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 Stocks shook off worries about global weakness and political turmoil
in Greece on Tuesday to erase a sharp decline as energy and
technology shares rose.
Energy shares will likely be in focus again, as Brent crude <LCOc1>
dropped below $66 a barrel to trade just above a five-year low on
supply concerns. Oil prices have been under pressure from the
dollar's strength and OPEC's decision against an output cut, with
Brent down more than 40 percent from its June high.[O/R]
The S&P Energy sector <.SPNY> is the worst performing of the 10
major S&P sectors for the year and the only group in negative
territory. Falling oil prices have raised concerns about earnings
for energy companies, with year-end tax selling bringing additional
pressure on the group.
After climbing to its most recent record high on Friday, the S&P 500
<.SPX> has slipped 0.7 percent and is up 10.6 percent from its
October low.
China's inflation hit a five-year low in November, sparking hopes
Beijing will move more aggressively with monetary policy easing to
head off the risk of deflation in a slowing economy.
Costco Wholesale Corp <COST.O> rose 0.9 percent to $144.36 in light
premarket trade after it reported a better-than-expected quarterly
profit as increased promotions helped the warehouse club operator
deal with fierce competition.
Toll Brothers <TOL.N> edged up 0.6 percent to $35 in light trade
before the opening bell after the homebuilder posted its quarterly
results.
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Yum Brands Inc <YUM.N> lowered its profit forecast for the year for
the second time, hurt by slower-than-expected sales recovery in
China following a food safety scare in July.
European stocks rose in a technical bounce after sliding 3 percent
over two days, although energy stocks dropped again.
Asian shares slumped, pulling back on global growth concerns and
political uncertainty in Greece, although Chinese shares rebounded
from a selloff in the prior session on expectations of further
easing by the People's Bank of China.
(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)
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