New York – Stocks fell Wednesday as declining oil prices sent the energy sector lower and investors continued their jittery reactions to corporate earnings.
Energy stocks such as Halliburton Co. and Valero Energy Corp. fell along with crude-oil futures, pulling the Standard & Poor’s 500 index lower on a day when most other sectors were nearly flat.
Trading remained erratic after Friday’s big drop, which sent the Dow down 213 points. The sell-off followed a strong start to 2006, which sent the major indexes to multiyear highs.
“We had that great run-up,” said Susan Malley, chief investment officer for Malley Associates Capital Management.
“Stocks were fully pricing good earnings reports or good outlooks,” she said. “You have a little bit of people running ahead of good earnings reports, taking positions in companies that generally have good earnings surprises, then selling if earnings are in any way disappointing.”
The Dow Jones industrial average fell 2.48, or 0.02 percent, to 10,709.74.
Broader stock indicators were lower. The S&P 500 index fell 2.18, or 0.17 percent, to 1,264.68, and the Nasdaq composite index fell 4.60, or 0.2 percent, to 2,260.65.
Crude-oil futures fell, dropping $1.21 a barrel to settle at $65.85 in trading on the New York Mercantile Exchange.
Bonds fell, with the yield on the 10-year Treasury note rising to 4.48 percent from 4.39 percent late Tuesday. The dollar rose against other major currencies; gold prices also climbed.
In economic news, the National Association of Realtors said existing-home sales dropped 5.7 percent in December to an annualized rate of 6.6 million units, down from 6.97 million in November. Economists had expected sales to come in at 6.87 million.
Nervousness about unrest in Nigeria and Iran’s nuclear ambitions helped send the energy sector lower. Halliburton fell $1.71 to $74.24 in advance of its earnings report, expected today; Valero fell $1.93 to $58.37.
