Europe continues to dominate the economic spotlight this week. However, attention has turned away from Greece to Italy where Moody’s credit rating agency warned it may downgrade 16 Italian banks.
On the domestic front, the situation is not much brighter. First-quarter gross domestic product (GDP) data showed the economy huddled along at a sluggish 1.9% rate. Analysts predict little additional growth in the second-quarter. The news is causing a number of stocks to hit 52-week lows, including Niska Gas Storage (NYSE: NKA), Startek (NYSE: SRT), and Str Holdings (NYSE: STRI).
However, an increase in machinery, electronic and airplane orders boosted May manufacturing numbers, prompting president Obama to announce a $500 million project to encourage high-tech manufacturing in the U.S. The uptick in manufacturing activity is pushing a wide range of stocks higher, including Southern Union Company (NYSE: SUG), Lithia Motors (NYSE: LAD), and Hansen Natural Corp (NASDAQ: HANS).
Stocks hitting 52-week highs
Southern Union Company (NYSE: SUG): The transporter, processor and distributor of natural gas has flared up by over 15.5% this morning on news the company is expected to bid on and win over 20 thousand miles of U.S. gas pipelines. The company is in a bidding war with competing natural gas producer Williams Companies (NYSE: WMB).
Lithia Motors (NYSE: LAD): The seller of new and used vehicles is up over 3.5% so far this morning. On Tuesday, the company announced it would present at the Jefferies Global Consumer Conference. Traders have since been pushing up the stock.
Hansen Natural Corp (NASDAQ: HANS): The beverage company, best known for its Monster Energy drink, has jolted up about 2% in morning trading. Since mid-March, the stock has been performing well and appears to be riding higher on technical momentum.
Stocks hitting 52-week lows
Niska Gas Storage (NYSE: NKA): The North American natural gas storage company has leaked nearly -2% so far in morning trading today. The stock has been receiving strong downward pressure since mid-June and seems to be succumbing to technical vulnerability. A bearish “death cross” appears close to forming on the chart, indicating continued weakness in the foreseeable future.
Startek (NYSE: SRT): The staffing and outsourcing services company has shed -5.5% so far today, following yesterday’s announcement that the company’s president and CEO was abruptly replaced. Mr. Chad A. Carlson is now the company’s new CEO.
Str Holdings (NYSE: STRI): The world’s largest manufacturer of specialty coatings for solar panels has lost over -16.5% so far this morning. The stock is down after issuing weak second-quarter guidance. In response, Craig-Hallum Capital Group downgraded the stock from “buy” to “accumulate” and reduced the stock’s price target to $21, from $33.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
