US crude oil
Will oil prices rise further?
In the week ended November 10, 2017, the US oil rig count rose by nine to 738. The rise was the highest since June 30, 2017. Oil rigs are crucial to crude oil production. A further rise in the US crude oil production from its highest level since 1983 could pose a threat to US crude oil prices.
Apart from that, the rising geopolitical tension between Saudi Arabia and Iran may impact the possible extension of the OPEC production cut deal.
In the week ended November 10, 2017, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) fell 0.2% and 0.5%, respectively. It seems that these equity indexes could have escaped oil’s rise. We’ll discuss the price performance of a few more equity indexes and the energy sector in the next part.
Between November 3 and November 10, 2017, natural gas (UNG) December futures rose 7.7%. On November 10, 2017, natural gas active futures closed at $3.21 per MMBtu (million British thermal units). Last week, the bullish weather forecast and inventory report could have helped natural gas to rise. Plus, weather may support natural gas prices this week as well.
In the week ended November 10, 2017, oilfield services stock Seadrill Limited (SDRL) ranked first on our list of top energy gainers.
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.