US Stocks Drop from Records, Energy Shares Decline

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US Stocks Drop from Records, Energy Shares Decline

US stocks dropped after the benchmark indexes rose to record highs on Friday, as energy shares declines with the price of oil, while bank and phone shares dropped.

Oil price dropped with WTI crude dropping $1.39 at $49.50 per barrel on oversupply concerns and a strong dollar.

The Standard & Poor’s 500 Index dropped 0.3% to 2,104.10 in New York while the Dow Jones Industrial Average declined 0.3% or 62.56 points to 18.077.88. The Nasdaq Composite Index dropped 0.2% after the eight-day rally that took less than 2% from the record reached 2000. The Russell 200o Index dropped 0.4% as Bloomberg reported.

US stocks, WTI crude, S&P 500 Index, Nasdaq Composite Index, Richard Sichel, Janet Yellen

Chief investment officer at Philadelphia Trust Co., Richard Sichel said, “In this market, there’s more just a case of waiting and watching Europe, Greece, OPEC and waiting to hear from Janet Yellen. You put all that together, you get a market that doesn’t really have much of a direction. It becomes a much more stocks-specific day. It’s more a case of waiting to hear what the next part of that news will be.”

Reuters quoted Uri Landsman, president of Platinum Partners as having said, “Crude continues to be very weak. But you can argue that as long as it stabilizes and doesn’t completely plunge it’s probably a positive, so it’s really going to depend on earnings and macro news in the market right now.”

Data indicated that sales of previously owned US homes dropped more than expected in January as tight supply forced the prices up, showing the residential real-estate market is likely to face uneven recovery. Purchases dropped 4.9% to an annualized rate of 4.82 million, the least since April, after a 5.07 million pace that was higher than the previous estimate.

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