2014.08.1303:17:08UTC+00US stocks end two-day winning streak as energy drops

US stocks dropped in the trade following the largest two-day gain in the S&P 500 Index since April, dragged by the decline in developments and energy shares as investors keep an eye on the ongoing geopolitical tension.

The S&P 500 is down 0.16% or 3.17 points to 1,933.75 as energy shares failed to lift the index and instead led the declines among the gauge’s 10 sectors while telecommunications tried to pare the decline with its advances. The Dow Jones Industrial Average declined by 0.06% or 9.44 points to 16,560.54. 16 of the index’s 30 sectors plummeted with the blue-chip losers headed by United Technologies and General Electric while the gainers was led by Microsoft. The Nasdaq Composite slumped by 0.27% or 12.08 points to 4,389.25. The Russell 2000 Index of small stocks dropped by 8%. The fear gauge of investors or the CBOE Volatility Index is at 14.20 which is lower than 14.33, the 50 period moving average. The trend showed that for every three stocks that dropped, only two advanced. The New York Stock Exchange witnessed more than 542 million exchange hands while the composite volume is at 2.6 billion.

Consol Energy Inc. shed 2.4% to be the leader of the drag in the energy shares sector. Nuance Communications Inc. plummeted by 9% following a worse-than-expected third quarter profit report. Newmont Mining Corp. climbed 2% for its eight-day winning streak, reaching its highest level last seen on November of last year. Meanwhile, Intercept Pharmaceuticals Inc. surged by 17% following a successful clinical trial.

Chief equity strategist at US Bank Wealth Management, Terry Sandven, commented to Bloomberg that the market is in a “zone of ambivalence” as the investors keep a careful bias. Sandven adds that the equities seem to be “navigating the dog days of summer” as the markets are heavily influenced by the ongoing political situation in Ukraine and the Middle East rather than “economic and  company fundamentals."