Traders seem to be digesting yesterday’s Fed announcement in which Chairman Ben Bernanke reduced growth estimates for 2011 and 2012 and increased core inflation forecasts. The Fed also confirmed that its $600 billion QE2 program will finish at the end of this month, while interest rates will remain unchanged.
Dragging the markets down further this morning are weaker-than-anticipated home sale and jobless reports. New home sales fell by -2% in May, while jobless claims rose by 9 thousand last week to a seasonally adjusted 429 thousand. Both reports indicate continued economic weakness.
A full report follows below.
Stocks hitting 52-week lows
Frontline Ltd (NYSE: FRO): The oil tank shipper has sunk over -8% so far this morning. The stock is likely down on news that the International Energy Agency plans to release crude oil from strategic reserves in the U.S. The announcement caused crude futures to slip -5%, to around $90.85/barrel and means that demand may decline for Frontline’s international oil shipping services.
Eagle Bulk Shipping (NASDAQ: EGLE): The transporter of dry bulk cargo, such as iron ore, coal and fertilizer has dropped nearly -3% so far this morning. The stock has been in a downtrend for several weeks and appears to be succumbing to technical weakness.
Conceptus (NASDAQ: CPTS): The developer of permanent birth control systems for women has slid nearly -7% so far this morning. The stock has been falling for a couple weeks and seems to be experiencing intensified downward selling pressure.
Stocks hitting 52-week highs
Oxygen Biotherapeutics (NASDAQ: OXBT): The developer of medical and cosmetic products that deliver oxygen to body tissues has lifted over 10% so far this morning. Yesterday, the company announced it is issuing a $4.6 million note and will use the proceeds to develop its business and product lines.
Bristol-Myers Squibb (NYSE: BMY): The global pharmaceutical company has edged up over 5% in trading this morning after releasing positive phase III study results for its experimental blood thinner, Apixaban. The drug is under co-development with Pfizer (NYSE: PFE).
Genesco (NYSE: GCO): The footwear, sport apparel and headwear retailer has gained over 8% in morning trading on news it bought Schuh Group for around $199 million. Schuh Group is a private Scottish retailer of casual and athletic footwear. The acquisition should help Genesco gain a foothold in the UK.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.