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S&P falls with sinking energy stocks

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NEW YORK -- U.S. stocks took another small step backward on Wednesday after a plunge in the price of oil dragged down shares of energy producers. The losses overshadowed gains for technology companies and other areas of the market.

The Standard & Poor's 500 index dipped by a fraction of a point, down 0.30 to 2,629.27, and it's down just 0.5 percent so far this week. But even those modest movements could count as notable in a year that has been unusually calm and easy for investors. It was the fourth straight loss for the index, the first time that has happened since March.

The Dow Jones industrial average fell 39.73 points, or 0.2 percent, to 24,140.91, the Nasdaq composite rose 14.16, or 0.2 percent, to 6,776.38 and the Russell 2000 index of small-cap stocks fell 7.88, or 0.5 percent, to 1,508.88.

Stocks have been mostly drifting lower this week following a strong run for markets this year. The ups and downs have come as the Senate and House of Representatives try to iron out differences in their proposals to overhaul the tax system, and investors shift their portfolios toward companies that stand to benefit most from lower rates.

"It looks like we topped out last week and we've been rolling a bit," said Phil Orlando, chief equity market strategist at Federated Investors. "The reality is we had a phenomenal run here, and we looked a little overbought in my mind. So I wouldn't at all discount a little bit of a correction here of 2 or 3 percent."

The market, which is still up more than 17 percent for the year, is also in a relatively quiet period, Orlando said. Companies have finished reporting how much profit they made in the summer, and fourth-quarter reports won't start again in earnest for more than a month. That can lead to a drifting market.

The market's biggest movers were energy stocks, which sank with the price of oil. Benchmark U.S. crude fell $1.66 to settle at $55.96 per barrel. Brent crude, the international standard, lost $1.64 to $61.22 a barrel.

That led to a 1.3 percent loss for energy stocks in the S&P 500, the sharpest drop among the 11 sectors that make up the index. Oil company Newfield Exploration fell $2.12, or 6.9 percent, to $28.44 for the biggest loss of any stock in the S&P 500.

The main drivers for the stock market much of this year have been the improving global economy and a resulting jump in profits for businesses. A report on Wednesday implied that the U.S. job market continues to strengthen.

Private employers added 190,000 jobs last month, according to a report from payroll processor ADP. Economists see the report as a relatively good indication of what the more comprehensive federal government's jobs tally will show.

That report arrives on Friday, and it will be one of the last pieces of major economic data released before the Federal Reserve's meeting next week on interest rates. Most economists expect the Fed to raise rates, which would be the third increase of the year.

Treasury yields sank as prices for government bonds rose. The yield on the 10-year Treasury note dropped to 2.33 percent from 2.35 percent late Tuesday.

Business on 12/07/2017

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