NEW YORK — U.S. stocks are dropping in early trading Monday as investors dump energy companies on lower oil prices. Benchmark U.S. crude is trading near its closing low for the year following a decision by OPEC last week not to cut production.
KEEPING SCORE: The Dow Jones industrial average fell 114 points, or 0.4 percent, to 17,729 as of 10:20 a.m. Eastern time. The Standard & Poor’s 500 index slipped 14 points, or 0.7 percent, to 2,077. The Nasdaq composite declined 30 points, or 0.6 percent, to 5,111.
ENERGY DROP: Oil drillers and other energy companies are falling sharply as benchmark U.S. crude continues its 1 ½ year tumble. U.S. crude fell $1.38 cents, or 3 percent, to $38.59 a barrel on the New York Mercantile Exchange after a sharp slide on Friday. Natural gas prices also fell. Among energy stocks, Consol Energy plunged $1.01, or 13 percent, to $6.72 and Chesapeake Energy lost 32 cents, or 7 percent, to $4.23.
THE QUOTE: Friday’s OPEC meeting was “decidedly bearish,” oil consultants Ritterbusch and Associates wrote in a note to clients, “given the Saudis’ complete disregard for any serious discussion regarding production cuts or even quotas.”
TAKING OFF: Airline stocks rose sharply as investors anticipated that lower fuel costs would help the companies fatten their profit margins. JetBlue Airways jumped $1.42, or 5.6 percent, to $26.90, Southwest Airlines rose $1.54, or 3.1 percent, to $50.98 and Delta Air Lines gained $1.43, or 2.9 percent, to $51.20.
CHIPOTLE TUMBLE: Chipotle Mexican Grill dropped $26.15, or nearly 5 percent, to $535.05. The restaurant chain warned late Friday that an outbreak of E. coli linked to its restaurants sent sales plummeting by as much as 22 percent in recent weeks.
COFFEE JOLT: Keurig Green Mountain soared 74 percent after agreeing to be acquired by a private equity firm. The stock jumped $38.32 to $90.02.
EUROPE’S DAY: The CAC-40 in France was 1.3 percent higher while Germany’s DAX rose 1.8 percent. Britain’s FTSE 100 was 0.2 percent higher.
CHINA DATA: Much focus this week will fall on China, the world’s No. 2 economy, as investor continue to worry about slowing growth in the world’s No. 2 economy. Trade data are due on Tuesday, inflation on Wednesday and retail sales, industrial production and fixed asset investment on Saturday.
ASIA’S DAY: Japan’s Nikkei 225 jumped 1 percent, China’s Shanghai Composite gained 0.3 percent and Australia’s S&P/ASX 200 rose 0.1 percent. South Korea’s Kospi fell 0.5 percent.
BONDS: U.S. government bond prices edged up. The yield on the 10-yearTreasury note fell to 2.25 percent from 2.27 percent on Friday.
This article was written by Bernard Condon from The Associated Press and was legally licensed through the NewsCred publisher network.