U.S. markets were down slightly in midday trading Tuesday as oil continued its slide, with the S&P 500 and Dow Jones industrials down about 0.1% and 0.2%, respectively. Prices of crude were down about 1.2% to $46.43 a barrel, and are down about 2.5% from Friday highs, based on U.S. benchmark West Texas Intermediate.
Meanwhile, Newmont Mining ( NEM) shares were down more than 3% after RBC commodity analyst Christopher Louney said in a Tuesday note that gold prices are likely to continue to fall, adding new pressures across the industry, with the average 2017 price likely to fall to $1,241 a troy ounce from spot prices of about $1,317.22 in afternoon trading Tuesday. Newport shares, which have been buoyed by rebounding commodity prices so far in 2016, are still up about 120% on the year.
And shares of Freeport-McMoRan ( FCX) , a member of Real Money's Stressed Out watch list, were also down roughly 2.5% in midday trading on RBC's bearish report, as well as a general drop in metal prices on the day. Gold prices were down about 0.5% in midday trading, as spot prices for copper and silver were down about 0.1% and 0.8%, respectively. Freeport shares have also climbed in 2016 about 58%.
Southwest Airlines ( LUV) shares were up more than 2% in midday trading on news that the airline ironed out a deal with its pilots union, the Southwest Airlines Pilots' Association, which includes about 8,000 Southwest pilots. The deal puts to bed a host of negotiations that had been looming, with the airline reaching a deal that will increase retirement benefits and overall pay.
The company said in a statement it will continue to work on final draft language, and the deal still has to undergo "the normal union ratification process," and that the dates of ratification votes will be scheduled.
Airline shares were climbing in general Tuesday, with American Airlines ( AAL) and United ( UAL) up 3% and 10%, respectively, in midday trading, following news of management reshuffles. United announced late Monday it has hired away American's president, Scott Kirby. American Airlines' COO Robert Isom will fill Kirby's shoes until further succession plans are outlined.
Shares of Navient ( NAVI) , also a member of the Stressed Out watch list, were up about 2% after the nation's largest student-loan manager said it has exercised a call option to purchase the remaining federally guaranteed loans held in two student loan trusts that will enable the company to pay off about $175 million in bonds.
Navient said it has exercised call options on 14 trusts so far in 2016, representing the repayment of about $1.2 billion in bonds, as well as having extended maturity dates on an additional $6.8 billion of bonds from Navient-sponsored agencies. Navient shares are up roughly 26% on the year.
