Business

Oil price rebound fails to lift Wall Street

NYSE traders Image copyright Reuters

(Close): Wall Street markets fell on Tuesday with indexes registering some of their biggest losses in a month.

The Dow Jones Industrial Average ended 90.74 points lower at 18313.77.

The wider S&P 500 index fell 13.81 points to 2157.03, while the Nasdaq dropped 46.46 to 5137.73.

Shares of carmakers weighed on the US market after July vehicle sales came in below analysts expectations, sending shares of Ford and General Motors down over 4%.

After sliding on Monday, shares in oil companies recovered some ground as the price of oil rebounded. Exxon Mobil was up 1.4% and Chevron gained 0.5%.

Brent crude rose more than 2% to $43.01 a barrel, while US crude was 1.8% higher at $40.78.

Shares in drugmaker Pfizer dropped 2.5% despite it reporting an 11% rise in second-quarter revenues to $13.15bn, beating expectations.

CVS Pharmacy was one of the top climbers on the Dow. It gained 4.8% after beating earning expectations for the quarter and raising its earnings forecast for the year.

Economic data released on Tuesday indicated that consumer spending rose 0.4% in June, a bigger rise than forecast.

The figure is closely watched as consumer spending accounts for more than two-thirds of economic activity in the US.

However, other data indicated inflation was not picking up. The core personal consumption expenditures (PCE) price index, which excludes food and energy, rose 1.6% in the year to June.

The PCE is the US Federal Reserve's favoured measure of inflation, and remains below the bank's 2% target.

"Right now the market wants growth and they want the Fed to raise [rates], they'd love to see the Fed raise, but there has got to be a reason for that raise and right now there isn't," said Joe Saluzzi, co-manager of trading at Themis Trading.