Stock Market Today, Dec. 16: Energy Stocks Slide as Oil Drops to Multi-Year Lows

The S&P 500 (SNPINDEX:^GSPC) slipped 0.24% to 6,800.26, the Nasdaq Composite (NASDAQINDEX:^IXIC) edged up 0.23% to 23,111.46, and the Dow Jones Industrial Average (DJINDEX:^DJI) fell 0.62% to 48,114.27 as mixed jobs data and cheaper oil pressured cyclicals.

Market movers

Energy names lagged today, with APA (NASDAQ:APA), Diamondback Energy (NASDAQ:FANG), and Dow component Exxon Mobil (NYSE:XOM) sliding as crude hit multi‑year lows. Advance Auto Parts (NYSE:AAP) dropped after weak auto-related retail data and company‑specific headwinds weighed on consumer discretionary.

What this means for investors

Delayed job and retail reports released today brought more uncertainty for investors. According to the Bureau of Labor Statistics, unemployment rose to 4.6% -- the highest it's been since 2021. At the same time, the economy added new jobs. Consumer spending was flat, in part due to weak auto sales.

Weak jobs data could be a factor that slows demand for oil, which would be exacerbated by a growing surplus. West Texas Intermediate (WTI) crude oil fell below $55 a barrel, its lowest point in four years. Brent fell below $60 a barrel.

Finally, a Bank of America (NYSE:BAC) survey is flashing warning signals for investors. It shows cash allocations are at record lows, while exposure to equities and investments is the highest it's been since 2022. It says this, combined with overly optimistic expectations, may be a sign the market is close to its peak.

Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.