- N.Korea summit on June 12 could take place-Trump
- U.S. crude drops more than 3.5 pct, weigh on energy stocks
- Foot Locker surges after results; lifts Nike
- BioMarin boosts Nasdaq biotech index
- Dow down 0.11 pct, S&P dips 0.17 pct, Nasdaq up 0.24 pct
The S&P 500 index and the Dow Jones Industrial Average dipped on Friday as a steep drop in oil prices weighed on energy stocks, with losses limited by gains in chipmakers and healthcare shares.
U.S. crude declined more than 3.5 percent to $68.24 per barrel after Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed prices to their highest since 2014.
The S&P energy index slid 3.1 percent, on track for its biggest one-day percentage decline since Feb. 8. All the 31 components of the index slipped into the red.
Shares of Exxon and Chevron both fell more than 2.5 percent, while service firms Schlumberger, Halliburton were down 3.6 percent and 5.9 percent, respectively.
“Oil prices got a little bit ahead of themselves, market participants were moving the price a little bit more than the underlying fundamentals,” said Thomas Martin, senior portfolio manager at GlobALT Investments in Atlanta, Georgia.
The markets this week have been roiled by trade tensions with China, U.S. threat of imposing tariffs on imported cars and uncertainty over a U.S.-North Korea summit.
President Donald Trump on Friday said the summit with North Korean leader Kim Jong Un could still take place on June 12 as originally planned, a day after canceling it.
At 11:27 a.m. EDT the Dow Jones Industrial Average was down 26.93 points, or 0.11 percent, at 24,784.83, the S&P 500 was down 4.58 points, or 0.17 percent, at 2,723.18 and the Nasdaq Composite was up 18.15 points, or 0.24 percent, at 7,442.57.
“It could be that people don’t want to hold positions over the weekend with so many things that are uncertain,” said Martin.
Trading volumes were thin ahead of the long weekend, with markets shut on Monday for the Memorial Day holiday.
The tech-heavy Nasdaq was boosted by chipmakers, led by a 2.3 percent jump in Broadcom.
A 13.3 percent surge in shares of Foot Locker boosted the consumer discretionary index after the company reported a better-than-expected quarterly profit, lifting shares in Nike which has a partnership with the footwear retailer.
BioMarin Pharmaceutical rose 4.5 percent after receiving FDA approval for its drug to treat a rare metabolic disorder and propping up the Nasdaq Biotech index.
Quest Diagnostics jumped 5.8 percent after entering into a long-term partnership with UnitedHealth, which rose 0.7 percent.
Declining issues outnumbered advancers for a 1.03-to-1 ratio on the NYSE and by a 1.08-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and no new lows, while the Nasdaq recorded 80 new highs and 21 new lows.