(MENAFN- ProactiveInvestors) U.S. stocks fell sharply Monday retreating from record highs reached at the end of last week as markets were pressured by energy companies which took a tumble amid the continued decline in oil prices.
At the closing bell in in New York the Dow Jones Industrial Average dropped 107 points to settle at 17852 while the S&P 500 stumbled 15 points lower to 2060. The Nasdaq shed 40 points to end at 4741.
With no economic reports in the US out today investors were focused on data abroad though they will see retail sales consumer sentiment and producer prices later this week.
Concerns about China's economy resurfaced after disappointing trade numbers while separate data showed Japan's economy contracting more than initially forecast in the third quarter less than a week prior to general elections that Prime Minister Shinzo Abe has framed as a referendum on his economic policies.
Investors were also nervous about the Fed's policy direction following Friday's blowout jobs numbers which raised speculation on when the central bank will introduce its first tightening to its ultra-loose monetary policy.
Atlanta Fed President Dennis Lockhart who spoke to the Council for Quality Growth in Atlanta this afternoon said that the Fed can afford to be patient on its first rate hike.
Meanwhile on the New York Mercantile Exchange WTI for January delivery declined 4.2% to finish at $63.05 a barrel. The U.S. oil benchmark logged the lowest settlement for a front-month contract since July 16 2009 sliding further just one session after ending at levels last seen on July 29 2009.
The losses came after and other banks cut forecasts saying oversupply would peak next year after OPEC decided not to cut output. Energy equities suffered on Monday as a result. () declined 3.7% and () shed over 2%.
In corporate activity Merck () has agreed to buy antibiotics maker Cubist () for $8.4 billion a 35% premium over its closing price on December 5. Shares of Cubist surged over 35% today.
() and () have reached a new carriage fee deal over the weekend just hours after pulled Sports and Showtime from top Dish markets late on Friday. Terms of the deal were not disclosed.
(NYSE:) is reportedly accelerating its plans to reduce its headcount given the weak oil price which could see some of its projects frozen or cancelled. Shares dropped 2.75%.
McDonald's () shares slid 3.8% after the company reported weak November sales and issued a profit warning.
() dropped more than 4.5% after a hacking group called Guardians of Peace continued its public attack on the movie studio Monday saying it had released more internal data and demanding the studio halt the upcoming release of its comedy "The Interview" starring Seth Rogan.
() fell even after delivering a narrower-than-expected loss and offering a fresh plan to build out its ski resorts.
Corp () rose 3.6% after analysts at Cantor Fitzgerald raised the stock’s price target to $131 from $120.
European markets finished broadly lower today with shares in London off the most. China's Shanghai Composite Index surged above 3000 for the first time since April 2011 as falling imports left the country with a record trade surplus of $54.5 billion.
Gold for February delivery rose $4.50 to finish at $1194.90 an ounce.
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