US close: Stocks end down but well off lows as oil recovers
US stocks ended down but well off lows on Thursday as oil prices recovered following a media report that OPEC may cut oil production.
The Dow Jones Industrial Average closed down 1.6%, the Nasdaq fell 0.4% and the S&P 500 finished 1.2% weaker.
Federal Reserve chair Janet Yellen on Wednesday said in a prepared speech that financial conditions have become less supportive of economic growth, the slowdown in China could weigh further on the US and the outlook for inflation is falling.
"It's not all rosy in Yellen's eyes. Market volatility is a major consideration," said IG market strategist Bernard Aw.
While she did not specifically address interest rates, her remarks were seen to suggest that the next increase to the benchmark rate was a while off.
Oil prices stabilised after falling to their lowest levels since 2003, following a report in the Wall Street Journal suggesting OPEC members may be willing to cooperate on a production cut. By the time of the US close, West Texas Intermediate was down 0.7% at $27.27 a barrel and Brent was up 1.5% at $31.31.
On the data front, figures released by the Labor Department showed initial jobless claims fell by 16,000 to 269,000 in the week ending 5 February, beating economists’ expectations of 281,000 and marking the lowest level in almost two months.
Banks suffered heavy losses, with Bank of America, Goldman Sachs and JPMorgan all firmly in the red amid concerns over whether they will be able to cope with low interest rates, which make it more difficult for banks to make a profit on their lending.
Elsewhere, Twitter was under the cosh after it reported flat growth in users for the fourth quarter on Wednesday night.
General and specialty drug company Mylan tumbled after announcing that it has agreed to buy Sweden’s Meda AB for $7.2bn.
Boeing slumped following reports that regulators are probing its accounting.
There were several bright spots, however.
Cisco Systems jumped after second quarter results announced after the close beat expectations.
Tesla Motors rose after it reassured the market that it was on track with the development of its long-awaited Model 3.
TripAdvisor was sharply higher after its fourth quarter revenue beat expectations, while Expedia Inc. also gained after it posted forecast-beating fourth quarter earnings and said it expects earnings to grow as much as 45% in 2016.
The dollar was up 0.4% against the pound, but down 0.4% versus the euro 1% against the yen.
S&P 500 - Risers
TripAdvisor Inc. (TRIP) $61.08 +12.38%
CenturyLink Inc. (CTL) $27.29 +10.98%
Cisco Systems Inc. (CSCO) $24.68 +9.64%
Expedia Inc. (EXPE) $103.38 +9.57%
Realty Income Corp. (O) $60.12 +5.88%
Mosaic Company (MOS) $24.75 +5.68%
O'Reilly Automotive Inc. (ORLY) $249.42 +5.37%
Chesapeake Energy Corp. (CHK) $1.78 +4.71%
CF Industries Holdings Inc. (CF) $29.04 +4.35%
Kellogg Co. (K) $73.69 +3.99%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $2.36 -29.76%
Mylan Inc. (MYL) $41.42 -18.05%
International Flavors & Fragrances Inc. (IFF) $100.49 -12.87%
NRG Energy Inc. (NRG) $9.59 -10.37%
Lincoln National Corp. (LNC) $30.78 -10.21%
Prudential Fincl Inc. (PRU) $58.00 -9.46%
Genworth Financial Inc. (GNW) $1.61 -6.94%
Bank of America Corp. (BAC) $11.16 -6.84%
Unum Group (UNM) $24.07 -6.81%
Boeing Co. (BA) $108.44 -6.81%
Dow Jones I.A - Risers
Cisco Systems Inc. (CSCO) $24.68 +9.64%
Walt Disney Co. (DIS) $90.31 +1.64%
Exxon Mobil Corp. (XOM) $79.60 +0.32%
Dow Jones I.A - Fallers
Boeing Co. (BA) $108.44 -6.81%
Goldman Sachs Group Inc. (GS) $140.69 -4.44%
JP Morgan Chase & Co. (JPM) $53.07 -4.41%
General Electric Co. (GE) $27.45 -3.00%
United Technologies Corp. (UTX) $84.66 -2.64%
Nike Inc. (NKE) $56.00 -2.46%
Visa Inc. (V) $68.47 -2.39%
American Express Co. (AXP) $51.11 -2.26%
E.I. du Pont de Nemours and Co. (DD) $56.62 -2.23%
Procter & Gamble Co. (PG) $79.90 -2.11%
Nasdaq 100 - Risers
TripAdvisor Inc. (TRIP) $61.08 +12.38%
Cisco Systems Inc. (CSCO) $24.68 +9.64%
O'Reilly Automotive Inc. (ORLY) $249.42 +5.37%
Tesla Motors Inc (TSLA) $150.58 +4.81%
Dish Network Corp. (DISH) $41.55 +4.63%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $35.40 +4.30%
Viacom Inc. Class B (VIAB) $32.26 +2.80%
Maxim Integrated Products Inc. (MXIM) $32.00 +2.73%
Amazon.Com Inc. (AMZN) $503.82 +2.72%
Akamai Technologies Inc. (AKAM) $49.14 +2.46%
Mylan Inc. (MYL) $41.42 -18.05%
Incyte Corp. (INCY) $65.53 -9.38%
Endo International Plc (ENDP) $48.49 -4.92%
Seagate Technology Plc (STX) $29.03 -3.84%
Celgene Corp. (CELG) $99.59 -3.46%
Bed Bath & Beyond Inc. (BBBY) $42.19 -2.94%
NetApp Inc. (NTAP) $21.73 -2.90%
Biogen Inc (BIIB) $245.05 -2.84%
Alexion Pharmaceuticals Inc. (ALXN) $135.27 -2.56%
Vertex Pharmaceuticals Inc. (VRTX) $79.71 -2.4