A worker examines a pumpjack at a PetroChina oil field in Panjin, Liaoning province, in this June 30, 2014 file photo. China's imports tumbled in August 2015, adding to concerns about the health of the world's second-largest economy and its contribution to global growth. Imports dived 13.8 percent from a year earlier, far more than the dip of 8.2 percent forecast by analysts, and the tenth consecutive monthly drop, reflecting both lower global commodity prices and sluggish demand. Much of China's imports are commodities and other raw materials going into factories that turn them into goods for sale overseas, so the fall could be an ominous sign for exports in the coming months. REUTERS/Sheng Li/Files TPX IMAGES OF THE DAY CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA
BENGALURU: Wall Street was lower at the open on Monday as Brent crude prices fell to their lowest in nearly seven years after Opec’s meeting ended last week without a reference to its output ceiling.
Brent crude prices fell to US$38.80 (RM164.85), while a stronger dollar made it more expensive to hold crude positions. The dollar rose for a second day and was up 0.5% at 98.84 against a basket of major currencies.
Oil majors Exxon and Chevron fell about 3% and were the biggest drags on the Dow and the S&P.
A fall in oil prices erased earlier advances in stock futures that looked to build on Friday’s gains after a strong jobs report last week.
The solid November employment report showed that the economy was strong enough to absorb an interest rate hike, which is widely expected to be raised when the Federal Reserve meets on Dec 15-16.
The report came a day after Fed Chair Janet Yellen struck an upbeat note on the economy when she testified before lawmakers, describing how it had largely met the criteria for a rate hike.
“At this moment, a rate hike is a foregone conclusion and if the Fed misses the opportunity to raise again next week, it will reintroduce uncertainties in the market,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
However, Cardillo said falling oil prices could cap gains in the market as investors resort to profit taking.
At 9:37am ET (1437 GMT) the Dow Jones industrial average was down 59.36 points, or 0.33%, at 17,788.27, the S&P 500 was down 7.93 points, or 0.38%, at 2,083.76 and the Nasdaq Composite was down 8.31 points, or 0.16%, at 5,133.96.
Nine of the 10 major S&P sectors were lower with the energy index’s 2.51% loss leading the decliners.
Atlanta Fed president Dennis Lockhart told CNBC in an interview on Monday that the economic conditions were satisfactory and the market was well-prepared for a hike.
Lockhart is a voting member of the central bank’s policy setting committee.
Traders see a 79% chance that the central bank will increase rates for the first time in nearly a decade, according to the CME Group’s FedWatch.
St Louis Federal Reserve President James Bullard is scheduled to speak on the US economy at 12:30pm ET.
Keurig Green Mountain’s shares soared 74% to US$89.96 after the coffee-pod maker agreed to be bought for about US$13.9bil.
Chipotle Mexican Grill fell 6.1% to US$526.14, after the popular burrito chain warned that sales at established restaurants would fall in the fourth quarter due to the impact of an E. coli outbreak.
Pep Boys-Manny, Moe & Jack were up 3.7% at US$16.27 after billionaire investor Carl Icahn reported on Friday that he now owns 12.12% of the auto parts company.
Declining issues outnumbered advancing ones on the NYSE by 2,164 to 544. On the Nasdaq, 1,695 issues fell and 628 advanced.
The S&P 500 index showed 8 new 52-week highs and 17 new lows, while the Nasdaq recorded 19 new highs and 63 new lows. - Reuters
Subscribe now and receive FREE sooka plan for 1 month.
T&C applies.
