Stocks sag as energy sector slumps
NEW YORK - Stocks gave up early gains Tuesday as energy stocks continued to slide.
The market had climbed during morning trading, getting a lift from a survey that suggested the rapid pace of hiring in 2014 would continue this year. A separate survey showed that small businesses remain confident for the outlook on growth.
The Dow Jones industrial average fell 53 points, or 0.3 percent, to 17,578.The Standard & Poor's 500 index fell 9 points, or 0.5 percent, to 2,019 as of 2:51 p.m. Eastern time.The Nasdaq composite lost 11 points to 4,654
The price of oil continued to slide. Oil fell after the energy minister for the United Arab Emirates said Tuesday there are no plans for OPEC to curb production to shore up falling crude prices. The price of oil has slumped 57 percent since last June as traders bet that the supply glut will persist.
Benchmark U.S. crude fell 64 cents to $45.46 a barrel in New York. Brent, the international standard, fell $1.46 to $47.22 a barrel in London.
Stock market volatility has picked up at the start of the year, but investors should remain calm, said Janet Dougherty, a global investment specialist in Chicago at JPMorgan private bank.
"You have to remember that we've been through an extended period where there wasn't a lot of volatility in the equity markets, and now we're just getting back to normalized levels," Dougherty said.
Dougherty predicts that the combination of low interest rates and falling energy costs will benefit consumer-focused companies in the U.S.
U.S. employers advertised the most job openings in nearly 14 years in November, the Labor Department said Tuesday. That suggests businesses are determined to keep adding staff because they are confident that strong economic growth will create more demand for their goods and services.
Job openings rose 2.9 percent to 4.97 million in November, the most since January 2001. More job vacancies generally lead to more hiring.
Investors were also encouraged by a survey on small business, which showed confidence rising to an 8-year high in December. The survey also showed that more small business owners plan to raise wages.
In Europe, traders are speculating that the European Central Bank will announce more stimulus later this month to boost the region's flagging economy.
Chinese exports grew 9.7 percent in December over a year earlier, while imports shrank 2.4 percent. The results were better than investors expected.
In government bond trading, prices fell. The yield on the 10-year Treasury note, which climbs when prices drop, rose to 1.92 percent from 1.91 percent on Monday.