Natural gas prices
October natural gas (UGAZ) (DGAZ) futures contracts trading in NYMEX fell 0.2% to $2.91 per MMBtu (million British thermal units) in electronic trading at 2:00 AM EST on August 28, 2017. Prices are near a three-week high.
Natural gas futures tracking ETFs
US natural gas prices have fallen 18.1% YTD (year-to-date) due to high natural gas supplies, sluggish demand, and mild weather. Volatility in natural gas prices influences natural gas stocks and ETFs. The YTD returns for the top five natural gas ETFs, ranked by assets under management, are mentioned below:
- The VelocityShares 3x Long Natural Gas ETN (UGAZ) has fallen 74.7% YTD.
- The United States Natural Gas Fund (UNG) has fallen 30.5% YTD.
- The VelocityShares 3x Inverse Natural Gas ETN (DGAZ) has risen 72.1% YTD.
- The ULTRA BLOOMBERG NATURAL GAS ETF (BOIL) has fallen 53.7% YTD.
- The United States 12 Month Natural Gas Fund (UNL) has fallen 16% YTD.
Hurricane Harvey and weather forecasts
Hurricane Harvey hit the Gulf Coast region on August 26, 2017. The hurricane led to torrential rain and massive floods. It could lead to cooler-than-normal weather for the next week. Some traders think that Hurricane Harvey could be the most powerful hurricane in more than a decade.
The preliminary estimates suggest that more than 250,000 homes in Texas were without electricity on August 26, 2017. The US weather is expected to be mild during the next week and in September 2017.
More than 50% of US households use natural gas for heating and cooling purposes. Mild temperatures suggest that natural gas demand could be weak over the next week. A fall in demand could pressure US natural gas (BOIL) (UNG) (GASL) prices. Lower natural gas prices have a negative impact on natural gas producers like Rex Energy (REXX), Rice Energy (RICE), Exco Resources (XCO), and Antero Resources (AR).
Changes in the weather and demand impact US natural gas inventories.
Baker Hughes released its US natural gas rig count report on August 25, 2017. The US natural gas rig count fell by two to 180 on August 18–25, 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.
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.