A sharp drop in the price of oil on Monday rattled investors and helped push stocks lower across several industries.
Investors sold from the start of trading following a decision by OPEC last week not to cut production. Benchmark U.S. crude dropped nearly 6 percent, deepening its stunning 1½ year plunge, to close at its lowest level in nearly seven years. The losses were broad, with seven of the 10 industry sectors in the Standard & Poor’s 500 index closing lower.
As they have all year, oil drillers bore the brunt of the selling. Chevron and Exxon Mobil, both members of the 30-stock Dow Jones industrial average, each fell nearly 3 percent.
“There was a big hope that OPEC would announce a production cut, but it just didn’t happen,” said Mizuho Securities Chief Economist Steven Ricchiuto. He added: “The whole world is facing excess supply as the global economy slows.”
The Dow gave up 117.12 points, or 0.7 percent, to 17,730.51. The S&P 500 fell 14.62 points, or 0.7 percent, to 2,077.07. The Nasdaq composite dropped 40.46 points, or 0.8 percent, to 5,101.81.
Airlines stocks were among the winners as investors anticipated bigger profits thanks to falling fuel costs. JetBlue Airways jumped $1.01, or 4 percent, to $26.49. Delta Air Lines also rose 4 percent, gaining $2 to close at $51.78.
In theory, lower oil prices should help many stocks because consumers often spend money elsewhere that they save at the pump or on heating bills. But investors have been disappointed.
Delta Air Lines Inc. (NYSE:DAL) rose 4.04% or 2.01 points on Monday and made its way into the gainers of the day. After trading began at $50.27 the stock was seen hitting $51.82 as a peak level and $50.19 as the lowest level. The stock ended up at $51.79. The daily volume was measured at 13.83 million shares. The company has a market cap of $39.15 billion. The mean estimate for the short term price target for DAL stands at $61.58 according to 12 Analysts. The higher price target estimate for the stock has been calculated at $74.00 while the lower price target estimate is at $55.00. On Nov 3, 2015, the shares registered one year high at $52.00 and the one year low was seen on Aug 24, 2015. The 50-Day Moving Average price is $49.49 and the 200 Day Moving Average price is recorded at $45.69. Delta Air Lines Inc. (NYSE:DAL) on December 2, 2015 reported financial and operating performance for November 2015.
Consolidated passenger unit revenue (PRASM) for the month of November increased 1.5% year over year, as Delta’s winter capacity actions continue to benefit results. The calendar timing of the Thanksgiving holiday was a 2 point benefit, while foreign exchange was a 2 point headwind in the month.
Passenger unit revenue (PRASM) for the December quarter is projected to be at the high end of the guidance range of down 2.5% – 4.5%, provided on the September quarter earnings call. Delta’s projected December quarter fuel price of $1.82 – $1.87 includes $0.06 of early hedge settlements during the quarter.
JetBlue Airways Corporation (NASDAQ:JBLU) witnessed a rise in the market cap on Monday as its shares jumped 3.96% or 1.01 points. After the session commenced at $25.84, the stock reached the higher end at $27.00 while it hit a low of $25.80. With the volume soaring to 10.12 million shares, the last trade was called at $26.49. The company has a 52-week high of $27.36. The company has a market cap of $8.03 billion and there are 315.06 million shares in outstanding. The 52-week low of the share price is $14.13. JBLU has rose 11.68% during the last 3-month period. Year-to-Date the stock performance stands at 67.02%. The stock price is expected to reach $29.21 in the short term. The number of analysts agreeing with this consensus is 12. The higher estimate for the short term price target is at $32.00 while the lower estimate is at $27.00. On Sep 17, 2015, the shares registered one year high at $27.36 and the one year low was seen on Jan 12, 2015. The 50-Day Moving Average price is $25.35 and the 200 Day Moving Average price is recorded at $23.52. JetBlue Airways Corporation (NASDAQ:JBLU) on December 1, 2015 announced the results of its seventh annual Swing for Good charitable fundraising campaign. As part of the airline’s largest charitable fundraiser of the year, JetBlue’s business partners, crewmembers and customers joined efforts to raise $750,000 for three youth and community focused non-profit organizations — DoSomething.org, Together We Rise and the JetBlue Foundation. Each nonprofit partner will receive $250,000 to continue their education and community-focused initiatives.
JetBlue’s customers can join the airline in giving to a variety of worthy causes. In celebration of #GivingTuesday, JetBlue encourages its TrueBlue members to donate to their favorite charities and causes through TrueBlue Points Donation, a recent addition to the airline’s loyalty program.
Whole Foods Market Inc. (NASDAQ:WFM) traded up 3.96% during trading on Monday, hitting $30.91. The stock had a trading volume of 8.71 million shares. The firm has a 50 day moving average of $30.52 and a 200-day moving average of $35.05. The stock has a market cap of $10.07 billion. WFM has dropped -4.15% during the last 3-month period. Year-to-Date the stock performance stands at -39.13%. The stock price is expected to reach $30.23 in the short term. The number of analysts agreeing with this consensus is 26. The higher estimate for the short term price target is at $51.00 while the lower estimate is at $20.00. On Feb 19, 2015, the shares registered one year high at $57.57 and the one year low was seen on Nov 5, 2015. Whole Foods Market Inc. (NASDAQ:WFM) on November 4, 2015 announced a new capital allocation strategy that reflects confidence in the Company’s future growth and cash flow generation, while expanding its commitment to return capital to shareholders.
As part of this strategy, the Company’s Board of Directors has authorized a new $1 billion share repurchase program, bringing the Company’s total share repurchase authorization to $1.3 billion. In addition, the Board declared a 4% increase in the quarterly dividend to $0.135 per share from $0.13 per share, the Company’s fifth consecutive dividend increase since reinstating the dividend in 2011. The next dividend is payable on January 26, 2016 to shareholders of record as of January 15, 2016. Since 2011, the Company has returned approximately $2.4 billion to shareholders through dividends and share repurchases.