AUGUST 4 (Reuters) — Wall Street ended lower on Monday (August 3) as tumbling oil prices dragged energy shares to a three-year low and factory data from China raised concerns about the world’s second-biggest economy.
Energy stocks were the biggest losers among the main S&P sectors. Exxon Mobil and Chevron, which reported poor results on Friday, led the losses.
Oil prices fell on fresh evidence of growing oversupply and data highlighting slowing demand in China. Crude prices are on course for their weakest third-quarter performance since the financial crisis in 2008.
In the United States, consumer spending recorded its smallest gain in four months, while the pace of growth in the manufacturing sector slowed in July.
China’s factory activity shrank more than initially estimated last month, a survey showed. Concerns about China’s economy hurt U.S. industrial stocks as well as Apple, which relies on that country for much of its iPhone sales.
A report from market research firm Canalys showed Apple lost some smartphone market share in China in the second quarter. Its stock fell 2.36 percent, weighing most on the Nasdaq and the S&P 500.
The company’s shares slipped below their 200-day daily moving average, a key technical level closely watched by traders, for the first time in nearly two years.
The Dow Jones industrial average fell 0.52 percent to end at 17,598.2. The S&P 500 lost 0.28 percent to 2,098.04 and the Nasdaq Composite dropped 0.25 percent to 5,115.38.
Half of the 10 major S&P sectors were lower, with the energy index falling 2.01 percent to its lowest level since
2012.
After the bell, shares of Tenet Healthcare rose 2.3 percent as the company’s second-quarter report pleased investors.
Tyson Foods shares fell 9.9 percent during Monday’s session after the biggest U.S. meat processor cut its profit forecast for the year, citing export market disruptions in its beef business and high cattle costs.
Peabody Energy fell 9.17 percent as President Barack Obama prepared to unveil the final version of his plan to tackle greenhouse gases from coal-fired power plants.
