Equity trade remains volatile this morning with the major indices feeling the cross currents of a second straight day of plunging commodity prices. Oil futures are headed for two-week lows, falling to $136/bbl, while natural gas has fallen below its uptrend line to $12.48. Grain futures are getting hammered for a second straight session while September copper has slid some $0.30+ in the last five sessions to $3.70. The relief that many of the transportation and consumer oriented names are experiencing is being offset by declines in the commodity related stocks themselves. The OIH -3% is testing its 90-day EMA for the first time in more than two months, while XOM, CVX and AA weigh on the Dow.
Steel, agriculture, iron ore, coal, and copper stocks are all seeing money flow out. Oil guru T. Boone Pickens has been making the rounds promoting his new energy initiative, inveighing against US dependence on foreign oil and promising to fund a campaign to reduce this dependency. Pickens notably concentrated on the promise of wind power, which is not surprising given his recent major investments in this sector. Financials are taking very little comfort from Fed Chairman Bernanke's comments this morning. Bernanke stated that the Fed may keep an emergency lending facility for big Wall Street firms open past year-end while it seeks to restore financial market stability.
Steel, agriculture, iron ore, coal, and copper stocks are all seeing money flow out. Oil guru T. Boone Pickens has been making the rounds promoting his new energy initiative, inveighing against US dependence on foreign oil and promising to fund a campaign to reduce this dependency. Pickens notably concentrated on the promise of wind power, which is not surprising given his recent major investments in this sector. Financials are taking very little comfort from Fed Chairman Bernanke's comments this morning. Bernanke stated that the Fed may keep an emergency lending facility for big Wall Street firms open past year-end while it seeks to restore financial market stability.