Growth worries offset gains in energy sector

Dow Jones: 12,356.21 (-25.05) Nasdaq: 2,33.55 (-13.23) SP 500: 1,316.28 (-1.09):US STOCKS dipped in light volume yesterday as lingering concerns about a slowdown in growth more than offset gains in energy shares. Investors kept trimming large-cap technology positions, pushing the tech-heavy Nasdaq Composite lower.

The SP’s energy sector index rose 1.3 per cent, while its industrials index slipped 0.6 per cent, sending the market down for a second day. Sectors associated with cyclical growth have suffered recently, with industrials down more than 5 per cent so far this month.

The SP 500 closed at its lowest level in more than a month and ended below its 50-day moving average for a second straight day. The 50-day MA, now at 1,324.59, could turn into a hurdle for the benchmark to re-establish a strong uptrend.

Occidental Petroleum rose 3.6 per cent to $102.50, while Joy Global fell 1.8 per cent to $85.96.

Energy shares were helped by a near 2 per cent rise in US and Brent crude futures. Oil rallied after Goldman Sachs raised its forecast price for the commodity and as the euro erased some of the previous day’s losses.

Gold miners’ stocks advanced as bullion rose to its highest in about three weeks on concerns about a spreading debt crisis in the euro zone. Freeport-McMoRan Copper Gold gained 3 per cent to $48.82.

Volume was light, with roughly 6.6 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below last year’s estimated daily average of 8.47 billion.

Decliners outnumbered advancers on the NYSE by a ratio of about eight to seven, while on the Nasdaq, about eight stocks fell for every five that rose.

Shares of Russian internet company Yandex surged as much as 68 per cent in their debut to a session peak at $42.01, in the largest US initial public offering in the internet sector since Google.

Yandex raised $1.3 billion in its IPO on Monday by selling 52.2 million shares for $25 each. The offering valued the company at about $8 billion. Yandex shares closed at $38.84, up 55.4 per cent.

The US treasury is expected to sell 15 per cent of its stake in American International Group when the insurer prices its stock offering later on Tuesday. AIG ended down 1.7 per cent at $29.46. – (Reuters)