US stocks fell on Monday, with the Dow bouncing off its lowest level this year as oil prices held above $57 a barrel after hitting a record high earlier. The surging energy costs fuelled concerns that high oil prices will pinch corporate profits. Shares of Unocal Corp fell after ChevronTexaco Corp agreed to buy the oil company for about $16.4 billion.
Unocal's stock, which had surged nearly 60 percent since December on expectations of a take-over, fell 7 percent to $59.79 after news that the acquisition would be at a discount to Unocal's closing price on Friday.
ChevronTexaco's stock weighed on the Standard & Poor's 500 index, falling $1.81, or 3 percent, to $57.50.
The Dow Jones industrial average was down 23.39 points, or 0.22 percent, at 10,380.91. The Standard & Poor's 500 Index was down 2 points, or 0.19 percent, at 1,170.69. The technology-laced Nasdaq Composite Index was down 7 points, or 0.36 percent, at 1,978.
The Dow briefly hit a 2005 low at 10,356.71, touching its lowest level since November 5 before trimming losses as oil prices eased off their highs.
US crude oil futures seesawed in and out of negative territory on Monday as traders took profits after oil rose to a record high of $58.28 per barrel in overnight trade.
US crude for May delivery was up 18 cents at $57.45.
"Oil prices are still driving the market," said Jay Finkel, Lord Abbett senior equity trader. "We're doing a little better after oil moved down from its highs. Aside from that, I'm not seeing an awful lot."
Shares of Fannie Mae tumbled almost 5 percent on news of a broadening investigation into accounting problems at the home financing company, briefly touching a five-year low before recovering to $50.67, off $2.57.
Shares of investment bank Morgan Stanley rose $1.93, or 3.4 percent, to $58.80 after its board approved the sale of its Discover Card unit, according to Dow Jones.
Retailer Jos. A. Bank Clothiers Inc said quarterly earnings rose 31 percent on strong sales of its classically tailored men's clothing in December and January. Shares of the retailer rose $2.12, or 7 percent, to $31.83.
Comments
Comments are closed.