Past five trading days’ correlations
Between November 15 and 22, natural gas (UNG)(FCG) January futures had a correlation of 52.5% with US crude oil January futures. However, US crude oil (OIIL)(USL)(DBO) futures rose 4.5% while natural gas futures fell 3.8%.
Is natural gas following oil?
A fall of ~1.9 MMbbls (million barrels) in crude oil inventories for the first time in the last three weeks also supported oil prices on November 22. Moreover, the halt of the Keystone pipeline’s operations between Canada and the United States is helping oil prices stay strong.
On the other hand, supply concerns loom over natural gas prices. Parts 2 and 3 of this series also explain the recent bearishness in natural gas prices.
30-day rolling correlation
On November 22, the past-30-day rolling correlation between natural gas active futures and US crude oil futures was 12.9%. The 30-day rolling correlation between oil and natural gas prices has stayed over 30% on several instances between May and July 2017, which could point to a direct relationship between oil and natural gas prices. Often, natural gas prices can be a function of US crude oil prices. In fact, the same can be said of the energy sector as a whole.
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Medtronic’s 2Q18 results surpassed analysts’ estimates despite a number of factors that hurt the company’s performance.
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.