Commodity Shippers Take Big Hits
Vague reports were the orders of the day:
1) Late in the day shippers that specialize in carrying bulk commodities such as coal, iron ore, and grains, as well as bauxite, fertilizers, and steel products, fell apart: stocks like Dryships down 18%, Eagle Bulk Shipping down 9%, TBS down 14%, all on concerns that bulk shipping rates may be coming down. As one trader noted, these stocks are direct beneficiaries of the global play and canaries in the mine so to speak for global economic health.
2) The ABX index, an index to a derivative of subprime mortgages, fell again today, again reviving fears of more write-downs to come from banks and brokers.
Not so vague:
1) Goldman Sachs, who did come out and say take profits in oil and gold (finally somebody said it)--and energy stocks got clobbered.
2) Steel and commodity stocks weak on concerns Fed might not cut; also disappointing earnings from US Steel, and report that steel output fell to a 6-week low in the week ended Saturday, according to new data released late yesterday by the American Iron and Steel Institute.
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