GM Generali

By Steve Gelsi

Energy stocks moved more deeply into the red than the broad market on Monday as crude prices lost more than $2 a barrel.

With little in the way of company-specific developments, the sector took a hard look at bearishness in the overall economy, led by growing likelihood of a bankruptcy filing from former industrial giant General Motors Corp. (GM).

Against this backdrop, the S&P 500 (SPX) fell 2.9% to 792, but losses in the energy patch were worse.

The Amex Oil Index (XOI) lost 3.6% to trade at 851. Hess Corp. (HES) fell 5.5% to $55.03

The Amex Natural Gas Index (XNG) fell 4% to 346. Component Ultra Petroleum (UPL) dropped 6% to $36.50.

The Philadelphia Oil Service Index (OSXX) retreated 3.6% to 127. Component Rowan Cos. (RDC) fell 7.9% to $12.16.

Crude oil futures fell back toward the $50 a barrel level, correcting after sizeable run-ups in recent weeks.

On the economic front, the big monthly U.S. employment update awaits on Friday. Overseas, Japan's industrial production fell 9.4% in February.

Among energy stocks in the spotlight, Sinopec (SNP) said Sunday its fourth-quarter profit fell 47% to 29.77 billion yuan ($4.36 billion), although the result was better than the CNY23.53 billion expected in a Thomson Reuters poll cited by Dow Jones Newswires. Shares fell nearly 6% to $59.73.

In Friday's action, the Amex Oil Index (XOI) lost 3% to end at 883, and the Amex Natural Gas Index (XNG) slipped 3.9% to close at 361. The Philadelphia Oil Service Index (OSXX) retreated 4% to 132.

-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com