Why Energy Stocks Dropped on Monday
Oil stocks had a rough start to the week after WTI Crude oil prices fell 4.9% to $93.82 per barrel and Brent Crude fell 3.9% to $99.87 on Monday. That pulled the entire industry down.
Shares of oil producer Centennial Resource Development (NASDAQ: CDEV) plunged as much as 5.6% today, offshore rig owner Transocean (NYSE: RIG) fell 7.7%, and Core Laboratories (NYSE: CLB) dropped 8.9%. The stocks closed the day down 1.8%, 4.7%, and 4.9% respectively.
The biggest economic news out today was the Institute for Supply Management's (ISM) reading of manufacturing sentiment. The ISM's measure of manufacturing PMI was 52.8% in July 2022, indicating slow expansion in manufacturing. A reading above 50% implies growth while below 50% indicates contraction. What was concerning is that a new order reading was 48% in July, which could be bad for future growth.
Source Fool.com
