Investors are on edge this morning on news of a U.S. debt gridlock. Over the weekend, Republicans and Democrats were unable to agree on a plan to avoid a potential debt default. On top of this, Moody’s credit rating agency downgraded Greece’s debt to “Ca”, just one level about default status. On such downbeat events, a number of companies, especially shipping stocks Excel Martime Carrier (NYSE: EXM) and Nordic American Tankers Limited (NYSE: NAT), are sinking to 52-week lows.
However, a number of pharmaceutical and energy stocks, including Indenix Pharmaceutical (NASDAQ: IDIX), Glaxosmithkline Plc (NYSE: GSK), and Precision Drilling (NYSE: PDS), are showing strength this morning, pushing to 52-week highs.
A full report follows below.
Stocks hitting 52-week lows
Excel Martime Carrier (NYSE: EXM): The dry bulk shipping company is down around -5% this morning. On Friday, investment firm, Wells Fargo (NYSE: WFC) downgraded several shipping firms, Excel included, to “underperform” from “outperform”, citing weakness in the shipping sector. Investors may also be fleeing the stock in anticipation of second-quarter results, to be reported at the market’s close on Thursday, July 28.
Nordic American Tankers Limited (NYSE: NAT): The international crude oil tanker company is off about -5% in morning trading. The stock, along with many other oil shipping companies, has, literally, tanked, due to weakness in the sector. The tanking business tends to go into a boom and bust cycle with high volatility. Currently, the cycle is in a “bust” mode.
HDFC Bank Limited (NYSE: HDB): The Indian banking and financial services provider has tumbled by about -80% this morning, following news India’s Reserve Bank looks set to raise interest rates by 25 basis points on Tuesday, in attempt to curb inflation.
Stocks hitting 52-week highs
Indenix Pharmaceutical (NASDAQ: IDIX): The biotech company engaged in the development of drugs for human viruses, especially hepatitis C, has strengthened about 5% in morning trading. The stock appears to be up in anticipation of better-than-expected second-quarter results, to be announced at the market’s close on Monday, August 8.
Glaxosmithkline Plc (NYSE: GSK): The well-known international drug manufacturer and marketer is up around 2% this morning. On Friday, the popular stock market figure, Jim Cramer, suggested the pharmaceutical company could be a good investment for U.S. and international investors as the company offers an attractive 4.8% forward annual dividend.
Precision Drilling (NYSE: PDS): The oil and gas drilling company has risen about 2% this morning. On Friday, the driller report upbeat second-quarter results, due to higher oil prices that pumped up drilling activity and rates. Revenue for the period increased 32% to $345.3 million. Earnings rose to 6 cents per share, from a loss of -25 cents in the year-ago quarter.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
