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Oil slump sinks Wall Street

Friday, December 12, 2014 - 02:01

Stocks had their worst week in 2-1/2 years , breaking a 7 week streak of gains. Bobbi Rebell reports.

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The week was just plain bad for stocks - the Dow posting its largest weekly drop since November of 2011. The S&P 500 the largest weekly drop since May 2012. All three major indexes down more than one percent on Friday. The driver: plunging oil prices signaling weak global demand. U.S. crude hit a five-year low closing below $58 a barrel as the International Energy Agency cut its oil-demand forecast for 2015 to the lowest in over a decade and China's industrial production numbers fell short. NYMEX energy options trader Peter Amandio says crude prices are likely to fall further. SOUNDBITE: ‎PETER AMANDIO, PRESIDENT, CHICAGO ENERGIES (ENGLISH) SPEAKING: "I think you gotta be very careful picking a bottom because if you look at the past and you look at history of when it's made moves from the plus $100 area back down where has it gone, it's gone down the $33 last time. So I could see it softening up from here." As investors continue shifting to safe-haven investments- ten-year Treasury yields fell to slightly more than two percent and 30-year bond yields edged down to two and three-quarters percent. The focus on oil overshadowing a bullish consumer sentiment report from the University of Michigan/Thomson Reuters- which rose to a near 8-year high in December. Americans upbeat about job growth and wages. Those falling energy prices pushing down inflation. The November producer price index down two-tenths of a percent on plunging gas prices. Minus energy and food costs - the core PPI was flat. Chrysler shares rose despite expanding its U.S. recall of vehicles with passenger-side air bags made by the Takata Corp. Adobe Systems- a big winner. Thursday on top of a strong earnings report- Adobe said it's buying stock photography company Fotolia. In Europe, red across the screen - sliding crude prices pounding energy shares.

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Oil slump sinks Wall Street

Friday, December 12, 2014 - 02:01