Market report

Oil prices' slip leaves stocks mixed

Graphs showing the May market wrap.
Graphs showing the May market wrap.

NEW YORK -- U.S. stock indexes struggled to a mixed close Tuesday as energy companies fell with the price of oil.

The Dow Jones industrial average fell 86.02 points, or 0.5 percent, to 17,787.20. The Standard & Poor's 500 index fell 2.11 points, or 0.1 percent, to 2,096.95. The Nasdaq composite index gained 14.55 points, or 0.3 percent, to 4,948.05.

Stocks were lower for most of the day after the Conference Board said consumer confidence fell for the second month in a row and reached its lowest level in six months.

In the afternoon, stocks fell further after comments from the energy minister of the United Arab Emirates, the second-largest Arab economy. His remarks suggested there isn't a lot of urgency in addressing a global glut in oil supplies.

The price of oil has almost doubled since early February, and UAE Energy Minister Suhail al-Mazroui said he is "optimistic" about the state of the energy market. Ministers from OPEC nations meet in Vienna this week.

David Schiegoleit, managing director of investments for the private client reserve at U.S. Bank, said he thinks oil won't go much higher unless the global economy improves or major nations start spending more.

"We do see $50 as sort of high end" until then, he said.

Benchmark U.S. crude oil fell 23 cents to $49.10 a barrel in New York. Brent crude, used to price international oils, gave up 7 cents to $49.69 a barrel in London.

Shares of Chevron fell $1.02, or 1 percent, to $101, and Exxon Mobil shed 99 cents, or 1.1 percent, to $89.02.

Companies that make household goods such as food, drinks, cleaners and other everyday items slipped Tuesday. Beer and wine maker Constellation Brands lost $4.68, or 3 percent, to $153.15. Clorox gave up $1.16, or 0.89 percent, to $128.54.

Erik Davidson, the chief investment officer for Wells Fargo Private Bank, said that despite the dip in consumer confidence, Americans are gradually spending more and getting over the shocks of the financial crisis and recession.

"There's probably never been a better time to be a consumer than right now," Davidson said. He noted that the job market remains solid, wages are inching higher and a strong dollar is making goods produced overseas less expensive.

Boeing's stock slumped after the U.S. Air Force announced new delays for the company's KC-46 Pegasus tanker, a midair refueling plane. Boeing shares fell $3.07, or 2.38 percent, to $126.15.

Germany's DAX index fell 0.7 percent, while France's CAC-40 slipped 0.5 percent. Britain's FTSE 100 was down 0.6 percent. Japan's benchmark Nikkei 225 closed 1 percent higher, while South Korea's Kospi added 0.8 percent. Hong Kong's Hang Seng climbed 0.9 percent.

Gold rose 80 cents to $1,217.50 an ounce. That ended an eight-day losing streak in gold prices. Silver fell 28 cents, or 1.7 percent, to $15.99 an ounce.

Information for this article was contributed by Alex Veiga of The Associated Press.

Business on 06/01/2016

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