22 Jan

MLPs Cool Off after a Strong 2-Week Rally

WRITTEN BY Kurt Gallon

AMZ fell 1.5% last week

MLPs (master limited partnerships) cooled off last week, which ended on January 19, after two weeks of a strong rally. The Alerian MLP Index (^AMZ), which includes 50 energy MLPs, fell 1.5% last week to end at 296.0. Overall, the index has risen 5.5% since the start of this year. AMZ is still outperforming the S&P 500 Index (^GSPC)(SPX-INDEX), which represents the broader US markets. GSPC has gained 5.1% in 2018 to date.

MLPs Cool Off after a Strong 2-Week Rally

Out of the total 93 MLPs, 66 ended in the red, two remained unchanged, and the remaining 25 ended in the green. Among the top MLPs, Plains All American Pipelines (PAA), Williams Partners (WPZ), Enterprise Products Partners (EPD), and Energy Transfer Partners (ETP) fell 6.1%, 1.5%, 0.8%, and 0.1%, respectively. We’ll look into performance drivers for the top MLP losers and gainers in later parts of this series. The Alerian MLP ETF (AMLP) ended the week 1.4% lower.

MLPs weakness last week could be due to a mild correction in crude oil prices and several negative rating downgrades. Crude oil fell 1.4% last week to end at $63.4 per barrel. For recent updates on crude oil, read Why Oil Prices Have Been Relatively Flat.

Fund flows

The Alerian MLP ETF saw a net inflow of $54.9 million funds despite midstream MLPs’ sluggishness last week. This number might indicate bullish sentiment in the sector. On the other hand, the JP Morgan Alerian MLP Index ETN (AMJ) saw a net inflow of $1.2 million funds.

In the next part of this series, we’ll look into last week’s biggest MLP losers.

Latest articles

25 Jun

Gold Breaches $1,400: What’s the Next Stop?

WRITTEN BY Anuradha Garg

Gold is now trading close to a six-year high following the Fed’s dovish pivot at its June policy meeting. After being range-bound for the last five years, gold has finally broken out and its outlook is bullish.

Shares of the J.M. Smucker Company (SJM) are up 29.8% year-to-date as of June 24 and have outperformed the broader markets. The company's acquisition of Ainsworth Pet Nutrition and its focus on high-growth categories via divestitures have supported its stock so far this year.

On June 25, General Motors (GM), America’s largest auto company, announced its plan to invest $20 million into its Arlington Assembly plant in Texas, according to Reuters. With the new investment, the company aims to upgrade its equipment before launching its full-size SUVs.

Shares of high-growth technology company ServiceNow (NOW) have gained close to 16.0% since April 2019. It's gained over 60.0% since the start of 2019. It also had an encouraging run in 2018, when it gained 32.0% in market value.

25 Jun

Ford to Announce Q2 US Sales on July 3: What to Expect

WRITTEN BY Jitendra Parashar

Earlier today, Ford (F) said that it would announce its second-quarter US sales data on July 3. In the first quarter, the company reported a 1.6% YoY decline in its US sales to 590,249 vehicle units. During the first quarter, Ford’s truck sales rose by 4.1%, and its SUV sales went up by 5.0% on a YoY basis.

On June 25, Credit Suisse initiated coverage on Chipotle Mexican Grill with an “outperform” rating and a target price of $870—a return potential of 20.1% from its stock price of $724.13 on June 24.

172.31.59.107