CORRECTED: Stocks Slip, Pressured by Oil Shares


(Corrects name of oil drilling company in the fourth paragraph. A corrected story follows.) By Anupama Chandrasekaran NEW YORK (Reuters) - U.S. stocks slipped on Friday pressured by oil and oil services companies, which fell on lower crude prices. Oil prices dipped, having jumped on Thursday. U.S. light sweet crude was down 71 cents to $44.80 a barrel. While lower oil prices are good for stocks as they reduces the pressure on consumer spending and corporate profits, they are a negative for oil company shares. Exxon Mobil Corp. (XOM.N: Quote , Profile , Research ) fell 1 percent to $49.60, while ChevronTexaco Corp. (CVX.N: Quote , Profile , Research ) slipped 1.4 percent to $51.05. Meanwhile, oil drilling company Noble Corp. (NE.N: Quote , Profile , Research ) was down 2.2 percent to $47.50, while rival Transocean Inc. (RIG.N: Quote , Profile , Research ) fell 2.6 percent to $40.16. The Dow Jones industrial average was down 17.44 points, or 0.17 percent, at 10,605.44. The Standard & Poor's 500 Index was down 2.44 points, or 0.21 percent, at 1,185.45. The technology-laced Nasdaq Composite Index was down 6.39 points, or 0.31 percent, at 2,083.61. "The market seems to be following its pattern for the week where we rally at the open by take some profits. A drop in oil prices should be a boost to the markets but the market seems to be moving in the direction of energy stocks," Phil Orlando, chief portfolio manager at Federated Investors, said. "The jobs report was neither bullish or bearish." U.S. employers added a smaller-than-expected 157,000 new jobs to their payrolls in December as retailers surprisingly shed employees during the holiday shopping season, the Labor Department said. But the data eased investor concerns that the Fed will hike rates aggressively. Earlier in the week, Wall Street feared that the Fed may hike rates at a more aggressive pace, which is seen as a drag on stocks since it raises borrowing costs. But because the jobs numbers came in lower than expected, that signals the economy is not moving fast enough for a rapid hike, traders said. Shares of homebuilders got a boost from market expectations for interest rates to remain low as it would mean lower mortgage rates, which has been fueling the housing boom. Toll Brothers (TOL.N: Quote , Profile , Research ) rose 1 percent to $67.38 and KB Home (KBH.N: Quote , Profile , Research ) rose 27 cents to $100.73. But stun gun maker Taser International Inc. (TASR.O: Quote , Profile , Research ) plunged 15.4 percent to $23.33 after saying the U.S. Securities and Exchange Commission has begun an informal inquiry centered on company statements about the safety of its products and a recent order from a distributor.
Quelle "CORRECTED: Stocks Slip, Pressured by Oil Shares" : reuters.com

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