Home' Trinidad and Tobago Guardian : August 2nd 2015 Contents Stocks closed modestly lower Friday
as oil titans Exxon Mobil and
Chevron led a slump in energy
The Dow Jones industrial average lost 56.12
points, or 0.3 per cent, to 17,689.86. The Stan-
dard & Poor's 500 index lost 4.71 points, or
0.2 per cent, to 2,103.92. The Nasdaq com-
posite closed little changed, down half a point
It was a see-saw week for the market, but
all three major indexes closed higher by roughly
1 per cent.
Shares of Exxon Mobil and Chevron, the
two largest publicly traded energy companies,
fell roughly 5 per cent each on Friday. Both
companies posted major declines in their year-
over-year profits largely due to the big drop
in the price of oil.
In the case of Exxon, earnings fell 52 percent
from a year earlier, causing the company to
report its lowest quarterly profit since June
2009. Exxon shares fell $3.80, or 4.6 per cent,
Chevron, hurt by low oil prices and a write-
off of some of its assets, reported its lowest
profit in 13 years. The company reported a
profit of 30 cents a share, well below the $1.13
analysts expected. Chevron fell $4.55, or 4.9
percent, to $88.48.
Exxon and Chevron dragged down other
energy stocks. The S&P 500 energy sector
slumped 2.6 percent, its biggest drop since
Energy companies have been a major drag
on corporate earnings in the second quarter.
S&P 500 companies are on track for a 1.3 per-
cent year-over-year decline in earnings, accord-
ing to FactSet. If energy were excluded, cor-
porate profits would be up 5.4 percent.
Even with oil prices down more than 50
percent from a year ago, crude has continued
to fall. Oil prices declined sharply again Friday
on continuing concerns over high global sup-
plies and weak demand, helping push oil down
21 percent for the month.
Benchmark U.S. crude fell $1.40 to close at
$47.12 a barrel in New York. Crude fell $12.35
a barrel during the month, from $59.47 at the
end of June. Brent crude, a benchmark for
international oils used by many U.S. refineries,
fell $1.10 to close at $52.21 in London.
A disappointing economic report also
weighed on stocks.
U.S. wages and benefits grew at their slowest
pace in 33 years in the spring, the Labor
Department said, stark evidence that the
improving job market is having little impact
on paychecks for most Americans. The slow-
down likely reflects a sharp drop-off in bonus
and incentive pay for some workers.
The lackluster wage growth suggests that
companies are still able to find the workers
they need without boosting pay, a sign the
job market is not yet back to full health. That
could cause the Federal Reserve hold of any
increase in interest rates.
Bond prices rose after the report, pushing
the 10-year U.S. Treasury note down to 2.19
percent from 2.26 percent on Thursday.
"I can't imagine the Fed is looking at (this
data) this morning as a reason to increase rates
in September," said Tom di Galoma, head of
rates trading at ED&F Man Capital.
In other energy markets, wholesale gasoline
rose 1.3 cents to close at $1.841 a gallon. Heating
oil fell 1.4 cents to close at $1.584 a gallon.
Natural gas fell 5.2 cents to close at $2.716 per
1,000 cubic feet.
In currencies, the dollar fell 0.3 percent to
123.90 yen and the euro rose 0.4 percent to
In metals trading, gold rose $6.50 to
$1,095.90 an ounce and silver rose 5 cents to
$14.75 an ounce. Copper fell 1 cent to $2.43
per pound. AP
AUGUST 2 • 2015 www.guardian.co.tt BUSINESS GUARDIAN
US stocks at Friday close
US stocks closed on Friday with modest
losses, as a big drop in energy stocks
offsets gains in other parts of the market.
For the day:
• The Dow Jones industrial average fell
56.12 points, or 0.3 percent, to
• The Standard & Poor's 500 index lost
4.79 points, or 0.2 percent, to 2,103.84.
• The Nasdaq composite fell 0.5 of a
point, or less than 0.1 percent, to
For the week:
• The Dow was up 121.33 points, or 0.7
• The S&P 500 was up 24.19 points, or 1.2
• The Nasdaq is up 39.65 points, or 0.8
For the year:
• The Dow is down 133.21 points, or 0.7
• The S&P 500 index is up 44.94 points,
or 2.2 percent.
• The Nasdaq is up 392.23 points, or 8.3
US energy stocks drag on
A cyclist rides by a Mobil gas station.
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