US stocks were little changed on Tuesday, as gains in telecom services were offset by losses in energy stocks following a drop in oil prices. Brent crude prices fell over 2 percent, the first decline in five days, after data showed an increase in output from major producers, just days after Opec and Russia agreed to a production cut. The S&P 500 energy sector fell 0.64 percent, weighed down by Exxon and Chevron. Oil prices had risen more than 18 percent since last Wednesday when the producers reached an agreement to limit output.
Investors are now shifting their focus to the Federal Reserve policy meeting next week, where traders see a 92 percent chance of an interest rate hike. US stocks have climbed since the November 8 election, driven by expectations of significant economic stimulus and cuts in corporate taxes and regulations under President-elect Donald Trump. However, the rally has split, with the Dow marking a series of record highs on gains in industrials and bank stocks, while sectors such as utilities and technology have held back the S&P and the Nasdaq.
Energy was the biggest drag, while technology and financials were flat. At 11:09 am ET (1609 GMT) the Dow Jones industrial average was down 14.89 points, or 0.08 percent, at 19,201.35. The S&P 500 was up 0.27 points, or 0.01 percent, at 2,204.98 and the Nasdaq Composite was up 2.13 points, or 0.04 percent, at 5,311.02. Boeing's shares edged down 0.7 percent to $151.08, after Trump tweeted that costs of the 747 Air Force One aircraft were "out of control" and that the order should be canceled.
Nike fell 2.9 percent to $50.34 after Cowen & Co downgraded the shoemaker's stock to "market perform" and cut price target. The stock was the biggest drag on the Dow. AT&T rose 1.7 percent to $39 after CEO Randall Stephenson told investors that the new streaming television service DirectTV Now has so far exceeded expectations.
Comments
Comments are closed for this article.