US STOCKS-Energy shares drag on Wall Street as crude prices fall

lunes 27 de octubre de 2014 10:31 GYT

* Indexes off: Dow 0.2 pct, S&P 0.3 pct, Nasdaq 0.3 pct (Updates to morning trading, changes comment)

By Rodrigo Campos

NEW YORK Oct 27 (Reuters) - Energy shares dragged Wall Street lower on Monday as crude prices fell further, while readings on the services sector and home sales came in below forecasts.

Brent crude oil fell below $85 a barrel and U.S. crude dipped below $80 after Goldman Sachs slashed its price forecasts, citing abundant supply and lackluster demand. The S&P 500 energy sector was down 2.6 percent, the largest decline among the top ten industry groups.

The fall in crude "is probably good for consumers but there are a number of energy stocks on the S&P 500 getting hit on concern about their earnings," said Bruce Zaro, chief technical strategist at Bolton Global Asset Management in Boston.

He said, however, the decline is "net positive" as it frees cash from consumers.

The Dow Jones industrial average fell 25.56 points, or 0.15 percent, to 16,779.85, the S&P 500 lost 6.47 points, or 0.33 percent, to 1,958.11 and the Nasdaq Composite dropped 14.19 points, or 0.32 percent, to 4,469.52.

Shares of Brazilian companies traded in the United States tumbled after incumbent Dilma Rousseff won reelection in a runoff vote, defeating centrist and market favorite Aecio Neves by a slim margin. Petrobras ADRs slumped 13.8 percent to $11.15 and Vale lost 5.8 percent to $10.51. Itau Unibanco fell 6.2 percent and Banco Bradesco lost 7.7 percent.

A Brazilian exchange-traded fund dropped 6.4 percent to $38.93.   Continuación...