US open: Stocks dip amid oil price slump, mixed Fedspeak

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Sharecast News | 20 Jun, 2017

Falling crude oil futures weighed on Wall Street a day after the Dow Jones Industrial and S&P 500 hit fresh record highs amid mixed remarks from top US central bank policymakers.

As of 1544 BST the Dow Jones Industrials was down by 0.03% to 21,523.69, alongside a 0.27% dip for the S&P 500 to 2,446.85 and a decline of 0.15% in the Nasdaq Composite to 6,229.23.

Oil Equipment (-3.22%) and Exploration (-2.81%) were at the bottom of the pile as traders continued pushing crude oil futures lower.

Front month West Texas Intermediate was down by 3.1% at $43.09 a barrel on NYMEX amid bearish comments from some analysts and continued noise around steadily increasing oil supplies from Libya.

In a widely-quoted research report dated 16 June, analysts at Morgan Stanley said OPEC's goal of reducing global oil stockpiles back to their average level of the past five years would prove "elusive", unless US shale output "rolled over" or the cartel cut its own output more deeply.

Acting as a backdrop, investors were keeping close tabs on incoming Fedspeak.

On Tuesday afternoon, Chicago Fed chief Charles Evans reiterated his cautious stance regarding the likelihood that inflation would return to the central bank's target.

Overnight, he criticised the fact that core inflation had run below the Fed's 2.0% target since 2009.

"This is eight full years below target. This is a serious policy outcome miss," he said.

His opposite number at the Boston Fed on the other hand appeared not to share that view, having reportedly highlighted to an audience in Europe the existence of financial stability risks.

To take note of, Evans was a voting member on the Federal Open Market Committee in 2017, Rosengren was not.

America's current account deficit increased by 2.5% during the first quarter of 2017 to reach $116.8bn (consensus: -$121.2bn).

Boeing was in focus after the jet manufacturer raised its forecast for new airplane demand over the next 20 years by 3.6% to $6.1trn or 41,030 aircraft in its latest Current Market Outlook, published on the sidelines of the Paris Air Show at Le Bourget, France.

Ford was also in the news after announcing its intention to invest $900m in a Kentucky plant.

Dow Jones - Risers

Merck & Co. Inc. (MRK) $64.75 1.69%
Boeing Co. (BA) $201.03 0.98%
Pfizer Inc. (PFE) $33.54 0.96%
McDonald's Corp. (MCD) $154.55 0.92%
Coca-Cola Co. (KO) $45.69 0.68%
American Express Co. (AXP) $82.39 0.62%
Travelers Company Inc. (TRV) $128.94 0.52%
Johnson & Johnson (JNJ) $134.55 0.36%
Cisco Systems Inc. (CSCO) $32.10 0.34%
United Technologies Corp. (UTX) $122.25 0.33%

Dow Jones - Fallers

General Electric Co. (GE) $28.32 -1.68%
Chevron Corp. (CVX) $105.88 -1.47%
Verizon Communications Inc. (VZ) $45.92 -1.40%
Exxon Mobil Corp. (XOM) $81.64 -1.35%
Nike Inc. (NKE) $51.48 -1.03%
Intel Corp. (INTC) $35.17 -0.94%
Walt Disney Co. (DIS) $104.46 -0.86%
Goldman Sachs Group Inc. (GS) $224.58 -0.69%
E.I. du Pont de Nemours and Co. (DD) $83.03 -0.63%
Microsoft Corp. (MSFT) $70.50 -0.53%

S&P 500 - Risers

Regeneron Pharmaceuticals Inc. (REGN) $498.92 5.78%
Lennar Corp. Class A (LEN) $54.74 3.79%
Endo International Plc (ENDP) $11.43 3.44%
Alexion Pharmaceuticals Inc. (ALXN) $120.14 3.43%
Laboratory Corporation of America Holdings (LH) $145.93 2.85%
Mallinckrodt Plc Ordinary Shares (MNK) $44.72 2.49%
Biogen Inc (BIIB) $266.71 2.37%
D. R. Horton Inc. (DHI) $34.56 2.08%
Amgen Inc. (AMGN) $168.37 1.99%
PulteGroup Inc. (PHM) $24.57 1.70%

S&P 500 - Fallers

Diamond Offshore Drilling Inc. (DO) $10.75 -6.44%
Chipotle Mexican Grill Inc. (CMG) $430.58 -6.17%
Hess Corp. (HES) $40.33 -6.12%
Frontier Communications Co. (FTR) $1.25 -5.68%
Transocean Ltd. (RIG) $8.12 -5.08%
Marathon Oil Corp. (MRO) $11.91 -4.64%
ONEOK Inc. (OKE) $47.92 -4.55%
Chesapeake Energy Corp. (CHK) $4.78 -4.19%
Advance Auto Parts (AAP) $124.48 -3.95%
Murphy Oil Corp. (MUR) $24.46 -3.78%

Nasdaq 100 - Risers

Regeneron Pharmaceuticals Inc. (REGN) $498.92 5.78%
Incyte Corp. (INCY) $126.50 3.45%
Alexion Pharmaceuticals Inc. (ALXN) $120.14 3.43%
Biogen Inc (BIIB) $266.71 2.37%
Amgen Inc. (AMGN) $168.37 1.99%
Vertex Pharmaceuticals Inc. (VRTX) $127.55 1.57%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $298.72 1.55%
Hologic Inc. (HOLX) $45.69 1.50%
Celgene Corp. (CELG) $126.90 1.39%
Illumina Inc. (ILMN) $178.94 1.33%

Nasdaq 100 - Fallers

O'Reilly Automotive Inc. (ORLY) $223.36 -3.05%
Tractor Supply Company (TSCO) $53.94 -3.03%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $51.14 -3.02%
Liberty Global Plc Lilac Class C (LILAK) $19.76 -2.80%
Viacom Inc. Class B (VIAB) $34.44 -2.79%
Comcast Corp. (CMCSA) $40.63 -2.79%
Charter Communications Inc. (CHTR) $330.99 -2.72%
Liberty Global Plc Lilac Class A (LILA) $20.04 -2.67%
Discovery Communications Inc. Class A (DISCA) $25.77 -2.48%
Ross Stores Inc. (ROST) $59.18 -2.42%

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