Baker Hughes drags down drilling shares By Steve Gelsi, MarketWatch NEW YORK (MarketWatch) - Energy stocks took a brake from gains and fell Wednesday after the latest rise in petroleum inventories renewed jitters about an economic rebound in the short term. The Energy Information Administration reported that crude supplies rose by 1.7 million barrels during the week ended July 31. The figure came in slightly ahead of the build of 1.5 million in crude stocks in a survey of analysts by Platts. See Futures Movers. Oil futures extended their decline to trade below $70 a barrel Wednesday after the bearish supply data, causing energy stocks to move firmly into the red, while a profit miss from Baker Hughes weighed on the oil-service sector. The NYSE Arca Oil Index (XOI 964.84, -13.08, -1.34%) dropped 1.4% to 964. The NYSE Arca Natural Gas Index (XNG 461.84, -5.46, -1.17%) dropped 1.3% to 461. The Philadelphia Oil Service Index (OSX 171.04, -4.34, -2.48%) retreated 2.5% to 171. Baker Hughes (BHI 38.71, -3.26, -7.77%) fell 7.4% to $38.88 after it fell short of Wall Street's profit target and warned of price erosion overseas. See full story. XTO Energy (XTO 42.52, -0.08, -0.19%) dipped a penny to $42.59 after it boosted its production outlook and its adjusted profit beat analyst targets. See full story. Devon Energy (DVN 63.54, +2.31, +3.77%) jumped 3.2% to $63.18 a share even after posting a 76% drop in earnings. The company increased production to record levels. See full story.

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