Oil Holds $60 On An Otherwise Down Day

Market Check-In.  Markets lost ground for the second straight day in trading today. All three major indexes fell, and with the exception of the price of oil and bond yields, there were big-money losers across the board. The Dow fell -86.22 points to close low, at 17,841.98. The S&P 500 and NASDAQ both followed, with the S&P down -9.31 to 2,080.15 and NASDAQ falling -19.69 points to 4,919.64. In overseas trading, markets were quiet. Hong Kong's Hang Seng gave back -114.63 points to close at 27,640.55.

Oil Holds Its Price On A Down Day.
Oil futures were up today, as the market gears up for rising summer demand. The price at the pump may be on the rise, but during the summer season that has more to do about refinement capacity than it does crude futures. In the short term, assuming prices stay over $60 per barrel, we can expect some drilling operations like Transocean (RIG) and Diamond Offshore (DO) to start to bounce back. At the very least, maybe this latest rise in the price of crude will prevent another big round of layoffs for oil and gas workers.

Frontier's Earning Miss Sends Shares Tumbling.  Frontier Communications (FTR) couldn't deliver what it promised to shareholders on Wednesday, and paid for it in falling share prices. Frontier missed on earnings today, and lead the market in real losses with an 11.72% decline. It lost -0.79 points to close at $5.95 per share.

Moneygram A Possible Acquisition Target Of Western Union.  If you've been listening to rumors and reading the numbers today, you might come away with the feeling that Moneygram (MGI) is about to be made an offer by Western Union (WU). Although Western Union has played coy, and Moneygram flat-out denies it, insiders say that Western Union has made a serious offer.

Both companies saw share prices rise today on the rumors. Western Union (WU) was up 0.90 points, or nearly 5%, to close the day at $21.85 per share. Moneygram (MGI) shot up more than 20%, as investors hoping to get a piece of the deal made big buys. The company added 1.67 points and closed at $9.47. 

Watchmaker Fossil Group Stumbles Despite Earnings Beat.  Manufacturers in the consumer durables sector have generally had a good quarter, but watchmakers Fossil Group (FOSL) have been plagued with falling share prices. The problems rest in the senior management and direction of the company, which is why Fossil continues to underperform the sector despite exceeding earnings. Today, Fossil lost -5.82 points in a selloff and closed the day 6.73% down to $80.64 per share.

Published on May 6, 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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