US: Stocks begin week with losses

[NEW YORK] Rising energy prices defeated Wall Street's early tentative momentum on Monday, with major indices finishing the day with losses.

Stocks began the session with mixed sentiment but that turned decisively negative by the end of the day.

Oil prices surged to multi-year highs as worries about whether supply was sufficient to meet revived demand added volatility.

"I think this this pullback is not over yet," said Sam Stovall of CFRA Research. "I think investors are worried that third quarter earnings might not be as strong as was originally projected." The benchmark Dow Jones Industrial Average fell 0.7 per cent to close the day at 34,496.06.

The broad-based S&P 500 also lost 0.7 per cent to end at 4,361.19, while the tech-rich Nasdaq Composite Index dropped 0.6 per cent to 14,486.20.

The spike in energy prices saw West Texas Intermediate oil for delivery in November was trading at US$80.52 late Monday, its first time above US$80 since October 2014.

This week's calendar includes an update on US consumer prices amid growing inflation concerns, as well as earnings reports from JPMorgan Chase and other leading banks.

Among individual companies, Southwest Airlines closed 4.2 per cent lower after canceling more than 1,000 flights Sunday, citing weather and air traffic control issues.

AFP