US crude oil
Between January 12 and January 19, 2018, US crude oil (USO) (USL) March futures fell 1.4%. A rise in US crude oil production for the week ended January 12, 2018, could be behind this fall. On January 19, 2018, US crude oil March futures were ~1.5% below US crude oil active futures’ three-year high and settled at $63.31 per barrel.
The IEA (International Energy Agency) released its Oil Market Report on January 19, 2018. Its demand growth estimate for 2018 was at 1.3 million barrels per day, the same as the previous estimate. Moreover, the IEA estimates that between 2Q18 and 4Q18, oil demand will overtake oil supply based on the report, a bullish factor for oil prices, which could push oil prices to record highs in 2018.
US crude oil futures near their three-year highs would likely benefit the energy holdings of the S&P 500 Index (SPY) (SPX-INDEX) and the Dow Jones Industrial Average Index (DIJA-INDEX). In part two, we’ll discuss the returns of these equity indexes.
Between January 12 and January 19, 2018, natural gas’s (UNG) (BOIL) February futures fell just 0.5%. On January 19, natural gas futures settled at $3.19 per MMBtu (million British thermal unit). A less-than-expected fall in natural gas inventories had driven prices lower in the last week.
In the week ended January 19, 2018, midstream stocks Crestwood Equity Partners (CEQP) and Buckeye Partners (BPL) ranked second and fourth among 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.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.