U.S. stocks fluctuate as energy producers slump, retailers rise

AN EMPLOYEE pulls a forklift with display units for DVD movies at a Wal-Mart Stores Inc. location ahead of Black Friday in Los Angeles on Nov. 24. Wal-Mart Stores Inc. imade Black Friday, the shopping day after Thanksgiving, a weeklong event this year. Wal-Mart stock surged 2.8 percent, the most in the Dow, Friday morning. / BLOOMBERG/PATRICK T. FALLON
AN EMPLOYEE pulls a forklift with display units for DVD movies at a Wal-Mart Stores Inc. location ahead of Black Friday in Los Angeles on Nov. 24. Wal-Mart Stores Inc. imade Black Friday, the shopping day after Thanksgiving, a weeklong event this year. Wal-Mart stock surged 2.8 percent, the most in the Dow, Friday morning. / BLOOMBERG/PATRICK T. FALLON

FRANKFURT – U.S. stocks fluctuated as energy producers tumbled after OPEC’s decision to keep its output target unchanged while retailers climbed as shoppers hunted for holiday deals.

Exxon Mobil Corp. and Chevron Corp., the oil and gas stocks with the biggest weighting on the benchmark Standard & Poor’s 500 Index, lost more than 4 percent. American Airlines Group Inc. and Delta Air Lines Inc. rose at least 5.7 percent amid optimism that they will benefit from lower fuel costs. Wal-Mart Stores Inc. and United Parcel Service Inc. jumped more than 2.8 percent as shoppers go to stores and online for the Black Friday weekend.

The S&P 500 fell less than 0.1 percent to 2,071.43 at 10 a.m. in New York. The Dow Jones Industrial Average increased 41.30 points, or 0.2 percent, to 17,869.05. Trading in S&P 500 companies was 17 percent above the 30-day average for this time of the day. U.S. equity markets reopened after the Thanksgiving holiday yesterday. Exchanges will shut at 1 p.m. New York time.

The S&P 500 closed at a record on Nov. 26 and is heading for a second monthly gain. It has rallied 11 percent from its low last month as data signaled the U.S. economy is improving, and central banks around the world boosted stimulus measures.

- Advertisement -

“Investors are going to watch which sectors will be impacted by the decline in oil,” Dan Heckman, Kansas City, Mo.-based national investment consultant at U.S. Bank Wealth Management, said by phone. His firm oversees about $120 billion. “Retail sales and internet retail sales show yesterday was a good day. With the drop in oil we think this will be a tremendous holiday season.”

OPEC decision

West Texas Intermediate crude oil dropped 6 percent from its Nov. 26 close, the biggest loss in three years, as the Organization of Petroleum Exporting Countries yesterday agreed not to reduce its production ceiling even after oil collapsed into a bear market this year.

Exxon Mobil declined 4 percent and Chevron lost 5.1 percent. Schlumberger Ltd., the world’s biggest provider of oilfield services, slipped 9.8 percent. Halliburton Co., the second-largest, tumbled 10 percent. Baker Hughes Inc., which Halliburton has agreed to buy, dropped 8 percent.

“The larger story is the sharp oil-price dip overnight,” Richard Hunter, head of equities at Hargreaves Lansdown Plc in London, wrote in an e-mail. “That’s expected to continue the pressure on the oil majors, while at the same time giving a fillip both to the consumer – an effective tax cut – and indeed the airlines.”

American Airlines, the world’s largest carrier, climbed 7.8 percent. Delta Air Lines added 5.7 percent. Southwest Airlines Co. rallied 7.1 percent.

Wal-Mart surged 2.8 percent, the most in the Dow, and J.C. Penney climbed 3.9 percent. UPS gained 3.1 percent and Amazon.com Inc. added 1.9 percent. The National Retail Federation projected a 4.1 percent gain in retail sales in November and December, the biggest increase since 2011.

No posts to display