US close: Stocks slide on oil slick as inventories swell

US stocks finished slightly lower on Wednesday as oil prices sagged and investors went through corporate earnings in the absence of economic data.

The Dow Jones Industrial Average closed down 37 points or 0.2% at 18,495.66, the S&P 500 fell 6 points or 0.3% to 2,175.49 and the Nasdaq came off 0.4% from its all-time peak close to 5,204.58.

However the indices remain close to their record highs amid the summer's low trading volumes and bullish mood among US investors.

"Markets are being driven by sentiment, and the main sentiment seems to be that the US Federal Reserve is in no rush to raise interest rates," said IG analyst Joshua Mahony.

"That’s pushed the US dollar down to a six-week low against other major currencies, and lifted metals prices including the gold price. Global equity indices are little changed amid dwindling August volumes, but that means US stock indices remain close to their record highs."

Oil prices, having flattened earlier lows, slid lower as the session developed after the US Energy Information Administration revised its outlook for US crude production higher.

The EIA now expects output to average 8.73m barrels a day this year and 8.31m barrels a day next year, up from its previous forecast of 8.61m per day and 8.2m a day, respectively.

Separately, the EIA said weekly US crude inventories rose 1.1m barrels last week to 523.6m barrels, "historically high levels for this time of year" when inventories usually fall throughout US driving season but with 2016 seeing the third consecutive week of rising stocks.

West Texas Intermediate crude fell 3% to $41.47 per barrel and Brent eased 2.6% to $43.83 per barrel by the early evening in New York.

"Amid reports of rising Saudi Arabian output, coupled with the expectation that US production will rise in 2017 to reflect increasing rig count, it is clear that unless OPEC pull something out the bag next month, we could see crude prices tumble once more," IG's Mahony commented.

This data followed the latest US crude inventory report from the API which showed an unexpected build in stockpiles for the third successive week.

In corporate news, Walt Disney shares gained after posting better-than-expected quarterly earnings and revenue late on Tuesday.

SolarCity declined after it reported a bigger-than-expected loss for the second quarter, though some investors were excited by founder Elon Musk's plans to develop an entire 'solar roof' that would be connected to a Tesla backup battery pack and potentially allow households in warmer climes to operate using solar power around the clock.

Michael Kors Holdings slumped after giving a downbeat sales outlook as the handbag maker reported better quarterly results than expected.

Yelp surged as its second-quarter results late on Tuesday topped analysts’ expectations, but SunPower Corp. tumbled after the solar panel maker downgraded its guidance and said it will cut 1,200 jobs.

Dow Jones - Risers

Walt Disney Co. (DIS) $97.86 1.23%
Wal-Mart Stores Inc. (WMT) $73.95 0.56%
McDonald's Corp. (MCD) $118.75 0.41%
E.I. du Pont de Nemours and Co. (DD) $69.07 0.41%
Procter & Gamble Co. (PG) $86.31 0.37%
Coca-Cola Co. (KO) $43.60 0.32%
Verizon Communications Inc. (VZ) $53.81 0.28%
Unitedhealth Group Inc. (UNH) $142.19 0.26%
3M Co. (MMM) $178.80 0.24%
Merck & Co. Inc. (MRK) $62.65 0.24%

Dow Jones - Fallers

Exxon Mobil Corp. (XOM) $86.45 -2.58%
Chevron Corp. (CVX) $100.14 -1.16%
Nike Inc. (NKE) $55.13 -1.15%
Intel Corp. (INTC) $34.53 -1.12%
American Express Co. (AXP) $64.74 -0.99%
JP Morgan Chase & Co. (JPM) $65.28 -0.90%
Goldman Sachs Group Inc. (GS) $162.19 -0.76%
Apple Inc. (AAPL) $108.00 -0.74%
Visa Inc. (V) $79.66 -0.47%
Home Depot Inc. (HD) $135.60 -0.37%

S&P 500 - Risers

Ralph Lauren Corp (RL) $103.14 8.49%
Akamai Technologies Inc. (AKAM) $52.02 3.58%
Hanesbrands Inc. (HBI) $26.39 3.17%
Dollar Tree Inc (DLTR) $98.12 2.26%
Gen Dynamics Corp. (GD) $151.47 1.95%
Csra Inc. (CSRA) $26.28 1.78%
Adobe Systems Inc. (ADBE) $100.62 1.77%
Yahoo! Inc. (YHOO) $39.93 1.76%
GameStop Corp. (GME) $30.15 1.75%
Zoetis Inc (ZTS) $51.81 1.73%

S&P 500 - Fallers

KLA-Tencor Corp. (KLAC) $69.47 -10.26%
Perrigo Company plc (PRGO) $85.93 -9.56%
First Solar Inc. (FSLR) $38.66 -7.20%
Transocean Ltd. (RIG) $10.26 -6.81%
Western Digital Corp. (WDC) $43.17 -4.66%
Lam Research Corp. (LRCX) $89.11 -4.48%
United States Steel Corp. (X) $23.19 -4.45%
Navient Corporation (NAVI) $13.61 -4.22%
Diamond Offshore Drilling Inc. (DO) $20.63 -3.69%
Seagate Technology Plc (STX) $31.38 -3.42%

Nasdaq 100 - Risers

JD.com, Inc. (JD) $23.41 4.65%
Akamai Technologies Inc. (AKAM) $52.02 3.58%
Dollar Tree Inc (DLTR) $98.12 2.26%
Walgreens Boots Alliance, Inc. (WBA) $82.50 1.99%
Adobe Systems Inc. (ADBE) $100.62 1.77%
Yahoo! Inc. (YHOO) $39.93 1.76%
Monster Beverage Corp (MNST) $160.90 1.12%
Henry Schein Inc. (HSIC) $166.22 1.01%
Ctrip.Com International Ltd. Ads (CTRP) $45.53 0.82%
Mattel Inc. (MAT) $33.76 0.81%

Nasdaq 100 - Fallers

KLA-Tencor Corp. (KLAC) $69.47 -10.26%
Western Digital Corp. (WDC) $43.17 -4.66%
Lam Research Corp. (LRCX) $89.11 -4.48%
Biomarin Pharmaceutical Inc. (BMRN) $91.45 -3.89%
Incyte Corp. (INCY) $83.49 -3.46%
Seagate Technology Plc (STX) $31.38 -3.42%
Vertex Pharmaceuticals Inc. (VRTX) $99.70 -3.04%
Dish Network Corp. (DISH) $50.87 -2.62%
Mylan Inc. (MYL) $48.79 -2.26%
Micron Technology Inc. (MU) $14.20 -1.93%