US stocks pull back in early trading as oil prices drop

AP News
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Posted: Mar 08, 2016 10:21 AM
US stocks pull back in early trading as oil prices drop

NEW YORK (AP) — Stocks are pulling back in early trading Tuesday as oil prices slip and energy companies dropped sharply. Chesapeake Energy and Southwestern Energy each fell 16 percent. Traders were also discouraged by weak trade figures from China.

KEEPING SCORE: The Dow Jones industrial average fell 111 points, or 0.7 percent, to 16,962 as of 10:10 a.m. Eastern time. The Standard and Poor's 500 index fell 17 points, or 0.8 percent, to 1,984. The Nasdaq composite gave up 36 points, or 0.8 percent, to 4,671.

SHAKE QUAKE: Hamburger chain Shake Shack dropped $4.37, or 10 percent, to $37.86 after delivering results and an outlook that disappointed investors.

SALES SLIP: Dick's Sporting Goods fell $1.13, or 2.6 percent, to $43.25. Its fourth-quarter results fell short of analysts' expectations as a warmer-than-usual winter crimped the retailer's sales. Its guidance for the future also disappointed.

URBAN JUMPS: Urban Outfitters rose $3.19, or 11 percent, to $31.35 after the retailer reported strong earnings and improved margins during the holiday season. The Philadelphia-based company said it earned $72.9 million, or 61 cents per share, in its fourth quarter ended Jan. 31, better than analysts expected.

OIL FALLS: Benchmark U.S. crude fell 70 cents, or 1.9 percent, to $37.20 a barrel on the New York Mercantile Exchange. It jumped $1.98 on Monday. Brent crude, which is used to price international oils, fell 57 cents to $40.27 a barrel.

CHINA TRADE: China's exports plunged 25 percent in February from a year earlier, as weak global demand and a business shutdown during the Lunar New Year holiday combined to depress sales. Customs data Tuesday also showed imports fell 14 percent.

EUROPE DOWN: France's CAC 40 lost 0.6 percent and Germany's DAX shed 0.5 percent. Britain's FTSE 100 edged down 0.6 percent.

ASIA'S DAY: Japan's benchmark Nikkei 225 dropped 0.8 percent and South Korea's Kospi lost 0.6 percent. Hong Kong's Hang Seng index shed 0.7 percent, while the Shanghai Composite inched up 0.1.

CURRENCIES: The euro was little changed at $1.1021, up from $1.1013. The dollar edged down to 112.77 yen from 113.27 yen.

BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.82 percent from 1.91 percent late Monday.