16 Jan

What to Watch when Oil’s at a 3-Year High

WRITTEN BY Rabindra Samanta

US crude oil

Between January 5 and January 12, 2018, US crude oil (USO) (USL) February futures gained 4.7%. On January 12, they closed at $64.30 per barrel, their highest closing price since December 8, 2014.

What to Watch when Oil’s at a 3-Year High

In the week ended January 5, 2018, US crude oil production fell 290,000 barrels per day, a factor that supported oil’s rise in the week ended January 12 when the US oil rig count rose by ten to 752. It could increase US crude oil production in the future.

Supply concerns is another important factor that has supported oil prices. On January 12, 2018, President Donald Trump extended waivers of key economic sanctions on Iran. However, the tough diplomatic stance of the United States with Iran could increase oil supply concerns.

Higher oil prices could benefit the energy exposure of equity indexes such as the S&P 500 Index (SPY) (SPX-INDEX) and the Dow Jones Industrial Average Index (DIJA-INDEX). Last week, these equity indexes rose 1.6% and 2%, respectively.

Natural gas

Between January 5 and January 12, 2018, natural gas’s (UNG) (BOIL) February futures rose 14.5%. On January 12, natural gas futures closed at $3.20 per MMBtu (million British thermal unit), their highest closing level since November 13, 2017.

In the week ended January 5, 2018, natural gas inventories declined by 359 Bcf (billion cubic feet), the highest weekly fall according to EIA (U.S. Energy Information Administration) data since 2010. After the EIA data on January 11, 2018, natural gas futures rose 6.1%.

Latest articles

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.

Tencent Music Entertainment has generated returns of 14.3% in June. Despite its recent rally, it's fallen 16.4% since April this year. TME is currently trading at $15.13 and is up 14.5% YTD (year-to-date).