SPDR® S&P 500 ETF
Why Decline in LinkedIn Stock Made It a Potential Target
LinkedIn’s stock, which traded at $269 in February 2015, fell to one of its lows of $101.11 in February 2016.
The MPLX crude oil pipeline system
MPLX crude pipelines are connected to supply hubs, and transport crude oil to Marathon Petroleum Corporation’s, or MPC’s, refineries and third parties.
Why investors are preferring high-quality debt
High-quality bonds can be an investor refuge when there’s market volatility. These securities provide relatively stable cash flows. The default probability is low.
Investors Should Avoid Defensive Sectors If Rates Rise
Valuations are at the higher end of their historical range. Investors should avoid defensive sectors, which are highly sensitive to interest rate changes.
The Importance of Rebalancing Your Portfolio
Rebalancing your portfolio means bringing the portfolio back to the asset allocation levels specified in the financial plan. Not rebalancing can expose you to higher risk.
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.
Could the Model Y Change Tesla’s Profit Game?
This year, Tesla (TSLA) stock has fallen 21.3%, underperforming broader markets. Let’s look at how Tesla’s Model Y could turn things around.
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.
Rate hike horizon: September’s jobs report was largely positive
After September’s strong jobs numbers, a Fed rate hike could be on the horizon early next year. Russ explains two equity market implications.
PayPal Inspired By Chinese Payment Apps
Facilitating payments isn’t enough At the Credit Suisse 21st Annual Technology, Media & Telecom Conference, PayPal (PYPL) chief financial officer John Rainey stated that the company aims to become an everyday part of customers’ financial lives. To insert itself into customers’ routines, PayPal acknowledges that it cannot limit itself to its roots of facilitating payments for […]
Analysts Still Hate Steel Stocks despite Bumper Earnings
Overall, it has been a mixed earnings season for steel companies.
Inside ExxonMobil’s Stock ahead of Its 3Q17 Earnings
The overall rise in WTI (West Texas Intermediate) prices since July 3 has likely led ExxonMobil stock to deliver a positive return.
Natural Gas’s ‘Death Cross’ and Why the Bear Market Isn’t Far
On July 5, 2017, natural gas (UNG) active futures fell 3.8% and settled at $2.84 per MMBtu (million British thermal units), their lowest level since March 8, 2017.
Must-know update: Redbook Index same-store sales data released
The Redbook Index released the same-store weekly data on Tuesday, March 11, 2014.
January 2017 EIA Estimates: US Shale Gas Production Could Fall
The EIA expects less natural gas production at four key US shales by January 2017 compared to November 2016. It expects production to rise at three key US shales.
What S&P 500 Index Moving Averages Could Indicate
The S&P 500 Index is trading 1.2% above its 20-day moving average and 6% above its 100-day moving average.
Could Gold Catch a Bid if Equities Stay Weak in 2018?
What the markets have long been fearing has finally come true, at least in part. The S&P 500 (SPY) (SPX) hit a record high on January 26, 2018. Since then, the index has fallen ~8% as of February 6, 2018.
Why the US labor market recovery is weaker than it looks
This article takes a closer look at the unemployment rate in the U.S. and considers the implications for equity investors.
US-China Talks: Can ‘Miles and Miles’ Be Covered in Five Weeks?
With about five weeks remaining in the trade truce, Commerce Secretary Wilbur Ross said yesterday that the US was “miles and miles” away from a trade deal with China.
Why IBM’s Earnings Could Fall Going Forward
International Business Machines (IBM) reported its 2Q17 results on Tuesday, July 18. The company reported falling quarterly profits and sales yet again.
Must-know: Why Peabody Energy fell 1.9% on July 22
Wall Street analysts’ consensus estimate for loss per share was $0.289.
Market Volatility Could Fall More This Week
Volatility in the global markets fell considerably in the previous week. The key risks subsided that spiked risk aversion in the last few weeks.
Why Phillips 66 Commands Premium Valuations
Phillips 66 (PSX) is trading at a forward PE (price-to-earnings) ratio of 15.1x, which is above its peer average of 14.5x.
Inside Schlumberger’s 1-Year Returns as of June 16
Schlumberger’s trailing-one-year stock price has fallen 12% as of June 16, 2017, while XLE, the broader energy industry ETF, has fallen 3%.
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.
How Did the US Election Results Affect Media Stocks?
In this series, we’ll look at what Trump’s win means for the media sector. We’ll also look at how the possibility of a change in net neutrality regulations could affect media companies.
What Can We Expect from Amazon in 2016?
Analysts predict that Amazon Web Services could reach $12 billion in profits by the end of 2016 as companies become more dependent on the cloud and reduce spending on IT infrastructure.
Inside Weatherford’s Fall over the Past Year
In the past year, Weatherford International’s (WFT) stock has fallen 28% as of August 11, 2017.
Trump Thinks Fed’s ‘Ridiculously Timed’ Rate Hikes Hurt GDP
Last Friday, President Donald Trump in a tweet called the Federal Reserve’s interest rate hikes a mistake.
Yellen Wants to Keep Negative Rates on the Table, Helping Gold
When the Federal Reserve chair, Janet Yellen, testified to Congress on February 11, she affirmed the Fed’s consideration of negative interest rates. Under a negative interest rate scenario, investors would pay interest to the bank for holding their money.
Consumer Sector Insights for the Week of October 2–6, 2017
With the start of the third quarter earnings season, the S&P 500 Index (SPY) finished the week ending October 6, 2017, with positive growth of 1.2%.
US and Chinese Economies Are on Different Trajectories
On April 17, China (FXI) released several economic data points. The country’s first-quarter GDP growth of 6.4% surprised on the upside.
ConocoPhillips: Investors’ Confidence Is Rising
Since ConocoPhillips (COP) reported its fourth-quarter earnings results on January 31, the stock has fallen 1.7%.
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.
ConocoPhillips’s 1Q17 Crude Oil Price Underperforms WTI
ConocoPhillips’s 1Q17 crude oil realized prices In 1Q17, excluding the effect of hedges, ConocoPhillips’s average realized crude oil price in the Lower 48 region was $45.89 per barrel, up ~70% from its price of $27.04 per barrel in 1Q16. Sequentially, ConocoPhillips’s 1Q17 price is ~4% higher than it was in 4Q16. Crude oil prices versus […]
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.
Why the US Economy Stalled in 1Q15
The US economy stalled in 2014 for several reasons, including seasonality, weather, strength of the dollar, the West Coast port strike, and the oil price slump.
BlackRock’s Retail Clientele to See Subdued Fund Flows in 1Q17
BlackRock’s retail business has seen negative flows over the past few quarters. Retail investors have withdrawn funds from the alternatives, fixed income, and multiasset categories.
These Key Economic Indicators Were Released Last Week
In this series, we’ll take a look at the global final manufacturing PMIs and services PMIs for March 2017. These indicators help us understand the business condition of an economy.
Will Financials Recover Next Week?
Broader markets posted a sharp drop and the financial sector saw more losses. The S&P 500 financial index fell 5.80% and closed at 458.95.
Analyzing Denbury Resources’ 1Q16 Earnings Call
For 1Q16, Denbury Resources (DNR) reported an adjusted EBITDA of ~$105 million with an EBITDA margin of ~40%. Its EBITDA margin is only ~20% lower.
Inside the Market’s View of Corporate Tax Cuts
Are markets upbeat on potential tax reforms? The markets (SPY) (IVV) surged last week with the announcement of a phenomenal update on the corporate tax cut. The S&P and Nasdaq Comp gained ~2% in the week ended February 10, 2017. The Trump administration’s proposed tax cut is likely to boost the economy, though analysts have […]
Why TJX Companies Commands a Higher Valuation than Its Peers Do
As of August 24, TJX Companies stock was trading at $69.43, a rise of 2.2% since the start of 2015. The company’s stock price rose 7.2% on August 18, the day it announced its 2Q16 results.
Oil Bulls: Is a Recession Coming?
On March 15–22, US crude oil May futures rose 0.4% and closed at $59.04 per barrel.
Scotts Miracle-Gro: Updates for November 2017
Since Scotts Miracle-Gro’s earnings release, the stock closed ~3.7% lower at $98.6 as of November 10. The stock has returned 4% year-to-date.
Murphy Oil’s 4Q15 Operational Performance, Management Strategies
Along with its 4Q15 earnings, Murphy Oil announced the divestiture of its Montney midstream assets located in Canada. The transaction includes the sale of existing infrastructure capable of processing up to 320 million cubic feet per day.
What’s Leon Cooperman’s Largest Position?
Alphabet reported its 3Q17 earnings on October 26, 2017. The company posted EPS (earnings per share) of $9.57, which beat analysts’ estimates of $8.33.
Why young investors are keeping cash under the mattress
Not only are young individuals scared of investing in equities, they’re also hoarding cash under the mattress in case a similar crisis should reoccur.
WFT, FMSA, and SPN: Returns and Outlook after 3Q17
WFT, SPN, and FMSA have significantly underperformed the SPDR S&P 500 ETF (SPY), which has produced 23.0% returns since November 3, 2016.
FOXA’s Views on Streaming Platforms: Advertising Opportunity?
Due to the coverage of the US presidential elections this year, 21st Century Fox (FOXA) expects substantial advertising revenue from Fox News.
Goldman Sachs on Cornerstone OnDemand: Estimated Potential Upside of 20%
Goldman Sachs (GS) believes that Cornerstone OnDemand could provide a cash return of 37% on cash investments in R&D by 2018.
Can Best Buy Rely on Growth Strategies to Boost Its Valuations?
Best Buy is one of the few pure-pay electronic retailers that has managed to withstand weak industry demand and intense competition from online retailers.
Investors Park Funds in Large-Cap ETFs in July
In July 2015, investors poured approximately $23 billion in US ETFs with 50% of total investments in equity funds.
Under Armour: S&P 500’s Top Gainer on April 3
Under Armour was the S&P 500’s top gainer on April 3. After declining for three consecutive trading weeks, Under Armour regained stability last week.
Will PepsiCo’s Earnings Stay Ahead of Wall Street in 2Q15?
PepsiCo expects currency headwinds to impact its fiscal 2015 core EPS by 11% compared to its previous estimate of 7%. It expects currency headwinds to drag down EPS in 2Q15 by 12%.
Broader Market Might Have Limited the Upside in Energy ETFs
US crude oil February futures rose 5.6% in the trailing week.
Olin Surged Ahead in August: Here’s Why
Olin Corporation (OLN) turned out to be one of the best performers among the specialty segments in August.
Is ONEOK Stock Currently Overvalued?
ONEOK (OKE) stock is currently trading at a forward EV-to-EBITDA multiple of 14.3x.
Which Upstream Stocks Are More Sensitive to Crude Oil?
In the last three months, Abraxas Petroleum (AXAS) has had the highest positive correlation with WTI crude oil among upstream companies that are part of XOP.
US Crude Oil above $65: Which Oil-Weighted Stocks Are Gaining?
Between January 17 and January 24, 2018, oil-weighted stocks rose 2.4%. Over this period, US crude oil March futures rose 2.6%.
Valuations of Emerging Market Equities Were Flat Last Week
Emerging market equities are currently trading at 11.5x on a one-year forward earning basis.
Merck Expects Modest Revenue Growth in Fiscal 2016
Merck provided revenue guidance of $39.7 billion–$40.2 billion in 2016. It expects negative foreign exchange fluctuations to reduce its fiscal 2016 revenue.
A Quick Peek into the 4Q16 Starts of DOW, DD, and MON
Dow Chemical (DOW) and DuPont (DD) started 4Q16 on a positive note, with their stocks rising 1.1% and 1.3%, respectively, compared to their closes on September 30, 2016.
Gross Recommends Avoiding High-Risk Markets and Staying Vanilla
In the current market environment, Bill Gross recommends staying plain vanilla. His advice is to avoid high-risk markets.
NRG, Calpine, and Dynegy extend losses for second week in a row
Dynegy Inc. (DYN), NRG Energy Inc. (NRG), and Calpine Corporation (CPN) were among the top four losers in the utility sector for the second successive week.
It Was a Festive Holiday Season for Signet Jewelers
On January 7, 2016, Signet Jewelers (SIG), the world’s largest retailer of diamond jewelry, announced its broad-based success in the holiday season with revenue of $1.9 billion.
Agios Announces Data from Phase 2 Study of PK Deficiency
Agios Pharmaceuticals was one of the top performers among the small-cap segment within the iShares Nasdaq Biotechnology ETF (IBB) on June 13, 2016.
US Retail Sales Flat in April on Rising Oil Prices, Yet XRT Up 1%
Retail sales in the United States in April didn’t see any growth over March’s sales figures. But the jobless claims reading brought some positive news for the consumer sector.
A Look at Airline Stocks’ Recent Performance
Stock performance in 2017 Most airline stocks have continued their gaining streak in 2017. As of February 14, 2017, Southwest Airlines (LUV) has seen the highest YTD (year-to-date) gain of 10.9%, followed by Alaska Airlines (ALK) with 8.5%. Allegiant Travels (ALGT) has gained 5.0%, United Continental (UAL) has gained 1.2%, and Delta Air Lines (DAL) […]
Expanding Service Sector Gives Relief to Economy in September
With manufacturing slowing, a reading of the Non-Manufacturing Index at an above-neutral level (56.9) may provide some relief to the US economy, which is highly dependent on the service sector for its economic growth.
Will President Trump’s Pressure Tactics Work Out?
In March 2018, President Donald Trump imposed a tariff of 25% on steel imports. What’s happened since?
Suncor Energy: The Only Integrated Energy Loser This Week
Suncor Energy (SU) is the only losing stock in the current week from the integrated energy sector. It fell from last week’s close of $34.67 to $34.52 on October 11, 2017.
Why The US Saw Positive Fund Flows In 2014
The US saw positive fund flows in 2014 due to a relatively better economic position.
Why Time Warner Intends to Pull Its HBO Programming from Amazon
Time Warner announced at its fiscal 1Q17 earnings call that it most likely won’t extend its agreement with Amazon beyond 2018.
Trading at a Discount, Netflix Has Mixed Recommendations
Of the 44 analysts covering Netflix, 23 have given it a “buy” recommendation, seven have given it a “sell” recommendation, and 14 have given it a “hold” recommendation.
SPY trades flat after Greece delays debt deal
The SPDR S&P 500 ETF Trust (SPY) traded flat as investors were cautious about Greece’s debt deal negotiations with its Eurozone partners.
Kocherlakota said the FOMC could have done more for labor markets
In evaluating the FOMC’s performance over the past three years, Kocherlakota mentioned that the unemployment rate fell to 5.6%.
Breaking Down Broadcom’s Financial Performance
In fiscal 3Q17, the latest reported quarter, Broadcom reported revenues of $4.5 billion on a GAAP basis, up 18% year-over-year.
Recommendation: You should favor longer-dated Treasuries
The 10-year Treasury yield still appears attractive relative to sovereign rates elsewhere in the world. In addition, longer-dated Treasuries also look more attractive than those with two- to five-year durations.
Can GM’s Stock Sustain Its Year-to-Date Rise in December?
General Motors has delivered a return of 6.9% year-to-date as of December 16, 2016. This return was much lower than the 10.5% return of the S&P 500 Index.
Top Energy Losses Last Week
On June 8–15, Whiting Petroleum (WLL) and California Resources (CRC) fell the most on our list of energy stocks.
An Update on the PotashCorp and Agrium Merger
On September 7, 2017, PotashCorp (POT) and Agrium (AGU) provided an update on the status of their merger. The merger was initiated almost a year ago.
How Does Devon Energy’s Relative Valuation Compare to Its Peers’?
Devon Energy (DVN) has a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio of ~13x.
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.
US Businesses Push Back against Trump’s Tariffs
Farmers for Free Trade’s campaign was rolled out on September 12 with the slogan “Tariffs Hurt the Heartland.”
Is Williams Companies a ‘Buy’ at Current Price Levels?
Williams Companies’ forward EV-to-EBITDA multiple was 11.7x as of July 18, 2017—below the historical five-year average of 13.2x.
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.
What to Expect from ConocoPhillips’ Q1 Earnings
ConocoPhillips’ (COP) adjusted EPS might fall ~24% in the first quarter on a sequential basis based on analysts’ consensus estimate.
A Look at Time Warner’s Key Metrics
In fiscal 1Q16, Time Warner bought back $700 million worth of shares. Including dividends, it has returned around $1.3 billion to its shareholders year-to-date.
BlackRock’s Retail Continues to Attract New Clients across Classes
BlackRock’s (BLK) retail business had assets under management (or AUM) of $542 billion as of March 31, 2016.
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.
Why Campbell Soup’s Sales Could Be Disappointing
Campbell Soup (CPB) has been disappointing investors with its sales and has missed the analysts’ consensus estimates in the past three quarters.
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.
Range Resources’ Valuation: How Does It Compare with Peers’?
In 4Q15, Range Resources was trading at higher price-to-book and price-to-sales multiples than peers.
FOMC participants’ views on the economic outlook
A few participants expressed uncertainty about the outlook for economic growth in Japan and China.
Fertilizer Stocks and Commodity Prices: Week Ending March 24
The week ending March 24, 2017, was broadly negative for agricultural fertilizer stocks. The VanEck Vectors Agribusiness ETF (MOO) fell 0.98%.
Will a Partnership with GE Improve BHI’s Returns?
Between December 2014 and December 2016, Baker Hughes (BHI) stock hit its peak in April 2015. It troughed at ~$39 in January 2016.
The growing US ETF space offers a great opportunity
For 2013, trends in exchange-traded products (or ETP) flows suggest that investors preferred risky assets.
Analysts’ Recommendations for Align Technology in August 2017
Of the 13 analysts covering Align Technology in August 2017, eight rated the company a “strong buy,” and five rated it a “buy.”
Why Analysts Revised Micron’s Earnings Estimate for Fiscal 2018
Micron’s PE ratio For the past two to three months, many analysts have been touting Micron Technology (MU) as a cheap stock at a forward PE (price-to-earnings) ratio of 6.0x. Micron’s PE ratio is well below the semiconductor industry’s (SMH) average PE ratio of 23.4x and the S&P 500’s (SPY) average PE ratio of 21.5x. […]