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Energy concerns send stocks on Wall Street down 0.5%

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Falling energy and commodity shares have pulled US markets lower amid growth concerns and talk of strategic oil stocks releases by Western powers.

At the market close on Wednesday, the Dow Jones Industrial Average was down 71.52 points (0.54 per cent) to 13,126.21.

The broad-based S&P 500 lost 6.98 (0.49 per cent) to 1,405.54, while the tech-centric Nasdaq gave up 15.39 (0.49 per cent) to 3,104.96.

Energy shares led the fall, the broad sector losing 1.3 per cent, as oil prices dropped on signs of weak US consumption and France’s comments that it might release some of its strategic oil stocks to help moderate the market, following reports that the US and Britain were weighing the same move.

“News that weekly (US) inventories had a build of 7.1 million barrels when a build of 2.7 million barrels was anticipated did not move crude significantly, although it did reflect concerns about demand,” said Briefing.com.

Occidental Petroleum lost 3.6 per cent, and Chevron and ConocoPhillips both dropped 1.1 per cent. ExxonMobil gave up 0.9 per cent.

Commodity shares dropped, with gold miners leading the way after gold prices slipped 1.3 per cent.

Copper and gold miner Freeport-McMoran was down 3.6 per cent, Alcoa lost 2.3 per cent and Newmont mining dropped 1.9 per cent.

Shares of Tyco International and Pentair rose after the two said Pentair would merge with Tyco’s flow controls division under the Pentair name.

Tyco, which will own 52.5 per cent of the combined company, gained 4.3 per cent while Pentair, holding the rest of the new business, was up 15.1 per cent.

Medco shares jumped 3.2 per cent after saying pharmacy-benefit manager Express Scripts’ $29 billion deal to take it over might close next week.

Express Scripts shares rose 1.3 per cent.

Amazon lost 2.1 per cent after enjoying a strong surge over the past two weeks.

US bond prices edged lower. The interest on the 10-year Treasury rose to 2.20 per cent from 2.19 per cent late Tuesday, while the 30-year was flat at 3.30 per cent.

Bond prices and yields move in opposite directions.