SPDR Dow Jones Industrial Average ETF
Analyzing the Prospects of Nike’s Geographic Segments
Most of Nike’s (NKE) incremental revenue was recorded in its North America market, Nike’s largest geographical segment.
How to Profit When the Stock Market Goes Down
Beginners in the stock market tend to think about investing as buying stocks and making money when those stocks go up. But it’s not the only way.
Why DIA Is the Best Dow Jones ETF Among the Pack
Where NIKE And Under Armour Win In The Market Share Stakes
Under Armour’s share of the apparel market rose from 14% to 16%, year-over-year, in the first nine months of 2014.
Decoding the Fall in Crude Tanker Rates
Since the BDTI (Baltic Dirty Tanker Index) has fallen by 50% from the beginning of the year, crude tanker stock prices have also fallen.
How Crude Tanker Stocks Performed in 3Q17
Just like crude tanker rates, most crude tanker stocks also fell in 3Q17.
What key PMI indicators mean for stocks and investors
Last week, the Institute for Supply Management (or ISM) and Markit both released their reports on the Purchasing Managers Index (or PMI). The ISM’s report gave its strongest reading since February.
What are the latest secondary market trends in leveraged loans?
As leveraged loans pay interest on a floating rate basis, the continued low rates environment in 2014 has compelled investors to pull funds out of the asset class.
How Did US Financial Markets Fare in October 2015?
The S&P 500 index, tracked by the SPDR S&P 500 ETF (SPY) and the iShares Core S&P 500 ETF (IVV), rose 8.3% in October.
What Changed W.W. Grainger’s Dividend Yield Graph?
W.W. Grainger (GWW) recorded a 2.0% net sales growth in 2016 after flat growth in 2015.
How Nike’s 3Q18 Margins and Profitability Trended
Nike (NKE) reported its first quarterly loss in over 20 years in fiscal 3Q18.
Why It’s Difficult to Price Assets amid Frequent Policy Changes
We’ve seen significant volatility in markets this year.
Which Fast Food Restaurants Do Analysts Favor?
Jack in the Box (JACK) and Restaurant Brands International (QSR) are analysts’ favorites among the companies we’ve reviewed in this series.
Is Future Growth Driving the Divergence between Freeport and SCCO?
Southern Copper (SCCO) is aggressively expanding its copper mining operations while Freeport-McMoRan (FCX) is selling its crown copper assets to repay some of its debt.
Was GasLog’s Stable Revenue in 4Q15 a Positive or Negative Sign?
GasLog’s revenue in fiscal 4Q15 was very similar to fiscal 3Q15 revenue. In 4Q15, the company posted revenue of $107.5 million compared to $105.7 million in the previous quarter.
Why Chevron Trades at a Premium to Peers
Chevron’s valuation In the previous part, we discussed Chevron’s (CVX) historical valuation. In this part, we’ll compare Chevron’s forward valuation with peers’. Chevron (CVX) is now trading at a forward PE (price-to-earnings) ratio of 22.7x, above the peer average of 15.7x. ExxonMobil (XOM), PetroChina (PTR), and Petrobras (PBR) are also trading above the average. On […]
You should pay particular attention to this valuation metric
I would pay particular attention to the Shiller P/E Ratio, which is a variation on the Cyclically Adjusted P/E or CAPE. This indicator is worth watching as it has historically correlated with long-term stock market returns.
Trump Praises Economy Again: Here’s What He Didn’t Mention
While observers were quite bearish on the US economic growth outlook at the beginning of the year, several of them have toned down their bearish stance.
How US Steel Demand Drivers Look for the Rest of 2017
The US steel demand is the major driver behind steel companies’ (SLX) volumes and prices. Since these companies are Cliffs Natural Resources’ (CLF) main customers, it’s important to track the data.
Rising Stocks: Why It May Not Be Time for the Jitters
Rising stocks have been buoyed by various factors, including the accommodative monetary policy of the Federal Reserve and robust US corporate earnings.
A Look at Aetna’s Dividend Yield Path
Aetna (AET) recorded a 5.0% rise in revenue in 2016 and a 4.0% rise in 2015.
Nucor Looks to Contract Resets to Further Improve Performance
Nucor (NUE) expects its 3Q16 performance to improve as compared to 2Q16. The key driver of Nucor’s 3Q16 performance would be the reset of contracts.
Home Depot Earnings Beat Wall Street in 27 of the Last 28 Quarters
Home Depot’s (HD) slated to report its 1Q16 earnings on May 19. The company has beaten consensus Wall Street estimates in 27 of the last 28 quarters.
Mixed Data Release Regarding Durable Goods, Unemployment Claims
The US Dollar Index, which measures the strength of the US dollar against other major currencies, rose to a high of 97.69 in early trading after the release of the durable goods data. The US Dollar Index was trading flat as of 12:30 PM EST.
Nike’s Top-Line Growth Likely to Remain Sluggish in 2Q17
Nike continued to deliver a solid performance with a 10% YoY increase in 1Q17, primarily driven by a double-digit growth in the company’s overseas markets.
Why Larry Fink Thinks Markets Could See Some Setbacks
In a recent interview with CNBC, Larry Fink, CEO of BlackRock (BLK), shared his views on market movement, the US economy, and the dangerous impact of the lower interest rates.
Crude Oil Futures Hit a 3-Year High
February WTI crude oil futures contracts rose 2.1% to $61.63 per barrel on January 3. Brent oil futures also rose 1.9% to $67.84 per barrel on January 3.
Japan’s trade deficit with China: Worse for GM than the recall
This article considers the impact of Japan’s trade dynamics on Japanese automakers like Toyota (TM) versus General Motors (GM) from a macroeconomic perspective.
What Analysts Recommend for Integrated Energy Stocks
BP has the most “hold” ratings among the four stocks we’ve discussed in this series.
January BAML Survey: Fund Managers Bearish, but No Recession Yet
The outlook on global growth is gloomy. A total of 60% of BAML’s survey respondents expect a slowdown in GDP gains in the next 12 months.
Lack of Rate Hike in September Leads US Stocks Down
The US Federal Reserve met on September 16 and 17 in one of the most anticipated monetary policy meetings in recent memory.
Tsakos Energy Navigation’s Revenue and EBITDA Fell in 1Q16
Tsakos Energy Navigation’s 1Q16 net revenues fell by 11.6% to $99 million from $112 million in the previous quarter.
How Do Analysts Rate Rio Tinto?
Citigroup (C) upgraded Rio Tinto’s (RIO) rating from “sell” to “neutral” on June 6, 2016. The broker also raised the target price for the stock from 20 pounds to 21 pounds.
US Industrial Production Data Disappoint Investors
Data indicated that industrial production edged down by 0.17% in May. So far, the industrial production index has declined in four out of five months this year.
Week 49: All Crude Tanker Stocks Fell More than 6%
In week 49, the BDTI fell from 820 to 814. In the middle of the week, the index rose to 824 but fell towards the end of the week.
How KAMN’s Dividend Yield Looks
Kaman (KAMN) is a differentiated company that conducts business in the aerospace and distribution markets.
Shell’s Upstream Portfolio: Is it Poised to Grow?
Royal Dutch Shell (RDS.A) produced 3.8 MMboepd in 1Q17 from its worldwide operations, compared to 3.7 MMboepd in 1Q16.
How a Global Trade War Could Hurt Copper Miners
Global trade war fears have reignited this month. Last month, after a second round of trade talks, the United States (DIA) and China decided to put the talks on hold.
Why US Steel Companies Could Benefit from Lag Pricing in 4Q16
Steel companies such as U.S. Steel (X), Nucor (NUE), and ArcelorMittal (MT) sell their products in the spot market or under contract sales.
Visa Expected to Post Healthy Margins in Fiscal 3Q16
Visa (V) has maintained its operating margin above 60% over the past few years. The company’s major expenses include personnel, marketing, network and processing, and professional fees.
What Could Lead to Further Upgrades for Cliffs Natural Resources?
The average target price for CLF is $3.4 compared to its current market price of $4.9. The target price still implies a downside potential of 30%.
What’s the Forecast for Shell Stock for the Next 7 Days?
Implied volatility in Royal Dutch Shell (RDS.A) has fallen 4.9% since July 3, 2017, to the current level of 12.8%.
How Did Markets Respond to April Jobs Data?
Non-farm payrolls in April showed a marginal improvement compared to March.
Support Levels to Watch in the S&P 500 as the Sell-Off Resumes
Today, the broader-market sell-off continues, seeming to intensify. Here’s what you need to know.
Why the housing market impacts consumption and equity investors
This article considers the importance of investment, including residential investment, in the support of U.S. consumption data and the implications for investors.
Why Oil Might Be Troubling Wall Street
On November 15–21, US equity indexes had the following correlations with US crude oil January futures.
Must-know: Is Japan’s fixed investment waking from a deep sleep?
Fixed investment in Japan The below graph reflects the flat lining of Japan’s fixed investment environment. As the Japanese yen had appreciated from 140 to the US dollar to 75 to the US dollar from 1998 to 2011, global fixed investment capital flocked to China, leaving Japan in the dust. However, as the Japanese yen […]
How Volatility Is Affecting Market Movement
The CBOE Volatility Index rose 0.6% in March 2018.
China’s PMI and US Job Additions Push US Stocks Down
US stocks didn’t have a great start last week. Reports emanating from China drove US markets down sharply, but they rebounded the next day when Microsoft (MSFT) helped them bounce back.
Why COG Is the Second-Best-Performing Upstream Stock Year-to-Date
In 9M17, Cabot Oil & Gas (COG) reported revenues of ~$1.4 billion, which is ~63.0% higher than its 9M16 revenues of ~$839.0 million.
What Might Spook Natural Gas in Early 2019?
On December 31, natural gas February futures fell 11% and settled at $2.94 per million British thermal units.
JPMorgan Chase: Technicals Signal Bull Markets Could Rise
The S&P 500 reached an all-time high of 2,872.87 on January 26.
Trade War Is Still Fund Managers’ Top Concern
In the BAML (Bank of America Merrill Lynch) December 2018 survey, trade war concerns were again named as the top concern among global fund managers.
Economists Disagree with Trump’s Fiscal and Trade Deficit Views
Donald Trump has been vociferous about cutting taxes. He intends to reduce the current seven tax brackets to three.
Why China’s Slowdown Couldn’t Have Come at a Worse Time
The global economy is closely watching China for fresh signs of a slowdown, which could threaten global growth.
NASDAQ Soars with Equities, Treasuries Fall Last Week
US equity markets gained in the week ended April 24, 2015. But the week was all about the NASDAQ, which gained 3.2%.
Analyst Recommendations for Verizon on February 25
Most Wall Street recommendations for Verizon (VZ) were “hold” as of February 25, 2016. About 44.1% were “buy” recommendations, and there were no “sell” recommendations.
Why Are Oil and Equity Indexes Diverging?
Last week, the S&P Mid-Cap 400 (IVOO), the S&P 500 (SPY), and the Dow Jones Industrial Average (DIA) fell 5.2%, 4.6%, and 4.5%, respectively.
Why US Steelmakers’ Party Might Not Last Long
Due to trade cases, the US steel industry has turned into a virtual island largely immune to global steel prices—at least in the short term.
Are Navios Maritime Partners’ Distributions Sustainable?
Navios Maritime Partners LP (NMM) is less sensitive to shipping cycles due to its long-term charters and staged expirations.
Howard Marks Says We’re in a Risk-Tolerant Market
Bond yields are at a historic lower level, and emerging market bonds are yielding lower than high-yield bonds.
Why WPX Energy’s Normalized Free Cash Flows Rose
For 9M17 (the first nine months of 2017), WPX Energy (WPX) had normalized free cash flows (or FCF) of about -275%, the fifth lowest among the crude oil (USO) and natural gas (UNG) producers we have been tracking.
Election Over, Market Still Undecided
We know the nation is politically divided, and now the market is showing us its split personality as well.
Jack Bogle Discussed President Trump’s Tax Reform Program
After the failure of the healthcare bill, investors’ eyes are on the phenomenal tax reform bill. Tax reforms could boost employment in the economy.
A Look at Nordstrom’s Dividend Yield Trajectory
Nordstrom’s (JWN) net sales rose 8% and 3% in 2015 and 2016, respectively.
Europe and China ready to jump-start their economies
Unconventional stimulus measures from central banks usually end up injecting liquidity in global financial markets. They’re especially relevant to emerging market economies.
Why investor sentiment can show overvaluation in US markets
While valuation is important, investors should also pay attention to sentiment. The goal is to gauge how – to steal a phrase – “irrationally exuberant” investors have become.
Why Kocherlakota wants the Fed to be free in its decision making
Kocherlakota gave a presentation at the annual American Economic Association conference. He was firmly in favor of letting the Fed be free in its decision making.
The impact of inflated market cap on small-cap stocks
The small-caps have been diverging from broad market indices like the S&P 500 (SPY) (IVV), the Dow Jones Industrial Average Index (DIA), and NASDAQ (QQQ) in 2014. An impending correction would negatively impact the stocks.
How Did Phillips 66 Stock Perform after Its 1Q18 Earnings?
On April 27, Phillips 66 opened at $110.8 per share—lower than the previous close of $112.5. Phillips 66 opened lower despite its 1Q18 earnings beat.
Bunker Fuel Prices Inch Up Higher and Higher
Bunker fuel prices, the biggest cost to run a ship, are correlated with crude oil prices. For the week ended May 20, the average bunker fuel price was $275–$282 per ton.
What Are Analysts Expecting from Teekay LNG Partners in 4Q16?
Analysts are estimating that Teekay LNG Partners’ 4Q16 revenue will be $110.0 million, which is 10.0% higher than $100.0 million in 3Q16.
Altria’s Valuation Is Higher than Peers ahead of 2Q16 Results
Altria Group (MO) and Philip Morris International (PM) are trading at higher valuations relative to the S&P 500 Index (SPY) (IVV) (VOO) and the Dow Jones Industrial Average (DIA).
Why Investors Are Optimistic about McDonald’s 4Q17 Earnings
McDonald’s (MCD) is scheduled to announce its 4Q17 earnings before the market opens on January 30, 2018.
Analyzing NRG Energy, a Low Dividend Grower
NRG Energy’s (NRG) operating revenues fell 8.0% and 16.0%, respectively, in 2015 and 2016.
How Estée Lauder’s Valuation Justifies Its Defensive Nature
Estée Lauder (EL) is trading at a higher valuation relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Debate increases at the Fed about the future path of policy rates
The most recent statement made it clear that there’s increasingly active debate within the FOMC over the appropriate path of interest-rate policy given how far the economy has come.
The Facts on 3M’s 3Q17 Dividend
On September 12, 3M will pay a dividend of ~$1.18 per share. Investors holding the stock on or before the record date of August 25, 2017, are eligible.
Understanding Boeing’s 2017 Expectations for Revenues and Margins
Boeing (BA) recorded $94.6 billion in revenues for 2016—a 2% YoY fall, mainly on the back of lower commercial airplane deliveries in the year.
Why Energy Could Spell Worry for Wall Street Bulls
US crude oil (USO) (USL) April futures fell 6.3% between March 2, 2017, and March 9, 2017. The fall in XLE corresponded with weakness in crude oil prices.
Advance retail sales for December 2014 were disappointing
Markets were disappointed by the weak retail sales report. Estimates for advance retail sales were $442.9 billion in December 2014.
US Indexes Fell Sharply—Is a Trade War with China in the Offing?
On March 22, 2018, President Trump announced the imposition of retaliatory tariffs on up to $60 billion on China’s imports.
Key Price Points for US Crude Oil after OPEC’s Decision
On December 6, US crude oil’s implied volatility was 48.1%, which was 1.5% above its 15-day average.
February’s Inflation and Retail Sales: Impact on the Economy
Key important US indicators released last week are US inflation and US retail sales.
What Has Caused the Correction in Transportation Stocks?
DJTI’s price-to-earnings ratio climbed from 15.7x at the start of 2013 to 20.2x at the end of 2014. This year, transportation stocks (IYT) have taken a hit, leading to multiple contractions.
US Equity Indexes and Oil Diverged
On December 6–13, XLE fell 1.4%—the fourth-lowest decline among the SPDR ETFs that break the broad market into subsectors.
Crude Oil Futures Hit Multi-Month Highs but S&P 500 Falls
November US crude oil (DBO)(DWT)(SCO) futures contracts rose 3% to $52.22 per barrel on September 25—the highest level since April 2017.
Which Payment Processor Has the Highest Payouts and Repurchases?
Payment processors are rewarding their shareholders with 1%–2% dividend yields, largely dependent on operating performance.
Must-know: Is income inequality positive or negative for stocks?
At the heart of the ongoing budget debate is the underlying notion that the less fortunate 60% of Americans should be entitled to a reasonable foundation of social services.
Why corporate bonds reacted to the QE3 exit and GDP surprise
Bond yields and prices move in opposite directions. Due to the increase in yields last week, returns on investment-grade bonds were negative.
A Look At TGP’s Contracts to Gauge its Future Outlook
Teekay LNG Partners (TGP) has a total fleet of 87 vessels, out of which 27 vessels are newbuilds under construction. The active fleet of 60 vessels consists of 29 LNG carriers, 21 LPG carriers, and eight conventional tankers.
Why a Fed rate icrease still doesn’t mean higher yields
Indeed, there are already signs of that increase as central banks back off from so-called quantitative easing. However, the rise in rates is likely to happen more slowly than past rate normalization processes.
Why Gold Failed to Catch Bids despite Escalating Trade Tension
In times of escalating geopolitical or economic concerns, gold often acts as a safe-haven asset. This year, however, gold’s safe-haven appeal seems to be somewhat tarnished.
Why CLF Downgraded Its Volumes Guidance for the US Segment
Cleveland-Cliffs’ reduced its sales and production volume guidance for 2017 from 19.0 million tons to 18.5 million tons.
How US Crude Oil Inventory Data Affects Oil Prices
In the week ended September 14, US crude oil inventories were 3% below their five-year average and flat from the week prior.
ISM Manufacturing Index Stabilizes at 51.5 after a 5-Month Decline
The Manufacturing Index had been declining for the past five months in a row. It was steady at 51.5, according to the ISM report that came out on May 1.
The Estimate for Suncor’s Stock Price until Its Earnings Release
Implied volatility in Suncor has risen from 22.8% on April 3, 2017, to its current level of 23.3%.
How Crude Tanker Stocks Fared before the Holidays
Week 51 was a mixed bag for crude oil tanker investors. DHT Holdings (DHT) was the top performer, and Nordic American Tankers (NAT) and Frontline (FRO) were the worst.
Is Jeffrey Gundlach’s Prediction on US Stock Markets Coming True?
On November 20, Jeffrey Gundlach told Reuters that investors haven’t shown an appetite for Treasuries even though US stock markets have fallen.
The Slack in the Labor Force Is Almost Out
The slack in the labor force has fallen significantly. The US economy has created a whopping ~4.5 million non-farm jobs since March 2014.