US close: Stocks end lower as oil prices reach fresh low
US stocks finished in the red on Wednesday as oil prices hit fresh lows and data showed US inflation rose less than expected in December.
The Dow Jones Industrial Average fell 1.55%, the Nasdaq dropped 0.11% and the S&P 500 declined 1.19%.
Oil prices took another tumble as concerns about an oversupply in the market escalated. West Texas Intermediate crude dipped 2.9% to $28.72 per barrel and Brent slid 2.1% to $28.16 per barrel at 2148 GMT.
The International Energy Agency on Tuesday warned that oil prices will likely slide further this year as the market contends with an oversupply of production following the lifting of Iran sanctions.
“Once again it’s been lower oil prices that has prompted today’s sell-off driven lower by yesterday’s IEA announcement that the oil market “could drown in oversupply” throughout 2016,” said Michael Hewson, chief market analyst at CMC Markets.
Venezuela has requested that OPEC hold an emergency meeting to discuss ways to lift oil prices, Reuters reported on Wednesday. However, four delegates from OPEC’s member countries swiftly said a meeting was unlikely to take place.
Not surprisingly energy stocks were the standout losers among companies, including Chesapeake Energy, Chevron and Exxon Mobil.
Meanwhile, figures from the Bureau of Labor Statistics revealed the US consumer price index rose 0.7% in the year to December.
Although this was an improvement on the previous month's 0.5% year-on-year growth, it was below analysts' expectations of 0.8% and a long way off the Federal Reserve's 2% target.
Excluding energy and food, CPI increased 2.1% in December, as expected, compared to 2% in November.
Figures from the Commerce Department showed US housing starts fell 2.5% in December from the previous month to a seasonally-adjusted annual rate of 1.15m, undershooting expectations for a rise to 1.2m.
Starts for single-family homes fell 3.3% from the revised November figure of 794,000 to an annual rate of 768,000.
Permits for new construction, which are a closely-followed gauge of future demand, fell 3.9% from the revised November rate of 1.28m to a seasonally-adjusted annual rate of 1.23m. Still, the drop was less steep than expected, as economists had pencilled a reading of 1.2m.
Elsewhere, the FTSE 100 and Japan's Nikkei index both closed in a bear market, falling 20% below the last peak.
In corporate news, Goldman Sachs edged lower after its fourth quarter earnings fell short of expectations as the bank had to set aside money to pay a regulatory settlement for mortgage-backed securities it sold in the run-up to the financial crisis.
IBM shares tumbled following an unexpectedly downbeat forecast for 2016 released late on Tuesday.
In currencies, the dollar was down 0.18% against the pound, fell 0.60% against the yen but rose 0.16% against the euro.
S&P 500 - Risers
Southwestern Energy Co. (SWN) $7.38 +13.19%
Chesapeake Energy Corp. (CHK) $3.32 +7.79%
Range Resources Corp. (RRC) $21.99 +7.53%
Genworth Financial Inc. (GNW) $2.52 +7.23%
Fossil Group Inc (FOSL) $30.45 +5.33%
Endo International Plc (ENDP) $55.08 +4.60%
Ensco Plc. (ESV) $9.85 +4.56%
Carmax Inc. (KMX) $44.89 +4.42%
Cabot Oil & Gas Corp. (COG) $17.15 +4.38%
Celgene Corp. (CELG) $107.49 +4.37%
S&P 500 - Fallers
Devon Energy Corp. (DVN) $21.59 -8.05%
Micron Technology Inc. (MU) $10.05 -6.94%
Frontier Communications Co. (FTR) $3.94 -5.74%
International Business Machines Corp. (IBM) $121.86 -4.88%
Ventas Inc. (VTR) $52.92 -4.87%
Welltower Inc (HCN) $64.51 -4.81%
Wynn Resorts Ltd. (WYNN) $56.33 -4.74%
Charles Schwab Corp. (SCHW) $25.27 -4.68%
ConocoPhillips (COP) $34.75 -4.53%
NRG Energy Inc. (NRG) $9.58 -4.49%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $114.79 +1.96%
Nike Inc. (NKE) $59.04 +1.23%
American Express Co. (AXP) $63.03 +0.62%
Microsoft Corp. (MSFT) $50.79 +0.45%
Apple Inc. (AAPL) $96.79 +0.13%
Dow Jones I.A - Fallers
International Business Machines Corp. (IBM) $121.86 -4.88%
Exxon Mobil Corp. (XOM) $73.18 -4.21%
Cisco Systems Inc. (CSCO) $22.90 -3.98%
Boeing Co. (BA) $122.14 -3.11%
Chevron Corp. (CVX) $78.98 -3.10%
Home Depot Inc. (HD) $116.46 -2.76%
Wal-Mart Stores Inc. (WMT) $60.84 -2.75%
JP Morgan Chase & Co. (JPM) $55.51 -2.63%
Travelers Company Inc. (TRV) $103.65 -2.00%
Goldman Sachs Group Inc. (GS) $153.75 -1.96%
Nasdaq 100 - Risers
Celgene Corp. (CELG) $107.49 +4.37%
Linear Technology Corp. (LLTC) $41.13 +3.94%
Nxp Semiconductors Nv (NXPI) $70.81 +3.48%
Regeneron Pharmaceuticals Inc. (REGN) $461.95 +3.34%
Avago Technologies Ltd. (AVGO) $123.83 +3.13%
Lam Research Corp. (LRCX) $69.57 +3.13%
Amgen Inc. (AMGN) $155.02 +2.46%
Analog Devices Inc. (ADI) $50.58 +2.41%
Biomarin Pharmaceutical Inc. (BMRN) $81.38 +2.35%
Mylan Inc. (MYL) $51.40 +2.35%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $10.05 -6.94%
Wynn Resorts Ltd. (WYNN) $56.33 -4.74%
Cisco Systems Inc. (CSCO) $22.90 -3.98%
JD.com, Inc. (JD) $26.38 -3.76%
Sandisk Corp. (SNDK) $68.67 -3.36%
Monster Beverage Corp (MNST) $140.02 -3.27%
Yahoo! Inc. (YHOO) $28.78 -3.23%
Tesla Motors Inc (TSLA) $198.70 -2.94%
Starbucks Corp. (SBUX) $56.92 -2.78%
Twenty-First Century Fox Inc Class A (FOXA) $25.64 -2.73%