The market continues to feel heavy Thursday as escalating conflicts in Libya spook investors. April WTI crude oil futures have settled in around $100 a barrel, while Brent crude is trading above $113. Supply disruptions in Libya and worries that the unrest will continue to spread throughout the oil rich region are factors weighing on stocks. Saudi Arabia has taken a markedly different approach than Moammar Gadhafi in Libya, as King Abdullah is attempting to preempt possible protests by announcing a $36 billion aid package for its people. It remains to be seen whether those measures stem the tide of insurrection.
Right now the intraday action is choppy and cagey. The market has not rebounded immediately like we saw at the end of January, when a potent down day was erased in the two days thereafter. Instead, all we got yesterday was a feeble bounce in the afternoon highlighted by big reversals in beaten down sectors like the agricultural group. Yesterday’s low will be the important level to watch if the market remains weak during today’s session.
The Cleveland Cavaliers ended their historic losing streak before the All-Star break, and this morning it was General Motors Company (GM)’s turn to get the monkey off its back. The auto-maker ended a seven-year losing streak with its first profitable year since 2004, with a little help from the American taxpayer. Despite topping revenue expectations, GM stock is down 3% and sits a dollar below its IPO price.
Apple Inc. (AAPL) stock looks to be in trouble in the short term as it is once again testing it’s 50-day moving average. AAPL dropped precipitously with the market on Monday and Tuesday as investors worry over the health of Steve Jobs. The stock has since been unable to get a meaningful bounce of the 50-day, signaling that it wants to potentially break below it. A downside move through the 50-day just under $340 could trigger an intial move back into support around $333.50, and then the bigger support area would be around $326.
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