Oil sinks as OPEC deal seen unlikely; stocks dip
- Top 10 News for 9/26 - 9/30: Deutsche Bank Soars on Settlement; Twitter Back in the M&A Fray; Nike 'Just Didn't Do It' in Q1
- Wall Street rallies, led by Deutsche Bank, financials
- Viacom (VIAB) Forms Special Committee; Will Explore Potential Combination with CBS (CBS)
- Deutsche Bank (DB) Said Near $5.4B Settlement with U.S. - AFP
- Oil up second straight month on OPEC-fueled rally
People are reflected in a screen displaying the Nikkei average outside a brokerage in Tokyo, Japan April 19, 2016. REUTERS/Thomas Peter
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
By Caroline Valetkevitch
NEW YORK (Reuters) - Oil prices tumbled on Friday on signs that Saudi Arabia and Iran continue to disagree over output limits ahead of a meeting next week aimed at freezing production, while global stock indexes dipped.
Energy shares led declines in U.S. stocks, with the S&P energy index <.SPNY> ending down 1.3 percent, But the S&P 500 and a world stock index registered their best weekly gains in about two months.
Sources said Saudi Arabia did not expect a decision in Algeria, where the Organization of the Petroleum Exporting Countries and other big oil producers are set to convene for the Sept. 26-28 talks.
Brent crude oil
Concern about global oversupply has depressed oil prices since mid-2014.
The day's decline in world stock indexes also came as investors locked in gains from earlier this week fueled by optimism that the U.S. Federal Reserve will hold off raising interest rates in the near term.
"I just think after a few strong days and a little weakness in energy that folks are taking some profit before the weekend," said Gary Bradshaw, portfolio manager with Hodges Capital Management in Dallas.
The Dow Jones industrial average <.DJI> ended down 131.01 points, or 0.71 percent, at 18,261.45, the S&P 500 <.SPX> lost 12.49 points, or 0.57 percent, to 2,164.69 and the Nasdaq Composite <.IXIC> dropped 33.78 points, or 0.63 percent, to 5,305.75.
Facebook (NASDAQ: FB) shares fell 1.6 percent and were one of the biggest drags on the S&P. The Wall Street Journal reported that the social media company overestimated viewing time for video ads.
MSCI's all-country world stock index <.MIWD00000PUS> shed 0.6 percent but rose 2.2 percent for the week, its biggest weekly gain since mid-July. Europe's STOXX 600 <.STOXX> closed down 0.7 percent.
U.S. Treasury prices rose, with benchmark yields hitting two-week lows as a result of safe-haven demand for bonds due to losses in Wall Street stocks.
Treasury prices have risen following the Fed's decision to leave interest rates unchanged and the Bank of Japan's policy change on Wednesday.
U.S. benchmark 10-year Treasury notes
In the foreign exchange market, the dollar index was nearly flat as investors kept positions tight ahead of Monday's U.S. presidential debate.
The dollar index <.DXY>, which measures the dollar against six major world currencies, was flat on the day at 95.472. It fell 0.7 percent for the week, its worst weekly performance since the week of Aug. 18.
Gold steadied in a lackluster session as the U.S. dollar flattened. Spot gold
(Additional reporting by Barani Krishnan and Lewis Krauskopf in New York and Rania El Gamal and Dmitry Zhdannikov in London; Editing by Bernadette Baum and Dan Grebler)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Facebook (FB) nears commercial launch of Facebook at Work as a rival to Slack - The Information
- Weekly Crude Inventory Data Shows Unexpected Decline
- New U.S. 'secret' clearance unit hires firm linked to 2014 hacks
Create E-mail Alert Related CategoriesMarket Check, Reuters
Related EntitiesHodges Capital Management, Crude Oil, OPEC
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!