U.S. Markets close in 6 hrs 6 mins

Oil's 4 percent tumble weighs on energy shares; banks rally

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 16, 2018. REUTERS/Brendan McDermid

By Lewis Krauskopf

NEW YORK (Reuters) - The price of oil tumbled more than 4 percent on Monday, putting pressure on energy shares and keeping global stock markets in check, although financial shares rallied after upbeat news from Bank of America and Deutsche Bank.

Oil slumped as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers.

U.S. crude (CLcv1) settled down 4.15 percent at $68.06 a barrel, while Brent (LCOcv1) settled at 71.84, down 4.63 percent, and touched a three-month low.

Concerns over China's second-quarter economic growth also weighed on oil prices. The country's economy expanded at a slower pace as Beijing's efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low.

"The GDP missing a little bit psychologically was a warning sign that China is doing OK now, but not quite as strong as expected," said Phil Flynn, analyst at Price Futures Group in Chicago.

Wall Street's main indexes ended little changed following strong weeks as investors geared up for a big week of corporate earnings and awaited commentary on the impact of U.S. trade disputes with China and its other trading partners.

"It looks as though we're just taking a bit of a break after a good run last week," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

The Dow Jones Industrial Average (.DJI) rose 44.95 points, or 0.18 percent, to 25,064.36, the S&P 500 (.SPX) lost 2.88 points, or 0.10 percent, to 2,798.43 and the Nasdaq Composite (.IXIC) dropped 20.26 points, or 0.26 percent, to 7,805.72.

Major energy stocks such as Exxon Mobil (XOM.N), Chevron (CVX.N) and BP (BP.L) weighed on key indexes.

Financials in the United States (.SPSY) and Europe (.SX7P) were higher following Bank of America's (BAC.N) better-than-expected quarterly profit and Deutsche Bank's (DBKGn.DE) upbeat earnings preview.

Overall in Europe, the pan-European FTSEurofirst 300 index (.FTEU3) lost 0.34 percent.

MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.13 percent.

Markets looked ahead to Federal Reserve Chairman Jerome Powell's semiannual testimony on the U.S. economy and monetary policy before the U.S. Senate Banking Committee on Tuesday.

The dollar fell after posting its largest weekly gain in a month, as investors pared long bets on the greenback.

The dollar index (.DXY) fell 0.28 percent, with the euro (EUR=) up 0.23 percent to $1.1712.

The rouble held gains after a meeting between Russian President Vladimir Putin and U.S. President Donald Trump helped offset the negative impact from the drop in oil prices.

U.S. Treasury yields increased, with the two-year yield hitting a near decade peak, as domestic retail sales recorded growth for a fifth straight month in June, supporting the view of solid economic growth in the second quarter.

Benchmark 10-year notes last fell 7/32 in price to yield 2.8545 percent, from 2.831 percent late on Friday.


(Additional reporting by Stephanie Kelly and Caroline Valetkevitch in New York, Editing by Frances Kerry and James Dalgleish)

  • Sears bankruptcy could make these 5 big companies multi-million-dollar losers
    Finance
    Yahoo Finance

    Sears bankruptcy could make these 5 big companies multi-million-dollar losers

    Signs advertising store closing sales are seen on the doors of a Sears in New Hyde Park, New York, U.S., October 10, 2018. REUTERS/Shannon Stapleton Being an unsecured creditor of Sears (SHLD) right now is not a good place to be. The 125-year old former

  • Business
    Reuters

    ConvaTec shares plunge on profit warning and CEO departure

    Paul Moraviec, who took the helm in 2014 and guided ConvaTec through a $1.8 billion initial public offering two years later, is stepping down with immediate effect and will be replaced on interim basis by non-executive director Rick Anderson, who was previously chairman at Johnson & Johnson (JNJ.N). ConvaTec did not give reasons for Moraviec's departure, which comes a year after CFO Nigel Clerkin left the company, but some analysts had been critical of the company's management. "We are not surprised to see the CEO stepping down given ConvaTec's numerous missteps since the IPO," Bernstein analysts said.

  • This Is the Average American's Salary. How Does Yours Compare?
    Business
    Motley Fool

    This Is the Average American's Salary. How Does Yours Compare?

    In an age of oversharing, many of us are remarkably tight-lipped when it comes to talking salary. But in reality, knowing where you stand can help you determine whether you're in a good place or whether you should be taking steps to boost your earnings

  • Is This High-Flying Marijuana Stock the Next Tilray?
    Business
    Motley Fool

    Is This High-Flying Marijuana Stock the Next Tilray?

    Since then, Tilray's share price has skyrocketed to well over six times its opening-day level. At one point, Tilray was up a whopping 856% -- in just two months of trading. Now there's another marijuana stock that is beginning to turn heads.

  • Tesla Model 3 hits major milestone
    TSLA
    Fox Business Videos

    Tesla Model 3 hits major milestone

    FBN's Cheryl Casone on Tesla reaching a milestone of 100,000 Model 3 vehicles and Tesla CEO Elon Musk filing the paperwork to create a Tesla brand tequila called 'Teslaquila.'

  • Ford Escape sales are down — here’s how it compares with other small SUVs
    Business
    American City Business Journals

    Ford Escape sales are down — here’s how it compares with other small SUVs

    Sales of the Ford Escape aren't what they used to be. The Escape, made at the Louisville Assembly Plant, saw sales decline by 20 percent in September 2018, compared with the same month last year. Ford and its Lincoln Motor Co. subsidiary have been successful in increasing sales of larger SUVs, such as the Navigator and Expedition this year.

  • 2 Pharmaceutical Stocks to Buy With Dividends of 3% or Better
    Business
    Motley Fool

    2 Pharmaceutical Stocks to Buy With Dividends of 3% or Better

    During a tough week for the overall market, pharmaceutical stocks across the board fell a few notches despite a lack of significant news for the industry itself. Over the past five years, Pfizer has been able to raise its dividend 42% despite declining sales for aging blockbusters that lost patent protection and a sterile injectibles business that suffered major product shortages after it was acquired. Now that the worst is over, a strong product lineup and bulging pipeline could allow America's largest pharmaceutical company to direct a ton of cash toward its shareholders.

  • Better Marijuana Stock: Aurora Cannabis vs. Auxly Cannabis Group
    Business
    Motley Fool

    Better Marijuana Stock: Aurora Cannabis vs. Auxly Cannabis Group

    One is market cap: Aurora's market cap is nearly 18 times bigger than Auxly's. Then there's stock performance. Here's how Aurora Cannabis and Auxly Cannabis Group stack up against each other in the areas that do matter.

  • What Investors Should Know about AT&T’s Growth Prospects
    Business
    Market Realist

    What Investors Should Know about AT&T’s Growth Prospects

    What Investors Should Know about AT&T’s Growth Prospects AT&T’s earnings in Q3 2018 AT&T (T), the second-largest wireless service provider in the United States, is looking to showcase its strength as it nears its third-quarter earnings release. The company

  • Finance
    Fox Business

    How much Uber, Lyft drivers really make

    With the rise of the gig economy, many people are turning to ridesharing platforms such as Uber and Lyft to find work. Despite the differences in the platforms, average nationwide earnings for both Uber and Lyft are comparable. A 2015 study by SherpaShare found that an average driver’s gross earnings per trip in New York City was $29.34 for UberX and $28.82 for Lyft, compared with only $11.53 for UberX and $11.36 for Lyft in Los Angeles.

  • Kinder Morgan’s Third-Quarter Results Uplift Its Stock
    Business
    Market Realist

    Kinder Morgan’s Third-Quarter Results Uplift Its Stock

    Kinder Morgan’s Third-Quarter Earnings Are Expected to Rise (Continued from Prior Part) Kinder Morgan has fallen YTD  Kinder Morgan (KMI) stock has fallen ~4% YTD (year-to-date). Kinder Morgan has been trading mainly sideways for about three months.

  • Can New CEO Bring JCPenney Back on Track?
    Business
    Market Realist

    Can New CEO Bring JCPenney Back on Track?

    JCPenney (JCP) stock has risen 12.8% since the company announced the appointment of Jill Soltau as its new CEO on October 2. Most recently, Jill Soltau was president and CEO of Jo-Ann Stores. JCPenney stock rose 3.8% on October 3 following the appointment of the new CEO.

  • Cannabis Deals Reach $8 Billion on Eve of Canadian Legalization
    Business
    Bloomberg

    Cannabis Deals Reach $8 Billion on Eve of Canadian Legalization

    Canadian cannabis companies have been involved in at least 97 announced acquisitions and investments with a combined value of $8.06 billion this year, according to data compiled by Bloomberg. In 2015 there were six pot deals worth $72 million.

  • Why I’m Not Worried About Being Behind on Retirement Savings
    Business
    GoBankingRates

    Why I’m Not Worried About Being Behind on Retirement Savings

    This is why I find it funny that we spend most of our lives “retirement planning” or planning for our deaths. Don’t get me wrong, I’m not shouting in the face of retirement planning or being prepared. Although I’ve gotten my life back on track since then, I’m still not worried about being behind on retirement savings, the magical “$1 million saved” for retirement number or all the “what ifs.” Why?

  • Jack Bogle's Stock and Bond Market Return Expectations
    Business
    Morningstar

    Jack Bogle's Stock and Bond Market Return Expectations

    The Vanguard founder says low dividend yields, modest earnings growth potential, and still-low rates mean returns are set to be lower.

  • Business
    Benzinga

    Bulls & Bears Of The Week: GE, Netflix, Nike, Twitter And More

    Benzinga has featured looks at many investor favorite stocks over the past week. Bullish calls included an old-school conglomerate and a social media pair. Bearish calls included an electric car maker and a pharmaceutical firm. Another major hurricane

  • Sears' Bankruptcy: How It Got Here -- And What Happens Next
    Business
    Motley Fool

    Sears' Bankruptcy: How It Got Here -- And What Happens Next

    It was a long time coming for Sears Holdings Corp. (NASDAQ: SHLD). The venerable American retailer, founded back in 1893, filed for Chapter 11 bankruptcy early Monday. The move would allow Sears to restructure in hopes of reemerging from bankruptcy with part of the business still standing.

  • Guess Who's Profiting From GE's Troubles?
    Business
    Motley Fool

    Guess Who's Profiting From GE's Troubles?

    One person's challenge is another's opportunity, and there are very few CEOs as bold and decisive in taking advantage of a chance to enhance value for shareholders as Emerson Electric's (NYSE: EMR) David Farr. Although the terms of Emerson's deal to buy General Electric's (NYSE: GE) Intelligent Platforms business weren't disclosed, it's likely that GE's desire to sell assets in order to raise cash means Farr's company wouldn't have overpaid to acquire a strategically important business. While the very-highly-regarded former Danaher CEO Larry Culp is now charged with turning around GE's fortunes, the executive with best recent experience in turning around a major industrial company is actually Emerson's David Farr.

  • If You're Retired, Consider Buying These 3 Stocks
    Business
    Motley Fool

    If You're Retired, Consider Buying These 3 Stocks

    Magellan Midstream Partners, L.P. (NYSE: MMP), PPL Corporation (NYSE: PPL), and ExxonMobil Corporation (NYSE: XOM) are all high yielding dividend payers with long histories of increasing their dividends on a regular basis. Magellan has long been one of the most conservative midstream partnerships, focusing on self-funding as much of its growth as it can to avoid dilutive unit sales -- a model which peer and industry bellwether Enterprise Products Partners L.P. is starting to mimic. This conservative approach, however, doesn't mean the company is skimping on growth.

  • It’s Official -- These 5 Social Security Changes Are Coming for 2019
    Business
    Motley Fool

    It’s Official -- These 5 Social Security Changes Are Coming for 2019

    For workers, Social Security's maximum taxable earnings are increasing, and more income will be required to earn a Social Security "credit." Beneficiaries who claimed Social Security early and still work will be happy to learn they'll be able to earn more without a benefit reduction in 2019, and for high earners, the maximum possible Social Security benefit is also on the rise. With all of that in mind, here are the recently released details of these five 2019 Social Security changes. As I mentioned, Social Security beneficiaries are getting a 2.8% COLA starting with their January 2019 benefit payment.

  • This $372 Million Windfall for Aurora Cannabis Could Be Just the Beginning
    Business
    Motley Fool

    This $372 Million Windfall for Aurora Cannabis Could Be Just the Beginning

    Investors have never been more excited about the prospects for marijuana stocks, and many of the best-known first movers in the industry call Canada their home. Aurora Cannabis (NASDAQOTH: ACBFF) (TSX: ACB) is one of the major companies in the cannabis industry looking to cash in on the impending legalization of recreational marijuana in Canada, and it's put together an impressive set of resources designed to let it take maximum advantage of growing consumer interest in cannabis products. Like most up-and-coming companies, Aurora Cannabis isn't consistently profitable, and the marijuana producer is spending freely to ramp up its production capabilities to stay ahead of competitors.

  • Better Marijuana Stock: Canopy Growth Corporation vs. Aphria Inc.
    Business
    Motley Fool

    Better Marijuana Stock: Canopy Growth Corporation vs. Aphria Inc.

    Recreational marijuana sales begin on Oct. 17 in Canada, and investors convinced the program will be a hit have pushed shares of Canopy Growth Corporation (NYSE: CGC) and Aphria Inc. (NASDAQOTH: APHQF) up by 60% or better over the past few months. In just two short years, Canopy Growth Corporation's market cap has exploded from just $476 million two years ago to $10.1 billion at recent prices, and it looks like there could be more fireworks ahead. Canopy Growth has secured contracts that will require it to provide at least 67,000 kilograms of cannabis annually to Canadian provinces and territories.

  • Microsoft Earnings: Mark Your Calendar
    Business
    Motley Fool

    Microsoft Earnings: Mark Your Calendar

    Software giant Microsoft (NASDAQ: MSFT) has continued to impress investors in 2018 amid its ongoing progress becoming a more cloud-centric company. Microsoft reports its first-quarter earnings for fiscal 2019 on October 24. Ahead of Microsoft's earnings release, here's an overview of some of the key areas investors will want to watch. Core to Microsoft's momentum recently is the company's rapidly growing commercial-cloud revenue.

  • News
    CNBC

    He retired at 34. Here's how many people are enjoying a very early retirement

    Retiring in your 60s and 70s can seem a challenge to pull off. A few early retirees break down how they did it. Retiring comfortably in yours 60s or 70s can seem a high-wire act, so how are some people pulling it off without a wrinkle in their face?

  • Bank of America profit beats on lower costs, loan growth
    Finance
    Reuters

    Bank of America profit beats on lower costs, loan growth

    In his near-decade long tenure as chief executive officer, Brian Moynihan has tried to streamline the lender's sprawling operations by cutting jobs, digitizing retail operations and getting rid of crisis-era mortgages, which he inherited as part of its acquisition of Countrywide Financial. Two years ago, Moynihan pledged to cut expenses to $53 billion by the end of this year and stick to that level until 2020. "Responsible growth, backed by a solid U.S. economy and a healthy U.S. consumer, combined to deliver the highest quarterly pre-tax earnings in our company's history," Moynihan said in a statement.