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Current DateTime: 12:46:23 24 Nov 2009
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Current DateTime: 12:46:23 24 Nov 2009
LinksList Documentid: 30111251
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Stocks Gaining From Commodities Rise
Published: Thursday, 4 Jun 2009 | 8:16 AM ET
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The Reuters/Jefferies CRB Index is a global commodity benchmark which tracks 19 mostly U.S. traded commodities and has led a rally in the past weeks with a year-to-date performance surpassing the S&P, currently up 10% versus 3% YTD, driven in part by a depreciating dollar and speculation of an economic recovery.

The CRB Index which finished May up 14.4%, had its best percentage monthly gain in nearly 35 years and it is now trading near a 7-month high as it reached an intraday high of 260.91 on Tuesday, its highest level since 11/11.

The biggest winner amongst the CRB index components is RBOB Unleaded Gasoline delivery which is currently up 81.03% year to date as of Wednesday, and has been trading above its 200-day moving average since 5/8 amidst support from drawbacks in EIA crude supplies inventories, and the beginning of the summer driving season.  Furthermore RBOB Gasoline has soared more than 144% since it hit an all-time record low level of 0.785 cents/gallon reached on 12/24/08.

CRB Index Components (as of 6/3 close)

Commodity prices can impact stocks in both positive and negative ways.  Companies that produce the commodities can get a lift from the rising prices, while others that are major users of the commodities can do well if they hedge their buying well or can get crushed if forced to buy when prices are high.  As of yesterday's close, the biggest gainer from energy's rise in the past three month on the S&P 500 [.SPX  Loading...      ()   ] has been Massey Energy [MEE  Loading...      ()   ].  One of the biggest gainers overall has been AKS Steel [AKS  Loading...      ()   ], up 174% in the past three months.

The following pages depict the biggest gainers on the S&P from gains in Energy, Metals, and Agricultural commodities. 

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