Energy Select Sector SPDR® ETF

JPMorgan Chase predicts that oil will reach $190 per barrel in 2025. Just a few months ago, Brent crude touched a multiyear low.

Last week, Elliott Management filed its 13F for the first quarter of 2020. In the last quarter, the hedge fund’s AUM was worth around $73.15 billion.

Today at 10:01 AM ET, WTI (West Texas Intermediate) oil prices rose 3.8% and were at $28.65 per barrel. On Thursday, WTI prices rose by 9%.

Energy stocks have fallen this year amid the bloodbath in crude oil prices. Last week, WTI crude contract turned negative for the first time in history.

The volatility in Henry Hub gas prices might concern investors. You could look for natural gas-weighted stocks like EQT and Cabot Oil & Gas.

Investors’ preference for top dividend stocks could increase in 2020. Among sector-specific ETFs, the Energy Select Sector SPDR ETF reigns supreme.

In 2019, Chesapeake Energy (NYSE:CHK) declined by 60.7%. How will its earnings, price targets, and the current US-Iran tensions affect its 2020 outlook?

Overall, tech stocks turned out to be the top performers for 2019. The gain in the technology sector helped the S&P 500 gain 29% in 2019.

In 2019, Cabot Oil & Gas (COG) has fallen 22%. The company has a correlation of 34.6% and 7.6% with natural gas and crude oil prices, respectively.

The S&P 500 Index (SPY) has gained 28% YTD. Tech stocks constituted 22.8% of SPY, the highest among the 11 major sectors.

Druckenmiller and Buffett got “trumped” by the President’s economic policies this year. Incidentally, the US economy posted better-than-expected growth.

So far in 2019, Southwestern Energy (SWN) has fallen around 40%, while the Energy Select Sector SPDR ETF (XLE) has gained 4.2%.

Democratic presidential candidate Elizabeth Warren has proposed a ban on fracking. According to her, a ban on fracking is necessary to fight climate change.

Last week, Chesapeake Energy stock (CHK) fell 15.9%, marking its fourth consecutive weekly decline. Here’s the outlook for this week.

On Friday, Hess Corp (HES) fell 3.8%, while crude oil prices fell 1.4%. Trade deal-related concerns could be behind oil prices’ decline.

The Dow Jones Industrial Average (DJIA) (DIA) seems to be touching new highs despite pessimism related to progress in trade talks.

On November 14, The George Soros Fund Management LLC filed 13F. The firm’s total market value was around $3.6 billion at the end of Q3 2019.

Dimensional Fund Advisors’ top buys are Apple (AAPL), AT&T (T), Microsoft (MSFT), L3Harris Technologies (LHX), and Verizon Communications (VZ).

Baker Hughes stock closed at $22.09 yesterday. Bearishness toward energy commodities has impacted the energy sector and may be limiting BKR stock.

The long-awaited Saudi Aramco IPO could hit the markets as soon as next month. Saudi Arabia’s state-owned Aramco is the most profitable company globally.

Goldman Sachs has warned that oil prices might not have any significant upside next year and that unless global growth picks up, Brent will remain at $60.

On October 18, CNBC reported Bill Gross top picks. His top stock picks were Annaly Capital (NLY), Invesco (IVZ) and Allergan (AGN).

The S&P 500 (SPY) and Nasdaq-100 (QQQ) call options show that David Tepper is optimistic about the economy. But the market is worried about a recession.

In the third quarter of fiscal 2017, Bridgewater Associates sold all its stake in Chesapeake Energy (CHK). In Q3 2016, the stock fell by 31.4%.

Williams Companies (WMB) stock has fallen 6% while natural gas is down 15% in the last three weeks. WMB has fallen more than 15% in the last 12 months.

On August 24, in an interview with CNBC, Mario Gabelli encouraged value investing. He is the CEO, chairman, and founder of GAMCO Investors.

Carl Icahn’s fears could come true in October. According to Goldman Sachs, the market might exhibit higher volatility next month.

On August 27, Jim Cramer predicted that the equity market could witness a rebound in September. President Trump said that the US economy is in great shape.

Reports state that Hong Kong could withdraw its controversial extradition bill that sparked mass protests. This event could impact the US-China trade deal.

BAML’s David Hauner said that 2020 will be a very difficult year for investors. The last recession came after two years of yield curve inversion.

On August 30, US crude oil October futures settled at $55.1 per barrel. On a week-over-week basis, US crude oil prices rose 1.7%.

US crude oil October futures rose 1.5%, settling at $55.78 per barrel. Oil prices rose after the EIA reported a decline in oil inventories.

In August, cyclical sectors such as energy, financials, and industrials have fallen the most amid recession fears in the market.

On August 27, in an interview with CNBC, Morgan Stanley’s Mike Wilson reiterated his earlier target of $2,750 for the S&P 500 Index (SPY) in 2019.

When asked yesterday whether he had second thoughts on the trade war with China, Donald Trump replied, “Yeah! sure. Why not?”

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

According to President Trump, the US economy is “poised for big growth after trade deals are completed.” Markets are volatile amid the trade war.

Ari Wald said that energy stocks haven’t captured the upside in oil prices. However, energy stocks were hit hard by any sharp decline in oil prices.

On July 11–18, major energy ETFs had the following correlations with US crude oil active futures: the Energy Select Sector SPDR ETF (XLE): 42% the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 32.3% the Alerian MLP ETF (AMLP): 23.1% the VanEck Vectors Oil Services ETF (OIH): 12.3% Downside in energy ETFs Notably, […]

Despite solid earnings growth in the last several quarters, Energy Transfer’s (ET) performance has failed to pick up.

Kinder Morgan is expected to report its second-quarter earnings results next week. Let’s see what factors influenced it in the quarter.

US crude oil active futures rose 5% in the trailing week, which might have been behind the upsides in energy sector ETFs.

Last week, US crude oil prices fell 1.6%, while natural gas active futures rose 4.8%.

US crude oil active futures fell 3.4% last week, which might have been behind the downside in most energy ETFs.

In the trailing week, the Energy Select Sector SPDR ETF (XLE) fell 1.1%—the third-lowest decline among the SPDR ETFs.

US crude oil active futures rose 4.1% in the trailing week, which might have supported or limited the downside in OIH, XOP, XLE, and AMLP.

US crude oil active futures have risen 8.6% in the trailing week, which might have boosted or limited the downside in OIH, XOP, XLE, and AMLP. They have returned 5.8%, 5%, 3.7%, and -0.7%, respectively.

Last week, US crude oil prices fell 2.7%, while natural gas active futures rose 2.1%.

In the last week, the Energy Select Sector SPDR ETF (XLE) has risen 0.7%, the third least among SPDR ETFs.

US crude oil active futures have fallen 0.6% in the last week, possibly dragging down or limiting XOP, XLE, OIH, and AMLP, which have returned -1.4%, 0.7%, 1.3%, and 0.7%, respectively.

Magellan Midstream Partners (MMP) is currently trading at a yield of ~6.5%.

Last week, US crude oil prices fell 6.8%, while natural gas active futures fell 2%. The Brent-WTI expanded by $0.77 last week.

The EIA (U.S. Energy Information Administration) is scheduled to release its oil and natural gas inventory data on May 30.

Last week, US crude oil prices rose 1.8%, while natural gas active futures rose 0.5%. The Brent-WTI expanded by $0.5 last week.

Energy Transfer (ET) stock has underperformed most of its peers so far in 2019. The stock is up ~12% year-to-date.

Kinder Morgan (KMI) stock has outperformed its top midstream peers so far in 2019. The stock is up roughly 28% year-to-date.

Many top midstream stocks have outperformed the broader market so far in 2019.

US crude oil active futures fell just 0.2% in the trailing week.

In this part, we’ll take a look at the top countries where the US exports its crude oil.

Several factors contributed to the rising crude oil exports in 2018.

Last week, the Energy Select Sector SPDR ETF (XLE) fell 3%. XLE had the largest decline among the sector-specific SPDR ETFs under review.

The leading economic index (or LEI) combines ten different leading economic indicators.

Williams Companies reported an adjusted EBITDA of $1.21 billion, which missed the consensus estimates for the quarter ending March 31.

Last week, US crude oil prices fell 1.2%. On April 26, US crude oil prices had the third-highest one-day decline in 2019.

Last week, US crude oil prices rose 0.1%, while natural gas active futures fell 6.3%. On April 18, natural gas active futures settled at $2.49 per MMBtu.

The natural gas rig count was at 189 last week. The natural gas rig count has fallen ~88.2% from its record level of 1,606 in 2008.

In the trailing week, XLE rose 1.4%. XLE was the largest gainer among the SPDR ETFs that break the broad market into subsectors.

Kinder Morgan (KMI) is expected to report its earnings results for the first quarter of 2019 on April 16.

In the trailing week, the Energy Select Sector SPDR ETF (XLE) has risen 0.3%.

US crude oil active futures rose 4.7% in the trailing week.

Crude oil prices rose ~32% in the first quarter. The strength in crude oil prices and strong fourth-quarter performances drove midstream stocks.

On March 29, President Trump issued a new presidential permit for TransCanada’s (TRP) Keystone XL pipeline project.

The Health Care Select Sector SPDR Fund (XLV) has risen 4.8% and has underperformed the SPDR ETFs in the first quarter.

OIH, XOP, XLE, and AMLP have risen 23%, 16.1%, 15.5%, and 14.4%, respectively. The rise in oil prices might have boosted these energy ETFs.

So far, midstream stocks Kinder Morgan (KMI), ONEOK (OKE), and Williams Companies (WMB) have each risen ~30% in 2019.

Last week, US crude oil April futures rose 0.4%, while the Energy Select Sector SPDR ETF (XLE) fell 0.1%.

US crude oil May futures rose 1.8% in the trailing week. XLE, AMLP, OIH, and XOP rose 1.9%, 3.1%, 3.7%, and 4.6%, respectively.

The natural gas rig count was at 193 last week. The natural gas rig count has fallen ~88% from its record level of 1,606 in 2008.

Yesterday, natural gas’s implied volatility was 19.8%, ~6.6% below its 15-day moving average.

Last week, Plains All American Pipeline (PAA), Williams Companies (WMB), and ONEOK (OKE) rose 2.5%, 2.3%, and 1.9%, respectively.

Midstream stocks and MLPs broadly outperformed the broader markets last week. The Alerian MLP Index was flat while the S&P 500 Index fell 2.2% for the week.

Overall, in 2018, the most significant contributors to Greenlight Capital’s gains included Micron Technology (MU) and Twitter (TWTR).

So far, US crude oil prices have risen ~25% in 2019. The strength in oil prices is reflected in energy stocks’ year-to-date performance.

US crude oil April futures fell 1% in the trailing week. AMLP, XLE, XOP, and OIH returned 1.3%, -0.2%, -2.4%, and -3.7%, respectively.

The top midstream sector stocks ended mixed last week. Magellan Midstream Partners (MMP) and Kinder Morgan (KMI) rose 4.6% and 2.2%.

Midstream stocks ended mixed last week. The Alerian MLP Index fell 0.3%, while XLE fell 0.5% last week.

On February 14–21, XLE rose 0.8%—the third-lowest rise among the SPDR ETFs that break the broad market into subsectors.

Many midstream companies reported fair earnings growth last year compared to 2017.

Kinder Morgan (KMI) and Williams Companies (WMB) have each risen ~24% in 2019. In comparison, ONEOK (OKE) has risen ~27%.

Williams Companies reported an adjusted EBITDA of $1.20 billion, which missed the consensus estimates for the quarter ending December 31.

Midstream C corporations have posted impressive gains in 2019. The top stocks in the sector have outperformed the broader market.

Williams Companies (WMB) is scheduled to release its fourth quarter and fiscal 2018 earnings on February 13.

While MLP stock prices might fall, they might still generate positive total returns for investors due to their yield returns.

The natural gas rig count was at 197 last week, which was one less than the previous week.

On January 24, the EIA is scheduled to release its natural gas inventory report for the week ending on January 18.

Midstream stocks and MLPs continued to gain in the third week of 2019. The Alerian MLP Index rose 1.9% in the week ending January 18.

On January 17, US crude oil March futures fell 0.5% and settled at $52.36 per barrel. In the trailing week, US crude oil prices fell 1%.

Top MLP and midstream stocks have performed strongly so far in 2019. Stocks surged across the board.

The EIA reported a fall of 2.7 MMbbls (million barrels) in US crude oil inventories to 437.1 MMbbls in the week that ended on January 11.

The natural gas rig count was at 202 last week—four more than the previous week. The rig count was at the highest level since September 2015.