Past five trading sessions
The correlation between natural gas (GASL)(GASX)(FCG) active futures with US crude oil active futures was 99.8% between December 12 and December 19. In the trailing week, US crude oil (OIIL)(USL)(DBO) rose 0.7%, and natural gas futures rose 0.5%.
Small rise in energy commodities
For natural gas prices, the EIA natural gas inventory data scheduled for December 21, 2017, should be a dominating factor. We discussed this topic in Part 3 of this series.
30-day rolling correlation
On December 19, the trailing 30-day correlation between natural gas and US crude oil prices was -13.0%. In the past 30 trading sessions, natural gas active futures fell 14.6%, but US crude oil futures rose 0.5% over this period.
Between May and July 2017, this correlation was often above 30.0%. So, there could be a direct relationship between the two energy commodities over longer timeframes. Natural gas may follow oil’s movements, like the energy sector in general. However, individual factors also dominate individually over the two energy commodities.
Please visit Market Realist’s Energy and Power page for ongoing insights into the energy sector.
The Hershey Company (HSY) is one of the few food companies in the United States (SPY) that have managed to improve sales despite the challenging landscape.
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.