NEW YORK (TheStreet) – U.S. stocks closed sharply lower following three straight days of gains after the Energy Information Administration reported higher than forecast oil inventories, causing oil to tumble and stocks to reverse early gains
A shooting at the Canadian parliament in Ottawa also weighed on afternoon trading, with stocks closing at their lows after authorities asked Ottawa residents to stay clear of the downtown area, at a 2 p.m. EDT press conference, indicating an investigation is ongoing.
The S&P 500 closed down 0.73%, while the Nasdaq and the Dow Jones Industrial Average fell 0.83% and 0.93%, respectively.
Must Read: Warren Buffett's Top 10 Dividend StocksNYMEX WTI Crude and ICE Brent Crude turned sharply lower in midday trading after the EIA said stockpiles for the week ended Oct. 17 climbed 7.11 million barrels, exceeding median forecasts of a 3 million-barrel rise, according to Bloomberg data. WTI Crude closed lower by 2.58% at $80.65, while ICE Brent closed down nearly 2% at $84.39. Helmerich & Payne (HP) and Cimarex (XEC) led energy stocks lower, trading down over 4%, while Chesapeake Energy (CHK) was the sector's largest gainer after a UBS upgrade. Oil inventories drove afternoon trading. Data from the U.S. Bureau of Labor Statistics also showed that consumer prices rose 1.7% in September, exceeding forecasts by 0.1% and indicating that inflation in the U.S. is holding steady. "With international turmoil, a strong dollar, and lingering weakness in the consumer sector as a result of minimal wage pressures, inflation is taking a backseat," Lindsey M. Piegza, chief economist with Sterne Agee, said in a report on Wednesday. Data from the Mortgage Bankers Association indicated weekly mortgage applications rose 11.6% from the week earlier, perhaps reflecting the positive benefit of falling interest rates. Telecom giant AT&T (T) reported in-line third quarter earnings of 63-cents in profit per share on revenue of $33 billion, however, the company's guidance underwhelmed investors. Shares in the telecom were falling over 2% after-hours. Expect economic data to drive Thursday trading with few companies reporting that may be seen as a proxy for global growth, industrial production or consumer spending. HSBC will release monthly Chinese manufacturing PMI data, giving new insight on the country's growth prospects after gross domestic product rose 7.3% in the July-September quarter, according to the statistics bureau. Manufacturing PMI for the European Commission is forecast to fall to 49.9 from a previous reading of 50.3, according to consensus estimates compiled by Bloomberg. Services PMI and Composite PMI are expected to come in at 52.0 and 51.5, respectively. In the U.S. new home sales data for the month of September is forecast to be 470,000, a drop from August levels, according to consensus estimates comiled by Bloomberg. Earlier this week, existing home sales reached a one-year high. Initial jobless claims in the U.S. will be released at 8:30 a.m. EDT, with economists’ forecasting a rise in weekly claims to 281,000. U.S. manufacturing PMI will be released at 9:45 a.m. EDT, with economists forecasting a slight drop to 57. Asset management firms Janus Capital Group (JNS) , KKR & Co. (KKR) , T. Rowe Price (TRP) an AllianceBernstein (AB) will report third quarter earnings before the market opens. Must Read: Warren Buffett's Top 10 Dividend Stocks -- Written by Antoine Gara in New York Follow @AntoineGara
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