Wall Street resumes 2016 slide as energy stocks tumble

Wall Street sold off on Monday, pulled lower by further weakness in oil prices as energy shares led declines, with major indexes retreating after last week's strong gains. 

Oil prices fell 6 percent on concerns of oversupply after news that Iraq's output reached a record last month.

The S&P energy group .SPNY dropped 4.5 percent, the worst performing sector. Exxon (XOM.N) and Chevron (CVX.N) each fell more than 3 percent, while ConocoPhillips (COP.N) tumbled 9.2 percent after Barclays said the company should cut its dividend by at least 75 percent.

The major indexes each fell more than 1 percent, reversing much of a two-session rally that marked Wall Street's first week of gains in the year. All 10 major S&P sectors finished the session lower.

During the poor start for the year for U.S. stocks, their performance has closely correlated with the price of oil. The commodity's dramatic 1-1/2-year slide has sparked broad concerns about a global economic slowdown.

"Better oil markets Thursday and Friday led to better equity markets. A $2 retracement in oil today, it's not surprising to see a retracement in the equity indices."

The Dow Jones industrial average .DJI fell 208.29 points, or 1.29 percent, to 15,885.22, the S&P 500 .SPX lost 29.82 points, or 1.56 percent, to 1,877.08 and the Nasdaq Composite .IXIC dropped 72.69 points, or 1.58 percent, to 4,518.49.

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.

STRONG DOLLAR COULD KEEP INFLICTING PAIN

The dollar, up 8.4 percent against a basket of currencies in 2015, is expected to see further gains next year as the United States hikes rates while other countries continue easy money policies.

That could further pressure sales of U.S. companies with heavy international exposure because it makes U.S. goods more expensive overseas.

"If we have a similar movement to last year, then we're going to have roughly a $28-billion hit to corporate America," said Wolfgang Koester, chief executive of currency risk consulting firm FireApps. 

He said he expects the dollar to shave 3 to 4 cents from first-quarter earnings of U.S. companies with foreign exposure.

Wall Street in 2016

The Federal Reserve's recent rate hike signals confidence in the economy and presidential election years typically reward investors. 

Most experts are predicting a seventh year for the current bull market, with strategists in a recent poll expecting the Standard & Poor's 500 stock index to end 2016 at about 2,207, roughly 8 percent higher than it is now.

But a lot could go wrong. The same strategists have cataloged a long list of worries - everything from a destabilizing U.S. election to a meltdown far away - that could hit stocks hard.

Here is their laundry list of concerns. For those who'd rather stay optimistic, remember the old chestnut: Wall Street climbs a wall of worry.

Most of the 30 strategists polled by Reuters cited weak earnings as their prominent concern. With S&P earnings growth projected to be flat in 2015, stocks already are pricey. The market is trading at roughly 19.3 times trailing earnings, well above its 15 average. Any stumble in earnings would make stocks even pricier.

Thomson Reuters analysts now expect revenue to grow 3.9 percent in 2016, meaning any increases in costs could keep earnings flat for a second year in a row.

Global Stock News

Wall Street also had a volatile end to the week with the expiration of stock and index options contracts generating heavy trading volume.

The Dow .DJI ended Friday down 2.1 percent, while the S&P 500 .SPX lost 1.78 percent and the Nasdaq .IXIC 1.59 percent. For the week, the Dow fell 0.8 percent, the S&P 500 0.3 percent and the Nasdaq 0.2 percent.

The flight from stocks was a boon for safe-haven bonds. Longer-dated Treasuries have been particularly popular as investors wager the Federal Reserve is well ahead of the curve on inflation after last week's rate hike.

Gold also benefited from the weakness in equity markets. Retaining sharp gains from the previous trading session helped the metal recoup some losses from last week's U.S. interest rate hike.

Spot gold XAU= climbed to 1,068.46, building on the 1.4 percent gain seen in the previous session.
Other commodities however didn't fare as well. London copper edged back as weak demand outweighed news that China's smelters are considering deeper production cuts.

Three-month copper slipped 0.3 percent to $4,673 a tonne, hovering near the 6 1/2 year lows seen in November.

The global background is one of disinflation given the weakness in oil and other commodity prices and the mounting spare capacity in major exporters such as China.

Inflation expectations for five years ahead USIL5YF5Y=R have taken a marked turn lower this month, dropping to 2.11 percent from a high of 2.24 percent.

World stocks, dollar dip as investors turn wary after Fed

Investors turned cautious on Friday about what a stronger dollar and weak commodity prices could mean for the world economy, as a clutch of central banks moved to cushion the impact of the first U.S. rate rise in nearly a decade.

Initial relief after the U.S. Federal Reserve enacted a long-expected hike on Wednesday started to fade, as falls in global stocks and emerging markets showed that the move might not pass off as smoothly as hoped.

The dollar sagged slightly on Friday but remained on track to record its strongest week since early November. .DXY

European shares fell back from a one-week high reached in the previous session, taking their cue from earlier slips in Asia and on Wall Street, as oil prices headed for their third consecutive week of losses.

The pan-European FTSEurofirst 300 index .FTEU3, which had risen 1.3 percent on Thursday, fell 0.6 percent.

"I am still quite bearish about the prospects for the first quarter of next year. The oil price problems are not going away any time soon," said Terry Torrison, managing director at Monaco-based McLaren Securities.

Debt markets built on gains made on Thursday, with bets that the Fed will make fewer rate rises next year than it is currently projecting, reflecting bigger concerns about the economy and doubts about significant inflation.

In Europe, Spanish bonds lagged in a broad rally on Friday ahead of an uncertain national election, with the country's traditional system of two-party dominance facing an unprecedented challenge from populist movements.

Wall Street ends higher, driven by energy amid global tension

U.S. shares closed higher on Tuesday as energy stocks rose along with oil prices after Turkey shot down a Russian warplane near the Syrian border.

The three major U.S. indexes recovered from a morning selloff that was triggered by the overseas news despite some strong U.S. economic data. Oil prices were up more than 2 percent after a spike in Middle East tensions.

"You came in this morning and everybody was talking about this potential escalation of violence between Turkey and Russia," said Andrew Frankel, co-president of Stuart Frankel & Co in New York. He added that investors settled down after it appeared that Russia's response would not be as confrontational as they initially feared.

Relatively light trading appeared to exaggerate swings in the market, according to Frankel, as many market participants were away ahead of the U.S. Thanksgiving holiday. Markets will be closed all day Thursday and close early Friday.

The Dow Jones industrial average .DJI rose 19.51 points, or 0.11 percent, to 17,812.19, the S&P 500 .SPX gained 2.55 points, or 0.12 percent, to 2,089.14 and the Nasdaq Composite .IXIC added 0.33 points, or 0.01 percent, to 5,102.81.

Investors steered clear of many of Nasdaq's higher-valuation stocks like Netflix (NFLX.O) and instead took safety in cheaper stocks due to geopolitical concerns, according to J.J. Feldman, portfolio manager at Los Angeles-based Miracle Mile Advisors.

Wall Street Stock News

Wall Street could find support from news of another blockbuster merger. Sources told Reuters that Pfizer Inc (PFE.N) was due to secure formal board approval for its acquisition of Allergan Plc (AGN.N) for more than $150 billion, creating the world's biggest drug maker.

The EMINI contract on the S&P 500 ESc1 was trading 0.1 percent firmer on Monday. The Dow .DJI had ended Friday up 0.51 percent, while the S&P 500 .SPX added 0.38 percent and the Nasdaq .IXIC 0.62 percent.

The S&P 500 boasted its best week in almost a year, while Europe's main stock index enjoyed its strongest week in a month.

The strength of the dollar kept commodity prices under pressure. Gold XAU= was stuck at $1,070.50 an ounce having touched its lowest level in nearly six years.

Copper CMCU3 slipped to a fresh six-and-a-half year low, as traders bet metals prices had further to fall given China's slowing factory demand. [MET/L]

Oil prices sank again with U.S. crude CLc1 off 90 cents at $40.99 a barrel, while Brent LCOc1 lost 60 cents to $44.06. [O/R]

Global Stock Market News

European markets look set for a rosier open, with financial spreadbetters expecting Britain's FTSE 100 .FTSE and France's CAC 40 .FCHI to start the day up 0.4 percent and Germany's DAX .GDAXI to climb 0.3 percent on the open.

Wall Street had offered no direction as the Dow .DJI ended Tuesday with a slight gain of 0.16 percent. The S&P 500 .SPX added 0.15 percent and the Nasdaq .IXIC eased 0.24 percent.

Weighing on the Nasdaq, Apple shares (AAPL.O) fell 3 percent after Credit Suisse said the iPhone maker had lowered component orders by as much as 10 percent.

In currency markets, the euro struggled as political uncertainty in Portugal provided an excuse to sell in a market already bracing for further monetary policy easing from the European Central Bank.

The common currency last stood at $1.0759 EUR=, having hit a six-month trough of $1.0673 on Tuesday.

The dollar index .DXY eased back form a seven-month peak to slip 0.4 percent to 98.883. The dollar ran into a little profit-taking against the yen, nudging it down 0.3 percent to 122.86 JPY=, from an early 123.15.

Benchmark 10-year Treasury yields US10YT=RR dipped a couple of basis points to 2.32 percent, but remain hostage to the chance of a Fed rate hike next month. Indeed, concerns are growing that another strong payrolls report could lead to rates rising at a faster pace than was currently priced in.

Oil prices resumed their decline on news U.S. crude stocks jumped last week. U.S. crude CLc1 lost 46 cents to $43.75 a barrel, while Brent LCOc1 shed 22 cents to $47.22.

U.S.Stock Market News

Dollar builds on rally as Fed prepares ground for December lift off

The dollar hit a three-month high against a basket of major currencies on Thursday, bolstered by comments from influential Federal Reserve officials who kept chances of an interest rate hike in December alive.

U.S. two-year Treasury yields rose to their highest in 4-1/2 years and spreads over their German counterparts DE2YT=RR widened to their maximum since late 2006, boosting the allure of the dollar to investors.

The dollar index .DXY, which tracks the greenback against six major peers, was up 0.15 percent at 98.135, after having gained 0.8 percent on Wednesday.

The dollar's gains came as chances for a December rate hike rose over 50 percent after Federal Reserve Chair Janet Yellen laid out what appears the base case at the U.S. central bank that the country is ready for higher interest rates.

Driving home the point, William Dudley, the influential president of the New York Fed and a permanent voter on policy, later said the he would "completely agree" with Yellen that December is a "live possibility" for raising rates.

Economists expect the U.S. nonfarm payrolls report on Friday to show that U.S. employers have added 180,000 jobs last month ECONUS. Goto added that a number above 165,000-170,00 along with a tick up in wages would prompt the Fed to start hiking rates in December.

The greenback broke out of its recent 120.00-121.60 range against the yen JPY=, to reach a two-month high of 121.85 yen.

U.S.Stock Market News - U.S. Stocks Gain

Wall St. climbs, led by energy, healthcare; Nasdaq 100 hits 15-year high

U.S. stocks added to their recent run with gains across all sectors on Monday, led by increases in the beaten-down energy group and the acquisition-driven healthcare industry.

The gains on the first trading day of the month followed the best monthly performance of the major indexes in four years in October. The Nasdaq 100 .NDX on Monday closed at its highest level in more than 15 years.

Data on Monday showed U.S. manufacturing activity in October sank to a 2-1/2-year low, but a rise in new orders offered encouragement. Elsewhere, factory activity in Germany beat economists' estimates, and manufacturing in Central and Eastern Europe kept up a robust pace in October.

The Dow Jones industrial average .DJI rose 165.22 points, or 0.94 percent, to 17,828.76, the S&P 500 .SPX gained 24.69 points, or 1.19 percent, to 2,104.05 and the Nasdaq Composite .IXIC added 73.40 points, or 1.45 percent, to 5,127.15.

The S&P, which is up nearly 13 percent since hitting its lowest level for the year in August, broke through the 2,100 barrier, bringing it nearer to its all-time closing high of 2,130.82 in May.

As the U.S. earnings seasons winds down, investors are looking to economic data, including this Friday's employment report, for clues as to whether the Federal Reserve will raise interest rates when it meets in December.

The S&P energy index .SPNY rose 2.4 percent. Oil majors Exxon (XOM.N) and Chevron (CVX.N) were two of the three biggest drivers of positive performance for the Dow after both companies posted better-than-expected results on Friday. Chevron gained 4.5 percent to $94.96 and Exxon finished up 3.1 percent at $85.28.

Global Stock Market News - Wall Street

On Wall Street overnight, U.S. indexes posted losses but were still on track for their best monthly performance in four years. 

U.S. data released overnight showed U.S. gross domestic product in July-September increased at a 1.5 percent annual rate, just shy of the consensus forecast for 1.6 percent growth and slowing from a 3.9 percent rise in the second quarter.

The U.S. central bank held policy steady on Wednesday and left the door open to hike interest rates for the first time since 2006 at its Dec. 15-16 meeting.

That signal comes amid growing anxiety over a slowdown in global growth, with signs of waning momentum in China in particular stoking volatility in global markets in recent months.

Markets in China edged higher, while shares of baby goods-related companies outperformed after China's ruling Communist Party said on Thursday it would ease family planning restrictions to allow two children for all couples.

The dollar extended losses after the BOJ policy decision, slipping to an intraday low of 120.29, and was last down about 0.1 percent at 120.99 yen JPY=. But it was still up about 0.9 percent for the month against the backdrop of divergent monetary policy expectations.

The euro's trend was similar, with the single currency up abut 0.1 percent against the dollar at $1.0988 EUR= but down about 1.7 percent for the month in which European Central Bank chief Mario Draghi took a surprisingly dovish stance that suggested further monetary easing steps were possible in December.

Crude oil futures slipped after the mixed U.S. economic data exacerbated fears of oversupply and as investors took profits following a rally, but they were still on track to end a volatile week with gains.

Wall Street Opens Higher

Diamond Foods (DMND.O) was up 6 percent at $37.00 after Snyder's-Lance (LNCE.O) said it would buy the Kettle potato chips maker for about $1.27 billion.

Northrop Grumman (NOC.N) jumped 5.7 percent to $190.95 after it reported better-than-expected third-quarter results.

Twitter (TWTR.N) slumped 10.3 percent to $28.11 on disappointing revenue forecast and anemic user growth.

Akamai Technologies (AKAM.O) dropped 18.5 percent to $61.55 after its revenue and profit forecast was below expectations.

Rite Aid (RAD.N) shares lost some of their Tuesday's gains and were trading down 8.2 percent at $7.97, a day after Walgreens Boots Alliance (WBA.O) said it would buy the smaller drugstore operator for $9.4 billion. Walgreens shares shed 1.7 percent after its results on Wednesday morning.

Gilead Sciences (GILD.O) was down 1.4 percent at $109.45 after the biotech company reported weak sales growth for its hepatitis C drug in the quarter.

Amgen (AMGN.O), GoPro (GPRO.O) and PayPal (PYPL.O) will post results after the close. GoPro was up 1.3 percent, while PayPal inched up 1.1 percent in premarket trading.

U.S. Stock Market News - Wall Street Set To Open Higher

Wall St. set to rise on Apple results; Fed awaited

Wall Street was set to open higher on Wednesday as investors await the Federal Reserve's latest policy statement, while Apple's strong results allayed some concerns about its business in China.

Apple (AAPL.O) sold 48 million iPhones in the quarter and reported a near doubling of revenue from China. The stock was up 1.5 percent at $116.35 in premarket trading.

The Fed's statement is due at 2:00 p.m. ET after its two-day policy meeting ends. While the central bank is not expected to raise rates at the meeting, traders will parse the statement for clues on when it will pull the trigger.

While the United States is starting to show signs of a slowdown, the global economy continues to remain fragile with China cutting rates further to stimulate growth.

U.S. stocks closed slightly lower on Tuesday after Ford's (F.N) results missed expectations and energy stocks slid.

At 8:26 a.m. ET, S&P 500 e-minis ESc1 were up 2.5 points, or 0.12 percent, with 108,167 contracts traded. Nasdaq 100 e-minis NQc1 were up 7.5 points, or 0.16 percent, on volume of 20,481 contracts. Dow e-minis 1YMc1 were up 15 points, or 0.09 percent, with 12,986 contracts changing hands.

U.S. Stock Market News - Global Markets

Stock futures slip ahead of Fed meet; results in focus

U.S. stock index futures were slightly lower ahead of the start of a Federal Reserve policy meeting and as investors digested a barrage of earnings reports.

* Global markets fell as a four-week rally in China lost steam and weak results from major companies sent European stocks sliding.

* All eyes are on Apple (AAPL.O), which reports fourth-quarter results after the close, as investors await commentary on the iPhone maker's business in China and its forecast for the crucial holiday quarter.

* Alibaba (BABA.N) shares rose nearly 10 percent to $83.50 in premarket trading after the e-commerce giant reported better-than-expected revenue.

* Pharmaceutical majors Pfizer (PFE.N) and Merck (MRK.N) were little changed after they reported results.

* Ford (F.N) fell 1.5 percent, while Comcast (CMCSA.O) was down 2 percent after results.

* Twitter (TWTR.N) will post results after the close.

* Strong results from tech majors and blue chips have helped improve analyst sentiment on quarterly earnings.

* S&P 500 earnings are now expected to have declined 2.8 percent in the quarter, based on actual results from about 35 percent of companies and estimates for the rest, compared with a 4.2 percent decline forecast at the start of the month, according to Thomson Reuters data.

* The Fed begins its two-day policy meeting on Tuesday. Expectations of a rate increase this week are low, but investors will focus on the central bank's interpretation of economic data and global financial events.

* Data scheduled for release on Tuesday includes orders for U.S. durable goods for September, which is expected to have declined for the second straight month. The data is due at 8:30 a.m. ET.

U.S. Stock Market News - U.S Stock Index

Stock futures lower as hopes of monetary easing fade

Valeant Pharmaceuticals (VRX.N) sank nearly 14 percent to $100.50

U.S. stock index futures were slightly lower on Monday as investor optimism about central bank easing faded ahead of a Federal Reserve policy meeting this week.

* The Fed, which meets on Oct. 27-28, is scheduled to issue a statement on Wednesday. Investors will scrutinize it for a bearing on when the central bank could raise rates.

* While Fed Chair Janet Yellen has said the central bank could raise rates this year, it would do so only if there are clear signs of sustained economic growth.

* Traders are pricing in only a 6 percent chance of rates being increased on Wednesday and a 39 percent chance of a December hike, according to CME Group's FedWatch program.

* Wall Street closed higher on Friday after a rally in tech stocks helped the S&P 500 to positive territory for the year.

* Strong quarterly results from tech companies helped improve expectations on overall U.S. corporate earnings.

* S&P 500 earnings for the period are now expected to have declined a more modest 2.8 percent, compared with 4.9 percent forecast at the start of the reporting season, according to Thomson Reuters data.

* Data on new U.S. home sales is expected to show a decline to an annual rate of 550,000 units in September after two months of gains. The data is expected at 10:00 a.m. ET.

* Xerox's (XRX.N) shares were up 1.4 percent at $10.48 in premarket trading on Monday after it reported results and said it would review its operations.

* Valeant Pharmaceuticals (VRX.N) sank nearly 14 percent to $100.50. The company said it would set up a panel to probe allegations about its associations with specialty pharmacy distributor Philador.

U.S.Stock Markets - Wall Street Opens

Wall Street opens little changed

Traders work on the floor of the New York Stock Exchange shortly after the opening of the markets in New York October 14, 2015.

Wall Street opened little changed on Tuesday as third-quarter earnings season gathered momentum with Verizon, Travelers and United Technologies reporting their results.

The Dow Jones industrial average .DJI fell 31.2 points, or 0.18 percent, to 17,199.34, the S&P 500 .SPX lost 2.5 points, or 0.12 percent, to 2,031.16 and the Nasdaq composite.IXIC dropped 5.01 points, or 0.1 percent, to 4,900.46.