Stocks Move Violently As Oil Prices Decline
US stocks struggled for the second session as oil prices dropped steeply on Tuesday, May 3, 2011.
The Dow Jones industrial average (INDU) closed almost unchanged, rising only less than a point to 12,808 at the end of trading.
The best performers in the Dow were financial shares, with the Bank of America (BAC) and JPMorgan Chase (JPM) gaining more than 1.5 percent at close.
On the other hand, the biggest drag belonged to blue chip stocks, particularly Pfizer (PFE), with reported earnings per share beating by just a penny. Its price fell by 3 percent because the company wasn’t able to meet its investor’s expectations.
Unlike the Dow, S&P500 (SPX) fell 5 points by 0.3 percent to 1,357. The drop was mostly due to a sharp decline in the energy sector as oil prices retreated down to 2.2 percent to $111.05 a barrel. Chevron (CVX) shares decreased by 2 percent, ConocoPhilips (COP) decreased by more than 4 percent and Exxon Mobil (XOM) decreased by less than 2 percent.
The tech-heavy Nasdaq Composite (COMP) also declined, with a 22-point drop by 0.8 percent to 2,742. It was heavily weighed down by Sears Holdings (SHLD) whose stocks fell by 10 percent after it said its same-store sales declined by 4 percent during the last quarter.
Semiconductor producers Nvidia (NVDA) and Micron Technologies (MU) also contributed to Nasdaq’s decline, with both shares dropping to more than 4 percent.
Based on the current market situation, traders and investors said it will take them more to sustain a longer rally.