Energy stocks turned abruptly lower Monday, joining a broad market sell-off triggered by weak housing data that overwhelmed an early lift from crude oil prices charging past $63 a barrel.
By mid-morning, the Amex Oil Index ($XOI :1,215.48, +2.04, +0.2% ) was off 0.2%, the Amex Natural Gas Index ($XNG :474.13, +1.39, +0.3% ) was down 0.1%, and the Philadelphia Oil Service Index ($OSX : 215.05, -0.67, -0.3% ) was down 0.5% -- all giving up gains of 0.7% posted in the opening minutes of trade.
The reversal followed the Commerce Department's announcement that new home sales fell 3.9% in February to their lowest level since June 2000. Economists had expected a 1% drop. See full story.
The news sent the Dow Jones Industrial Average (.DJI :12,403.06, -77.95, -0.6% ) 90 points lower, pulling the energy stocks down on renewed fears of an economic slowdown and easing demand for petroleum products.
Prior to the retreat, energy stocks had been riding high as crude-oil for May delivery hit $63.30 a barrel on the New York Mercantile Exchange. The initial bullish pop was linked mainly to heightened tensions in the Middle East over the unresolved fate of 15 British naval personnel taken into custody on Friday by Iran.
But crude prices were also backing down from their high, last trading 70 cents higher at $62.98. See Futures Movers.
