The drop in global oil prices, now down over 10 percent from their recent high, is now starting to work through the rest of the economy.
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| |  Good morning. The drop in global oil prices, now down over 10 percent from their recent high, is now starting to work through the rest of the economy. The most obvious place, in freight rates for supertankers, have started to slide, hitting lows last seen in mid-September.
While that's tough news for the energy space, lower energy prices free up consumer capital for other uses. With Chinese demand estimated to drop as much as 20 percent this year, lower energy prices could act as stimulus to offset the fears there.
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| | |  | DOW 28,399.81 | +0.51% | | | | S&P 3,248.93 | +0.73% | | | | NASDAQ 9,273.40 | +1.34% | | | | | *As of market close | | | • | Stocks rebounded from last week's selloff, even as the Chinese stock market sank 8 percent as it reopened from the Lunar New Year holiday. | | | • | Oil dropped 3 percent, closing at $50.04 per barrel. | | | • | Gold declined 0.4 percent, moving to $1,580 per ounce. | | | • | Cryptocurrencies were mixed, with Bitcoin dropping 0.3 percent to $9,311. | | | | | | | | |
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| Two Income Plays to Avoid China Fears | |
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With the market looking like an attractive place to invest over the past few months, many traders piled into growth stories. However, with the recent coronavirus outbreak, the market's melt-up has stalled. And with it, many chances for simple trades that make large returns.
While traders can now do things like buy growth plays on big down days, now they'll want to flip quickly rather than hold. For investors, however, a stalling market is great for income plays.
» FULL STORY |
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| Insider Trading Reports: Anthem Inc. (ANTM) | |
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Gail Boudreaux, President and CEO of Anthem (ANTM), recently bought 7,600 shares.
The buy upped her stake by 40 percent, and came at a price of just over $2 million.
This is the first insider buy at the company in the past three years. Insider data shows that C-suite executives have been regular sellers of shares, likely the result of exercising stock options.
» FULL STORY |
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| Unusual Options Activity: Tesla Motors (TSLA) | |
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Shares of Tesla Motors (TSLA) rose over 15 percent in trading on the news that the company would be able to expand in China.
What's more, since earnings last week, shares are up over 25 percent.
That's led to some traders betting on a further rally. The February 7th $805 call options saw over 1,800 contracts trade compared to a prior open interest of 100—an 18-fold rise in volume.
» FULL STORY |
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| TOP | | | GILD | 5% | | | | NLOK | 4.446% | | | | CTVA | 4.149% | | | | IPGP | 4.026% | | | | NFLX | 3.741% | | | BOTTOM | | | SYY | 6.647% | | | | XEC | 5.742% | | | | YLO | 4.816% | | | | MPC | 4.477% | | | | HFC | 3.963% | | | |
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| The coronavirus is different. It is big. It's going to paralyze China. It's going to cascade into the global economy. We should try and resist our inclination to buy the dip. |
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- Mohamed El-Erian, chief economic advisor at Allianz, on why traders should reconsider their usual strategy and expect markets to rebound quickly.  |
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