US stocks dipped on Friday as oil price declines weighed on energy shares and Apple dragged down the market, but major indices still posted gains for the week.
Energy was the worst-performing sector, ending down 1.3 percent. Oil prices fell as traders and analysts expected that a meeting today of major oil exporters would do little to clear global oversupply quickly.
Ministers from major oil producing countries are meeting in Qatar today to discuss their production policies. The price of oil has risen in recent weeks in part on hopes that those countries will be able to strike a deal that will limit oil production and help relieve a global glut. However, a deal is far from a sure thing, and oil prices have slipped in recent days.
“Many of us are skeptical about whether there will be an agreement and even more skeptical about whether that will stabilize oil prices where they are now,” Edward Jones investment strategist Kate Warne said, because even if countries keep oil production near current levels, they would still be producing more than necessary to meet demand.
Apple shares dropped 2 percent, the biggest drag on the S&P 500 and the NASDAQ. The Nikkei Shimbun business daily reported that the company would continue its reduced production of iPhones in light of sluggish sales.
Citigroup shares closed down 0.1 percent after the company reported a sharp drop in quarterly profit, capping a big week of bank earnings. Financial shares, the worst-performing sector this year, fell 0.3 percent and snapped a five-session winning streak.
Despite Friday’s declines, the major indices tallied their seventh week of gains out of the past nine.
The recent run is “giving investors pause, wondering if there’s going to be a little pullback at some point,” said Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis.
“You take in the fact of oil dropping a fair amount here today ... that’s giving people pause. Oil is still an important contributor here to expectations within the stock market,” he said.
The Dow Jones Industrial Average fell 28.97 points, or 0.16 percent, to 17,897.46; the S&P 500 lost 2.05 points, or 0.1 percent, to 2,080.73; and the NASDAQ Composite dropped 7.67 points, or 0.16 percent, to 4,938.22.
Six of the 10 S&P sectors finished in positive territory, helping limit the overall declines, led by a 0.7 percent gain for utilities, the best performing sector this year.
US stocks’ rough start this year, amid concerns over the global economy, was followed by a sharp rebound starting in mid-February. Stocks have steadied this month, and the S&P 500 is now positive for this year.
Investors have turned their attention to earnings season, which are to intensify next week, as the next major factor influencing the market. First-quarter profits among S&P 500 companies are expected to have fallen 7.8 percent, according to Thomson Reuters I/B/E/S, but the diminished expectations could offer a silver lining for stocks if companies outperform.
“We have already seen the banks surprise on the upside pretty much here, and I think we are likely to see other companies actually surprise on the upside because there is such pessimism about first-quarter earnings,” said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.
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