The markets are ticking lower this morning on worries about the economic health of Europe and China. A dark cloud seems to be hanging over Wall Street, pushing a select group of stocks to 52-week lows, including lighting manufacturer Cree (NASDAQ: CREE) and international oil tank shipper Frontline Ltd. (NYSE: FRO).
On Tuesday, Moody’s credit rating agency lowered Portugal’s bond rating to “junk” status, reigniting fears about Europe’s fiscal health. In reaction, borrowing costs rose in Spain and Italy.
Meanwhile, China announced it will increase interest rates by a quarter-point to curtail inflation and slow growth. Many fear the interest rate increase will stifle growth of companies that produce commodities and export to China.
On the home front, the June ISM Non-Manufacturing Survey came in at 53.3, slightly lower than the expected 54, representing a 1.3 drop from the previous month.
Despite the poor news, many stocks are showing robustness, rising to 52-week highs, including home beverage maker SodaStream International (NASDAQ: SODA) and RV manufacturer Polaris Industries (NYSE: PII).
Stocks hitting 52-week lows
Cree: The lighting manufacturer of specialty LED products has dimmed by more than 2.5% in morning trading. Recently, Gabelli research firm lowered Cree’s 2012 earnings estimates to 90 cents from $1.10 per share, citing weakness in the LED market, compounded by excess inventory and pricing pressure.
Frontline Ltd.: The international oil tank shipping company has sunk about 3.5% so far this morning. The crude carrier has been facing headwinds for the past several weeks and seems to be succumbing to technical vulnerability.
Cpfl Energia S.A. (NYSE: CPL): Shares of the Brazilian electricity generator and distributor currently are trading around $29, down nearly 66% from yesterday’s $86 share price. The company instituted a 3:1 stock split this morning.
Stocks hitting 52-week highs
SodaStream International: The Israeli maker of home beverage carbonation systems has fizzed up about 6% so far this morning after an announcement the do-it-yourself beverage maker will be opening a new 850,000-square-foot manufacturing facility in Israel.
Extorre Gold Mines (NYSE: XG): The Canadian-based mineral, gold and silver mining company is up about 6% so far in morning trading. Since mid-June, the stock has been on a strong uptrend, following news the company secured a $25.2 million deal for private financing.
Polaris Industries: The manufacturer of recreational vehicles, such as snowmobiles and motorcycles, has geared up about 1% so far this morning. In mid-June, research firm Wedbush raised its price target on the stock and gave the company an “outperform” rating because of strong sales forecasts. The stock has been riding higher ever since.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
