This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dry Bulk Stocks in 2011: Headlines Moving the Market



March 15: Japan Nuke Fears Hit Commodities Stocks

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Selling pressure hit commodities-linked stocks Tuesday, March 15, as Japanese markets crashed amid the burgeoning post-quake nuclear crisis.

The downward pressure was general, with the Dow Jones Industrial Average tumbling more than 200 points, but the declines among commodities names were among the most severe no matter the sector. Institutional investors that had pushed commodities prices to near record highs in recent weeks are using the ugly headlines scrolling across the tapes as an excuse to rotate out of commodities and equities, say market participants.

"We're seeing investment money just bailing out of commodities," said Darin Newsom, senior commodities analyst at DTN in Baltimore. "We had seen that trend in grains for the last two weeks or so, but now we're seeing it in metals, in energies, in everything."

The worst hit sector of commodities-linked stocks was probably dry-bulk shipping, where fears percolated that the closing of so many Japanese ports because of the tsunami will impair demand for oceangoing freight services in the near term.

That reduction in demand couldn't come at a worse time for dry-bulk ship owners, who have faced a collapse in rates since the beginning of the year as a glut of new ships weighs on the market.

Among stocks in the sector, DryShips (DRYS) shares declined 3.4%, Diana Shipping (DSX) 4.5%, Genco Shipping & Trading (GNK) 5% and Excel Maritime (EXM) 6.3%.

5 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,155.74 +124.60 0.73%
S&P 500 2,000.62 +16.49 0.83%
NASDAQ 4,547.9460 +29.0440 0.64%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs