Stocks Fell, Energy Sector Sold off

U.S. stocks fluctuated and turned negative in the early trading on Monday, as slumping oil prices continued to worry investors about global deflationary pressures. The Dow Jones Industrial Average lately fell 138.77 points, or 0.78%, to 17,598.60. The S&P 500 was down 19.30 points, or 0.94%, to 2,025.51. The Nasdaq Composite lost 46.09 points, or 0.98%, to 4,657.97.

The drumbeat of losses for crude-oil futures resumed Monday, with the U.S. benchmark sliding below the $47-a-barrel threshold as major investment banks delivered pessimistic views on the commodity’s outlook. West Texas Intermediate crude oil for February delivery was down $1.52, or 3.1%, at $46.84 a barrel.

The average price of a gallon of gasoline in the United States fell 27 cents in the past three weeks, falling to its lowest level since April 2009, according to the Lundberg survey released Sunday. Prices for regular grade gasoline fell to $2.20 a gallon in the survey dated Jan. 9 from the previous survey on Dec 19.

One of the most encouraging aspects of the U.S. economic recovery is the halo effect on manufacturing, which accounts for 1 in 6 private-sector jobs.