Energy sector weighs on stocks as oil prices slide

A slide in oil and natural gas companies led U.S. stock indexes mostly lower Monday, even as the Nasdaq composite index eked out another record high.

Energy-sector stocks declined the most, weighed down by lower prices for crude oil and other energy futures. Utilities and phone company stocks also fell sharply. But gains among healthcare and technology stocks helped lift the Nasdaq, extending a winning streak into its fifth day.

Without major new economic data, investors mostly focused on company earnings and corporate deals.

The market’s postelection rally sputtered the last week of December. So far this year, the major stock indexes have mostly inched up. That could change toward the end of the week, when the next big wave of company earnings news starts rolling in.

“It really gets down to earnings now,” said Jim Davis, regional investment strategist at the Private Client Group at U.S. Bank. “The last few quarters, the bar has been set pretty low, basically flat earnings growth. Investors are expecting some earnings growth this year.”

Disappointing quarterly earnings pulled Acuity Brands down nearly 15% to $202.51, making it Monday’s biggest decliner in the Standard & Poor’s 500 index. The lighting maker’s results fell well short of what analysts expected.

Investors rewarded strong earnings from Global Payments, pushing the electronic payment processing company’s shares up 7.2% to $79.79. The stock led all the gainers in the S&P 500.

Company deals moved some stocks.

Insurer UnitedHealth’s $2.3-billion cash-and-stock bid for Surgical Care Affiliates drove the surgical care center operator’s shares up 16.2% to $56.65. UnitedHealth fell 0.3% to $161.95.

McDonald’s edged down 0.3% to $120.43 after it agreed to sell a controlling stake in its China business to a group of investors in a deal worth up to $2.1 billion.

Several oil and gas companies racked up losses as energy futures prices fell. Southwestern Energy sank 4.9% to $9.75, and Range Resources slid 4.3% to $32.76.

U.S. benchmark crude oil fell $2.03, or 3.8%, to $51.96 a barrel. Brent crude, which is used to price oil sold internationally, slid $2.16, or 3.8%, to $54.94 a barrel.

Wholesale gasoline fell 6 cents to $1.57 a gallon and heating oil fell 7 cents to $1.64 a gallon. Natural gas futures fell 18 cents, or 5.5%, to $3.10 per 1,000 cubic feet.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.37% from Friday’s 2.42%.

The pound fell to $1.2163 from $1.2274, its lowest level since October, amid indications the British government is inclined to opt for a full break from the European Union’s single market. The dollar fell to 116.06 yen from 117.02 yen. The euro rose to $1.0577 from $1.0532.

Gold rose $11.50, or 1%, to $1,184.90 an ounce. Silver rose 16 cents, or 1%, to $16.68 an ounce. Copper fell a penny to $2.54 a pound.

Markets overseas were mixed. Germany’s DAX fell 0.3% and France’s CAC 40 slid 0.5% while Britain’s FTSE 100 rose 0.4%.