Oil Moves Moving Stocks, Too
Bob Pisani is off; this post was written by CNBC producer Robert Hum.
A leader early, energy stocks have turned sharply negative as crude oil has pulled back, falling 3 percent on the day. Many of the big oil service and oil names —
Baker Hughes ,
— are 2-3 percent weaker now, after being up earlier in the day. That move has helped pull down the broader markets to session lows in the last hour of trading.
But that drop in oil has also benefited the airlines, as that inverse correlation continues. Airlines gained notable momentum as crude oil turned south mid-afternoon. Big airlines up 2-4 percent now — at highs of the day — but just off the multi-month lows they hit last week.
Separately, along with the infrastructure stocks that are showing a little weakness today (see earlier post) building materials stocks like Cemex, Vulcan Materials, Martin Marietta, and USG seem to be getting hit after Pres. Obama warned that the 2011 budget cuts will delay some needed infrastructure projects.
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