S&P 500 Index Nears Record High amid Earnings Season
The S&P 500 Index, represented by the SPDR S&P 500 ETF (SPY), rose 0.3% on October 23, nearing the all-time high it saw in July.
Index & Mutual Funds
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US Crude Oil Inventories: Lower than the Market’s Expectation
The EIA reported that US crude oil inventories fell by 6.4 MMbbls (million barrels) to 509.9 MMbbls on May 19–26, 2017.
How Analysts View Freeport after Its 3Q17 Earnings Beat
Freeport-McMoRan released its 3Q17 earnings on October 25, posting revenues of ~$4.3 billion in 3Q17, compared with ~$3.7 billion in 2Q17.
GATEX: A Sectorial Portfolio Breakdown
The Gateway Fund – Class A (GATEX) seeks to attain capital appreciation through its equity market investments. It has less risk compared to equity markets.
Understanding Apple Music’s Rising Subscriber Base
Last month, Apple (AAPL) announced that its music streaming service, Apple Music, now has over 30 million subscribers—up from 27 million in June 2017.
What Do the Key Metrics for TripAdvisor Suggest?
For 3Q16, TRIP’s revenue per shopper fell 12%. This is slightly better than the 24% decline seen in 1Q16 and the 19% decline seen in 2Q16.
Why Jim Chanos Is Continuing His Short Position in Tesla
Jim Chanos, the billionaire investor and a well-known short seller in the hedge fund industry, said at the Delivering Alpha Conference on Tuesday, September 12, 2017, that he is continuing his short position in Tesla (TSLA).
Will Crude Oil Prices Hit a New High?
US WTI crude oil prices were at $54.45 per barrel on February 23—the highest level since June 2015. As of April 10, prices were 2.5% below their high.
Crude Oil and Product Inventories Impact Crude Oil Futures
US crude oil futures have risen 6% from the ten-month low on June 21, 2017. Futures have also risen 2% in the last month.
Schlumberger by Implication: Reading Implied Volatility
On March 10, 2017, Schlumberger’s (SLB) implied volatility was 17.7%, having fallen from 19% since its 4Q16 financial results were announced on January 20.
What Do Analysts Recommend for Halliburton?
On March 24, 92% of the analysts tracking Halliburton rated it as a “buy,” ~5% rated it as a “hold,” and 3% rated it as a “sell.”
Oil: Famous Recession Indicator Might Be a Concern
On January 2, US crude oil active futures settled at $46.54 per barrel—2.5% higher than the last closing level due to short covering.
Stone Energy’s Stock Performance in 2018
Stone Energy stock has increased the most among our top five companies. Stone Energy stock has risen 60% YoY (year-over-year).
How Much Does Biogen Spend on Research and Development?
Biogen’s (BIIB) R&D expenses for 4Q15 were $542 million, or 19% of its total revenue, including a $60 million payment to Mitsubishi Tanabe.
Why the Service Sector’s Contribution to Brazil Is Important
The service sector is the main contributor to Brazil’s GDP and job creation, but it’s currently suffering from structural weakness and poor international performance.
Jim Chanos on Tesla: ‘We Think the Equity Is Worthless’
Jim Chanos, a prominent short seller, discussed his view on Tesla in a recent interview with CNBC. He has a short bet on Tesla (TSLA) and said, “we think the equity is worthless.”
Why Oil Prices Could Move Higher
On January 12, 2018, US crude oil (USO) (USL) February 2018 futures gained 0.8% and settled at $64.3 per barrel—a three-year high.Consumer Why geography matters so much in the automotive industry
The U.S. market is dominated by truck sales, with trucks outselling cars at 51% of market share versus cars accounting for 49% of the market.
What to Expect from Transportation Stocks This Fall
The airline industry has maintained its stellar performance in the last five years.
Energy Sector and Crude Oil Prices Helped the S&P 500
The S&P 500 rose ~0.7% to 2,733.01 on May 21 due to the rise in industrial stocks and crude oil prices—the highest level in more than two months.
Could There Be More Upside to Cliffs Natural Resources’ Valuation?
For companies in cyclical industries such as steel and mining, the EV-to-EBITDA multiple is the preferred valuation metric.
What’s the Market Potential for CBD?
The FDA has issued warning letters to 15 companies involved in illegal sales of non-psychoactive CBD products. What’s the legal market’s potential?
Why MLPs Saw a New 52-Week Low Last Week
MLPs went through some carnage last week. The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, saw a new 52-week low of 258.45.
Introducing the UBS ETRACS Alerian MLP Infrastructure ETN AMZIX
The UBS ETRACS 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN (MLPS) tracks the Alerian MLP Infrastructure Total Return Index (AMZIX).
Will the OPEC and Non-OPEC Meeting Drive Crude Oil Futures?
September WTI (West Texas Intermediate) crude oil (RYE) (VDE) (UCO) futures contracts rose 1.1% to $49.58 per barrel on August 4, 2017.
Why Food Stocks Aren’t Cooking
So far this year, food stocks have largely disappointed investors, and the outlook for the rest of the year appears no better. Stock prices for food manufacturers have been on a downtrend, underperforming the S&P 500 Index (SPX-INDEX) on a YTD (year-to-date) basis, as the graph below shows. As of July 3, Campbell Soup (CPB), General Mills (GIS), Conagra Brands (CAG), J. M. Smucker (SJM), Kellogg (K), and Kraft Heinz (KHC) have fallen 13.7%, 10.7%, 10.2%, 7.7%, 6.7%, and 3.3%, respectively, YTD. The S&P 500 Index has returned 8.5% during the same period.
Can Malaysia’s Improved Retail Sales Support Economic Growth in 2017?
Retail sales in Malaysia rose 13.9% YoY (year-over-year) in June 2017, compared with its 13.6% gain in May 2017.
These Were Bill Ackman’s Largest Sector Holdings in 3Q17
Pershing Square Capital Management’s top sectors in 3Q17 were consumer discretionary (XLY), information technology (XLK), consumer staples (XLP), real estate (IYR), and materials (XLB).
Why Freeport-McMoRan Missed Q2 Revenue Estimates
Freeport-McMoRan (FCX) posted revenues of $3.3 billion in 2Q16. In contrast, Freeport posted revenues of nearly ~$4.2 billion in 2Q15.
What Bill Miller Thinks about Amazon’s Business Model
Whole Foods Market (WFM) has returned nearly 40% on a year-to-date basis as of June 20, 2017.
Investment Avenues during the Rise of Short-Term Interest Rates
Bill Gross thinks the central banks should implement their strategies very carefully and cautiously in this scenario.
These 5 S&P 500 Utilities Offer Highest Dividend Yields
The Utilities Select Sector SPDR ETF (XLU), which tracks the S&P 500 Utilities Index, is currently trading at a dividend yield of 3.5%.
Are Supply Concerns Pushing Oil Higher?
On January 11, 2018, US crude oil’s (USO) (USL) February 2018 futures gained 0.4% and settled at $63.80 per barrel, a new three-year high.
Energy Calendar: Analyzing Key Oil and Gas Drivers
The energy sector contributed to ~6.6% of the S&P 500 on March 31, 2017. Oil and gas producers’ earnings depend on crude oil and natural gas prices.
Will Tax Reform Hurt Health Care Sector?
The health care sector played an important role in the recent bull market (SPX-INDEX) rally.
Is Oil Set to Make Record Highs in 2018?
Between January 12 and January 19, 2018, US crude oil (USO) (USL) March futures fell 1.4%.
Monster Beverage’s Valuation: Impact of 1Q17 Results
On May 5, 2017, Monster Beverage (MNST) was trading at a 12-month forward PE (price-to-earnings multiple) of 31.1x, up 3.7% in reaction to its 1Q17 results.
Why Goldman Sachs Is Optimistic about Alibaba
Alibaba was trading at $169 on September 8, 2017. Its 52-week high is $177 and its 52-week low is $86.01.
What 2017 Could Hold for Potash Producers
Potash stocks struggled for most of 2016. In 1H16, potash demand was negatively affected due to delays in potash contract settlements in China and India.
How Walmart Compares to Its Peers
On May 12, 2017, Walmart (WMT) was trading at a 12-month forward PE multiple of 17.5x.
What Could Impact Oil Prices in 2018?
On December 29, 2017, US crude oil’s (USO) (USL) February 2018 futures rose 1% and closed at the 2017 highest closing price of $60.42 per barrel.
A Look at What’s Happening to Halliburton’s Debt
In 4Q16, Halliburton’s total debt fell 19% compared to a year earlier, and its cash and marketable securities fell 60%. In effect, its net debt rose 59% to ~$8.4 billion as of December 30, 2016.
Libya’s Crude Oil Production Is at a 4-Year High
August West Texas Intermediate (or WTI) crude oil futures contracts rose $1.03 per barrel, or 2.2%, and settled at $47.07 per barrel on July 3, 2017.
What’s behind MLP Performances for the Week Ended November 10?
Of the total 95 MLPs, 62 ended last week in the red, 30 ended in the green, and the remaining three ended flat. Energy Transfer Partners (ETP) fell 5.5%.
Important Economic Indicators to Watch Next Week
The most important indicators next week are the global flash manufacturing PMIs. Manufacturing PMIs are important indicators for the economy.
JCPenney: Analysts’ Recommendations and Target Price
As of July 13, 15 analysts covering JCPenney (JCP) stock have a “hold” rating. Seven analysts have a “buy” rating, while two analysts have a “sell” rating.
Must-know: Top auto industry ETFs for investors
The First Trust NASDAQ Global Auto ETF (CARZ) is the most traded auto-focused ETF. The three-year return for the ETF is 48.32%. YTD, CARZ provided a return of 2.23%.
Did Analysts Change Their Views on Target after 1Q17 Results?
The majority of analysts covering Target (TGT) remain neutral on the stock.
2Q16 Earnings Call: Will U.S. Steel Raise Its 2016 Guidance?
One would expect U.S. Steel to increase its 2016 guidance during its 2Q16 earnings call. However, U.S. Steel might be conservative.
Gold Prices Could Test $1,300
Gold prices tend to rise in the fourth quarter of the calendar year. Gold prices have gained an unannualized ~3.8% in the fourth quarter.
