|Bid||76.02 x 900|
|Ask||77.23 x 900|
|Day's Range||76.58 - 77.01|
|52 Week Range||64.45 - 79.42|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
Yesterday, US crude oil November futures rose 1.8% and settled at $72.08 per barrel—just $2.07 lower than the highest closing for US crude oil active futures since November 2014. On June 29, 2018, US crude oil active futures settled at $74.15 per barrel—their highest closing level since November 24, 2014.
Chesapeake Energy Corp. was downgraded by SunTrust RH analyst Neal Dingmann, who said the oil and gas producer's turnaround could take longer than expected. The stock slipped 0.3% morning trade, after soaring 17% amid a five-session win streak through Monday. Dingmann cut his rating to hold, after being at buy for at least the past three years, and lowered his price target to $5 from $6. Dingmann believes Chesapeake is approaching an inflection point where cash flow will start outpacing spending, but he said the turnaround could be "a 2020 and 2019 event" given time needed its prized Powder River Basin asset. "Though we believe [net asset value] remains strong and [Chesapeake] has made strides reducing debt by decreasing spending/executing a number of non-core asset sales, leverage remains higher than the peer group and a likely outspend in the next few quarters," Dingmann wrote in a note to clients. Earlier Tuesday, Chesapeake announced a $1.25 billion offering of senior notes, due 2024 to 2026, and plans to use the proceeds, plus cash on hand, to pay down its secured term loan due 2021. Despite the recent rally, Chesapeake's stock was still down 4.7% over the past three months, while the SPDR Energy Select Sector ETF has gained 4.2% and the S&P 500 has advanced 7.5%.
Let’s take a look at the utility sector’s total returns compared to those of other sectors so far this year. Broader utilities (XLU) have returned more than 3% this year, underperforming the broader markets. SPY, a representative of the broader markets, continues to make new highs and has returned 11% this year.
Since inception almost two decades ago, the Global Industry Classification System (GICS) has been the standard taxonomy employed by the financial community to sort business entities by sector and industry group. Changes to this taxonomy, no matter how small, can have a significant impact on how companies are classified and which enterprises are included in sector index and index products developed by Standard and Poor’s and MSCI. Understanding how these changes impact company and industry groupings is therefore critical for investors with exposure to ETFs. In January 2018, S&P Dow Jones Indices, a division of S&P Global, introduced several revisions to the GICS structure. These changes, which will be implemented after the close of business on Sept. 28, 2018, impact three specific sectors: Telecommunications Consumer discretionary Information technology The MSCI Equity Indexes will reflect these changes as part of its semi-annual index review in November 2018. Discover ETFs based on the sector of your choice from here. From here you can even explore different sector-focused ETFs based on their power rankings – a unique way to view rankings of various ETF sub-groups (eg. sectors) based on powerful metrics like three-month fund flows, average three-month return or average dividend yield.
Between September 14 and 21, US equity indexes put up a mixed performance. Last week, the Dow Jones Industrial Average (DIA), the S&P 500 (SPY), and the S&P Mid-Cap 400 (IVOO) gave returns of 2.3%, 0.8%, and -0.3%, respectively. Energy stocks comprise about 5.2%, 5.9%, and 5.1%, respectively, of these equity indexes.
U.S. stocks on Monday mostly headed lower at the open as tensions over tariffs remained in focus for investors after China canceled trade talks with the U.S. on the deadline for a fresh round of tariffs for the superpowers. The Dow Jones Industrial Average fell 0.3% at 26,670, the S&P 500 index retreated by 0.3% at 2,919, while the Nasdaq Composite Index retreated 0.8% at 7,918. The blue-chip Dow is coming off its second straight record, after notching its first since Jan. 26 on Thursday, even as worries about escalating tensions between Beijing and Washington ran in the background. A new round of tariffs between China and the U.S. were set to take effect Monday. Meanwhile, rising oil prices are expected to offer some support for the energy sector as Brent crude oil , the international benchmark, traded at a roughly four-year high above $80 a barrel and the U.S. oil benchmark was trading at its highest levels since around July. A gathering of energy producers that concluded without a clear plan to address an expected shortfall from Iran due to U.S. sanctions on the country, was cited as the spark for Monday's crude-oil rally. In corporate news, Sirius XM Holdings Inc. said it is buying music-streaming firm Pandora Media Inc. in an all-stock deal valuing the company at about $3.5 billion. Shares of Pandora soared by more than 6%, while those for Sirius declined by 4.6%. Comcast Corp. topped 21st Century Fox Inc. in the monthslong takeover battle for European pay-TV giant Sky PLC.
On the back of Bruce Kamish's bearish technical note late August, we think that TELL could trade down on geopolitical risk and the absence of near-term catalysts. While Tellurian's business plan has a diversified three-prong approach (upstream, midstream and liquefaction) and a world-class management team lead by its founders, LNG veteran Charif Souiki and Martin Houston, we think that this ambitious strategy is still in its early innings and today is more of a "show me" story.
On September 13–20, US equity indexes had the following correlations with US crude oil November futures: the Dow Jones Industrial Average (DIA): 16.5% the S&P 500 (SPY): 0.1% the S&P Mid-Cap 400 (IVOO): -13.1%
On September 13–20, major energy ETFs had the following correlations with US crude oil November futures: the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 95.2% the VanEck Vectors Oil Services ETF (OIH): 71.6% the Energy Select Sector SPDR ETF (XLE): 69.3% the Alerian MLP ETF (AMLP): -44.4%
On September 20, US crude oil November futures fell 0.6% and settled at $70.32 per barrel ahead of OPEC and non-OPEC members’ meeting. On the same day, the Energy Select Sector SPDR ETF (XLE) was unchanged. The S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.8% and 1% on September 20. Mute energy stocks might have helped these indexes rise. In Part 3 of this series, we’ll analyze US crude oil’s relationship with these equity indexes.
U.S. Silica Holdings (SLCA) stock has fallen 40% so far in 2018. The stock has seen a downward trend since mid-May, and it hit a new 52-week low this month. It has recovered a bit since then.
In the week ending September 7, the inventories spread was -18.4%. The inventories spread is the difference between natural gas inventories and their five-year average.
The natural gas rig count stood at 186 last week—unchanged from the previous week. However, the natural gas rig count has fallen ~88.5% from its record level of 1,606 in 2008.
Energy stocks are on fire. The XLE energy ETF XLE is tracking for a seventh straight positive session on Wednesday in its longest streak in four months. Miller Tabak equity strategist Matt Maley says the charts show a bigger breakout ahead for one sector stock: Hess.
On September 17, US crude oil October futures fell just 0.1% and settled at $68.91 per barrel. However, in the last trading session, the Energy Select Sector SPDR ETF (XLE) rose 0.2%.
The CEO of Richard Bernstein Advisors believes the notion of a late-cycle environment is confusing investors.
Yesterday, President Trump imposed a 10% tariff on $200 billion worth of goods from China. For now, tariffs don’t yet cover Apple (AAPL) smartwatches and some other consumer products. While the tariffs are a somewhat toned-down version of what Trump previously threatened, they have nevertheless hurt sentiments. Trump also warned China that “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports” if the country retaliated against the tariffs. China has previously retaliated against US tariffs with tit-for-tat measures.
This week, specific events could affect oil and natural gas prices. The EIA’s (U.S. Energy Information Administration) Drilling Productivity Report, set to be released early this week, could be an important roadmap for oil and natural gas prices. Oil prices may also be sensitive to the OPEC and non-OPEC meeting scheduled for this weekend. The EIA’s latest oil and natural gas inventory data, scheduled to be released on September 19 and 20, respectively, could be an important short-term driver for oil and natural gas prices.
On September 14, Morgan Stanley raised its price target for Plains All American Pipeline (PAA) from $27 to $28. It also raised its price target for Plains GP Holdings (PAGP) from $26 to $28. Plains All American Pipeline stock has risen ~18%, and Plains GP Holdings stock has risen ~10% so far in 2018.
Between September 7 and 14, US equity indexes rose. Last week, the S&P 500 (SPY), the S&P Mid-Cap 400 (IVOO), and the Dow Jones Industrial Average (DIA) rose 1.2%, 1%, and 0.9%, respectively. Energy stocks form about 5.9%, 5.1%, and 5.2%, respectively, of these equity indexes.
A former bull says sell tech and buy value. Morgan Stanley sounds the alarm on tech. With Mike Wilson, Morgan Stanley, CNBC's Scott Wapner and the Fast Money traders, Tim Seymour, Karen Finerman, Steve Grasso and Guy Adami.
Jonathan Corpina, senior managing partner at Meridian Equity Partners breaks down the latest developments in the market and what they mean for the oil sector.