Wall Street turns negative as oil fades, tech stocks drag

WALL Street turned negative in late morning trading as tech stocks, led by Apple, fell and a rally in crude oil prices was checked.

A U.S. government report showed U.S. crude stocks rose more than expected last week, halting a rally earlier after a report showed demand would rise by its fastest rate in six years in 2016. [O/R]

The S&P energy index, earlier the best performing among the 10 major S&P sectors, was down 0.59 percent. The S&P technology index’s 0.85 percent drop was the biggest decline.

Expectations that the Federal Reserve will lift interest rates this year are fading, with concerns mounting about slowing global growth, especially in China, and its effect on corporate results.

S&P 500 companies are expected to report a 4.2 percent fall in third-quarter profit, the biggest decline in six years, according to Thomson Reuters data.

At 11:31 a.m. ET, the Dow Jones industrial average was down 16.4 points, or 0.1 percent, at 16,773.79, the S&P 500 was down 2.74 points, or 0.14 percent, at 1,977.18 and the Nasdaq composite index was down 18.46 points, or 0.39 percent, at 4,729.90.

Apple was down 1.4 percent and was the biggest drag on all three indexes.

Four of the 10 major S&P sectors were higher, with the health care index’s 0.46 percent gain leading the advancers. A sell off in healthcare and biotech stocks had weighed on the market on Tuesday.

Yum Brands slumped 18.6 percent to $67.90 after it cut its full-year profit forecast due to a slower-than-expected recovery in China and a strong dollar.

Dow component McDonald fell about 1 percent to $101.12. The company has a large exposure to China.

Adobe fell 5.7 percent to $80.24 after lowering its 2016 profit forecast.

Twitter rose 2.3 percent to $28.24 after Saudi Arabian billionaire Prince Alwaleed bin Talal and his investment firm raised their stake to more than 5 percent.

Advancing issues outnumbered decliners on the NYSE by 1,884 to 1,051. On the Nasdaq, 1,595 issues rose and 1,055 fell.

The S&P 500 index showed eight new 52-week highs and no new lows, while the Nasdaq recorded 32 new highs and 24 new lows.