Mixed finish for US stocks

Rout in oil prices hit the energy sector

U.S. stocks eked out small gains on Monday, 11 January 2016 after dipping in and out of negative territory as a deepening rout in oil prices hit the energy sector. Stocks fell last week amid turmoil in Chinese markets along with plunging commodity prices like crude oil. Falling oil prices in the face of global growth concerns continued to weigh on the overall sentiment, short-circuiting a rebound attempt on Monday.

The S&P 500 and Dow Jones Industrial Average snapped a three-day losing streak, bouncing after posting the largest declines for the first five days of a new calendar year in history. But a 6% plunge in oil prices hit energy and materials stocks, limiting gains on the main indices.

The Dow Jones Industrial Average added 52.12 points, or 0.3% to settle at 16,398.57. Meanwhile, the Nasdaq Composite ended the day down 5.64 points, or 0.1%, at 4,637.99, falling for the eighth consecutive session. The S&P 500 rose 1.64 points, or less than 0.1%, to end at 1,923.67.

Looking overseas, China's Shanghai Composite surrendered 5.3% despite reporting economic data that was largely in-line with expectations. In economic data, China's December CPI increased 0.5% month-over-month (expected 0.4%), moving its year-over-year growth to an increase of 1.6%, as expected. Additionally, December's Producer Price Index fell 5.9% year-over-year versus an expectation of a 5.8% decrease. Despite the slide in Asia, investor sentiment improved once the attention shifted to Europe. However, a morning retreat in crude oil weighed on the stock market as a whole.

Crude oil futures settled under $32 a barrel on Monday, 11 January 2016 at Nymex for the first time since December 2003, with concerns over risks for a slowdown in Chinese energy demand and expectations that Iran will soon add to the world's glut of crude supplies helping to send prices lower for a sixth straight session. A strongeer dollar also pushed prices lower.

February West Texas Intermediate crude shed $1.75, or 5.3%, to settle at $31.41 a barrel on the New York Mercantile Exchange, following a drop of more than 10% last week. That was the lowest settlement since December 2003.

February Brent crude, the global crude benchmark lost $2, or 6%, to end at $31.55 a barrel on London's ICE Futures exchange.

Looking at energy, Dow components Exxon Mobil and Chevron outperformed the sector but still sustained substantial losses.

In Treasuries, the benchmark note moved closer to its morning low as the afternoon session progressed with the yield on the 10-yr higher by six basis points at 2.17%.

Bullion prices ended lower on Monday, 11 January 2016 at Comex. Gold prices ended the U.S. day session slightly down after prices hit a two-month high late last week.A stronger dollar pushed prices lower.

February Comex gold was last down $1.90 at $1,096.0 an ounce. March Comex silver was last down $0.058 at $13.86 an ounce.

There is still anxiety in the world marketplace early this week after the Chinese stock market dropped Monday, by over 5%, and hit a four-year low in Hong Kong. Chinese financial and monetary authorities mostly stood aside and let the market trade after last week halting trading with circuit-breakers at one point. China officials did push up the value of the yuan against the U.S. dollar on Monday, but that did little to stem the selling pressure on China equities. Australian and South Korean stocks also fell on Monday. Japan's markets were closed for a holiday.

Investor participation was above average with more than a billion shares changing hands at the NYSE floor.

No economic data was released today and tomorrow's data will be limited to the November Job Opening and Labor Turnover Survey, which will be released at 10:00 ET.

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