S&P and Dow Drop with Energy, Banks; Retailers Climb

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S&P and Dow Drop with Energy, Banks; Retailers Climb

The S&P 500 and the Dow dropped late Wednesday, pausing after continuous record highs, as shares for financials dropped after five major banks were fined by global regulators.

Energy shares dropped with prices of oil as Brent crude broke below $80 per barrel, first time since Sept. 2010. Exxon Mobil shares dropped 1.3% driving the S&P 500 lower.

UBS AG, Citigroup Inc and HSBC Holdings Plc are some of the banks that were fined $3.4 billion for failing to prevent their traders from manipulating the foreign exchange market, as reported by Reuters.

Citigroup, due to pay $1.02 billion, dropped 0.8%. JP Morgan Chase dropped 1.5%, and was among the largest drags on the S&P 500 financial index, which lost 0.4%.

The Dow Jones Industrial Average dropped 0.14% or 25.5 points to 17, 589.4 while the S&P 500 lost 0.19% or 3.96 points to 2,035.72. The Nasdaq Composite gained 0.11% or 5.07 points to 4,665.63.

Alan Gayle, director of asset allocation at RidgeWorth Investments said, “With valuations still reasonable, the market should enjoy normal seasonal strength in the final months of the year.”

According to Nasdaq, Zoetis Inc. was the largest gainer on percentage for the S&P 500. There was an 8.9% climb in Zoetis shares. Juniper Networks Inc., on the other hand, was the largest percentage decliner of the S&P 500.

The S&P 500 has rallied above 9% from its six month low of October, driven by supportive corporate earnings and economic data. It is higher more than 10% for the year.

Retailer Macy’s Inc gained 4.7% after posting Q3 earnings and revising its outlook for the year. JC Penney shares rose 6.7% and Urban Outfitters gained 3.2%.

Shares of Twitter rose 6.8% after it announced that it was considering creating additional mobile applications beyond its service for core messaging.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com