The stock markets in the United States gained today except the Russell 2000, down by 0.86%. The equity markets went up during the last minutes of the trading as oil prices recovered.
The WTI and Brent crude closed $36.25 per barrel and $37.82 per barrel, respectively. Today, the crude oil prices fluctuated up and down.
In an interview with Bloomberg, John Carey, a fund manager at Pioneer Investment Management said investors are currently focused on macroeconomic, the Federal Reserve, and commodities prices. He said, “We are on hold until Wednesday.”
The stock prices of equities worldwide tumbled this month due to speculations that the Federal Reserve would increase interest rates this month, and because of the declining oil prices. Many are increasingly concerned about the deepening decline of commodity prices as struggling resources producers could experience difficulty to remain solvent.
Bloomberg noted that the world’s cheapest oil is already priced closed to $20 per barrel. Oil producers in western Canada are now selling oil for less than $22 a barrel. Torbjoern Kjus, an analyst at DNB ASA in Oslo, said, “Most places in the world, a lot of the producers they don’t get the Brent price, and they don’t get the WTI price.” According to him, many producers cannot continue for a long time given the current dramatic situation.
Meanwhile, market strategists polled by Reuters reduced their optimism for the global stock markets next year. Strategists at Morgan Stanley forecasted that the global growth outlook will improve at a very slow pace. According to them, “Lower growth means subdued corporate earnings; and continued U.S. dollar strength will likely prove a headwind for equities and emerging market assets.”
- Dow Jones Industrial Average (DJIA) – 17, 370.51 (+0.61%)
- S&P 500- 2,022.02 (+0.48%)
- NASDAQ- 4,952.23 (+0.38%)
- Russell 2000- 1,113.99 (-0.86%)
- EURO STOXX 50 Price EUR- 3,139.24 (-2.00%)
- FTSE 100 Index- 5,874.06 (-1.32%)
- Deutsche Borse AG German Stock Index DAX- 10,139.34 (-1.94%)
- Nikkei 225- 18,883.42 (-1.80%)
- Hong Kong Hang Seng Index- 21,309.85 (-0.72%)
- Shanghai Shenzhen CSI 300 Index- 3,711.32 (+2.86%)
Stocks in Focus
The stock price of First Solar increased 5.7% to $58.41 per share. Last week, the company issued with full-year 2016 guidance, which was considered by analysts as conservative. The company expected to deliver net sales of around $3.09 to $4.1 billion and earnings of around $4.00 to $4.50 per share for the full year.
Electronic Arts gained 3.71% to $69.66 per share. The company recently created an E-sports division, which will be led by its COO Peter Moore. The division will arrange live tournaments for some its major franchises including Madden NFL, FIFA, and Battlefield.
The shares of Qorvo declined 6.6% to $52.48 per share. The company’s stock was negatively impacted by the weakness of iPhone sales. Katy Huberty, an analyst at Morgan Stanley, cut her iPhone shipment forecast to 74 million from 79 million units for the December quarter.