US stocks retreat amid energy sector decline, Fed worries

U.S. stocks fell, giving the Standard & Poor’s 500 Index its first four-day decline of the year, after energy shares dropped as investors awaited signals this week on the Federal Reserve’s stimulus plans.

The S&P 500 dropped 0.6% to 1,646.06 at 4 p.m. in New York, the lowest level since July 8. The Dow Jones Industrial Average slipped 70.73 points, or 0.5%, to 15,010.74. About 5.3 billion shares exchanged hands on U.S. exchanges today, 16 percent below the three-month average. The benchmark 10-year yield jumped to 2.88%.

“We are still in that dead zone where there is a void of catalysts — no Fed, no earnings, summer holidays, etc.,” Jeff Saut, the St. Petersburg, Florida-based chief investment strategist at Raymond James & Associates, wrote in a note to investors today. He helps oversee about $400 billion “I think rallies are for selling on a trading basis, but remain quite bullish on the longer-term.”

Central bankers and policy makers meet in Jackson Hole, Wyoming, from Aug. 22 to Aug. 24 to discuss the global economy and monetary policy. Fed stimulus helped boost the S&P 500 up more than 150% from its market low in 2009. Benchmark indexes reached record highs on Aug. 2. The S&P 500 has dropped 3.7% since then, and is trading below its average price over the past 50 days.

Energy shares experienced the largest decline today, dropping 1.5%. Exxon Mobil lost 1.1% to $86.92. The biggest energy company by market value has tumbled 8.7% since July 23, when it reached a record high. Apache fell 4.6% to $75.37, leading declines in energy stocks. The company extended a five-day tumble as Stifel Nicolaus & Co. cut its rating on the shares to a hold from buy.

JP Morgan Chase & Co. slid 2.7% to $51.83. The U.S. Securities and Exchange Commission’s anti-bribery unit is investigating whether the bank hired the children of Chinese officials to help its business, The New York Times reported.

Intel gained 1.7% to $22.28. Piper Jaffray changed its rating on the shares to neutral from underweight and raised its price target to $22 from $20.

Apple Inc. rose 1.1% to $507.74. The shares have gained 12% in the last six trading days. Billionaire Carl Icahn said Aug. 13 that he had acquired a large position in the company. The maker of iPads and iPhone has pared its decline from an all-time high in September to 28%.