US STOCKS-S&P widens loss after Fed statement, energy shares tumble

Reuters

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    * S&P extends losses, Dow goes negative after Fed decision
    * Energy index tumbles as U.S. crude oil enters bear market
    * Bank stocks pare gains
    * Indexes down: Dow 0.13 pct, S&P 0.42 pct, Nasdaq 0.73 pct 

 (Updates to mid-afternoon, adds commentary, changes byline,
adds NEW YORK dateline)
    By Sinéad Carew
    NEW YORK, Nov 8 (Reuters) - The S&P 500 extended its losses
slightly on Thursday afternoon after a Federal Reserve
statement, and energy stocks led the declines as oil prices
fell.
    The U.S. central bank said ongoing strong job gains and
household spending were keeping the economy on track but
business investment "moderated from its rapid pace earlier in
the year," creating a possible drag on future economic growth.
 urn:newsml:reuters.com:*:nTLA8MEE46
    Aside from the Fed's comment about business investments,
many investors said the statement was largely as expected and
suggested that the Fed's next rate hike would be in December.
    But some investors were hoping for a change in tone.
    "There are those people who are unsatisfied by this
statement because they were looking for a more dovish tone after
last month’s market volatility," said Gene Tannuzzo, deputy
global head of fixed income at Columbia Threadneedle in
Minneapolis. "That’s why we see short-term yields ticked up and
stocks down here. They are still on track." 
    At 3:17PM ET, the Dow Jones Industrial Average  .DJI  fell
33.22 points, or 0.13 percent, to 26,147.08, the S&P 500  .SPX 
lost 11.76 points, or 0.42 percent, to 2,802.13 and the Nasdaq
Composite  .IXIC  dropped 55.15 points, or 0.73 percent, to
7,515.61.
    The S&P bank index  .SPXBK  erased its gains and turned
negative after the news as bank profits benefit from rising
rates.
    Energy stocks were the S&P's biggest drag with a 2.1 percent
decline as U.S. crude oil futures  CLc1  entered a bear market,
falling more than 20 percent from their Oct. 3 high.  O/R  
    The Wall Street Journal reported that Saudi Arabia's top
government-funded think-tank is studying the possible effects on
oil markets of a breakup of OPEC in a story citing unnamed
people familiar with the matter.  urn:newsml:reuters.com:*:nL4N1XJ5XB
    Declining issues outnumbered advancing ones on the NYSE by a
1.39-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favored decliners.
    The S&P 500 posted 33 new 52-week highs and two new lows;
the Nasdaq Composite recorded 72 new highs and 71 new lows.

 (Additional reporting by Richard Leong, April Joyner, Caroline
Valetkevitch, Lewis Krauskopf and Jessica Resnick-Ault in New
York and  Sruthi Shankar in Bengaluru; Editing by Chizu Nomiyama
and James Dalgleish)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))

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