|Bid||76.12 x 4000|
|Ask||76.13 x 800|
|Day's Range||75.70 - 76.53|
|52 Week Range||64.45 - 79.42|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
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.
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.
Midstream sector stocks underperformed the broader markets last week, which ended on September 14. The Alerian MLP Index gained 0.4% compared to a 1.2% rise for the S&P 500 Index. The Energy Select Sector SPDR ETF (XLE) rose 2% for the week, and crude oil prices increased 1.8%.
In 2017, the S&P 500 returned 21.70%, including dividends paid, but the energy sector did not get the memo. Last year, the Energy Select Sector SPDR (NYSEARCA:XLE), the largest energy exchange-traded fund (ETF) by assets, lost 0.9%, marking the fifth time in the previous six years that the benchmark energy ETF trailed the S&P 500.
Lehman Brothers collapsed a decade ago. Since then, global markets have recouped their losses and equity markets have risen above their 2007–2008 highs. Broader markets have been hitting fresh highs this year. The PowerShares QQQ ETF (QQQ) has risen 18.6% for the year based on the closing prices on September 14. Two US companies hit the coveted market capitalization of $1 trillion this year. While Apple (AAPL) is still holding onto that feat, Amazon (AMZN) pared its gains after momentarily exceeding a market capitalization of $1 trillion.