By Steve Gelsi
Energy stocks moved more deeply into the red than the broad
market at midday Monday as crude prices fell below $50 a barrel for
the first time in two weeks.
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 U.S. auto maker
General Motors Corp. (GM).
Against this backdrop, the S&P 500 (SPX) fell 3.5% to 787,
but losses in the energy patch were worse.
The Amex Oil Index (XOI) lost 4.4% to trade at 844. Hess Corp.
(HES) fell 5% to $55.42. Valero (VLO) dropped 7% to $17.73.
The Amex Natural Gas Index (XNG) fell 4.2% to 346. Component
Ultra Petroleum (UPL) dropped 5% to $36.87. El Paso (EP) dropped 6%
to $6.23.
The Philadelphia Oil Service Index (OSXX) retreated 4.6% to 126.
Component Rowan Cos. (RDC) fell 7.4% to $12.23.
Crude oil futures fell $2.94 to $49.44 a barrel, correcting
after sizable run-ups in recent weeks.
On the economic front, the big monthly U.S. employment update is
slated for 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 dropped 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.
Oil and gas company Range Resources Corp. (RRC) fell 4.7% to
$40.70. The company said Monday that its 26 lenders have recently
reaffirmed its $1.5 billion borrowing base. The firm said there was
no change in interest rates, fees or repayment terms
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