Freeport-McMoRan’s strong run

Freeport-McMoRan (FCX) has been having a strong run since May. In April, it had a selling spree, especially after its first-quarter earnings call. The company not only missed its earnings estimate but also lowered its 2018 production guidance while raising its unit cash cost guidance for the year.

Southern Copper (SCCO) also lowered its 2018 production guidance, and BHP Billiton (BHP) narrowed its fiscal 2018 copper production guidance. Read Copper Miners’ First-Quarter Report Card: Hits and Misses for an analysis of copper miners’ performances.

Freeport-McMoRan: Should You Give Up on It after a 20% Rally?

First-quarter earnings

The key driver behind the 14.5% fall in Freeport stock after its first-quarter earnings release was management’s commentary on its Grasberg operations. The company pointed to Indonesia’s new environmental regulations, which have further muddied Freeport’s tussle with the Indonesian government. Rio Tinto (RIO) (TRQ), Freeport’s partner at the mine, is negotiating an exit with the Indonesian government.

Series overview

Last month, in our series Freeport-McMoRan: Is the Worst Over? we noted that the stock’s valuation was starting to look attractive. Freeport has risen 20% since then. Now, the dilemma is whether you should give up on Freeport after such a spectacular rally or believe there could be more upside. In this series, we’ll explore Freeport’s opportunities and threats that could help us understand what lies ahead for the stock in the coming months.

Let’s start by analyzing what’s been driving the stock over the last month.

Latest articles

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.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

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.

172.31.38.64