Bird Flu Hits Poultry Producers on a Slow Day for the Markets

Trading was essentially flat today, with yesterday's selloff giving way to much lower than expected volume which saw the market stall out in the afternoon. The Dow was down -27.55 points, ending the day at 17,635.39. The NASDAQ lost -9.86 points and settled in at 4,849.94, and the S&P 500 fell -3.92 points to finish trading at 2,040.24. The markets overseas were more active, with Germany's DAX gaining more than 300 points to close the day up 2.5%. Hong Kong's Hang Seng exchange continued to struggle, losing -180 points in trading today.

Sick Birds Drop Share Prices For Poultry Producers.
Some of America's largest poultry producers saw share prices tumble today, as news of bird flu was confirmed. The sick turkeys, which are from two major commercial flocks in Missouri, caused enough concern to spark a shareholder selloff. Tyson (TSN) was down. Pilgrim's Pride (PPC) dropped to, and Sanderson Farms (SAFM) lost -3.46 points and ended trading at $79.05 per share.

Mylan Pharmaceuticals Up On New Drug Announcements.  The share price of Mylan Pharmaceuticals (MYL), a mid-cap drug manufacturer, shot up today on news that the FDA has approved three new products. Mylan, which has been given a strong Buy rating by multiple online sources, is releasing three new generic drugs to compete in the marketplace. Share prices rose 3.71 points on the news, gaining nearly 7% and closing at $59.01 per share.

Automakers Having A Better Than Forecast Sales Year.  Domestic car manufacturers have had a challenging few years, but sales numbers have been up recently. General Motors (GM) has been plagued by safety recalls, but is on track to make a profit this year. Ford Motors (F) also contracted last year, but is on track to grow earnings by nearly 40% in 2015. Fiat Chrysler (FCAU) is up 33.85% YTD, and gained another 3% in trading today. Upstart electric car manufacturer Tesla (TSLA) -- which gained 3.49 points today and ended trading at $193.81 per share -- is the most volatile American car maker, but also the one most likely to see huge mid-term growth.

Scrap Prices Are Way Down As Other Metals Follow Gold.  One of the most iconic images of this latest recession was of a foreclosed home with all of the wiring yanked from the walls, destined to be sold as scrap. Falling copper prices -- alongside a reduced foreclosure rate -- have made scrapping a lot less lucrative than it used to be. Copper futures are down almost 14% this year. The price of platinum -- which is used industrially in catalytic converters -- is down 23%. Only the price of aluminum has stayed flat over the past year, although it is down big from gains that it had made over the summer of 2014.
Published on Mar 11, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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