Following three consecutive days in the red for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), investors are hoping for a return to the black today. While four big name companies are doing their best to push the market higher, another four are hindering its progress…
Woodside Petroleum Limited (ASX: WPL) has continued its descent after the oil price experienced further volatility overnight. The resource fell more than 3% to around US$54.70 a barrel on expectations that US data will reveal a record stockpile, adding to the world's oversupply issues. Woodside's shares dropped by as much as 2.7% to $33.25 per share.
Fortescue Metals Group Limited (ASX: FMG) also fell more than 2% on commodity issues after the iron ore price slid US 20 cents to US$62.18 a tonne, according to the Metal Bulletin. The commodity is trading near its lowest price since May 2009 as demand falls and the world's largest miners ramp up their production rates. Although it has drastically improved its cost base recently, investors are still concerned over Fortescue's high level of debt which it may struggle to repay if the iron ore price falls any further.
Commonwealth Bank of Australia (ASX: CBA) might have led the market's recent record-breaking charge (it rose 12 days in a row), but it has consequently led its descent ever since. The stock is down another 0.9% today, trading around $91 a share, after it delivered its half-year earnings report on Wednesday. Australia's largest bank reported a record interim profit but delivered a dire warning for the economy which may have spooked investors.
Woolworths Limited (ASX: WOW) fell below the $32 mark, down 0.5% for the day. Although the company hasn't released any news which would explain the drop, investors are perhaps being cautious of how the company might report when it announces its half-year results in a fortnight. Investors have been concerned about the company's struggling Masters Home Improvement chain as well as the supermarket's ability to compete with Coles, which is owned by Wesfarmers Ltd (ASX: WES).