Will Energy and Commodities Keep Driving Emerging Markets?
The S&P 500 Energy Select Sector (XOP) (OIH) is trading at the highest PE ratio of ~32x relative to the other sectors based on EPS estimates for 2017.
Market surveys suggest that Cushing crude oil inventories rose between December 16 and December 23, 2016.
Donald Trump’s victory over Hillary Clinton marked the triumph of aggressive growth strategies and deregulation.
Zoetis Class A Common Stock rose ~2.1% despite weakness in the sector. Universal Health Services was the bottom performer in the healthcare sector.
The telecom sector fell 0.31% on November 29. Vonage Holdings (VG) (+2.6%) and NetGear (NTGR) (+2.2%) are the top performers.
Oil prices (XOP) have increased 15% in August to date. They’re now trading at the highest level in a month despite the sluggish global economy and weak demand.
The national average price of gasoline (XLE) has fallen continuously for the past two months despite the peak summer driving season.
Looking at major sector-based SPDR indexes, XOP and XME were the biggest gainers on July 26. They rose by 5.5% and 1.8%, respectively.
Looking at the performance of the major commodity-driven currencies on July 25, the Nigerian naira was the biggest casualty.
Crude oil fell on Friday, June 24, amid the Brexit vote and dragged the prices of crude oil–related companies down.
Critical European indexes (DBEU) (HEDJ) were on a downward trajectory on April 7. Global growth concerns remain as crude oil (UCO) futures fell by over 2%.
The relationship between oil price movements and the stock market is highly complex. However, it’s very popular to correlate the changes in oil prices with the performance of the stock market.
Oil prices, which have been falling sharply since mid-2014, are currently trading close to their lowest levels since 2008.
The EIA forecasts that WTI crude oil prices will average $38 per barrel in 2016 and $47 per barrel in 2017. Brent crude oil prices are forecasted higher.
WTI’s (West Texas Intermediate) crude oil price premium over Brent crude oil prices turned to a discount. As a result, the WTI-Brent widened.
Crude oil prices rose more than 9% to close at $33.22 per barrel on January 28, 2016. Crude oil prices fell by more than 5% on January 25.
Crude oil prices have gained ~6.4% within the last two days, ignoring the gasoline and crude oil inventory builds.
The EIA stated that US gasoline inventories rose by ~3.5 MMbbls (million barrels) to settle at 248.5 MMbbls for the week ended January 22, 2016.
The EIA reported that US crude oil refinery inputs averaged 15.6 MMbpd (million barrels per day) during the week ended January 22, 2016.
US weekly crude oil production slightly fell by 0.01 MMbpd to settle at 9.2 MMbpd for the week ended January 22, 2016.