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.

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