GE, energy shares drag Wall Street lower; bond proxies rise
U.S. stock indexes fell on Tuesday as General Electric shares plunged for a second straight day and a drop in crude oil prices hit energy stocks.
The stock touched $17.46, its lowest in nearly six years.
Energy was the largest decliner among the 11 S&P 500 sectors as oil prices fell the most in a month. The International Energy Agency forecast rising U.S. crude output and had a gloomy outlook for global demand growth. [O/R]
The Dow Jones Industrial Average <.dji> fell 30.23 points, or 0.13 percent, to end at 23,409.47, the S&P 500 <.spx> lost 5.97 points, or 0.23 percent, to 2,578.87 and the Nasdaq Composite <.ixic> dropped 19.72 points, or 0.29 percent, to 6,737.87.
Stocks favored by investors seeking yield, the so-called bond proxies, were the best performers as the yield curve, or the gap between short- and long-term U.S. government bond yields, remained near its flattest in a decade.
Utilities <.splrcu> and consumer staples <.splrcs>, sectors that pay relatively high dividends, were the best performers on the day. Utilities rose 1.2 percent for a 2.4 percent gain since Friday`s close, the largest two-day percentage gain since late February.
"People are looking for yield across the globe so potentially there`s foreign flows going into bond proxies," said Paul Zemsky, chief investment officer, Multi-Asset Strategies and Solutions at Voya Investment Management in New York.
He said the outperformance of stocks in the utilities and consumer staples sectors could also be due to investors getting more defensive "after growth sectors and the overall market have been doing so well this year."
The S&P 500 fell for the third session in the last four, but it remains within 1 percent of a record closing high hit last week.
TV streaming device maker Roku
Advance Auto Parts
Declining issues outnumbered advancing ones on the NYSE by a 1.47-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored decliners.
The S&P 500 posted 45 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 64 new highs and 87 new lows.
About 6.73 billion shares changed hands in U.S. exchanges, roughly in line with the daily average over the last 20 sessions.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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