Drop In Oil Prices Continues To Weigh On Wall Street – U.S. Commentary

Shutterstock photo

(RTTNews.com) – Stocks remain mostly negative in mid-day trading on Tuesday, partly offsetting the strength seen in the previous session. The Dow and the S&P 500 are giving back ground after ending Monday’s trading at record closing highs.

Currently, the major averages are stuck in negative territory. The Dow is down 10.80 points or 0.1 percent at 21,518.19, the Nasdaq is down 20.38 points or 0.3 percent at 6,218.64 and the S&P 500 is down 8.41 points or 0.3 percent at 2,445.05.

The pullback by stocks comes amid a sharp drop by the price of crude oil, with crude for July delivery plunging $1.24 to $42.96 a barrel.

Concerns about oversupply are weighing the price of crude oil amid indications of rising production in Nigeria and Libya.

Overall trading activity has remained somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Reports on new and existing home sales and leading economic indicators may attract some attention in the coming days.

Among individual stocks, shares of Chipotle Mexican Grill ( CMG ) have come under pressure after the restaurant chain forecast higher operating costs as a percentage of sales in the second quarter.

Teladoc is also posting a notable loss after the virtual health solutions provider agreed to acquire privately held Best Doctors for $440 million in cash and stock.

On the other hand, shares of Parexel ( PRXL ) are notably higher after the drug research firm agreed to be acquired by Pamplona Capital Management for $88.10 per share in cash or $5 billion including debt.

Sector News

Energy stocks have climbed off their worst levels of the day but continue to see substantial weakness amid the steep drop by the price of crude oil.

Reflecting the weakness in the energy sector, the Philadelphia Oil…

Read the full article from the Source…

Back to Top