By Nicholas Santiago on April 27th, 2010 12:43pm Eastern Time
The major market indexes are trading sharply lower after Greece, and Portugal's lowered credit rating fears increased on Wall Street. This all comes as Goldman Sachs Group Inc (NYSE:GS) is testifying on Capitol Hill. While these and many other problems are weighing on the markets, it is the commodity stocks that are getting hit hard today and leading the indexes lower.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is the leading copper stock and often referred to as a stock market barometer. The stock has struggled lately and is selling off sharply today. Currently the stock is down over $4.00 points to $76.08. This company represents growth as copper is the leading commodity in economic expansion. The stock will now have short term daily chart support at the $74.50 level.
The next major commodity name that is selling off sharply today is Cliffs Natural Resources Inc (NYSE:CLF). This stock is a leading name in iron ore which is another major commodity that is often viewed for economic expansion. Today the stock is lower by $3.78 to $69.20. The stock will have some short term support at the $65.00 and $60.00 area on the daily charts.
Chevron Corp (NYSE:CVX) is a leading global integrated oil company and a major Dow Jones Industrial Average component. This stock is selling off sharply, trading lower by nearly $2.00 points to $80.65. This stock will have short term daily chart support at the $79.00 and $76.00 area.
When the leading commodity names decline this is often a clear indication that the markets are weak. These leading names represent economic growth. When global economic growth fails to expand the markets could face some major headwinds going forward.
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