Natural gas prices
US natural gas (BOIL) (UNG) (DGAZ) futures contracts for June delivery fell 0.2% and were trading at $3.37 per MMBtu (million British thermal units) in electronic trading at 6:05 AM EST on May 12, 2017. Prices are near a three-month high. Broader markets such as the S&P 500 (SPY) (SPX-INDEX) and the NASDAQ are trading near all-time highs. Bullish momentum in the US stock market could support natural gas demand and prices. For more on natural gas prices and drivers, read Part 1 of this series.
Moves in natural gas prices impact natural gas producers’ earnings like Southwestern Energy (SWN), Range Resources (RRC), and Memorial Resource Development (MRD).
The northeastern parts of the US will experience cold weather for the next few days. Warm weather is expected in the southeastern parts of the US for the next week. Overall, the weather is expected to be mild in May 2017.
Changes in the weather impact the heating and cooling demand for natural gas (UGAZ) (FCG) and influence prices. About 50.0% of US households use natural gas for heating and cooling purposes. Warm summers and cold winters drive the demand for natural gas. Demand tends to be lower during the spring season, which usually lasts until late June 2017. Changes in demand impact inventories.
In the next part of this series, we’ll take a closer look at US natural gas inventories.
A fall in US natural gas inventories in the coming months is bullish for US natural gas (FCG) (BOIL) (GASL) (UNG) prices in 2017.
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.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.