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Stock rally peters out

A slump in energy stocks stymied a rebound in U.S. indexes Tuesday as the price of oil plunged the most in two years.

The decline in oil prices followed forecasts for weaker global demand this year and next, a sign of slowing economic growth. Chevron fell 2 percent, helping to drag down the Dow Jones industrial average in the waning moments of trading.

Even so, corporate earnings provided some encouragement to investors, helping to close the gap on losses after a three-day slump.

Domino’s Pizza, Citigroup and Johnson & Johnson reported results that were better than analysts were expecting. The market also got a boost from airline stocks, which rebounded after sliding the day before.

The modest rally provided a breather for investors. The Standard & Poor’s 500 index has fallen 6.7 percent since hitting a record high on Sept. 18. Investors are worried that economies in Europe and Asia might be slowing.

By the end of the day, the Dow Jones industrial average had lost 5.88 points, or 0.04 percent, to 16,315.19. The S&P 500 index added only 2.96 points, or 0.2 percent, to 1,877.70.



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