Stocks Opened Lower as Investors Kept Eyes on Bonds

U.S. stocks opened modestly lower on Wednesday, spooked by a report that China is considering slowing or halting purchases of U.S. government debt. The Dow Jones Industrial Average lately fell 120.47 points, or 0.47%, to 25,265.33. The S&P 500 declined 14.16 points, or 0.51%, to 2,737.13. The Nasdaq Composite dropped 41.82 points, or 0.58%, to 7,121.76.

Oil prices rallied further on Wednesday, hitting fresh three-year highs on optimism ahead of a government reading on U.S. oil supply due later. February West Texas Intermediate crude rose 4 cents, or 0.7%, to $63.42 a barrel. March Brent gained 27 cents, or 0.4%, to $69.09 a barrel.

Officials reviewing China’s foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries, Bloomberg News reported on Wednesday. China has the world’s biggest currency reserves and is the biggest foreign holder of U.S. government debt.

Sears Holding Corp. (SHLD) said Wednesday it has raised $100 million in new financing and is seeking an additional $200 million from other counterparties.