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U.S. stocks open lower as oil prices drop

Xinhua, February 4, 2015 Adjust font size:

U.S. stocks opened lower Wednesday as oil revised its recent rally.

Oil prices shed Wednesday after a four-day winning streak of nearly 20 percent. U.S. crude dropped 3.3 percent to 51.32 U.S. dollars and Brent fell 2.6 percent to 56.43 dollars. The energy section lost 1.51 percent in the early New York trading as the worst performing sector.

On the economic front, China's central bank on Wednesday decided to lower the reserve requirement ratio (RRR), the minimum level of reserve banks must hold, by 50 basis points from Thursday. The move came days after the purchasing managers' index, a main gauge of manufacturing activity, fell below the 50-point mark for the first time since October 2012.

In corporate news, Sony said its net loss for 2014 is likely less than previously forecast as higher-than-expected sales helped lift its quarterly profit. Shares surged 11.97 percent after the opening.

The Walt Disney Company Tuesday reported earnings for its first fiscal quarter ended Dec. 27, 2014. Diluted earnings per share for the first quarter increased 23 percent to 1.27 dollars from 1.03 dollars in the prior-year quarter. Its animated film Frozen heated up home entertainment and toy sales. Shares soared over 7 percent in the early trading.

Shortly after the opening bell, the Dow Jones Industrial Average edged down 21.90 points, or 0.12 percent, to 17,644.50. The S&P 500 fell 8.55 points, or 0.42 percent, to 2,041.48. The Nasdaq Composite Index declined 27.68 points, or 0.59 percent, to 4,700.06.

U.S. stocks extended rally Tuesday as oil prices surged for the third straight session to settle at their highest level in 2015. The oil price jumped 7 percent Tuesday as a list of energy companies are planning to slash investment this year. Endi