NEW YORK — U.S. stocks took small losses Wednesday as energy companies fell with the price of oil and chemical and materials companies traded lower. That pulled the market lower for August, ending a five-month winning streak for stocks. The losses were very small, though, as this proved to be one of the quietest months in recent history for stocks.
Stocks traded lower all day and fell for the fifth time in the last six days. The price of oil dropped more than 3 percent after the U.S. government said crude oil stockpiles grew more than expected last week, while gasoline stockpiles didn’t shrink as much as investors hoped.
The dollar gained some strength, which sent commodity prices lower, as expectations grew that the Federal Reserve could raise interest rates from their ultra-low levels as early as next month.
“The more the market believes a Fed rate hike is coming based on better economic data, the more the dollar rises,” said Quincy Krosby, market strategist at Prudential Financial. “Last Friday (Fed Chair) Janet Yellen put the market on notice that she sees a rate hike in the coming months.”
The Dow Jones industrial average fell 53.42 points, or 0.3 percent, to 18,400.88. The Standard & Poor’s 500 index gave up 5.17 points, or 0.2 percent, to 2,170.95. The Nasdaq composite dipped 9.77 points, or 0.2 percent, to 5,213.22.
Energy prices slumped after the U.S. government said crude oil stockpiles increased by 2.3 million barrels last week, a bigger gain than analysts expected. Gasoline stockpiles shrank, but not as much as investors had hoped.
U.S. crude fell $1.65, or 3.6 percent, to $44.70 a barrel in New York. Brent crude, the benchmark for international oil prices, lost $1.33, or 2.7 percent, to $47.04.
That helped send oil and gas companies lower. Chevron gave up $1.12, or 1.1 percent, to $100.58 and Exxon Mobil skidded 38 cents to $87.14. Schlumberger declined $1.64, or 2 percent, to $79.
Bond prices slipped, sending yields slightly higher. The yield on the 10-year Treasury note dipped to 1.58 percent from 1.57 percent. The dollar rose to 103.44 yen from 102.97 yen. The euro rose to $1.1162 from $1.1139.
In other energy trading, wholesale gasoline fell 4 cents to $1.41 a gallon. Heating oil lost 6 cents to $1.41 a gallon. Natural gas rose 6 cents to $2.89 per 1,000 cubic feet.
Gold fell $5.10 to $1,311.40 an ounce. Silver rose 3 cents to $18.71 an ounce. Copper remained at $2.08 a pound.
