|Bid||261.81 x 1800|
|Ask||261.82 x 800|
|Day's Range||261.05 - 264.02|
|52 Week Range||252.92 - 293.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
On December 6–13, major energy ETFs had the following correlations with US crude oil January futures: the Alerian MLP ETF (AMLP): 68.8% the Energy Select Sector SPDR ETF (XLE): 60% the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 58.4% the VanEck Vectors Oil Services ETF (OIH): 2.8%
The US-China trade war, primarily triggered by President Donald Trump imposing tariffs on Chinese imports, started getting ugly in the last few months. Investors watched President Trump and President Jinping’s meeting in Argentina earlier in December.
Johnson & Johnson (NYSE: JNJ) is down over 8% as of 11:10 A.M. EDT following the release of a special report by Reuters which stated that “J&J knew for decades that asbestos lurked in its Baby Powder.”
Strong domestic Retail Sales have added importance today, when we see Retail numbers for China missing expectations, helping send Asian markets lower overnight.
Since the beginning of the fourth quarter, the broader market has been facing trouble due to various issues including rising interest rates, concerns about the slowing global economy, and the US-China trade war. These factors have taken a toll on US equities (VTI) and resulted in more volatility. Before we discuss some of the factors in detail, let’s find out how the key indices are faring in the fourth quarter, especially in December.
The stock of Chinese electric carmaker NIO (NIO) has been highly volatile since its listing on the New York Stock Exchange in September 2018. The company is set to launch its ES6, its much-awaited five-seat SUV, on December 15. Before we discuss more on the ES6, let’s first find out how NIO’s stock is faring before the vehicle launch event.
The total land value alone of the 48 contiguous U.S. states is roughly $23 trillion as of 2015, according to Federal Housing Finance Agency economist William Larson. On top of that land value, the total value of the U.S. stock market is roughly another $30 trillion. The U.S. now has about $9 trillion in outstanding mortgage debt.
Eastman Chemical (EMN) hit an all-time high of $109.30 in 2018. As of December 12, Eastman Chemical stock has declined 21.3% year-to-date. Eastman Chemical stock has also underperformed Celanese (CE), which has declined 17.1%.
Lipper data showed that investors withdrew record cash from US-based stock and bond funds for the week ending December 12. While a record $46.2 billion was taken out from US stock mutual fund ETFs (SPY) (VTI), a near-record $13.4 billion was withdrawn from bonds (AGG) (BND). According to Lipper, the average US-based equity fund has fallen 6.3% year-to-date through December 11, while its bond counterpart has fallen 0.9%.
Vehicle electrification has been the emerging theme in metal markets. Last year, during its annual investor update, Glencore, the mining and trading giant, spent a considerable amount of time discussing vehicle electrification and how the company’s product portfolio is placed to capture the opportunity. Vehicle electrification is certainly for real.
China’s (FXI) National Bureau of Statistics reported industrial output and retail sales growth data for November on December 14, 2018. Both of these data points came in below the market’s expectations. The industrial output grew by 5.4% YoY, which is its slowest pace in almost three years.
In a press release on December 12, Honeywell (HON) said that it would supply a gas processing plant to Cogent Midstream. The new plant will extract natural gas liquids from natural gas produced from several countries. The order will strengthen the backlog of Honeywell’s UOP business, which has been growing.
Today, the stock of KushCo Holdings (KSHB), one of the key packaging supplies providers to the cannabis industry, is trading on a negative note. US-China trade tensions have hurt many large US companies, including Ford Motor Company (F), General Motors (GM), and Harley-Davidson (HOG), among others. In contrast, the cannabis industry is largely unaffected by the global trade war—at least so far.
With the bloodbath that is XPO Logistics Inc. (NYSE: XPO) being in the headlines today, I could not help but to think back to December 2017 when Home Depot Inc. (NYSE: HD) was said to be considering an offer for the company just to keep it out of the hands of Amazon Inc. (Nasdaq: AMZN).
On December 12, US crude oil January futures fell 1% and closed at $51.15 per barrel. The market wasn’t expecting a decline of 1.2 million barrels in US crude oil inventories for the last week, which might have dragged oil prices. OPEC and its allies’ production cut might not have boosted the bullish sentiment for oil prices, which we discussed in the previous part.
XPO Logistics Inc. (NYSE: XPO) is down over 17% as of 12:25 P.M. EDT following a report by famed short-seller Spruce Point Capital Management. In the report, Spruce Point discusses the background of XPO’s founder, Bradley Jacobs, and the “accounting scandal during his leadership” at United Rentals, Inc. (NYSE: URI), which he co-founded. Ultimately, Spruce Point thinks XPO’s share price could “swiftly collapse in Enron-style fashion” with a 40%-60% intermediate downside risk and a 100% long-term downside risk.