Oil Volatile in Choppy Week for Stocks

Microsoft won big on buyback buzz

by Karee Venema

Published on Sep 20, 2019 at 2:02 PM
Updated on Sep 20, 2019 at 2:12 PM

The week started off with a bang, as oil prices staged their biggest one-day surge in a decade following airstrikes on Saudi Arabian crude production facilities. The stock market's reaction was negative, though, with the Dow snapping its eight-day winning streak. The blue-chip index continued to struggle as the week wore on, and appears on pace to log its first weekly loss of the month. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) had trouble maintaining the momentum that brought them back near record highs, too, and are set to leave their weekly winning streaks at three.

Oil's Big Spike Could Have Bearish Implications

Crude spiked 14% spike on Monday, which had Transocean (RIG) call sellers hitting the bricks and United States Oil Fund (USO) bears piling on. This sharp surge could have bearish implications for oil prices in the near term -- and spells trouble for Continental Resources (CLR). Crude's wild week sparked volatility in other sectors, too, with Delta Air Lines (DAL) stock set for a weekly loss following Monday's move lower, while these two defense stocks are flashing "buy" signals as geopolitical risk ramps up.

Microsoft Set for Big Weekly Win

While the energy sector garnered the bulk of Wall Street's attention this week, several tech stocks were also in focus. Microsoft (MSFT) muscled its way to a big weekly win on $40 billion buyback buzz, while fellow Dow stock Apple (AAPL) popped after Wedbush offered up a bullish iPhone 11 outlook. Elsewhere, streaming names Netflix (NFLX) and Roku (ROKU) sold off sharply on dreary analyst notes.

FedEx Slumps After Weak Earnings, Guidance

FedEx (FDX) made big headlines this week, too, with the shipping concern's weak earnings and forecast driving the shares to their biggest one-day loss since 2009. SeaWorld Entertainment (SEAS) also took a nosedive after a C-suite shocker, while Bloom Energy (BE) sank after being pegged an "obvious bankruptcy candidate." Meanwhile, bearish analysts rushed Adobe (ADBE) after the software maker's dismal revenue guidance, these two energy stocks snapped back after heavy losses, and this oversold pot stock brushed off a major fundamental blow.

Fed Speeches Highlight Busy Week on Wall Street

A fresh round of Fed speeches will be in focus, after a divided central bank cut its key benchmark rate this week. This could spark some volatility in the banking sector, while Wall Street will also be watching an onslaught of economic data -- including the final reading on second-quarter gross domestic product (GDP). And with some risks on our radar, Schaeffer's Senior V.P. of Research Todd Salamone offered up two ways to trade another short-term decline in stocks.


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