[US STOCKS REMAIN DOWN]

[US STOCKS REMAIN DOWN] in muted flow as bulls turned tail on the unexpected drop in durable goods although core capital orders rose again as capex gauge. Nasdaq worst off among major indices, down 0.6% while Dow off just 0.1%. Action mixed among the major S&P sectors, leaving index down less than 0.4% but under key 200 day mov avg. Healthcare stocks off most, with more modest declines in tech, consumer and industrials. Energy stocks net higher despite oil's drilling into $76 area on big weekly inventory build. More defensive plays mixed too. Telecom up vs dips in utilities and staples. Overall risk aversion not elevated with VIX still below 24%. Market internals show down-stocks modestly well outnumber winners but lighter volume suggests big money funds holding back, with Fed's Beige Book on recent business conditions due later this afternoon. 15:40 GMT - [OIL] Despite a massively bigger build in weekly DoE crude stocks, oil so far trading well off the Usd 76 handle around Usd 76.80 despite the report being seen largely as bearish. Usd 75.70 the session low so far within the 75.62 mid-Jul lower high seen as giving underlying technical support. But chatter also that supplies more than sufficient to keep pace with last wk's spike in demand. However, despite this sentiment, option players still buying Usd 70/80 and 65/85 strangles in size as well as ATM straddles, although more interest starting to build in Usd 60 put strikes, although actual volumes very small.