Stocks are trading near session lows that were reached in the past half
hour. Weakness is broad-based -- within the S&P 500, 400 stocks are
posting a loss.
There is not one energy (-4.7%) or industrial (-4.2%) stock posting a
gain. The sectors have a heavy influence on the S&P 500, with a
combined weighting of roughly 25%.
Crude prices extended their decline on the larger than expected
increase in inventory levels. Oil futures are down 3.8% to $96.85 per
barrel, gasoline futures are down 5.0% to $2.33 per gallon.
Airlines are benefiting from the drop in crude prices, with the Amex
Airline Index climbing 5.1%. Northwest Airlines (NWA 9.97, +0.94) can
be profitable with oil prices at $100 per barrel, according to its CEO,
Reuters reported. The merger between Northwest and Delta Airlines (DAL
8.28. +0.83) was approved by shareholders of both companies on Sept.
25, and is expected to close later this year.