Stocks ended down on Monday as they came under heavy pressure toward the end of the trading day. Stocks once again followed crude lower, which settled at $30 after finishing last week at $31.
News is starting to get interesting for energy stocks as the reality of $30 starts to set in. For example, Halliburton presented "an enhanced set of proposed divestitures" to the U.S. Department of Justice earlier this month. Halliburton also laid off 4,000 workers last year in an effort to cut costs down. In Canada, where the cost to produce a barrel of crude is much higher, some producers are losing money on every barrel they sell. Companies operating in the Canadian Oil Sands include Canadian Natural Resources (CNQ, Financial), Suncor Energy (SU, Financial), to which Warren Buffett keeps adding, and Imperial Oil (IMO, Financial).
The Standard & Poor's 500 is now down 8.2% for the year, and many institutional investors are worried the slumping global economy will start to have an impact here in the U.S.
Below are a couple of stocks that are moving after hours.
Swift Transportation (SWFT, Financial)Â shares are up on strong profits due to cost savings. Fourth-quarter earnings per share came in at 53 cents versus the street’s estimates of 47 cents. Management credited fewer accidents and insurance claims for the cost savings. The beat comes several months after management slashed its profit forecast amid weak freight demand and changes in the logistics business. Gurus have been adding to shares of the transportation company with Scott Black (Trades, Portfolio) recently initiating a position at $21. The stock currently trades in the $13 to $14 range after hitting a 52-week low of $11 earlier in the month.Â
Shares of apparel maker Lululemon Athletica (LULU, Financial) are up after hours after Lone Pine Capital’s Steve Mandel (Trades, Portfolio) disclosed a new 5% stake, according to SEC filings. GuruFocus shows Mandel’s 6 million-plus shares were filed with the SEC on Jan. 15 at an average price of $55.71, slight below Monday’s closing price of $57.63. Gurus have been net buyers of the yoga apparel maker with Mandel’s new stake having the most impact to his portfolio (1.49%).
Rambus (RMBS, Financial) is up 7% after hours after reporting better than expected earnings and projecting favorable 2016 revenue. The company is projecting 2016 to come in between $310 million to 325 million versus analysts' estimates of $294 million. At the same time, the company announced it had acquired mobile payments platform Smart Card Software.
"The secure mobile payment and smart ticketing markets are growth opportunities," Martin Scott, senior vice president and general manager of the Rambus Cryptography Research division, said in a statement.
Gurus have been buyers of Rambus with George Soros (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) establishing new positions. Both are tiny positions but they are new buys.
