US Stocks, Energy Stocks Drop


US Stocks, Energy Stocks Drop

US stocks dropped after the biggest rally of two days in around a month, as declines in energy and pharmaceutical companies offset earnings from Whirlpool Corp and Walt Disney Co.

Walt Disney gained 8.2% to an all time high after reporting quarterly results that best the estimates of analysts. Whirlpool gained 6.8% after topping expectations.

Bloomberg reported that the Standard & Poor’s 500 Index dropped 0.3% to 2,044. The gauge has rallied 2.8% the last two days, assisted by the surge in the energy stocks. The Dow Jones Industrial Average climbed 0.2% or 31.09 points to 17,697.49. The Nasdaq Composite Index gained 0.1% to 4,730.

Thomas Garcia, head of equity trading at Thornburg Investment Management Inc. said, “When energy goes the market does. Oil’s down today for the first time in a little while and it seems like people either love oil stocks or hate them, and today they hate them.”

The Wall Street Journal quoted Jeff Morris, head of US equities at Standard Life Investment as having said, “We’re in a period where the market is really thrashing around. It has to do a balancing act between those portions of the US economy showing genuine strength and recovery and international influences.”

Gilead and Merck & Co. led the health-care group lower. Merck dropped 3.4% after reporting 2015 adjusted earnings and sales would fall below the estimates of analysts.

Crude oil futures dropped 5.1% to $50.37 per barrel after four straight sessions of gains. The energy stocks on the S&P 500 dropped 1.2%, marking the largest decline in any sector.

European stocks rose with the DAC 30 of Germany gaining 0.2% and the CAC 40 of France gaining 0.4%.

To contact the reporter of the story: Jonathan Millet at