Natural gas ETFs
Between January 5 and January 12, 2018, the United States Natural Gas ETF (UNG), which holds positions in active natural gas futures, gained 14.5%. That was equal to the spike in natural gas futures that week.
Last week, the ProShares Ultra Bloomberg Natural Gas (BOIL) rose 17.2%. However, its objective is to capture twice the daily fluctuations of the Bloomberg Natural Gas Subindex.
Natural gas since 2016
Between March 3, 2016, and January 12, 2018, natural gas (GASL) (FCG) (GASX) active futures rose 95.2% from their 17-year low. UNG rose 9.2%, while BOIL fell 23.1% from natural gas’s $1.64 per MMBtu (million British thermal unit) on March 3, 2016.
Investors should note that natural gas futures’ roll yield could be behind the smaller or negative returns of these ETFs compared to natural gas prices. When active futures settle below the next month’s futures, it causes the roll yield to be negative, and the ETFs could incur losses. Additionally, the compounding effect of daily price changes could make BOIL’s actual returns differ from its expected returns.
On January 12, 2018, natural gas futures contracts between February and May 2018 settled progressively lower. The ETFs could benefit from this structure, which could give a positive roll yield.
On Thursday, January 11, 2018, Guggenheim initiated coverage on discount retailer Dollar Tree (DLTR) with a "buy" rating.
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.