Important events on the energy calendar
The US energy sector contributed to ~6.3% of the S&P 500 (SPY) (SPX-INDEX) on May 12, 2017. Crude oil and natural gas are major parts of the energy sector. The earnings of oil and gas producers like Noble Energy (NBL), ExxonMobil (XOM), Sanchez Energy (SN), and Goodrich Petroleum (GDP) depend on crude oil (ERY) (ERX) (FXN) and natural gas (UNG) (UGAZ) prices. For the latest updates on crude oil prices, read part one and part four of this series.
Oil and gas prices are driven by catalysts such as inventories and supply and demand data. Let’s take a look at some important events for the energy sector this week.
Tuesday, May 16:
- The API (American Petroleum Institute) will release its crude oil inventory report.
Wednesday, May 17:
- The EIA (U.S. Energy Information Administration) will release its Weekly Petroleum Status report. Read US Crude Oil Inventories Post Biggest Draw since December for more information on the latest report.
- The EIA will release its “This Week in Petroleum” report.
Thursday, May 18:
- The EIA will release its Weekly Natural Gas Storage report. Read Lower Rise in US Natural Gas Inventories Boosted Prices for more information on the latest report.
- The EIA will provide its Natural Gas Weekly Update report.
Friday, May 19:
- Baker Hughes will release the US crude oil rig count.
- Baker Hughes will release the US natural gas rig count.
In the next part, we’ll take a look at the crude oil market’s highs and lows in the last 15 months.
Market surveys estimate that Cushing crude oil inventories fell between May 5 and May 12, 2017. A fall in crude oil inventories at Cushing could support US crude oil (USO) (UCO) (RYE) prices.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.