With WTI futures now at $42.61 per barrel due to the weaker dollar and the labor strike in Kuwait, the S&P 500 and Dow Jones are each comfortably higher today. Among the stocks on the move in today’s relatively low-volatility climate are Denbury Resources Inc. (NYSE:DNR), ArcelorMittal SA (ADR) (NYSE:MT), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), GigPeak Inc (NYSEMKT:GIG), and Chemours Co (NYSE:CC). Lets examine why each stock is moving and see how the smart money tracked by Insider Monkey is positioned in each of them.
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Denbury Higher Due to the Rising WTI
Denbury Resources Inc. (NYSE:DNR) shares have surged by 10% out of the gate on the back of stronger WTI prices. Although last weekend’s meeting in Doha ended in abject failure after Saudi Arabia and Iran failed to see eye-to-eye on a freeze, the strike in Kuwait has solved the over-supply problem all by itself, sending supply down by around 1.7 million barrels per day. How long the strike lasts is up for debate, however. For the bulls, the longer the better. In other news, Denbury Resources announced that its borrowing base was cut to $1.05 billion from the previous $1.50 billion. 17 top funds in our database owned shares of Denbury Resources Inc. (NYSE:DNR) at the end of December.
ArcelorMittal Up 3% on Better Sentiment
ArcelorMittal SA (ADR) (NYSE:MT) is 3% in the green today on the strength of the lower dollar. The lower dollar means more emerging market growth, which means more steel demand. ArcelorMittal’s bondholders also tendered less than half of the bonds (of 1.5 billion euros) that the company wanted to buy back according to a statement released on Tuesday. Whether that’s a smart move depends on how long the oversupply situation in the industry lasts. Like the oil producers in Doha last weekend, China and major steel producers failed to reach a deal on Monday to solve global steel overcapacity. 16 top funds that we track in our database owned 2.8% of ArcelorMittal SA (ADR) (NYSE:MT)’s float at the end of December.
On the next page, we examine why Calumet Specialty Products Partners LP, GigPeak Inc, and Chemours Co. all have the interest of investors today.