U.S. Stocks Fall as Oil and Metal Prices Drag Commodity Producers Down

U.S. stocks experienced a decline, with the Standard & Poor's 500 Index dropping for the fifth time in six days, amidst declines in oil and metal prices that negatively impacted commodity producers. Exxon Mobil Corp. saw a 1.1% loss as oil prices fell from a seven-week high, while Freeport-McMoRan Copper & Gold Inc. dropped 2.9%. On the other hand, Altria Group Inc. rallied 3.3% after the Supreme Court rejected a White House appeal of a racketeering case against tobacco companies. Sprint Nextel Corp. surged 6.2% on President Barack Obama's plan to increase airwaves available for smartphones, laptops, and new wireless devices.

Key Takeaways:

• The S&P 500 decreased by 0.2% to 1,074.57 as of 4 p.m. in New York after gaining as much as 0.5% earlier in the day.
• The Dow Jones Industrial Average slipped 5.29 points, or 0.1%, to 10,138.52.
• About three stocks retreated for every two that rose on U.S. exchanges, reflecting a lack of conviction in the market.
• Michael Shaoul, chairman of Marketfield Asset Management, stated that there is a lack of buyers in the equity market, which is expected to persist through the end of the quarter.
• The S&P 500 is poised for an 8.1% second-quarter retreat, ending a four-quarter streak of gains.
• The index rallied 9.2% from the end of 2009 through its high on April 23, but then tumbled 14% through June 7 on concerns about Europe's debt crisis.
• The measure remains 3.6% lower in 2010 and has trimmed its valuation to less than 16 times the reported earnings of its companies, near the lowest level in almost a year.

Statistics:

• S&P 500 Index: 1,074.57 (as of 4 p.m. in New York)
• Dow Jones Industrial Average: 10,138.52
• Exxon Mobil Corp. loss: 1.1%
• Freeport-McMoRan Copper & Gold Inc. loss: 2.9%
• Altria Group Inc. gain: 3.3%
• Sprint Nextel Corp. gain: 6.2%

Sources:

• Euclid Infotech Pvt. Ltd.
• Commerce Department figures