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Overnight Markets: S&P 500 inches lower as energy shares fall

Overnight Markets: S&P 500 inches lower as energy shares fall

The S&P 500 inched lower on Monday led by energy stocks due to a drop in oil prices that offset a surge in financials fuelled by Bank of America’s upbeat results.

However, the Dow Jones Industrial Average bucked the trend to gain 45 points, or 0.18%, to 25,064. The S&P 500 lost three points, or 0.10%, to 2,798 and the Nasdaq Composite declined 20 points, or 0.26%, to 7,806.

During the regular session, the S&P energy sector fell 1.2%. Shares of Exxon Mobil slid 1.0% and Chevron fell 0.9%. The stocks were among the biggest drags on the benchmark index, along with Microsoft, down 0.5%.

Oil prices plunged more than 4% as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers.

Investors also focused on President Donald Trump and Russian President Vladimir Putin convene for a summit in Helsinki, Finland but reaction to a joint conference with the two leaders was muted.

Financial stocks gained, reversing their slide on Friday, when JP Morgan Chase, Citigroup and Well Fargo reported results. The S&P 500 financial index rose 1.8%, leading sector gains.

Bank of America climbed 4.3% percent after the lender’s quarterly profit beat analysts’ expectations on lower expenses and growth in loans and deposits. Goldman Sachs shares were up 2.2% ahead of its results, due Tuesday.

Netflix shares ended the session up 1.2% but dropped more than 14% after the bell when it reported results. The company missed Wall Street forecasts for US and international subscribers.

Facebook, Amazon.com and Google parent Alphabet - the other ‘FANG’ stocks - were down more than 1% in after-hours trading.

Elsewhere, shares of Arconic jumped 10.5% on a report that the maker of aluminum parts used in planes, cars and buildings is the subject of takeover interest from private-equity firms.

In Asia, stocks came under moderate pressure on Tuesday in morning session as oil prices edged slightly higher after an overnight tumble.

Hong Kong's Hang Seng Index fell 0.82% amid broad-based losses. Meanwhile, the Shanghai composite pulled back by 0.65%.

Elsewhere, the Kospi slipped 0.22% as South Korean stocks came under slight pressure. Down Under, the S&P/ASX 200 eased 0.37%. The lone bright spot among major markets in the region was the Nikkei 225, which edged higher by 0.44%.


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