The market’s energy sector was down 6.22%; the Dow and S&P 500 were down 4.31% and 4.78%, respectively. The market eliminated all gains made year to date. The uncertainty and fear in the market is what led to the extravagant losses today. The U.S. credit rating may be cut in the coming weeks. There are talks that the Fed will introduce QE3. The Japanese and the Swiss have taken measures to weaken their currencies. U.S. unemployment and manufacturing numbers are disappointing. Fears of a double dip recessions are also present in the market. Fears that the global economy is slowing also caused a sharp decline in the the price of crude oil. Oil fell $5.48 (-5.96%) to 86.45, its lowest point since February.
Our energy stocks, Halliburton Company (HAL), Chesapeake Energy Corporation (CHK), and Devon Energy Corporation (DVN), had a completely disastrous day.
HAL fell to $48.03 (-9.48%), wiping absolutely all gains made in the months of June and July of almost 10%. CHK fell to $31.35 (-8.41%) after rising almost 18% from July 1st to August 3rd. DVN fell to $71.65 (-5.46%), it continues to struggle. We should not panic like the rest of the market. I think we will see these stocks rise again in the next week. Earnings have been strong for our energy stocks.