Citywire for Financial Professionals
Stay connected:

View the article online at

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%.

Overnight Markets: Wall Street slumps as energy stocks tumble

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%.

1 comment so far. Why not have your say?

Anonymous 1 needed this 'off the record'

Jan 26, 2016 at 09:02

The difference in having faith that markets will rebound .and reality of what is taking place in falling oil and stocks must grab at every investor .so go bear and survive.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Understanding the value in commodity investing

Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.

Watch Now

New Economies - Frontiers and Latam Exciting markets, unrealised investment opportunities

From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.

Watch Now

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:


Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

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 to your safe senders list so we don't get junked.


Buy, sell, hold: two top trusts for equity income

by Gavin Lumsden on Sep 29, 2016 at 00:01

Sorry, this link is not
quite ready yet