Oil fizzles on crude build; Wall St. ends lower
By Lewis Krauskopf
NEW YORK (Reuters) - Oil prices fell on Wednesday on a surprise build in U.S. crude inventories, dragging on energy shares, and U.S. stock indexes receded from record highs.
A broad European equity index declined after some disappointing corporate results and the dollar weakened as investors sought direction on the timing of a potential U.S. interest rate hike.
With bond yields low in developed economies as central banks maintain accommodative monetary policies, investors have sought out equities for yield.
After more than a year without setting fresh records, the U.S. benchmark S&P 500 stock index consistently has been reaching new peaks after breaking to an all-time high a month ago.
"The markets were extended, not only price-wise but psychologically (they) have been extended," said Steve Massocca, chief investment officer with Wedbush Equity Management in San Francisco. "It’s only natural to see a pullback here and I think this pullback is something that could continue for a little while.”
The Dow Jones industrial average .DJI fell 37.39 points, or 0.2 percent, to 18,495.66, the S&P 500 .SPX lost 6.25 points, or 0.29 percent, to 2,175.49 and the Nasdaq Composite .IXIC dropped 20.80 points, or 0.4 percent, to 5,204.59.
The energy sector .SPNY was the worst-performing of the 10 major S&P groups, falling 1.4 percent.
"Once we saw inventories this morning, that certainly moved energy far lower and dragged almost everything else down," said Tim Dreiling, regional investment director for The Private Client Reserve of U.S. Bank. Continued...