NEW YORK (TheStreet) -- U.S. stocks declined early Monday afternoon, with the energy sector leading markets lower after Goldman Sachs said it expects the price of Nymex West Texas Intermediate to trade at $74 a barrel in 2015, reflecting break-even prices for shale producers in the U.S. Falling expectations for oil come amid supply concerns brought about by Saudi Arabian oil production. Energyamay remain a driver of stocks amid a busy week of economic data given upcoming third-quarter earnings from Exxon Mobil , Chevron and BP athis week. The S&P 500 was trading down 0.36%. The Nasdaq was down 0.25% and Dow Jones Industrial Averageawas falling 0.15%. Must Read: Warren Buffett's Top 10 Dividend Stocks Oil markets fell sharply in early trading in reaction to a Goldman Sachs downgrade, with Nymex crude trading at multi-year lows below $80 a barrel before recovering to $80.53 a barrel in afternoon trading. Goldman said it expects WTI to trade at a range of $70 a barrel to $80 a barrel on slower U.S. oil growth and lower drilling costs. Stock analysts at the investment bank also cut their ratings outlook for a handful of oil producers and service providers, reflecting lower price expectations. Goldman downgradedaContinental Resources , Anadarko Petrolem , Basic Energy Services , DCP Midstream Partners , Diamond Offshore , Emerge Energy Servies , EP Energy , Halliburton , Laredo Petroleum , Midcoast Energy , Parsley Energy , Patterson-UTI and Pioneer Energy Services on Monday. Stocks also reacted to Brazilian President Dilma Rousseff's re-election in a runoff vote on Sunday, and weaker-than-forecast economic data from Europe and the U.S. on Monday. Dilma Rousseff of the Workers Party was re-elected on Sunday as Brazil's president, taking 51.4% of the vote in a hotly contested runoff against Aecio Neves of the Social Democracy, who took 48.5% of the vote. Rousseff, who ran on a platform of poverty reduction, has been president of Brazil since October 2010. In recent years, her popularity has fallen amid inflation in Brazil, corruption and the BRIC country's worsening economic performance. On Monday, the Bovespa, Brazil's main stock index, fell 6%. The Brazilian real fell 3.2% vs. the U.S. dollar, its biggest drop in three years. Brazil's largest oil company, Petrobras , tumbled more than 14% on the election results to $11.10. Investors got a disappointing read on the housing market in the U.S. on Monday. Pending home sales for September rose just 0.3%, below forecasts of a 1% rise in pending sales. Separately, U.S. services PMI fell more than forecast to 57.3, falling below expectations to a six-month low. In Europe, economic data from core countries such as Germany continued to point to a prospect of deflation, potentially giving reason for the European Central Bank to begin telegraphing stronger measures to provide stimulus to financial markets in the region. On Monday, the German Ifo Institute's business climate index fell for a sixth straight month to its lowest reading in nearly two-years. The Ifo index, which is based on a survey of regional business executives, dropped to 103.2 in October, missing forecasts, according to the median estimate compiled by Bloomberg. That disappointing data comes as investors continue to fear that the eurozone is falling into recession. Other gauges of the German economy, the strongest performer in the European Union, also pointed to declines. The ECB said on Sunday there was a capital shortfall of 25 billion euros at 25 banks as of the end of last year. However, in a news release announcing the results of its stress tests, the ECB said Sunday that 12 banks had already covered their capital shortfalls, leaving 13 banks still short of capital.a Moody's views the results of the [stress test] as "credit positive for euro area bank creditors, with the most notable outcomes of the exercise being the progress toward balance-sheet repair and the improved transparency of bank accounts," Moody's managing director Carola Schuler said in a report. Third-quarter corporate earnings continue, with Merck beating profit estimates but missing on sales forecasts. Shares in the pharmaceutical giant were trading over 2% lower at $56.14 in early afternoon trading. Botox-maker Allergan , which continues to contest a hostile takeover bid from Valeant Pharmaceuticals , beat earnings forecasts by 10 cents, reporting a profit of $1.78 a share in the third quarter. The company's shares were little changedaafter Valeant said it was willing to improve its takeover offer to at least $200 a share. Seattle Genetics fell more than 2% and Aegerion Pharmaceuticals rose 2% as the CEOs of both firms were named in a lawsuit that alleged their drug use. Both companies denied those allegations to TheStreet. After the market close, Twitter , Manitowoc , Cliffs Natural Resources and T-Mobile will report earnings. Twitter is forecast to earn 1 cent a share, while Manitowoc is forecast to earn 41 cents and Cliffs is expected by analysts to earn 1 cent a share in the third quarter. Analysts expect a quarterly profit of 5 cents a share from T-Mobile. Must Read: Warren Buffett's Top 10 Dividend Stocks -- Written by Antoine Gara in New York Follow @AntoineGara // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]>
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