Feedback
Business

Dow Sags 250 Points as U.S. Crude Futures Plunge

U.S. stocks traded lower early on Tuesday as renewed declines in oil prices weighed amid mixed reaction to some key earnings reports.

The Dow Jones industrial average fell more than 200 points in morning trade. Goldman Sachs, Exxon Mobil and Chevron were the greatest weights on the index.

Shares of Exxon Mobil fell 2 percent in morning trade after the firm reported a 58 percent drop in profit, hurt by low oil prices. The world's largest publicly traded oil company also said it would cut spending this year by one-quarter, Reuters reported.

Energy fell more than 2.5 percent in morning trade to lead all S&P 500 sectors lower. The index was off more than 1 percent in morning trade. The Nasdaq composite also declined more than 1 percent.

Alphabet, Google's parent company, reported earnings after the close Monday that beat on both the top and bottom line, helped by a 17 percent rise in advertising revenue. A key advertising metric of aggregate paid clicks increased 31 percent from the previous year, beating consensus expectations of about 22 percent, according to StreetAccount.

A jump in the shares in after-hours trade and morning trade Tuesday put Google on pace to top Apple as the world's most valuable company.

U.S. crude oil futures were more than 5 percent lower in morning trade, hovering just above $30 a barrel. Concerns about demand and rising supply continued to weigh as hopes for a deal between OPEC and Russia on output cuts faded.