Oil and Basic Materials Stocks Leading the Plunge

Another day, another loss. Although major indexes have come well off of their lows of the day, they are still notably negative, now making it the seventh losing day in a row for U.S. markets.

The S&P 500 (SPX) is currently down 8.15 points (0.65%) to 1245.86, while the Dow Jones Industrial Average ($DJI) is currently down 89.16 points (0.77%) to 11777.46. The NASDAQ (COMP) is the strongest of the major indexes, currently down 9.41 points (0.35%) to 2659.83.

Today's drop is being led by the Oil & Gas Sector and the Basic Materials Sector, which are currently down 1.75% and 1.1% respectively.

A 2.2% plunge in NYMEX Crude futures (/QM) is fueling the drop after a one million barrel supply jump was reported by the Energy Department earlier this morning. Although the number was less than the two million barrel estimate, a sharp rise in gasoline supply (1.7 million barrels versus estimates of 350,000 barrels) is a major cause for concern among energy traders.

Given the worry about production and future economic growth, the Basic Materials Sector, which is down 8.1% over the past 30 days, is also taking a hit in today's action. Monday's extremely weak manufacturing data is still having a lingering effect on this segment of the market.

If the market is going to make a reversal to the upside in the afternoon hours, it will need help from these two major sectors, so look for signs of possible bottoming in these areas as an early gauge.

The weakest stocks in the S&P 500 Oil & Gas Sector currently are:

1) Marathon Oil (NYSE: MRO): Shares of Marathon Oil are currently trading down 6.5% from yesterday's close to $27.22.

2) Cameron International (NYSE: CAM): Shares of Cameron International are currently trading down 3.7% from yesterday's close to $51.51.

3) Helmerich & Payne (NYSE: HP): Shares of Helmerich & Payne are currently trading down 3.4% from yesterday's close to $63.56.

4) Murphy Oil Group (NYSE: MUR): Shares of Murphy Oil are currently trading down 3.2% from yesterday's close to $59.78.

5) Valero Energy (NYSE: VLO): Shares of Valero Energy are currently trading down 3% from yesterday's close to $22.86.

The weakest stocks in the S&P 500 Basic Materials Sector currently are:

1) AK Steel (NYSE: AKS): Shares of AK Steel are currently trading down 3.6% from yesterday's close to 10.69.

2) Alpha Natural Resources (NYSE: ANR): Shares of Alpha Natural are currently trading down 3.5% from yesterday's close to $39.46.

3) United States Steel (NYSE: X): Shares of US Steel are currently trading down 3% from yesterday's close to $36.68.

4) Freeport Mcmoran Copper and Gold (NYSE: FCX): Shares of Freeport are currently trading down 3% from yesterday's close to $49.92.

5) Peabody Energy (NYSE: BTU): Shares of Peabody are currently trading down 2.6% from yesterday's close to $53.17.

Strength in the Sector: The following Basic Materials stocks are currently showing signs of strength, despite negative overall sector performance:

1) Newmont Mining (NYSE: NEM): Shares of Newmont are currently trading up 2% from yesterday's close to $57.27.

2) Ecolab (NYSE: ECL): Shares of Ecolab are currently trading up 0.9% from yesterday's close to $48.97.