(MENAFN- ProactiveInvestors) U.S. stock-index futures dropped as a decline in oil prices weighed on energy stocks amid low volumes in the final trading days of the year.
Contracts on the Standard & Poor’s 500 Index expiring in March dropped 5.5 points to 2087 at 8:22 a.m. in New York and those on the Dow Jones Industrial Average lost 31 points to 17951.
The S&P 500 (INDEXSP:.INX) closed up 0.1 percent to 2090 yesterday after touching a fresh record of 2093. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.1 percent to 18038 while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) ended flat at 4806.
Oil traded near the lowest since 2009 in New York and London amid speculation that U.S. crude inventories will stay at the highest for the time of year in at least three decades. West Texas Intermediate for February delivery slid as much as 91 cents to $52.70 a barrel in electronic trading on the New York Mercantile Exchange. Brent for February settlement fell as much as 2 percent to $56.74 a barrel on the London-based ICE Futures Europe exchange. () was down 0.6 percent to $112.70 in premarket trading while () skidded 0.5 percent to $92.60
Declines in Europe and Asia also added to the negative tone. Losses followed the Greek parliament’s failure to elect a new president. A snap election in January could see anti-austerity parties gain power adding to concerns about Greece’s financial problems. The Stoxx Europe 600 Index dropped 0.8 percent to 341.65 at 1:11 p.m. in London. The gauge has trimmed its annual advance to 4.1 percent. Japanese stocks fell 1.6 percent in their last trading day of 2014 but remain up 7.1 percent for the year.
A measure of consumer confidence which will be released at 10 a.m. is seen rising to 93 in December from the previous reading of 88.7. CaseShiller data on home prices are expected to be released at 9 a.m. Prices are seen up 0.4 percent in October.
Civeo (NYSE:CVEO) plunged 40 percent to 4.99 in premarket trades after saying it would slash spending and suspend its quarterly dividend amid the slide in oil prices.
U.S. shares have climbed this month as the world’s largest economy expanded at the fastest pace in more than a decade and the pledged to be patient on the timing of interest-rate increases. The Dow has gained 1.2 percent so far this month the S&P is up 1.1 percent and the Nasdaq is up 0.3 percent.
For 2014 the S&P is up 13 percent and the Nasdaq is up 15 percent in the third straight annual gain for both. The Dow is up 8.8 percent and on track for its sixth straight positive year. Utilities are the strongest sector of the year up almost 30 percent while the energy sector is the weakest down 8.7 percent.
Demand for safe-haven assets increased. Gold rebounded from the biggest decline in a week. Bullion for February delivery rose 0.2 percent to $1184.70 an ounce at 7:14 a.m. on the Comex in New York.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.