Two Stocks To Avoid Today (CEO, ZOLL)
The broader markets are slightly weaker on the back of a rate hike in China and continuing economic concerns, and these are two companies which are right in the thick of this thesis, and should be avoided for the time being.
CNOOC Limited Common Stock (NYSE: CEO) is down $1.09 to $224.81, a loss of around 0.5%. This comes on the back of a 50 basis point hike from China on its reserve requirements for some of its biggest banks.
The trade here is that the next move for China is to raise interest rates, which helps to curb speculation and inflation, and thus, reduce commodity prices. CNOOC is one of China's largest oil and gas producers, and would be adversely affected by this move.
ZOLL Medical Corp. (NASDAQ: ZOLL) is down nearly 2% this morning, despite reporting solid earnings yesterday. The company is in the medical devices and software solutions sector and there are fears of austerity coming to the U.S., and Medicare, Medicaid and health care spending in general are one of the major issues in this country. ZOLL would be adversely affected should spending be cut in this department.
Disclosure: no positions
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