U.S. markets traded down moderately in midday trading Wednesday as crude oil fell sharply on news of a less-than-expected fall in U.S. inventories.
Crude prices fell roughly 4% to $44.90 a barrel in afternoon trading after the International Energy Agency announced that U.S. inventories fell by 2.5 million barrels last week, down from a consensus forecast of 3 million. Meanwhile, the S&P 500 and Nasdaq were down about 0.2% and 0.3%, respectively.
Valeant Pharmaceuticals ( VRX) shares were down nearly 4% following a Real Money report that short-seller Andrew Left is taking a short position in the troubled Canadian drugmaker and calling it an "absolute zero," triggering a sharp selloff in afternoon trading.
Shares of Chesapeake Energy ( CHK) , a member of Real Money's Stressed Out watch list, fell about 6% in midday trading as oil's decline weighed on the Oklahoma City-based oil and gas giant. And industry peer Marathon Oil ( MRO) was also trading down, by about 3%.
Host Hotels & Resorts ( HST) shares were down about 5% on news of a JPMorgan downgrade to Underweight from Neutral, as well as the lowering of JPMorgan's price target on Host Hotels to $15 from $16.
Analyst Joseph Greff said in a JPMorgan report that hotel companies like Host Hotels are likely to have to cut their sales guidance for the year, while also noting it may be time for investors to avoid real estate investment trusts, or REITS, in which Host Hotels are involved.
Hess ( HES) shares were also down about 4% on news that the New York City-based oil company spilled roughly 32,000 barrels in North Dakota, forcing a temporary shutdown, according to a Reuters report.
