Much Quieter Day Than Friday
CNBC "On-Air Stocks" Editor
Much quieter day than Friday, lighter volume, VIX still elevated but not higher than Friday.
Another sign of less tension: shipping companies like Frontline and Overseas Shipholding , are down after big moves up on Friday on concerns that the Suez Canal could see shipping problems. Over the weekend much cooler heads prevailed, many analysts pointing out that there is an abundant supply of ships in the world, and global demand is relatively flat, and shipping rates—for the moment—are not escalating.
This comment from ABG Sundial Collier was typical: "A closure of the Canal will, however, not change the tanker market balance meaningfully. We forecast supply growth to be 10% in 2011e vs. flat demand growth. Hence, an additional 2% growth in demand is not enough to compensate for the fleet growth. We therefore view any strength in the Frontline share on back of this as a selling opportunity."
Natural gas stocks up on ExxonMobil excellent numbers, coal stocks strong on the Alpha Natural Resource purchase of Massey for a 21 percent premium, so traders are speculating that other coal stocks like International Coal Group and Patriot Coal could be next.
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