Shares of energy producers fell as traders bet increased production on U.S. shale oilfields will more than offset the impact of the Organization of the Petroleum Exporting Countries' production deal. "The decline in oil inventories has been modest this year. As a result, investors have curbed their oil exposure in the futures market," wrote Giovanni Staunovo, an energy analyst at UBS. Oil explorer EQT agreed to buy rival Rice Energy for $6.7 billion, the latest marriage of convenience between energy producers seeking to ride out the prolonged depression in prices. One brokerage said the slide in technology stocks in the last couple of weeks could presage a rotation out of the growth sector into undervalued sectors such as energy. "Large cap technology stocks' sell-off is ultimately a buying opportunity in our view, but the rotation toward value stocks may last and may be a sign that better economic data is right around the corner," said analysts at brokerage Morgan Stanley, in a note to clients.
-Rob Curran, [email protected]