NEW YORK — The ongoing slump in oil prices weighed on stocks again Tuesday, pushing energy companies to another day of big losses. Disappointing earnings outlooks from a range of companies, including Priceline and Michael Kors, also dragged down the
NEW YORK — The ongoing slump in oil prices weighed on stocks again Tuesday, pushing energy companies to another day of big losses. Disappointing earnings outlooks from a range of companies, including Priceline and Michael Kors, also dragged down the market.
Oil has fallen sharply in recent weeks as global supplies rise while demand for fuel trails expectations. The latest decline was prompted by reports that Saudi Arabia is cutting the price of oil that it supplies to the U.S. as it attempts to maintain its market share as U.S. production booms.
On Tuesday, U.S. crude oil fell 2 percent to $77.19 a barrel, the lowest price in three years.
The drop in oil prices has hit energy stocks hard, driving them into negative territory for the year. It has also helped push the stock market back from the record levels that it reached last week.
“It’s a case of sell first, ask questions later, for anything oil-related,” said Quincy Krosby, a market strategist at Prudential Financial.
The Standard &Poor’s 500 index fell 5.71 points, or 0.3 percent, to 2,012.10. The Nasdaq composite dropped 15.27 points, or 0.3 percent, to 4,623.64. The Dow Jones industrial average bucked the trend, edging up 17.60 points, or 0.1 percent, to 17,383.84.
In metals trading, silver for December delivery slumped 25 cents, or 1.5 percent, to 15.95 an ounce. Gold for the same month dropped $2.10, or 0.2 percent, to $1,167.70 an ounce. Gold is now trading at a four-year low.
