US crude oil
On December 7, 2017, US crude oil (USO) (USL) January 2018 futures rose 1.3% and closed at $56.69 per barrel. The rise in oil prices came after the news that one of the Nigerian oil unions will go on strike on December 18, 2017. It will impact Nigeria’s oil production.
Earlier in the week, the buildup in motor gasoline inventories had a negative impact on oil prices. Weekly US crude oil production crossed above 9.7 million barrels per day in the week ending December 1, 2017. It’s at record highs, according to weekly data. So, the overall risk to oil prices is increasing.
On November 30–December 7, 2017, US crude oil January 2018 futures fell 1.2%. The fall in oil prices could have a negative impact on equity indexes like the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA).
On December 7, 2017, natural gas (UNG) (BOIL) January 2018 futures fell 5.4% and closed at $2.76 per MMBtu (million British thermal units)—the lowest closing price since October 30, 2017. On the same day, the EIA announced that natural gas inventories unexpectedly and unseasonably rose by 2 Bcf (billion cubic feet). The market expected a fall of 5 Bcf. On November 30–December 7, 2017, natural gas January futures fell 8.7%. Bearish weather forecast data mainly caused the downside in natural gas prices.
On November 30–December 7, XOP had the highest correlation of 95.1% with US crude oil January 2018 futures on our list of energy subsector ETFs.
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.