U.S. stocks decline on falling oil prices
Xinhua, February 2, 2016 Adjust font size:
U.S. stocks pared part of early losses to trade mildly lower around midday Monday, as a renewed decline in oil prices dampened investor sentiment.
At noon, the Dow Jones Industrial Average fell 55.85 points, or 0.34 percent, to 16,410.45. The S&P 500 dipped 6.51 points, or 0.34 percent, to 1,933.73. The Nasdaq Composite Index was down 12.23 points, or 0.27 percent, to 4,601.72.
After last week's solid gains, oil prices tumbled again around midday Monday, with the U.S. crude dropping more than 5 percent, as worries about global economic growth continued to weigh on the market.
On the economic front, U.S. personal income increased 42.5 billion U.S. dollars, or 0.3 percent, and disposable personal income increased 37.8 billion dollars, or 0.3 percent, in December, according to the Commerce Department Monday.
"Consumers have been defensive, growing savings faster than spending, since May. This is unusual behavior, especially since gasoline prices are falling," said Chris Low, chief economist at FTN Financial, in a note.
Meanwhile, the U.S. January purchasing managers' index (PMI) registered 48.2 percent, an increase of 0.2 percentage point from the seasonally adjusted December reading of 48 percent, the Institute for Supply Management (ISM) said in a report Monday.
A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction.
Investors were also sifting through the U.S. real gross domestic product (GDP) report for the fourth quarter of 2015.
U.S. real GDP increased at an annual rate of 0.7 percent in the fourth quarter of 2015, according to an advanced estimate released by the Commerce Department Friday. In the third quarter, real GDP increased 2.0 percent.
Overseas, China's manufacturing activity contracted for the sixth straight month in January, signaling persistent weakness.
China's PMI came in at 49.4, down from December's 49.7, the National Bureau of Statistics and the China Federation of Logistics and Purchasing reported Monday.
On Friday, U.S. stocks posted solid gains, as the Bank of Japan unexpectedly decided to implement a negative interest rate policy. Endit