Wall St. weighed down by finance, energy stocks
U.S. stocks were slightly lower in late morning trading after a three-day holiday weekend, weighed down by a fall in energy and financial shares.
Oil prices fell over 1 percent on concerns that output cuts by the world’s big exporters may not be enough to drain a global glut that has depressed the market for almost three years. [O/R]
The energy sector’s (SPNY) 1.04 percent fall led the decliners among the major S&P 500 sectors. Oil majors Chevron (N:CVX) and Exxon (N:XOM) were down about 0.5 percent.
Adding to the pressure, financial stocks were down 0.8 percent. JPMorgan (N:JPM) fell 0.8 percent, weighing the most on the S&P, while Goldman Sachs’ (N:GS) 1.3 percent fall dragged on the Dow.
Data showed core PCE price index fell to 1.5 percent in the 12 months through April from 1.6 percent in March, reinforcing views that the Federal Reserve might not raise rates again after June.
“We’re in a period of time where the first-quarter data was slightly weak and people are wondering if the data was an anomaly or is there something more there,” said BrentSchutte, chief investment strategist for Northwestern Mutual Wealth Management.
Dallas Fed head Robert Kaplan told CNBC that while he was concerned about the recent economic data, he still saw two more rate hikes in 2017.