Market Wrap: Stocks Slip as Oil Pushes Energy Sector Lower

Richard Drew/AP By STEVE ROTHWELL

NEW YORK -- A slump in energy prices pushed the stock market back from record levels on Tuesday.

Energy stocks slid as the price of oil resumed its d! escent. Traders speculated that member nations of the oil-producing group OPEC would fail to agree on production cuts at an upcoming meeting in Vienna on Thursday. Oil has now dropped almost a third from a peak in June.

While lower oil prices are a long-term boon to consumers and industrial companies, they are a drag on stocks in the near term because energy companies account for about 10 percent of the overall market's profits.

Despite the losses, the major indexes remain close to all-time highs.

Stocks have been drifting gradually higher this month, having rebounded sharply from a slump in October, as investors have grown more confident that actions from central banks around the world will help bolster the global economy. The gains are likely to continue for now, said Jim McDonald, chief investment strategist at Northern Trust.

"People's sentiment is still pretty conservative," McDonald said. "That means that the ! slow-and-steady market can continue longer than people anticip! ate."

The Standard & Poor's 500 index (^GPSC) fell 2.38 points, or less than 0.1 percent, to 2,067.03. The Dow Jones industrial average (^DJI) dropped 2.96 points, or less than 0.1 percent, to 17,814.94. The Nasdaq composite (^IXIC) gained 3.36 points, or 0.1 percent, to 4,758.25.

Stocks started the day with small gains after a report showed that the U.S. economy grew at a solid 3.9 percent annual rate in the July-September period, faster than the 3.5 percent that was initially reported. The upward revision was due to higher estimates of spending by consumers and businesses, the Commerce Department said.

That positive report was tempered by news that U.S. consumer confidence fell in November. The Conference Board says its consumer confidence index fell to 88.7, down from a seven-year high of 94.5 in October. The decline primarily reflected less optimism in the short-term outlook as consumers expressed less confidence in current business conditions.

A! mong individual stocks, Pall (PLL), a company that makes filters for the food and health care industries, was the leading gainer in the S&P 500. The company's stock jumped $3.31, or 3.5 percent, to $98 after its earnings beat the expectations of Wall Street analysts.

Energy stocks slid along with oil prices following reports that the world's biggest producers are unwilling to cut production to help stop a slump in the price of crude. The sector dropped 1.6 percent and is now down 3.2 percent for the year. It's the only one of the 10 industry sectors in the S&P 500 that is down for the year.

Representatives from Venezuela, Saudi Arabia, Mexico and Russian state oil giant OAO Rosneft met Tuesday ahead of a meeting of the Organization of the Petroleum Exporting Countries in Vienna and didn't announce any immediate plans to cut output, The Wall Street Journal reported.

Benchmark U.S. crude fell $1.69 to close at $74.09 a barrel on the New York Mercantile Excha! nge. Brent crude, a benchmark for international oils used by many U.S. ! refineries, fell $1.35 to close at $78.33 a barrel on the ICE Futures exchange in London.

In metals trading, the price of gold rose $1.40 to $1,197.10 an ounce. Silver rose 18 cents to $16.55 an ounce and copper fell four cents to $2.96 a pound.

U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.26 percent from 2.31 percent Monday. The dollar fell to 117.94 yen from 118.28 yen late Monday. The euro rose to $1.2472.

In other energy futures trading on the NYMEX:

• Wholesale gasoline fell 0.1 cent to close at $2.032 a gallon
• Heating oil fell 0.1 cent to close at $2.395 a gallon.
• Natural gas rose 13.1 cents to close at $4.282 per 1,000 cubic feet

What to watch Wednesday:

• At 8:30 a.m., the Labor Department releases weekly jobless claims; the Commerce Department releases reports on durable goods, and personal income and spending -- both for October.
• At 10 a.m., Freddie Mac releases weekly mortgage rates; the National Association of Realtors releases pending home sales index for October; and the Commerce Department releases new home sales for October.

• Communication is key when it comes to any successful relationship, so if you're not talking to your spouse, chances are there are some things that need to be addressed. Finances are a tough topic to tackle -- especially due to the many emotions that rush to the surface when addressed. If money is a sensitive topic in your relationship, start small by getting some recurring money dates on the calendar and use an agenda for questions to ask of each other.
  1. You don't communicate about your finances
• If you're hiding bills, expenses and credit card statements from your partner, that's a telltale sign that there's a deeper issue at play. There may be a sense of guilt around a recent purchase, or fear of a bad reaction, or you simply may be enabling your partner to continue to with a bad habit. Whatever it is, the best thing you can do is come together and clean the slate. As a partnership, you're on your financial journey as a team. This isn't a solo trip, and it means that balance must be struck between each of your wants, needs and goals.
  2. You hide bills from your significant other
• Goal setting may sound like a fluffy thing to do, but a couple who creates and shapes goals together can ensure they are using their money towards creating a life they love and value. If you haven't done this with your partner yet, take some time separately to sit down and write down your individual goals. It could be debt pay down, building up the emergency fund, private school for the kids, making out your 401(k), launching your own business, taking that trip to Hawaii or more. Write down whatever comes to mind. Then come together for a conversation about merging and prioritizing. One you have your prioritized list, work as a team to begin tackling them one at a time.
  3. You haven't set and prioritized joint goals
• This is a surefire sign that you're not budgeting and managing expenses as a couple. Nothing can dampen the flames in a relationship like the stress of playing catch-up at the end of each month. Or wondering if you're going to be able to make it through the month. Once you establish joint goals and set up money dates, you'll be able to start working as a team to hold each other accountable and track progress along the way. Whether you need to use the cash envelope system, cut up credit cards or work solely off of lists, do what needs to be done in your relationship to get the finances on track.
  4. You have more month than money at the end of each month
• When only one person takes control of the finances, this can enhance money stress in a relationship. One partner is left with the responsibility to balance and manage everything, while the other either chooses to sit out or ends up feeling like he or she is being "told what to do" or "left out of the loop." As much as you may want to hand over the financial reigns to just one partner in your relationship, the best course is to develop a plan where you both stay invested in the financial progress. Even if it's from an accountability check-in standpoint. You should each know what's going on with the money.
  5. One is in the driver's seat, the other riding in the back
• Each of us grew up in an environment that effects the way we look at, understand and feel about money. Whether your family struggled financially, your dad always handled the finances, you never wanted for anything, or you understood that credit cards are a way to bail you out of problems -– these are the issues that should be communicated with your spouse. The experiences you have in your money histories can and will seep into your money present if you don't address some of the habits or beliefs you picked up over time.
  6. You don't know each other's money histories
• We all need some treats, but if you're taking chunks of savings for large purchases for yourself when your family has consumer debt they should be tackling, an emergency fund that needs a cushion and a retirement account that hasn't been looked at this year, then you likely need to reprioritize in order to get your family finances on track. If you're not considering what's best for your family and whether you're actually in a position to make these purchases, go back to No. 1 and start with the communication step to ensure your relationship gets on the same page with money.
  7. You consider your best interest for big purchases
• More from Mary Beth Storjohann:

Source : http://www.dailyfinance.com/2014/11/25/market-wrap-stocks-slip-oil-prices-fall/