On December 4, the natural gas futures for January 2019 closed at a premium of ~$1.3 to the January 2020 futures. On November 27, the futures spread was at a premium of $1.2. On November 27–December 4, natural gas January futures rose 3.8%.
Bullish sentiments for natural gas
The market sentiment toward natural gas’s demand-supply situation is reflected in the futures spread. The futures spread and natural gas prices tend to move in the same direction.
In the past five trading sessions, the premium has expanded and natural gas prices rose by nearly four percentage points. The rise in the premium might be due to the expectation of higher total degree days in the past. In the previous part, we saw that natural gas inventories are at a double-digit deficit in percentage terms compared to their five-year average.
Natural gas January futures rose 3.8% in the trailing week. During this period, natural gas–weighted stocks Range Resources (RRC), Chesapeake Energy (CHK), Antero Resources (AR), and Southwestern Energy (SWN) have fallen 1.9%, 3.3%, 5.4%, and 6.8%, respectively, and underperformed their peers.
As of December 4, the natural gas futures contracts for delivery between January and May 2019 were priced in descending order, which is a positive development for ETFs that follow natural gas futures including the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and the United States Natural Gas ETF (UNG).
Versum Materials was the second-best performer among specialty chemical companies. Versum Materials gained ~9.8% in November.
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.