5 Stocks That Have Kicked Off the Week on a Sour Note

Chesapeake Lower on Weaker Crude

Chesapeake Energy Corporation (NYSE:CHK) is 1% lower on the back of lower crude prices. July 2016 WTI futures are off by 0.57% this afternoon due to the ‘risk off’ sentiment among investors ahead of this week’s FOMC meeting and June 23’s Brexit vote. If the Federal Reserve surprises and raises rates or if Britain leaves the EU, the dollar could strengthen and demand for crude could decline. If that happens, the bullish supply developments over the past few months could be overshadowed by the drop in demand and the bearishness due to speculation. The number of funds in our system with shares of Chesapeake Energy Corporation (NYSE:CHK) in their portfolios dropped by one during the March quarter, to 31.

Profit Taking at ArcelorMittal 

ArcelorMittal SA (ADR) (NYSE:MT) is off by around 2% this afternoon due to profit taking. Given that the stock has rallied strongly since mid-February, some traders are selling to lock in profit and to de-risk their position. Other traders are selling due to concerns that a Brexit or a weak Chinese economy could cause global demand to decline. Jim Simons‘ Renaissance Technologies owned more than 5.00 million shares of ArcelorMittal SA (ADR) (NYSE:MT) at the end of the first quarter.

Fairmount Santrol Drops on Downgrade

Fairmount Santrol Holdings Inc (NYSE:FMSA) is 6% lower today after analysts at DA Davidson lowered their rating on the stock to ‘Underperform’ from ‘Buy’. Given that WTI prices have dropped below the $50 per barrel mark, demand for fracking sand might not be as strong as the market is pricing at current WTI prices. Given Fairmount Santrol Holdings Inc (NYSE:FMSA)’s strong rally in recent weeks, profit taking could also be another reason for today’s sell-off. Six funds tracked by Insider Monkey held shares of Fairmount at the end of March.

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