businesses in general but obviously not the Oil companies. Why then are the markets selling ??

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Feb 03, 2016 at 19:43

RECESSION

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