|Bid||12.10 x 800|
|Ask||12.11 x 313300|
|Day's Range||11.95 - 12.24|
|52 Week Range||9.23 - 16.24|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||2.04|
|Expense Ratio (net)||0.73%|
The stock market knows something policymakers don't: The era of oil stocks is dead.Despite Administration efforts to embargo Iran and Venezuela, and despite fracking's growing control over supply, the price of the U.S. benchmark West Texas Intermediate crude oil remains below where it was last fall. The global price, defined by Brent North Sea oil, dropped $7 per barrel in the month before May 23.A decade that began with an "energy crisis" is ending in a global glut, just as U.S. production reaches a record 12 million barrels a day.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo keep production high, the Administration is giving the oil companies everything they always wanted. Rules on safety are being abolished. Government-owned lands are being opened for drilling. The Administration is trying to open Alaska to oil exploration.Yet despite what had been the best quarter for prices in a decade and predictions from analysts of even-higher prices, stocks in the oil sector haven't risen in five years. The U.S. Oil Fund (NYSEARCA:USO), an ETF tracking the oil sector, is down 68% over that time, while the S&P 500 is up 46%.How is this possible? It's possible because oil and gas no longer represent cheap energy. Renewable energy, not just efficiency but electricity produced without oil, gas or nuclear fuel, is becoming the cheap energy.The lifetime cost of solar and wind installations, $63.20 per Megawatt-hour, is now below that of coal, and approaching that of natural gas. The solar power expansion that began early this decade in the Far West, spurred by favorable tax laws, has now spread to the heart of the U.S. oilpatch. * 10 Names That Are Screaming Stocks to Buy What should be a golden era in the oilpatch tastes like dust on Wall Street because it has come too late. Exxon Mobil (XOM)Source: Shutterstock Exxon Mobil (NYSE:XOM) stock reached its peak for the year in April, trading at over $83 per share. On May 23, it was trading below $74.At that price, the stock yielded 4.33% in dividends, $3.48 per share, and had a price-to-earnings ratio of 17 … slightly below the market. In 2018, Exxon Mobil earned $4.88 per share, but for the first quarter, it earned only 55 cents per share fully diluted, below analyst estimates.Exxon Mobil is the most diversified of the American oil majors. It produces oil around the world, refines it, and markets it through its own stations. Exxon blamed the first quarter on its refining segment. Its report highlighted a huge new oil find off the coast of Guyana, and a gas find off the coast of Cyprus. Its very diversification is hurting results.The analyst verdict on Exxon Mobil is weakening, with four analysts taking down buy orders and entering the weaker "hold" camp in the last three months. Analysts are worried about Exxon Mobil's ability to generate cash from operations. The best-run company in Houston has become the least-favorite major oil stock. If Exxon Mobil, with its global reach, diversification, yield and $279 billion in 2018 revenue, up almost 20% from 2017, isn't a great investment, what is? Schlumberger (SLB)Source: Shutterstock Oil has become a technology business, and Schlumberger (NYSE:SLB) is its master.Schlumberger technology makes it easier than ever to find oil, to drill for it, and to measure what's going on inside a well. Schlumberger pays a 50-cent-per-share dividend that was yielding 4.69% at the May 23 price of about $37.50. It generated $5.7 billion in operating cash flow last year, on a market cap of $51.4 billion.So, you think, business is great, and people are wonderful. Not so fast.Over the last five years, Schlumberger has been a disastrous investment. The shares are down 64% in that time. The dividend hasn't been increased since 2015. Profits have been falling over the last four quarters and are down 60% from their 2015 peak, when Schlumberger bought oil tools producer Cameron for $14.8 billion. Capital spending has been declining in the oil patch, and Schlumberger is suffering. Commodity oversupply means better technology for reaching that commodity isn't a good investment. Analysts, however, have yet to give up on the stock, with half keeping it on their buy lists. * 7 Marijuana Stocks to Play the CBD Trend Schlumberger management remains optimistic about international operations and there are still analysts pounding the table for it. But it's generally "out of sight, out of mind," a stock that's seldom written about, where mid-decade it was one of the hottest stocks in the market. Whiting Petroleum (WLL)Source: SarahTz Via FlickrIn 2014, Whiting Petroleum (NYSE:WLL) bought Kodiak Oil & Gas for $3.8 billion, becoming the largest producer in the Bakken oil field of North Dakota and Montana, a field opened up by fracking technologyI called Whiting the "King of the Bakken." I also told investors to "sell while you can."Since then, the stock is down 88%; its market cap is down to $1.77 billion, half what it paid for Kodiak. Growing revenues, and even a $342 million profit in 2018, failed to attract buyers. Its March report slipped back into a loss of $69 million, and the shares have resumed their march toward zero.Things are so bad that when Whiting offered to buy QEP Resources (NYSE:QEP), another big Bakken player, Whiting shares fell 10%. No thanks, investors said, we're full.Making things worse is that CEO Brad Holly, hired from Anadarko Petroleum (NYSE:APC) in 2017, was named in a sexual harassment scandal at his former employer. Holly vigorously denies the charges, but such charges have to be distracting.There remain analysts pounding the table for Whiting, and the North Dakota oilpatch.The problem is that all oil is not created equal. Transportation costs create a discount between the Bakken price and what Texas oil brings. Even if Whiting is paying $50 per barrel to bring oil up, it was only attracting $52 per barrel in February. The price for Bakken oil has been as high as $65/barrel in the last year, but as low as $38/barrel.The market's verdict is clear, and it seemed clear to me years ago. Get out of oil stocks while you can.Dana Blankenhorn http://www.danablankenhorn.com is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family https://www.amazon.com/Reluctant-Detective-Finds-Her-Family-ebook/dp/B07FSRDR4Y/, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing, he owned no shares in companies mentioned in this article. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post 3 Oil Stocks to Drop Now appeared first on InvestorPlace.
U.S. equities came under serious and growing pressure on Thursday as the U.S.-China trade spat devolved into an outright global trade war with countries Japan and South Korea getting caught in the crossfire. The Trump Administration is raising the stakes with its efforts to block Huawei from using American technology, pushing allies like South Korea to do the same.Beijing is firing back with calls to boycott American tech firms like Apple (NASDAQ:AAPL) and threats to dump its U.S. Treasury bonds holdings -- totaling more than $1 trillion. Wall Street is finally waking up to the possibility that this problem is going to get worse before it gets better. And it can get a lot worse.The Dow Jones Industrial Average has fallen back below its 200-day moving average, the U.S. dollar is dropping hard, and U.S. Treasury yields are falling fast amid a rush to safe haven assets. The yield curve is also inverting again, which is a loud and clear signal that on this trajectory, a recession looms ahead.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend As a result, a number of large-cap stocks are dropping hard and fast. Here are five stocks to sell: Amazon (AMZN) Click to EnlargeFirst up is one of the largest of the large cap stocks. Amazon (NASDAQ:AMZN) shares are threatening to fall down below the $1,800 level, breaking below their 50-day moving average after weeks of flirting with that critical support level. Next stop is the 200-day moving average which would then give way to the January-March lows near $1,600 which would be worth a loss of nearly 12% from here.The company will next report results on July 25 after the close. Analysts are looking for earnings of $5.48 per share on revenues of $62.5 billion. When the company last reported on April 25, earnings of $7.09 beat estimates by $2.43 per share on a 17% rise in revenues. Chevron (CVX) Click to EnlargeWith traders bracing for a global economic slowdown as a result of rising trade tensions, crude oil is plummeting with the U.S. Oil Fund (NYSEARCA:USO) down more than 6% in intra-day trading to return to levels not seen since early March. That's pushing down shares of oil large-cap stocks like Chevron (NYSE:CVX) hard, with shares threatening to fall below its 200-day moving average. * The 7 Best Stocks to Buy From the IPO ETF The company will next report results on July 26 before the bell. Analysts are looking for earnings of $2.03 per share on revenues of $41.7 billion. When the company last reported on April 26, earnings of $1.39 beat estimates by six cents despite a 6.8% loss of revenues. Bank of America (BAC) Click to EnlargeLower long-term interest rates means narrower net interest margins for banks like Bank of America (NYSE:BAC). So it's not surprising shares are dropping fast, falling below the 200-day moving it's tried desperately to stay above since January. If support from the March lows doesn't hold, watch for a possible drop all the way back to the December lows, which would be worth a loss of nearly 20% from here.The large cap stock will next report results on July 17 before the bell. Analysts are looking for earnings of 72 cents per share on revenues of $23.4 billion. When the company last reported on April 16, earnings of 70 cents per share beat estimates by four cents on a 0.4% drop in revenues. NVIDIA (NVDA) Click to EnlargeShares of semiconductor large-cap stock NVIDIA (NASDAQ:NVDA) are melting lower, breaking down further away from its 50-day and 200-day moving averages as all the catalysts that bolstered shares for so long -- cryptocurrency mining, gaming consoles, etc. -- are working against it now. Watch for a quick trip down to the prior lows set in late December, which would be worth a loss of roughly 14% from here. * 6 Innovative Stocks With Big Long-Term Growth Potential The company will next report results on August 15. Analysts are looking for earnings of $1.14 per share on revenues of $2.6 billion. When the company last reported on May 16, earnings of 88 cents per share beat estimates by seven cents on a 30.8% decline in revenues. Apple (AAPL) Click to EnlargeNo list of large-cap stocks would be complete without a look at Apple, which is at the very epicenter of the U.S.-China trade spat. The next round of trade tariffs being proposed by President Trump will hit the company's products directly, weighing on profit margins. The company has been able to avoid the brunt of the damage to date because of its importance to overall S&P 500 earnings growth and thus market sentiment, something Trump is acutely aware of.But that's changing now. The company will next report results on July 30 after the close. Analysts are looking for earnings of $2.11 per share on revenues of $53.6 billion. When the company last reported on April 30, earnings of $2.46 beat estimates by 10 cents on a 5.1% drop in revenues.As of this writing the author held no positions in the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 5 Large-Cap Stocks Getting Crushed in the Trade War appeared first on InvestorPlace.
With oil ranking as one of 2019’s best-performing commodities, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: ...
Supplies of energy, such as oil and natural gas, look set to fall short of even a modest forecast of rising global demand. While that might not be the best thing for the global economy, there is a way for you to profit from the likely surge in oil and gas prices. The IEA report broadly states that underinvestment in the energy patch will have major repercussions for the availability of fuel and power.
Technically speaking, the major U.S. benchmarks continue to whipsaw amid trade-fueled volatility though the bigger-picture damage has thus far been largely contained, writes Michael Ashbaugh.
How Brent-WTI Spread Is Affecting Oil Exports and Energy StocksBrent-WTI spreadOn May 20, Brent crude oil active futures settled ~$8.76 higher than the WTI crude oil active futures. On May 13, the spread was at ~$9.02.In the past five trading
Brent crude is on its way to log its first gain in three weeks on the Middle East crisis. This prospect has bolstered these high-yielding MLP ETFs.
Even though they’ve been around since the early 1990s, Exchange-Traded Funds (ETFs) only started to gain real traction a decade ago. In the aftermath of the financial crisis, many investors moved into ETFs as a way of minimizing their risk and being able to control their portfolios easily. Another use of ETFs, by contrast, is […]
At least four separate oil vessels, two of which belong to Saudi Arabia, came under attack in the Gulf of Oman near the United Arab Emirates' eastern coast, The Wall Street Journal reported. The Saudi vessels experienced "significant damage to the structures" in what the country's energy minister Khalid al-Falih said was a case of sabotage. An Iranian foreign ministry spokesman called the attacks "dreadful" and said the government is planning an investigation, WSJ reported, citing the semiofficial Iranian news agency ISNA. For the time being, no one is publicly attributing any blame to the attack on Iran's government.
Why the United States Imports Oil(Continued from Prior Part)US oil importsThe US imported ~3.6 billion barrels of crude oil and petroleum products in 2018. Total imports fell ~2% from 2017. Roughly 43% of the US crude oil and petroleum products
Why the United States Imports Oil(Continued from Prior Part)US oil exportsIn this part, we’ll take a look at the top countries where the US exports its crude oil. Among the countries to which the US exports crude oil, Canada stands at the top,
Why the United States Imports OilUS energy consumptionAccording to the U.S. EIA (Energy Information Administration), energy consumption in the US reached its highest level ever in 2018. The US consumed 101.3 quadrillion Btu (British thermal units)
Trump Tweets Tariffs With Capital T, Traders Tantrum In a bizarre tweet over the weekend, President Donald Trump claimed that "China has been paying Tariffs (sic) to the USA," with a capital T, which besides being patently false, included a threat to increase the Tariffs (sic) to the USA, even though the USA is not being […]The post Market Morning: Tariff Tweet, Earnings Face-Lyft, Kudlow Nudges Fed, Iran Scrambles appeared first on Market Exclusive.
Energy sector-related ETFs were among the worst off Thursday after the Energy Information Administration revealed a jump in U.S. crude-oil stockpiles and Saudi Arabia said it would pick up the slack with ...
Sometimes the U.S. stock market sends a clear, unambiguous message. The message the stock market sent during Federal Reserve Chairman Jerome Powell’s press conference Wednesday says that the market is vulnerable. • The chart shows that the stock market rose immediately after the Fed decision was announced.
U.S. equities find themselves in the red again on Thursday amid fresh concerns about the fate of the ongoing trade discussions with China. The Dow Jones Industrial Average is down over 200 points as I write this, threatening to fall below its 50-day moving average for the first time since January.Obviously, investors are on edge since we are entering the worst six months of the year for the stock market. "Sell in May" has a strong seasonal tendency to be right. This is especially true when you combine it with technical sell signals, such as a downward break of the 50-day moving average which seems likely in the coming days.The catalysts are familiar: Political gridlock (minimizing chances of an infrastructure bill), a lack of comfort from the Federal Reserve (who seems to think inflation could bubble up again), tensions with trading partners and the ongoing standoff over Iranian and Venezuelan oil.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks to Buy for May As a result, a number of mega-cap stocks are weakening noticeably. Here are four Dow Jones stocks to sell: Boeing (BA) Click to EnlargeAfter suffering a big pullback in March following the Ethiopian Air crash of a 737 MAX, and the subsequent grounding of the model for a safety flaw, Boeing (NYSE:BA) shares are under renewed pressure as the software "fix" is taking longer than the bulls had assumed -- risking not only order cancellations but legal liabilities as well.The company will next report result son July 24 before the bell. Analysts are looking for earnings of $1.82 per share on revenues of $21.5 billion. When the company last reported on April 24, earnings of $3.16 missed estimates by 3 cents on a 2% decline in revenues. Caterpillar (CAT) Click to EnlargeShares of Caterpillar (NYSE:CAT) have fallen below their 50-day moving average and are threatening to lose their 200-day average as well. This is setting CAT shares up for a break of the uptrend that has been in place since late October. There fear is that without a U.S.-China trade deal, exports to the Middle Kingdom will be under threat. * 7 of the Best ETFs to Buy for a Slowing Economy The company will next report results on July 24 before the bell. Analysts are looking for earnings of $3.1 per share on revenues of $14.5 billion. When the company last reported on April 24, earnings of $2.94 beat estimates by 8 cents on a 4.7% rise in revenues. Forward guidance was reaffirmed. Chevron (CVX) Click to EnlargeAfter rising impressively on the back of higher energy prices, oil and gas stocks like Chevron (NYSE:CVX) are coming under pressure now on a combination of profit taking and a pullback in crude oil with the U.S. Oil Fund (NYSEARCA:USO) falling below its 200-day moving average. The company is locked in a bidding war for Anadarko (NYSE:APC) with Occidental (NYSE:OXY). The bears fear the company will up its offer and overpay.The company will next report results on July 26 before the bell. Analysts are looking for earnings of $2 per share on revenues of $41.3 billion. When the company last reported on April 26, earnings of $1.39 beat estimates by 6 cents on a 6.8% decline in revenues. Dow DuPont (DWDP) Click to EnlargeShares of Dow DuPont (NYSE:DWDP) are falling down and out of a six-month consolidation range after a failed attempt to break up and over its 200-day moving average. This range capped a 30% decline from the highs set in early 2018 and sets up a possible return to the lows seen in early 2016, which would be worth a loss of more than 25% from here. * 10 Cheap Stocks to Buy in May, But Don't Go Away When the company reported earnings today, earnings of 84 cents per share missed estimates by a penny on an 8.7% decline in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post 4 Dow Jones Stocks Under Serious Pressure appeared first on InvestorPlace.
Understanding the Iran Sanctions and Broader Oil Market(Continued from Prior Part)Role of other suppliers The United States is confident that the end of its waivers on imports of Iranian oil won’t disrupt the world’s oil supply. In a press
Understanding the Iran Sanctions and Broader Oil Market(Continued from Prior Part)US sanctions on IranThe United States first imposed restrictions on its activities with Iran in 1979, after the seizure of the US embassy in Tehran. The United States
Understanding the Iran Sanctions and Broader Oil Market(Continued from Prior Part)OPEC countries OPEC (the Organisation of the Petroleum Exporting Countries) aims to “coordinate and unify the petroleum policies of its Member Countries” to
Record high U.S. market in April was the result of a strong economy, slew of unicorn IPOs, stabilization in the oil patch, better-than-expected corporate earnings and a dovish Fed.
Oil is surging this spring, coming back in a big way from a historic rout that sent crude prices plummeting about 45% from peak to trough in the fourth quarter of 2018, and included the worst losing streak for crude oil on record. Not only have crude prices retraced more than half of their tumble since the calendar flipped to January - the rebound rally in oil isn't showing any signs of slowing down as we head into May. At a glance, you don't need to be an expert technical trader to spot the prevailing trend in oil prices right now.
What Could Impact US Oil Exports?Brent-WTI spreadOn April 29, Brent crude oil June futures settled ~$8.54 higher than the WTI crude oil June futures. On April 22, the spread was at ~$8.49.In the past five trading sessions, Brent crude oil June
Mnuchin Stabs China Deal With Doubts, Again Maybe it’s a way to lower expectations in concert with new highs in the S&P 500 in order to reinflate hope when the market falls again, but Treasury Secretary Steve Mnuchin is once again infecting the China Trade Deal saga with doubts. In a smiling picture where all […]The post Market Morning: China Talks Downer, IMO 2020 Hoarding, Alphabet Shocks, Fed Losing Control? appeared first on Market Exclusive.
The United States Oil Fund (USO), which tracks West Texas Intermediate crude oil futures, fell 3.25% last Friday on more than double the average daily volume, bringing its loss for the week to 1.73%. While that snapped oil's longest weekly winning streak in several years, some market observers this year's surge in crude can continue. Losses accelerated on Friday after President Trump said he called on the Organization of Petroleum Exporting Countries to act to bring global oil prices lower,” reports CNBC.