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Overnight Markets: Wall Street slumps as energy stocks tumble
ConocoPhillips tumbled 9.2% after Barclays said the company should cut its dividend by at least 75%.
Wall Street slumped on Monday, halting a two-day rebound, as crude oil resumed a selloff pulling energy share lower.
The Dow Jones industrial average fell 208 points, or 1.29%, to 15,885, the S&P 500 lost 30 points, or 1.56%, to 1,877 and the Nasdaq Composite dropped 73 points, or 1.58%, to 4,518.
Energy and mining shares pushed the Standard & Poor’s 500 Index’s retreat to 1.6% as US crude tumbled back below $31 a barrel, winding back a sizable chunk of Friday’s gains. The energy was the worst per forming sector, with Exxon (XOM.N) and Chevron (CVX.N) each falling more than 3%. ConocoPhillips (COP.N) tumbled 9.2% after Barclays said the company should cut its dividend by at least 75%.
D.R. Horton (DHI.N) shares were down 4.7% as the No. 1 US homebuilder reported lower-than-expected revenue as its home sales fell in all regions but the Southeast.
Tyco International (TYC.N) jumped 11.6% after Johnson Controls (JCI.N) said it would merge with the Ireland-based fire protection and security systems maker. Johnson Controls dropped 3.9%.
Shares of Dynegy (DYN.N) and NRG Energy (NRG.N) slumped 11.5% and 9.6%, respectively, after the US Supreme Court upheld a major Obama administration electricity markets regulation.
Caterpillar (CAT.N) dropped 5% after Goldman Sachs cut its rating on the stock to "sell".
Twitter (TWTR.N) fell 4.6% after chief executive Jack Dorsey said four senior executives would leave the social media company.
Investors will look for insight about the economy's direction later this week as many heavyweight companies report results. Federal Reserve policymakers meet on Tuesday and Wednesday for the first time since raising interest rates in December.
In Asia, equities came under pressure on Tuesday from a renewed selloff in oil overnight, ahead of the Federal Reserve's monetary policy decision on Thursday.Japan’s Nikkei 225 Index fell 1.82% as of 12.13 p.m. in Tokyo. In Australia, S&P/ASX 200 added 1.84%, while South Korea’s Kospi Index was down 1.09%. China’s Shanghai Composite Index fell 1.11%, while Hong Kong’s Hang Seng Index shed 1.46%.
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by David Kempton on May 24, 2016 at 17:15