Dow Extends Gains as Oil Nosedives

Supply concerns are sinking oil prices

by Josh Selway

Published on Dec 18, 2018 at 12:11 PM

The Dow Jones Industrial Average (DJI) is bouncing back today, trading well into triple-digit territory. Traders are anticipating tomorrow's Fed decision, while also monitoring a sharp decline in oil prices. At last check, January-dated crude futures were down 5.2% at $47.31 per barrel amid reports of rising crude production in both the U.S. and Russia. Among individual names, blue chips Johnson & Johnson (JNJ) and Boeing (BA) are making notable moves, with chip stocks showing strength, as well.

Continue reading for more on today's market, including:

  • Founder and CEO Bernie Schaeffer examines a natural gas ETF that pulled back to a key call strike.
  • One analyst's surprise top stock pick.
  • Plus, Freeport-McMoRan calls hot; auto stock eyes best day in years; and a stock dropping on M&A news.

us stock index futures fair value on dec 18

Mining name Freeport-McMoRan Inc (NYSE:FCX) is seeing heavy call activity today, after the CEO of Indonesia-based Inalum said the deal to gain a controlling stake in a local unit of FCX should be finalized this week. New positions are opening at the December 11 and weekly 12/28 11.50-strike calls, and buy-to-open activity could be occurring at both. These traders would be betting on FCX stock rising above the $11 and $11.50 levels in the coming weeks. The stock was last seen up 2.9% at $10.90, still below the 50-day moving average.

One notable winner today is truck manufacturer Navistar International Corp (NYSE:NAV), thanks to the company's strong fiscal fourth-quarter results. The shares just hit a 52-week low of $23.69 yesterday, but today have gained 14.9% to trade at $27.39, pacing for their best day in two years.

nav stock price

One big loser on the Nasdaq is Rent-A-Center Inc (NASDAQ:RCII), with the shares falling 14.5% to $12.35 -- back to where they were in June before Vintage Capital agreed to buy the company -- after it was announced that deal was terminated. RCII is planning to give its 2019 financial outlook later this week.

a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
RBS Stock Rises on New CEO Appointment
Alison Rose will be the first woman to serve as CEO to a major British lender
2 Energy Stocks Snap Back After Heavy Losses
Energy stocks CRC and MDR are rallying back from brutal selling earlier in the week
How the 2020 Election Will Affect the U.S. Economy
The 2020 election could see some major changes in the American economic system.