64.00 +0.91 (1.44%)
Pre-Market: 7:47AM EST
|Bid||0.00 x 800|
|Ask||0.00 x 1200|
|Day's Range||62.43 - 64.16|
|52 Week Range||61.62 - 79.42|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.07|
|Expense Ratio (net)||0.13%|
The Energy Select Sector SPDR (XLE) , the largest equity-based energy exchange traded fund, entered Monday with a fourth-quarter loss of about 12%, but some market observers believe the energy sector is poised to rebound. Last week, oil exchanged-traded funds (ETFs) gained after lengthy Organization of the Petroleum Exporting Countries (OPEC) discussions finally came to a conclusion, resulting in a larger-than-expected production cut that sent oil prices higher on Friday. OPEC and associated partners agreed to cut 1.2 million barrels per day with OPEC being responsible for 800,000 barrels.
Recently, Energy Transfer (ET) stock continued to trade weak. So far, the stock has lost almost 20% in 2018. The energy sector (XLE) has fallen ~16% YTD (year-to-date), which mirrors crude oil prices. Broader markets have been marginally down during the same period. Energy Transfer’s chart indicators continue to paint a grim picture. The company is trading at $13.85, which is ~12% and 16% below its 50-day and 200-day moving average levels. The large discount to both of these levels highlights weakness in the stock. The moving average levels close to $15.6 and $16. ...
On December 10, US crude oil January futures fell 3.1% and settled at $51 per barrel. The Energy Select Sector SPDR ETF (XLE) fell 1.6% on the same day.
Between November 30 and December 7, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 3.9%—the second-largest fall among major energy ETFs. A rise of 3.3% in US crude oil prices last week wasn’t sufficient to push the upstream energy space into positive territory.
On November 30–December 7, US equity indexes ended in the red. 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. Energy stocks form ~5.1%, 5.9%, and 5.2%, respectively, of these equity indexes.
The EIA’s (U.S. Energy Information Administration) latest oil and natural gas inventory data are scheduled to be released on December 12–13, respectively. The data could be an important short-term driver for oil and natural gas prices. OPEC and the IEA’s Monthly Oil Market Report will likely be the key catalyst for oil prices.
Energy stocks and sector-related exchange traded funds were among the lone areas of strength in U.S. markets Friday after the Organization of Petroleum Exporting Countries, along with oil-producing allies ...
On November 29–December 6, major energy ETFs had the following correlations with US crude oil January futures: the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 77.6% the VanEck Vectors Oil Services ETF (OIH): 77.2% the Energy Select Sector SPDR ETF (XLE): 64% the Alerian MLP ETF (AMLP): 63.9%
Shares of Chesapeake Energy Corp. bounced sharply off a 10-month low Friday, as a big rally in oil prices helped offset J.P. Morgan analyst Arun Jayaram turning bullish on the oil and gas production company. Jayaram cut his rating to underweight, after being at neutral for at least the past three years, citing concerns over near-term headwinds from the $4 billion WildHorse Resource Development Corp. announced in late October. The stock rallied 2.6% in morning trade, after closing Thursday at the lowest level since Feb. 21. Jayaram said that although the acquisition, which provided increased oil weightings, was a "necessary step" to turn the corner on its turnaround plan, "the stock will likely be a 'show me' situation" as investors generally had mixed views on the East Texas Eagle Ford plays. Meanwhile, the energy sector was broadly higher, with the SPDR Energy Select Sector ETF up 1.6% with 24 of 25 components gaining ground, as oil prices jumped after reports that OPEC and Russia agreed to production cuts. Chesapeak's stock has tumbled 31% over the past three months, while the energy ETF has shed 10% and the S&P 500 has lost 7.1%.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
On December 5, US crude oil January futures fell 0.7% and closed at $52.89 per barrel. The market wasn’t expecting a significant production cut during OPEC’s meeting on December 6, which might have dragged oil prices. On December 5, US equity markets were closed.
The S&P 500's main sectors were all trading sharply lower midday Thursday, highlighting the depth of a decline in equity markets. The 11 sectors of the S&P 500 were all down by as much as 1%, with financials and energy sectors down by at least 3.5%, leading the drop. The move comes as investors have been sensitive to signs of an economic slowdown that could upend a multiyear bullmarket and longstanding expansion in the U.S. Tumbling crude-oil prices also have been spotlighted as a sign of those worries, since oil prices tend to fall sharply when expectations for demand drop. The Dow Jones Industrial Average and the Nasdaq Composite Index also were trading sharply lower on the day. Both stock and bond markets were closed on Wednesday to mark a national day of mourning for George H.W. Bush, the U.S.'s 41st president, who died at 94.
OPEC members have provisionally decided to implement production cuts but are waiting for Russia to agree to a cut, according to a Reuters report. As of December 6 at 8:55 AM CST, US crude oil prices have declined ~2.7%. If Russia won’t agree to a production cut, OPEC alone cannot implement a cut because it could hurt its oil revenue.
Kinder Morgan (KMI) is trading at a forward EV-to-EBITDA multiple that’s lower than its own historical average multiple and its peers’ multiple. The lower multiple indicates that the stock might be undervalued. Kinder Morgan’s forward EV-to-EBITDA multiple is 9.6x. The company’s five-year average EV-to-EBITDA multiple is 12.7x.
In the week ending on November 23, the inventories spread was -19.1%. The inventories spread is the difference between natural gas inventories and their five-year average. During this period, the inventories spread expanded by 50 basis points compared to the previous week.
The natural gas rig count was at 189 last week—five less than the previous week. The natural gas rig count has fallen ~88.2% from its record level of 1,606 in 2008.
On December 3, Qatar announced that it won’t be an OPEC member starting on January 1. However, Qatar accounts for 2% of OPEC’s total oil supply. OPEC controls ~32.4% of the world’s total oil supply.
The main indexes made a favorable sign Monday, building on its uptrend while leading stocks participated in the rally in solid form.
U.S. stocks finished sharply higher Monday after the market reacted optimistically to U.S. and China over the weekend calling a temporary truce to their trade dispute. The Dow Jones Industrial Average ended up about 290 points, or 1.1%, at 25,826, but had been up by as many as 442 points in early morning action. The S&P 500 index closed 1.1% higher at 2,790, powered by gains in the energy sector, on the back of a surge in crude-oil futures , while the consumer-discretionary sectors also was among the best performing sectors among the S&P 500's 11 on the day. The Nasdaq Composite Index advanced 1.5% at 7,442. However, the fall in the yield of the 10-year Treasury note to below 3% on Friday (bond prices rise and yields fall), may reflect some tepid concerns about the prospects for a firm agreement being achieved by China and the U.S. in the 90-day period from Jan. 1, and the outlook for the domestic economy as the Federal Reserve attempts to normalize interest rate policy.
On November 23–30, US equity indexes ended in the green. Last week, the Dow Jones Industrial Average (DIA), the S&P 500 (SPY), and the S&P Mid-Cap 400 (IVOO) rose 5.2%, 4.8%, and 2.9%, respectively. Energy stocks form ~5.2%, 5.9%, and 5.1%, respectively, of these equity indexes.
The EIA’s (U.S. Energy Information Administration) latest oil and natural gas inventory data are scheduled to be released on December 5–6, respectively. The data could be an important short-term driver for oil and natural gas prices. However, OPEC’s meeting on December 6 will likely be the key catalyst for oil prices. In Part 1, we dicussed the importance of OPEC’s meeting.
On November 28, the US Senate voted for a motion on “a joint resolution to direct the removal of United States Armed Forces from hostilities in the Republic of Yemen that have not been authorized by Congress.” The vote means an additional discussion on the topic, although the resolution is still far from getting passed. The move for the resolution intensified after the death of US resident Jamal Khashoggi, who shared hostile relations with Saudi Arabia’s current regime. Saudi Arabia is the largest oil producer among OPEC countries.