U.S. stocks mixed; health care gains, energy slips
NEW YORK - U.S. stocks were flat Friday as gains in health care stocks were offset by an ongoing slump in the energy sector.
Health care companies were rebounding from a sell-off late Friday, while energy stocks fell as oil extended its declines amid speculation that a supply glut would persist in 2015.
Signs of a slowdown in manufacturing growth also weighed on investor sentiment. The U.S. dollar rose against major currencies.
KEEPING SCORE: The Standard & Poor's 500 index fell five points, or 0.3 percent, to 2,052 as of 10:54 a.m. Eastern. The Dow Jones industrial average rose seven points, or less than 0.1 percent, to 17,831. The Nasdaq composite fell 20 points, or 0.6 percent, to 4,706.
ENERGY: One of the main themes across financial markets in 2014 was the sharp fall in the price of crude oil. U.S. crude fell 65 cents to $52.66 a barrel in New York. Brent crude, the international standard, declined $1.31 to $56.02.
The decline in oil prices benefits consumers, who are paying less for gas, but it hurts energy companies by causing their revenue to fall.
SLOWING DOWN: U.S. manufacturing grew at the slowest pace in six months in December, weakened by declines in orders and production. Yet growth remained healthy, a sign manufacturing may help drive the economy's expansion in 2015 as it did last year.
The Institute for Supply Management, a trade group of purchasing managers, said Friday that its manufacturing index fell to 55.5 in December from 58.7 in November. Any reading above 50 signals expansion. November's figure was just below a three-year high reached in October.
DRAGHI HITS EURO: The euro retreated against the dollar after European Central Bank President Mario Draghi indicated the bank could soon back further monetary stimulus.
The euro slumped against the dollar after Draghi indicated the bank could support a government bond-buying program to combat alarmingly low inflation in the 19-country eurozone. The currency fell to $1.2020, its lowest in 4 ½ years against the dollar.
GLOOMY OUTLOOK: Investors have a number of concerns about Europe as 2015 begins: anemic levels of economic growth in the region, plunging oil prices and an election in Greece on Jan. 25 that could reignite the country's debt crisis if an anti-austerity party wins.
EUROPE'S DAY: European markets slipped. France's CAC 40 fell 0.7 percent while Germany's DAX dropped 0.6 percent. The FTSE 100 index of leading British shares fell 0.6 percent.
BONDS AND CURRENCIES: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.11 percent from 2.17 percent on Wednesday. Markets were closed Thursday for the New Year's Day holiday. The dollar also rose against the Japanese yen, climbing 0.2 percent to 120.15.