Dow Dips Below 18,000, S&P Pulls Back from Record

It may have been a light day for trading, but U.S. stock indices ended it in the red with the S&P 500 pulling back from record levels and the Dow closing below 18,000.

Crude oil prices inched higher, rebounding slightly amid speculation that U.S. supplies fell last week, and gold prices rose to settle above $1,200 an ounce. Yet equity markets in Europe and Asia set a dismal tone for the day.

The Dow Jones Industrials fell 55.16 points, or 0.31% to end the day at 17,983.07. The S&P 500 declined 10.22 points, or 0.49% to close at 2,080.35 and the Nasdaq dropped 29.47 points, or 0.61% to end the day at 4,777.44.

The SPDR S&P 500 ETF (SPY) fell $1.12 per share, or 0.54% to close at $207.60.

Nevertheless, U.S. indices remained on track to notch another full-year of gains thanks to an improving economic outlook. For the year, the S&P has increased 12.6% and the Dow is up 8.5%.

As the WSJ reports:

The Dow is poised for a sixth straight year of gains. That is, in part, because the economic backdrop is better in the U.S. than in other countries, strategists say. The U.S. economy grew at a 5% annual rate in the third quarter, marking the strongest pace in 11 years. Data released Tuesday showed home prices rose in October, though the pace of gains slowed. The home-price index covering the entire U.S. rose 4.6% in the year ended October, according to the S&P/Case-Shiller Home Price Index report. That compares with a 4.8% rise in September.

The U.S. economy has recovered sufficiently for the Fed to begin weighing an eventual interest-rate increase. At the same time, growth concerns have prompted policy makers to introduce new stimulus in China and Japan, and have investors clamoring for more stimulus in the eurozone.

In corporate news, Civeo (CVEO) tumbled 55.2% to close at $3.92 after the company said it would slash spending and suspend its quarterly dividend amid the slide in oil prices.

Southwestern Energy (SWN) dropped almost 6.8% to $27.24, making it one of the worst performers on the S&P 500 index. The company announced plans to increase its planned capital spending to $2.6 billion in 2015. That contrasts with several announcements in recent weeks from energy companies that are reducing spending as oil prices fall.

NeuroDerm (NDRM) almost tripled in value to $18.14 during regular market hours after posting clinical trial results for its experimental treatment for Parkinson's disease.

XenoPort (XNPT) rose 5.41% to $8.77 after RBC Capital Markets analyst Michael Yee reportedly said on CNBC late Monday that the stock was an "under the radar play."

Gold and copper producer Newmont Mining (NEM) climbed 3.6% to close at $19.2, making it one of the better performers on the S&P 500.