By Steve Gelsi
Energy stocks moved more deeply into the red than the broad
market on Monday as crude prices lost more than $2 a barrel.
With little in the way of company-specific developments, the
sector took a hard look at bearishness in the overall economy, led
by growing likelihood of a bankruptcy filing from former industrial
giant General Motors Corp. (GM).
Against this backdrop, the S&P 500 (SPX) fell 2.9% to 792,
but losses in the energy patch were worse.
The Amex Oil Index (XOI) lost 3.6% to trade at 851. Hess Corp.
(HES) fell 5.5% to $55.03
The Amex Natural Gas Index (XNG) fell 4% to 346. Component Ultra
Petroleum (UPL) dropped 6% to $36.50.
The Philadelphia Oil Service Index (OSXX) retreated 3.6% to 127.
Component Rowan Cos. (RDC) fell 7.9% to $12.16.
Crude oil futures fell back toward the $50 a barrel level,
correcting after sizeable run-ups in recent weeks.
On the economic front, the big monthly U.S. employment update
awaits on Friday. Overseas, Japan's industrial production fell 9.4%
in February.
Among energy stocks in the spotlight, Sinopec (SNP) said Sunday
its fourth-quarter profit fell 47% to 29.77 billion yuan ($4.36
billion), although the result was better than the CNY23.53 billion
expected in a Thomson Reuters poll cited by Dow Jones Newswires.
Shares fell nearly 6% to $59.73.
In Friday's action, the Amex Oil Index (XOI) lost 3% to end at
883, and the Amex Natural Gas Index (XNG) slipped 3.9% to close at
361. The Philadelphia Oil Service Index (OSXX) retreated 4% to
132.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com