NEW YORK (AP) – Stocks moved slightly lower early Tuesday, potentially ending three days of gains, as commodity prices retreated. Crude oil sank nearly 5 percent. Investors remained worried about China as the country cut the value of its currency against the dollar yet again. Investors were discouraged by a report showing that consumer confidence fell to its lowest level in seven months.
KEEPING SCORE: The Dow Jones industrial average fell 145 points, or 0.9 percent, to 16,475 as of 11:07 a.m. Eastern. The Standard & Poor’s 500 index lost 19 points, or 1 percent, to 1,927 and the Nasdaq composite fell 54 points, or 1.2 percent, to 4,516.
ENERGY FORECAST: Oil prices moved lower after the International Energy Agency said on Monday it does not expect oil prices to recover significantly until 2017, but sees slower growth in global supplies. Crude oil fell $1.58 to $31.81 a barrel while Brent crude, which is used to price oils internationally, fell $1.36 to $33.31 a barrel in London.
CHINA WORRIES: Investors were watching developments out of China, where the People’s Bank of China announced it had cutting its daily rate between the yuan and the dollar more than expected. The weakening yuan was a major cause of market turmoil in August 2015 as investors worried that it signaled a slowdown in China’s economy.
LACKING CONFIDENCE: A report from the Conference Board showed U.S. consumer confidence fell to 92.2 in February, down sharply from a reading of 97.8 in January and the lowest level since July. Consumers expressed worries about deteriorating business conditions and turbulence in the financial markets for their drop in confidence.
OUT OF SHAPE: Fitbit, maker of wearable fitness trackers, fell $3.14, or 19 percent, to $13.39 after the company issued a weak forecast for 2016.
MERGER WATCH: Dow member United Technologies was down 82 cents, or 1 percent, to $91.53 after the company rejected a merger offer from Honeywell.
BONDS, CURRENCIES: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 1.80 percent from 1.75 percent a day earlier. The dollar fell to 112.30 yen from 112.83 yen while the euro weakened to $1.1005 from $1.1026.