NEW YORK -- A retreat in oil and energy stocks pulled the rest of the U.S. stock market mostly lower Monday.
The Dow Jones industrial average fell 25.94 points, or 0.2 percent, to 17,111.42; the Standard & Poor's 500 index lost 6.17 points, or 0.3 percent, to 2,001.54; and the Nasdaq composite added 9.39 points, or 0.2 percent, to 4,592.29.
Energy stocks were by far the biggest drag on the market. The energy component of the S&P 500 fell 1.6 percent, compared to the modest 0.3 percent decline in the main index.
Exxon Mobil, the world's largest publicly traded oil company, dropped $1.49, or 1.5 percent, to $97.77. It was the biggest loser among the Dow's 30 members.
The decline in energy stocks was linked to a recent sell-off in the price of oil. Benchmark U.S. crude for October delivery fell 63 cents, or 0.7 percent, to $92.66 a barrel, the lowest price since January.
Oil prices have fallen for three days straight as geopolitical worries in Ukraine and Iraq have eased. Also affecting crude oil was a report out of China that showed manufacturing in the world's second-largest economy was slowing down.
"The market is trading lower on this subdued, weaker global outlook," said Jack Ablin, chief investment strategist at BMO Private Bank.
The three biggest decliners in the S&P 500 were oil drilling and exploration companies, which rely on high oil prices to justify pulling crude oil out of remote parts of the planet. Newfield Exploration, Nabors Industries and EOG Resources all fell 3 percent or more.
Some strategists say the decline in oil prices is likely temporary.
"I suspect oil cannot fall further than $90 a barrel," said Paul Christopher, a chief international investment strategist at Wells Fargo Advisors, who focuses on the oil market. "Saudi Arabia and other OPEC members will start cutting production if oil continues to fall like this."
Another international concern for investors is in Europe, where a drive for Scottish independence seems to be gaining momentum. Once considered a far-flung idea, a recent poll by YouGov showed rising support for a break from the United Kingdom.
Stocks in London, particularly those with links to Scotland, fell. Britain's FTSE 100 index lost 0.3 percent. Investors also sold the British pound, which fell to its lowest level in nearly a year.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.47 percent. In metals trading, the price of gold fell $13 to $1,254.30 an ounce, silver fell 20 cents to $18.96 an ounce, and copper was flat at $3.17 a pound.
In other energy trading, Brent crude, a benchmark for international crudes imported by U.S. refiners, slipped 62 cents to $100.20 a barrel in London. Wholesale gasoline lost 2.15 cents to $2.562 a gallon, and natural gas gained 8.3 cents to $3.876 per 1,000 cubic feet.
Shares of Yahoo, which owns a stake in China's Alibaba Group, jumped in anticipation of the giant Chinese technology company going public.
Alibaba is seeking to raise up to $24.3 billion from its initial public offering, which would be the largest of all time. Alibaba Group is expected to make its long-awaited debut on the New York Stock Exchange later this month. Yahoo was an early investor in Alibaba and owns 23 percent of the company and is expected to be the largest seller of shares in Alibaba's initial public offering. Yahoo shares jumped $2.22, or 5.5 percent, to $41.81.
Business on 09/09/2014