The Closing Look

Stock Market Commentary:

Stocks fell on Monday as concerns regarding the global economy resurfaced. Oil prices slid over 3% after jumping 9% last week. Meanwhile, Natural Gas prices vaulted nearly 10% on Monday as a cold weather is expected to hit most of the country. The fact that energy prices are trading like penny stocks (huge wild swings, up and down) bodes poorly for U.S. stocks. In the U.S., the Dallas Fed manufacturing index plunged to -20.1 in December, missing estimates for -6.0. That was the lowest reading since May’s -20.8, and the index has been in contraction territory all year thanks to the oil-related bear market and recession. The index has not been above zero since December 2014. In other news, distressed debt levels jumped to the highest level since the Great Recession. The number of companies with the lowest credit ratings and negative outlooks vaulted to 195 this month which is the highest level since March 2010.