Stocks fell with oil Tuesday as glum earnings forecasts from some big-name industrial companies overshadowed positive news from other sectors.
The S&P 500 Index lost 0.38%, while the Dow Jones Industrial Average declined 0.29% and the Nasdaq Composite finished 0.5% lower.
Clayton Williams Energy (CWEI)
Shares of energy producer Clayton Williams Energy surged 26.2% on more than triple the average daily volume after the company said it is selling some assets in East Texas.
CWEI said it has entered into an agreement with an unidentified third party to sell its assets in the Giddings Area in East Central Texas for $400 million. The sale is expected to close in December.
“The properties being sold produced an average of approximately 3,900 barrels of oil equivalent (BOE) per day (80% oil) for the quarter ended September 30, 2016 and accounted for approximately 9.7 million BOE of proved reserves as of September 30, 2016,” according to a statement issued by CWEI.
CWEI also said Patrick Cooke will join the company as chief operating officer at the end of this month.
Procter & Gamble (PG)
Consumer products giant Procter & Gamble Co advanced 3.4% after delivering solid fiscal first-quarter earnings.
On an adjusted basis, Ohio-based PG earned $1.03 per share during its fiscal first quarter, ahead of the 98 cents a share analysts expected. PG reported revenue of 16.52 billion. That was flat with the year-earlier period, but ahead of the $16.45 billion analysts expected.
PG, a member of the Dow 30, still expects full-year earnings of $3.67 a share, below the estimate of $3.88 analysts are expecting.
Procter & Gamble makes Tide detergent, Cascade, Dawn and Gillette razors, among other well-known consumer brands.
Valero Energy (VLO)
Refiner Valero Energy Corporation jumped 4.9% on heavy volume after reporting third-quarter earnings that beat analysts’ estimates.
VLO said it earned $1.24 per share on an adjusted basis during the quarter, well ahead of the 98 cents a share analysts were expecting. VLO’s operating revenue for the quarter was $19.64 billion.
Although margins fell during the quarter, Texas-based Valero was able to lower costs by $2 billion.
As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.