S&P 500 Falls for 5th Day as Small-Caps Tumble Amid Oil Selloff

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U.S. stocks fell, extending the longest losing streak in the Standard & Poor™s 500 Index in 13 months, as small-cap and energy shares slid after oil pushed losses further below $50 a barrel.

The S&P 500 fell 0.9 percent to 2,002.50 at 4 p.m. in New York, declining for a fifth straight day. The Russell 2000 Index slid 1.7 percent, after plunging 2.4 percent earlier. The Dow dropped 131.36 points, or 0.8 percent, to 17,370.29. Trading in S&P 500 companies was 47 percent above the 30-day average for this time of the day.

The S&P 500 yesterday lost 1.8 percent, the most since October, completing its first four-day decline since 2013. The benchmark gauge has dropped 4.2 percent since an all-time high reached Dec. 29. The gauge retreated today below its average price for the last 100 days after yesterday falling through its 50-day moving average.

Source: Bloomberg

Gold Rises to Three-Week High With Silver as Europe’s Woes Mount

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Gold and silver futures rose to three-week high weeks after Europe™s economic concerns mounted, spurring demand for the precious metals as a haven.

A gauge of euro-area services and manufacturing signaled growth slowed in the final quarter of 2014, and the euro extended losses versus the dollar amid Greek opposition to austerity measures that may prompt the country™s exit from the currency bloc. Money managers raised bullish wagers on gold for the first time in three weeks, U.S. government data showed.

The metal has climbed 7.9 percent from a four-year low in November on political turmoil in Greece and speculation that governments from Europe to China will bolster economic stimulus. Yesterday the U.S. Mint sold 42,000 ounces of gold coins, compared with 18,000 ounces in all of December.

Gold futures for February delivery climbed 1.3 percent to settle at $1,219.40 an ounce at 1:54 p.m. on the Comex in New York. Earlier, the price reached $1,223.30, the highest for a most-active contract since Dec. 16. The metal rose for the third straight session, the longest rally since Dec. 19. Aggregate trading was 36 percent more than the 100-day average, according to data compiled by Bloomberg.

Source: Bloomberg

Japanese Stocks Swing as Textile Makers Rise, Oil Extends Losses

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Japanese stocks swung between gains and losses as textile makers led gains on lower commodity prices and energy producers dropped as oil continued its plunge.

The Topix added 0.1 percent to 1,362.22 as of 9:15 a.m. in Tokyo after falling as much as 0.6 percent. The Nikkei 225 Stock Average was little changed at 16,881.10. The yen fell 0.3 percent to 118.76 per dollar after yesterday gaining 1 percent, the most in three weeks. Crude oil plunged yesterday and is down about 10 percent this year. U.S. stocks dropped after data showed the nation™s services industry expanded at the slowest pace in six months.

The Institute for Supply Management™s non-manufacturing index fell to 56.2, below analyst estimates of 58. Ten-year U.S. treasury notes slid below 2 percent, the lowest level since May 2013. The Federal Reserve will release minutes today from its last policy meeting at which it pledged patience in raising interest rates.

West Texas Intermediate crude oil sank 4.2 percent to $47.93 per barrel yesterday, down 55 percent from a peak of $107.26 in June. The pace of declines is putting pressure on energy companies, oil-related investment projects and the economies of oil-exporting nations.

Futures on the Standard & Poor™s 500 Index rose 0.2 percent today after the underlying gauge lost 0.9 percent yesterday. The Chicago Board Options Exchange Volatility Index jumped 6 percent, rising above 20 for the first time since mid-December as U.S. stocks extended the longest losing streak in more than a year.

Source : Bloomberg

Asian Stocks Extend Drop, Led by Energy Companies on Oil Plunge

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Asian stocks fell, after yesterday sinking the most in nine months, as U.S. equities extended declines and the slump in crude oil deepened.

The MSCI Asia Pacific Index declined 0.3 percent to 134.57 as of 9:03 a.m. in Tokyo, with energy companies dropping the most. The Asian gauge slumped 1.7 percent yesterday and the Standard & Poor™s 500 Index fell for a fifth day, extending the longest losing streak in 13 months. West Texas Intermediate oil sank below $48 a barrel in New York amid speculation data on U.S. supplies today will fuel concern over a global glut.

Japan™s Topix index dropped 0.5 percent. Short-selling on the Tokyo Stock Exchange reached 37.8 percent of total trading value yesterday, the highest since at least October 2008, when bourse data became available.

South Korea™s Kospi index fell 0.2 percent. Australia™s S&P/ASX 200 Index slid 0.6 percent, while New Zealand™s NZX 50 Index lost 0.2 percent. Markets in China and Hong Kong have yet to open.

The Shanghai Composite Index gained less than 0.1 percent yesterday to extend a five-year high. China™s equity benchmark index rallied 53 percent in 2014 amid speculation the government will take steps to boost growth in the world™s second-largest economy.

A correction in mainland shares will occur œsooner or later as investors will look for strong earnings growth to support the rally™s momentum, Ted Pulling, chief investment officer of the Pacific Regional Group at JPMorgan Asset Management, said yesterday.

Source : Bloomberg

Service Industries in U.S. Expand at Slowest Pace in Six Months

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Service industries expanded in December at the slowest pace in six months, indicating the biggest part of the U.S. economy cooled as the year drew to a close.

The Institute for Supply Management™s non-manufacturing index fell to 56.2 from a November reading of 59.3 that was the second-strongest since 2005, the Tempe, Arizona-based group™s report showed today. The average for all of 2014 was the highest in nine years. The median forecast of 75 economists surveyed by Bloomberg called for a December figure of 58.

Gains in consumer spending will probably underpin the service industries that make up almost 90 percent of the economy as global markets struggle to gain momentum. Increased hiring and the cheapest gasoline since 2009 are helping spur sales from auto dealers to apparel retailers.

The group™s non-manufacturing survey covers an array of industries including utilities, retailing, and health care, as well as construction and agriculture.

Source: Bloomberg