Energy stocks dive anew, offset tech gains; U.S. indexes mixed
- Author: Zachary Reyes Jun 22, 2017,
Jun 22, 2017, 0:44
After the market close, index provider MSCI said it will add mainland Chinese "A" stocks to its widely followed Emerging Markets Index in a landmark decision for the global investment landscape.
The Dow Jones Industrial Average .DJI fell 61.85 points, or 0.29 percent, to 21,467.14, the S&P 500 .SPX lost 16.43 points, or 0.67 percent, to 2,437.03 and the Nasdaq Composite .IXIC dropped 50.98 points, or 0.82 percent, to 6,188.03.
On the currency front, the USA dollar is trading at 111.56 yen compared to the 111.45 yen it fetched at the close of NY trading on Tuesday.
The drop put US crude in a bear market, traditionally defined as a drop of more than 20 percent from a recent high.
Energy companies were also lower as the price of crude oil fell about 3 percent.
Brent crude dropped by more than a dollar on Tuesday to $45.62 a barrel, the lowest point since November a year ago, while USA crude also fell by more than a dollar to $42.93.
Government bonds edged lower, with the yield on the 10-year U.S. Treasury note rising to 2.170%, according to Tradeweb, from 2.153% Tuesday.
Tech shares overall reacted little to reports that Uber CEO Travis Kalanick has stepped down from his post as chief executive officer of the privately held ride-hailing company (http://www.marketwatch.com/story/uber-ceo-travis-kalanick-ousted-after-shareholder-revolt-2017-06-21).
A decision by US index provider MSCI to add mainland China-listed shares to its widely followed stock indexes failed to boost investors' risk appetite.
Healthcare led the three gainers, with a rise of 0.65 percent. They were last up 1.7 percent at US$212.54.
SEOUL, South Korea - Asian markets were mostly lower Wednesday after overnight losses on Wall Street.
S&P 500 e-minis were down 2.5 points, or 0.1 percent, with 150,141 contracts traded.
The Nasdaq Composite index was higher in early afternoon trading on Wednesday, boosted by biotechnology stocks, while the Dow Jones Industrial Average and the S&P 500 were dragged lower by energy and bank shares. Its stock rose $9.35, or 10.4 percent, to $99.31.
FLASHING HIGHER: Adobe Systems jumped $4.26, or 3 percent, to $145.17 after reporting stronger revenue and earnings for its latest quarter than analysts expected. Rival BHP Billiton slumped 3.8 percent and Fortescue Metals Group plummeted 4.6 percent.
In Europe, France's CAC 40 fell 0.4 percent, Germany's DAX lost 0.3 percent and the FTSE 100 in London slipped 0.3 percent.
CHINA'S ARRIVAL: Chinese shares that are traded in Shanghai, which have always been hard for foreign investors to trade, rose 0.5% after index provider MSCI said it will include 222 "Chinese A-shares" in its widely followed Emerging Markets index.
Brent crude, the worldwide standard, fell $1.21 to $45.70 per barrel.