Commodities Are Mixed, Palladium Hit a 2-Year High
After a weak performance on Thursday, crude oil prices are slightly higher on Friday. Higher US crude oil inventory levels are weighing on the oil market.
The United Kingdom’s FTSE 100 index is slightly weaker in the early hours. The market is cautious before the US healthcare vote scheduled for today.
On March 24, the Shanghai Composite Index rose 0.63% and ended the day at 3,268.93. GXC closed at 83.24—a gain of 0.28% on March 23.
At ~65.1%, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) showed the highest correlation with US crude oil from February 23 to March 23, 2017.
US crude oil (USO) (USL) May futures fell 3.1% between March 16, 2017, and March 23, 2017. The fall in XLE corresponds to the fall in oil prices.
From March 16, 2017, to March 23, 2017, the United States Natural Gas ETF (UNG), which is designed to track active natural gas futures, rose 5.7%.
From March 16 to March 23, 2017, the United States Oil ETF (USO) fell 3.4%. In the trailing week, WTI crude oil (DBO) (USL) (OIIL) May futures fell 3.1%.
On March 23, 2017, US crude oil futures contracts for May delivery closed at $47.70 per barrel—an ~0.7% fall over the previous trading session.
After the sale, Transocean will be a pure-play floater company. Transocean now has 41 high-specification floaters—one of the biggest floater fleets around.
After the news of the sale of Transocean’s (RIG) jack-up fleet broke on March 20, RIG stock closed at $12.22—2% lower than the previous day’s closing price.
On March 22, 2017, Darden Restaurants (DRI) was trading at $77.0, but this share price may have already factored in our estimates.
On March 22, 2017, Darden was trading at a PE multiple of 18.1x, as compared to 18.3x before the announcement of its fiscal 2Q17 earnings.
Analysts are expecting Darden to post EPS of $1.28 in fiscal 3Q17, which would represent a growth of 5.8% from $1.21 in fiscal 3Q16.
For fiscal 3Q17, analysts are expecting Darden Restaurants (DRI) to post EBIT of $226.5 million, which would represent an EBIT margin of 12.1%.
Darden Restaurants’ (DRI) revenue includes sales from all seven of its brands. The majority of its fiscal 2Q17 revenue, or 55.7%, came from Olive Garden.
After posting its fiscal 2Q17 results, Darden reaffirmed its SSSG guidance for fiscal 2017 to be in the range of 1%–2%, with EPS to be $3.87–$3.97.
Mining funds such as the leveraged Direxion Daily Gold Miners (NUGT) and the Direxion Daily Junior Bull Gold 3X (JNUG) rose substantially at the beginning of 2017.
The past few weeks have been choppy for metals due to concerns surrounding the Fed’s interest rate hike.
Mining funds such as the iShares MSCI Global Gold Min (RING) and the leveraged ProShares Ultra Gold (AGQ) have also seen significant correlations with their respective precious metals.
When analyzing the precious metals market, it’s important to take a look at the relationship between gold and silver.