Oil Drops On Pickens' Comment--But Other Commodities Rise
Oil dropped about $0.60 after Boone Pickens said that he was short oil on our air. Natural gas also dropped, as he said he was short that also.
However, gold, platinum, and palladium are once again at new highs this morning, and it's not just those: soybeans, steel, freight, iron ore, coal, are all at highs. Base metals like copper and zinc are strong as well. While materials stocks are up a bit this month, none of them are anywhere near new highs. There seems to be some kind of decoupling going on between commodities and the stocks.
JC Penneybeat their earnings expectations, though comp store sales decreased 2.3 percent. Guidance is so-so, the range for the quarter and the full year is just below analyst expectations; comp store sales projected to decline for the year. Remember, yesterday launched a whole new line, American Living--co-developed with Polo Ralph Lauren. See Margaret Brennan's Retail Detail post on this.
Sun Capital announced that they had acquired a 9.45 percent stake in Furniture Brands and was seeking to buy the whole company. They didn't say for how much, but they did say it would be at a "substantial premium" to the close of $10.18 a share. Up 16 percent pre-open.
Research in Motion up 10 percent pre-open, they said net subscriber additions would be 15 to 20 percent higher previously forecast. They affirmed their forecast.
Steel giant Arcelor Mittal said they were raising prices; so is everyone else in the commodity world, it seems.
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