US stocks wobble as oil prices tumble; Starwood surges

NEW YORK (AP) — U.S. markets are mixed today as lower oil and gas prices are dragging down energy companies while hotels and other travel-related companies are rising after a consortium led by China's Anbang Insurance Group offered to buy Starwood Hotels.

The Dow Jones industrial average added two points to 17,215 as of 11:18 a.m. Eastern time. The Standard & Poor's 500 index lost four points, or 0.2 percent, to 2,017. The Nasdaq composite index rose two points to 4,750 as tech stocks made small gains.

Energy was by far the biggest declining sector in the S&P 500. Oil and natural gas prices slumped after Iran's oil minister dismissed the idea of a freeze in production over the weekend, saying Iran will keep increasing production until it reaches four million barrels per day.

U.S. benchmark crude fell $1.72, or 4.5 percent, to $36.78 a barrel in New York. Brent crude, the global benchmark, lost $1.34, or 3.3 percent, to $39.05 a barrel in London. Gasoline and heating oil prices also fell while natural gas prices edged higher.

Southwestern Energy lost 48 cents, or 6 percent, to $7.52 and Chesapeake Energy gave up 27 cents, or 5.7 percent, to $4.43. Financial stocks also fell. They are the worst performing sector of the S&P 500 this year, in part because investors are worried that struggling energy companies will be unable to pay back loans.

Starwood Hotels jumped after the consortium offered to buy the hotel chain for $14 billion. Last year Marriott International agreed to buy Starwood for $12.2 billion. Starwood said it will examine the offer.