US stocks dropped with energy shares leading the way lower, after a sharp drop in oil prices, while continued uncertainty over the prospects of a debt deal with Greece added to the cautious atmosphere.
Citing impacts of a stronger dollar, Wal-Mart stores cut its sales projection, causing losses to be outside in the Dow. The shares dropped 2.7% to $83.97, as reported by Reuters
Priceline Group rallied on its results, keeping the Nasdaq positive.
Crude dropped 4.7% to $49.69 as another large weekly build in US crude inventories and a possible rise in Saudi output added to oversupply concerns.
Exxon Mobil dropped 1.2% to $89.95, ConocoPhillips dropped 2.2% to $66.25 and Halliburton Co dropped 2.2% to $43.43.
Clem Miller, portfolio manager at Wilmington International Funds said, “There’s still a lot of supply, even though we’re looking at a decline in rig counts and expenditures, Right now, the majority view is that oil won’t really start to go up until the middle of the year.”
According to Bloomberg , the S&P 500 dropped 0.2% to 2,096.35 in New York. The Dow Jones Industrial Average dropped 0.3% or 50.94 points to 17,978.91 while the Nasdaq 100 Index rose 0.4%, after a boost by Priceline.
Stocks reversed losses amid speculation that Greece would reach an agreement on debt negotiations. The German finance ministry rejected a new proposal from Athens for an extension of its bailout program, saying it fell short of the conditions laid out by the country’s euro zone partners.
Miller added, “At this point, it’s hard to see the Greece situation having a dramatic impact on the US outside of just creating a lot of volatility.”
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