XOM - Exxon Mobil Corporation
| Previous Close | 68.41 |
| Open | 68.76 |
| Bid | 69.50 x 1000 |
| Ask | 69.60 x 1400 |
| Day's Range | 68.76 - 69.83 |
| 52 Week Range | 64.65 - 83.49 |
| Volume | 12,616,617 |
| Avg. Volume | 11,312,480 |
| Market Cap | 294.104B |
| Beta (3Y Monthly) | 1.00 |
| PE Ratio (TTM) | 20.25 |
| EPS (TTM) | 3.43 |
| Earnings Date | Jan 30, 2020 - Feb 3, 2020 |
| Forward Dividend & Yield | 3.48 (5.09%) |
| Ex-Dividend Date | 2019-11-08 |
| 1y Target Est | 79.20 |
- MarketWatch
The most important thing to know about the Saudi Aramco IPO
Saudi Aramco’s initial public offering is set to begin trading Wednesday, and expect the financial media industrial complex to go into overdrive.
- Investopedia
Energy Sector Stocks Surge Ahead
We look at some winners in the energy sector. Meanwhile, labor statistics posted extremely high marks.
- Moody's
Exxon Mobil Corporation -- Moody's announces completion of a periodic review of ratings of Exxon Mobil Corporation
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Exxon Mobil Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
- Oilprice.com
Oil Jumps On ‘’Saudi Surprise’’
Oil prices rose on Friday morning, fueled by optimism about the new OPEC+ deal and the Saudi promise to, once again, overcomply with their production quota
- Benzinga
Option Trader Bets $1.3M On Exxon Mobil Upside Through 2022
On Friday morning, Benzinga Pro subscribers received two option alerts related to unusually large Exxon Mobil trades. At 9:31 a.m., a trader sold 1,000 Exxon put options with a $70 strike price expiring on Jan. 17 at the bid price of $1.71. At 9:41 a.m., a trader bought 1,150 Exxon call options with a $60 strike price expiring in January 2022 near the ask price at $11.95.
- Bloomberg
Oil Surges After Saudis Surprise Market With Additional Cuts
(Bloomberg) -- Oil in New York posted the biggest weekly gain since June after Saudi Arabia surprised the market with a significant supply cut beyond what was agreed to with fellow OPEC+ members.WTI settled 1.3% higher on Friday after Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said the country would continue its voluntary cut of 400,000 barrels a day. That brings total cuts implemented by the Organization of Petroleum Exporting Countries and its allies to 2.1 million barrels a day, he said.“The comments are what drove the market up,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Mass. “Total cuts are larger and substantially better than what the market was expecting.”After the announcement, Prince Abdulaziz predicted that Saudi Aramco, which just completed an IPO at a valuation of $1.7 trillion, would soon soar above $2 trillion. The kingdom plans to pump 9.7 million barrels a day, he said. The additional supply reduction would take the kingdom’s production down to levels not seen on a sustained basis since 2014, according to data compiled by Bloomberg.Still, prices surrendered some of their early gains after the initial surge. “Investors have other concerns limiting the upside including what will come of trade over the weekend,” said Rob Haworth, who helps oversee $151 billion at U.S. Bank Wealth Management in Seattle.While OPEC+ is taking 500,000 barrels a day out of the market, they are taking it out because demand isn’t there, he added. “They were crowded out by non-OPEC output, like U.S. output. So, it should be a more bearish scenario for prices.”West Texas Intermediate for January delivery settled up 77 cents to $59.20 a barrel on the New York Mercantile Exchange. The U.S. benchmark rose 7.3% for the week. Brent for February settlement gained $1 to $64.39 a barrel on the London-based ICE Futures Europe Exchange, registering the largest weekly gain since late October. The global benchmark traded at a $5.29 premium to WTI for the same month.To contact the reporter on this story: Sheela Tobben in New York at vtobben@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Mike Jeffers, Catherine TraywickFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
7 Energy Stocks That Are Still Worth Buying In 2020
Some folks are saying that it's time to throw in the towel on energy stocks. After all, the sector, as measured by the Energy Select Sector SPDR (NYSEARCA:XLE), is barely up for the year. Look at the more aggressive SPDR S&P Oil & Gas Explore & Prod. ETF (NYSEARCA:XOP), which includes smaller, wildcat oil and gas companies, and the sector has managed to lose money in 2019 -- a year in which nearly everything else has rallied sharply.Zoom out, and things look even worse. XLE and XOP are down 27% and 57% over the past five years, respectively. Over the same time period, the S&P 500 is up more than 50%.To be clear, an oil and gas bust is one thing. However, the rhetoric has gotten even darker now. On one hand, you have folks saying that fracking and shale have unlocked nearly unlimited amounts of cheap energy going forward. On the other, environmentalists and electric car advocates suggest that the fossil-fuel era is ending.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWithin a decade or two, they claim, we'll all be using electric vehicles powered by windmills and solar panels.The truth, as always, is more complicated. New developments in energy extraction have created more supply, sure. However, the shale boom is already losing steam, and we should expect a major slowdown in 2020 and onward. Shale has not proven a reliable generator of actual operating profits, so capital is quickly leaving the sector and production gains will taper off as well.Meanwhile, on the alternative energy front, there's certainly great progress there. But solar and wind still make up just a couple percent of overall worldwide power generation; old-fashioned hydro power is still far more important. It's a fantasy to think we'll go from sub-5% wind and solar to a majority of them in a short period. As it is, the world is still phasing out coal -- a process that is taking decades -- and there's little reason to get rid of oil and gas while far more environmentally damaging coal retains wide usage. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping As always, it's a cycle. Oil is currently in a bust, but it will have another boom. The IEA estimates oil demand will continue rising sharply for at least another five years and then plateau around 2030. The "twilight" of oil is still quite a ways off, and in the meantime, there are profits to be made as the current oil bust gives way to the next big upswing. Energy Stocks to Buy: ExxonMobil (XOM)Source: Jonathan Weiss / Shutterstock.com ExxonMobil (NYSE:XOM) is arguably the most-hated mega-capitalization stock in America right now. It's one of the few large companies just hovering around even in 2019. The Environmental, Social, and Governance (ESG) funds are rushing to dump Exxon and other oil majors. The climate change protests have raised particular animosity toward Exxon given its role in controversial scientific and lobbying efforts.All in all, many folks feel embarrassed to talk about Exxon, let alone say they are buying it hand over fist. We can profit from this because XOM stock is offering its highest dividend yield in nearly 30 years at the moment, as the stock offers a 5% dividend.Some bears on XOM stock make an argument that Exxon can't cover its dividend out of cash flow, but this is faulty analysis.Exxon is currently spending tons of money with the intention of doubling its profits and cash flow over the next five years. Huge projects such as the offshore Guyana field are coming online now. Investors buying XOM stock today will be rewarded over the next several years as these forward-looking investments start to pay off in a big way. Canadian Natural Resources (CNQ)Source: Shutterstock Exxon is the most obvious energy stock to buy right now. It's the rare household name that offers a fat dividend, a fantastic balance sheet and is seriously undervalued. XOM stock checks all the boxes.Of the oil majors with the most upside, however, that title goes to Canadian Natural Resources (NYSE:CNQ).Canadian energy companies have a big advantage over U.S.-based firms at the moment. The edge is that Canada has had a glut of oil and gas production in recent years. Meanwhile, political roadblocks have prevented Canadian midstream entities from building sufficient pipelines and other takeaway capacity. This has caused Canadian oil and gas prices to slump far below world levels.Deeply discounted oil and gas prices have hurt smaller energy firms, but it has helped the large players like Canadian Natural. Why's that? It has forced the oil companies to focus on cash flow, and the ones that don't have enough of it have already gone bust. Canadian Natural has been buying up assets on the cheap from Devon (NYSE:DVN) and other struggling firms as low prices have forced huge layoffs and spending cuts.In essence, Canada has already lived through the sort of anti-energy, industry regulatory environment that investors now fear may hit the U.S. in 2021 depending on the outcome of the presidential election.CNQ stock has gotten thrashed, along with the sector; But it deserves better. The company is generating an enormous free cash flow yield of 12% per year. That means, even after capital expenditures, Canadian Natural would earn back its entire market cap in cash flow in just eight years. And Canadian Natural has tons of long-life assets that will generate cash for decades.CNQ stock is offering a 4% dividend, but still leaves plenty of cash flow for other uses -- giving it plenty of room to pick up more assets at fire sales prices, buy back stock or pay down debt. CNQ stock is set to prosper even with flat oil prices, and will make windfall gains when oil prices recover. In the meantime, enjoy the dividend. * 6 Manufacturing Stocks to Buy as the Economy Recovers Canadian Natural has hiked the dividend payout reliably, which is especially impressive given the plunge in oil prices and massive dividend cuts and bankruptcies elsewhere in the industry. Suncor (SU)Source: Steven Bratman via FlickrLike Canadian Natural Resources, Suncor (NYSE:SU) is another dirt-cheap Canadian energy stock to consider now. In fact, Barron's just profiled Suncor as a better alternative to Saudi Aramco for investors wanting a giant, integrated energy firm at a fantastic price.What's to like about Suncor? For one thing, the company is shareholder friendly -- a rare trait in energy firms nowadays. Morgan Stanley's Benny Wong recently wrote that: "Suncor is a poster child for capital discipline and returning cash to shareholders." He has an outperforming rating and $38 price target on SU stock.He's right about the dividend. Suncor stock offers a 4% dividend, and management intends to hike it roughly 10% every year going forward. On top of that, Suncor buys back a substantial chunk of stock every year. It can fund all this because, like Canadian Natural, it has oil sands which can produce for decades without losing any production volume. Oil sands production is more akin to manufacturing than conventional oil production, as the resources are easily visible and recoverable at the surface of the earth. Process them, sell them and get your cash. That's way different from shale, where production volumes decline precipitously soon after a new well begins production.Long story short, Suncor is a safe income stock that investors are too worried about due to it being in the energy industry. Suncor has many decades of oil reserves and won't need to spend much capital to keep production going at current levels. Even at current low energy prices, Suncor is making a boatload of cash. Once shale producers see production slump, oil prices should rise and give Suncor even fatter profit margins on its production. Valero (VLO)Source: Mike Mozart via FlickrOil refiners have become surprisingly good energy stocks in recent years. In the past, refiners were a boom-bust business that produced little meaningful shareholder value over time. Prices would surge when a big hurricane or snowstorm caused outages and gas price spikes, and prices would slump whenever refining spreads went down.With the advent of the fracking boom, however, refiners have been one of the biggest winners. They now get access to unusually cheap North American oil, since there is a glut locally. If you can sell gasoline, asphalt, petrochemicals and the like at the same price as before and buy your crude oil at a discount from Texas rather than Saudi Arabia, you're naturally going to earn a better profit margin.Additionally, the federal government has put numerous regulations in place that make it largely impossible to build new refineries or add substantial supply to the overall market. This, in turn, has helped insulate the industry from competition and keep margins high for years now. * 9 Tech Stocks You Wish You'd Bought During 2019 Valero (NYSE:VLO) is one great example. It runs a boring, but exceptionally profitable business refining and distributing gasoline and other oil products. VLO stock is trading at $94 and is set to generate just under $10 per share of earnings next year. That adds up to a P/E ratio under 10. Valero pays nearly a 4% dividend and is a cash flow machine prospering from the glut of shale production. Delek (DK)Source: Casimiro PT / Shutterstock.com Delek (NYSE:DK) is another refining play like Valero. In contrast to Valero, however, Delek is a regional player with a market capitalization of just $2.52 billion. This means that DK stock has more volatility as oil prices swing around. DK stock surged from $12 to $60 between 2016 and 2018 as oil prices recovered and the outlook for oil and gas activity firmed up.Since then, though, DK stock has given back half its gains, and now trades around $34. The current drop in energy prices may hit shale activity going forward and lower refining margins. That's what the market is pricing in, nevertheless.With the share price drop, however, Delek is now selling for less than 7x trailing earnings and pays a 3.6% dividend yield. With any upturn in sentiment for the oil and gas industry, Delek stock could enjoy a sharp reversal and head back up toward its 2018 highs. Chevron (CVX)Source: Sundry Photography / Shutterstock.com Chevron (NYSE:CVX) is not my absolute favorite play of the giant oil majors. But it's certainly an energy stock to consider, regardless. Chevron has produced tons of value for its loyal, long-term shareholders.Going forward, Chevron has bet heavily on liquefied natural gas (LNG) projects. If these work out as planned, CVX stock will enjoy tremendous gains. At the moment, however, the natural gas market is absolutely drowning in excess supply. Natural gas prices have already slumped in the U.S, And now, the country is exporting the glut internationally; LNG prices have tanked in Europe and Asia thanks to rising shipments. * 7 Exciting Biotech Stocks to Buy Now This may make Chevron stock more of a 2021 or 2022 story, as this market is unlikely to improve within the next few quarters. Long term, though, Chevron offers a lot of value after a decade of underwhelming returns. With the next surge in oil and gas prices, Chevron will go from being a Dog of the Dow to a star performer once again. Northrim Bank (NRIM)Source: Shutterstock Finally, stick with me for this one. You might be asking what a bank such as Northrim (NASDAQ:NRIM) is doing on a list of energy stocks to buy -- and that's a fair question.The answer is that Northrim is one of Alaska's two large, home-grown banks. It's pretty much just them and First National Bank of Alaska (OTCMKTS:FBAK) that dominate the local banking scene. There are a few national rivals with branches in Alaska, but if you want to do business with a company headquartered there, Northrim is at the top of a very short list of options.This geographic isolation has paid Northrim huge benefits over the years. Its net interest margin (NIM) tends to run 30%-40% above the national average due to Alaska's prosperity and the lack of local banking competition. Even with interest rates in the dumps now, Northrim is earning a net interest margin today that is on par with what lower 48 banks were earning 20 years ago (that is to say, much better). The scourge of zero-interest-rate policy hasn't hit in the same way up north.Thus, you get an unusually profitable bank in NRIM stock that also has a huge inflation kicker. If the price of timber goes up, Northrim wins. If gold prices surge, that's good for Alaska's mines. And obviously, if oil takes off again, Alaska is well-endowed there as well.Northrim scores doubly on that front since Alaska pays out an oil dividend to each one of its residents every year funded out of royalties from energy production. Long story short, higher commodities prices are a home run for the Alaskan economy, and Northrim is a natural beneficiary.At the time of this writing, Ian Bezek owned XOM, CNQ, SU, and NRIM stocks. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post 7 Energy Stocks That Are Still Worth Buying In 2020 appeared first on InvestorPlace.
- MarketWatch
Dow jumps 266 points on gains for 3M, Chevron stocks
DOW UPDATE Powered by positive momentum for shares of 3M and Chevron, the Dow Jones Industrial Average is trading up Friday morning. The Dow (DJIA) is trading 266 points, or 1.0%, higher, as shares of 3M (MMM) and Chevron (CVX) have contributed to the blue-chip gauge's intraday rally.
- Zacks
The Zacks Analyst Blog Highlights: ExxonMobil, Starbucks, Diageo, Fidelity National Information Services and Colgate-Palmolive
The Zacks Analyst Blog Highlights: ExxonMobil, Starbucks, Diageo, Fidelity National Information Services and Colgate-Palmolive
- Zacks
ExxonMobil to Commence 31-Well Exploration Program in Guyana
ExxonMobil (XOM) has made 14 discoveries at the Stabroek block, wherein recoverable reserves are estimated to be more than 6 billion barrels of oil equivalent.
- Zacks
It's Official: Saudi Aramco to Become the Biggest IPO Ever
Saudi Aramco, which is set to trade on the Riyadh stock market, beat the previous record held by Chinese e-commerce behemoth Alibaba.
- Oilprice.com
Six Oil Stocks To Survive The Shale Bust
The U.S. shale patch is showing serious signs of financial distress, but a few companies continue to drill profitably for oil & gas in America’s most prolific shale basins
- Yahoo Finance
Stock Market Live Updates: Saudi Aramco shares priced at top of range in world's biggest IPO
Headlines moving the stock market in real time.
- Zacks
Top Stock Reports for ExxonMobil, Starbucks & Diageo
Top Stock Reports for ExxonMobil, Starbucks & Diageo
- Kiplinger
19 Best Retirement Stocks to Buy in 2019
Generating safe, regular income and preserving capital are two primary objectives in retirement. The best retirement stocks to buy, then - whether you're buying in 2019 or any other year - must be quality dividend payers that can help meet both of those goals in the long-term.Unlike many fixed-income investments, numerous dividend stocks offer relatively high yields, grow their payouts each year and appreciate in price over time as their businesses generate more profits and become more valuable.Not all dividends are safe, however. From General Electric (GE) and Owens & Minor (OMI) to L Brands (LB) and Buckeye Partners LP (BPL), several high-profile dividend-payers slashed their payouts in 2018, sending their stock prices tumbling. So the dividend stocks you depend on must be chosen with care.These are the 19 best retirement stocks to buy for 2019. Research firm Simply Safe Dividends developed a Dividend Safety Score system that has helped investors avoid more than 98% of dividend cuts, including each of those companies listed above. The 19 stocks on this list have solid Dividend Safety Scores and generous yields near 4% or higher, making them appealing retirement stocks for income. Importantly, they also have strong potential to maintain and grow their dividends in all manner of economic and market environments. SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
- Zacks
Oil Price Gains 4.2% in a Day: What's Behind the Rally?
EIA's Weekly Petroleum Status Report shows a much bigger-than-expected drawdown in oil inventories, ending several consecutive weeks of builds.
- Reuters
UPDATE 7-Second evacuation order lifted in Texas city hit by explosion, chemical fire
Authorities on Thursday lifted a second evacuation order in a week for thousands of people in a Texas city as U.S. safety officials began examining what caused the latest in a series of chemical plant fires in the state. The about 14,000 residents of Port Neches 95 miles (153 km) east of Houston were told to flee late on Wednesday when air monitors detected high levels of cancer causing petrochemicals butane and butadiene following an explosion last week. Butadiene is the main product of the TPC Group's facility in the city struck by last week's blast and fire, which injured three workers and prompted an initial, two-day evacuation.
- ETF Trends
This ETF Could Beckon if Energy Stocks Rebound
There are rumblings that the energy sector, a laggard for much of this year, could be ready to rebound in 2020. Investors can participate in that action without making a full commitment to the sector via the FlexShares Morningstar Global Upstream Natural Resource Index Fund (GUNR) . The FlexShares global natural resources strategy takes an “upstream” focus that targets companies with ownership or direct access to the raw materials.
- Zacks
ExxonMobil to Dump LNG Import Terminal Plan in Australia
ExxonMobil (XOM) has gone through an extensive study to gauge demand interests for the proposed LNG import facility in Australia, which yield lesser-than-expected commitments.
- Bloomberg
Aramco’s IPO Gives Saudi Arabia Incentive to Pump More Oil, Not Less
(Bloomberg Opinion) -- Now that Saudi Aramco is finally about to become a public company, it will have to start acting like one. And that means the share price of the state-owned oil giant will be of primary consideration to its executives and its shareholders. The kingdom’s monarchy, which will still control nearly all of Aramco’s shares after the IPO, will have particular interest in the stock price as it seeks to sell additional shares following the lock-up period. But because Aramco is a unique oil company, this could lead to unexpected OPEC oil policies.The widely held perception is that the Saudi monarchy will seek higher oil prices to bolster the share price for a publicly traded Aramco (the company’s formal name is Saudi Arabian Oil Co). The accepted forecast calls for Saudi Arabia’s Oil Ministry to act to limit OPEC production at this week’s meeting or those in the future, to achieve these higher oil prices — and indeed, there are reports that the kingdom is pushing for a three-month extension of current production cuts, through June 2020. However, the best way for Saudi Arabia to boost Aramco’s share price is actually to increase its own oil production, even if that leads to lower prices for crude. As such, the oil market needs to be prepared for the possibility that Saudi Arabia may employ this strategy prior to any future sales of Aramco shares.The Aramco IPO is only the beginning of Saudi Arabia’s attempt to monetize its national oil company. Various members of the Saudi government have suggested that more shares of Aramco will be sold in the future, either on the local Saudi stock exchange or possibly on an international bourse. Crown Prince Mohammed bin Salman will likely be eager to sell more shares, especially since he was forced to scale back his original plan of selling 5% of the company at a $2 trillion valuation. The government will be forced to wait at least six months before it engages in most types of sales, though it can sell shares to foreign governments before that. In advance of future share sales, Saudi Arabia will want to maximize Aramco’s revenue and profit, just like any public company that wants to increase the attractiveness of its stock. The common view is that share prices for oil companies go up when oil prices rise, and this is generally true for companies such as Exxon Mobil Corp. or Total SA. But even those companies would tend to keep pumping even when oil prices are middling, like they are now, because they need to show revenue strength. Oftentimes, it is expected that Aramco and OPEC partners will be the producers that try to raise or maintain the price of oil by actively decreasing production. However, for Aramco, the sale of more oil, even at relatively low prices, offers a better opportunity to increase revenue and profit to look good at earnings time.Aramco has the lowest lifting cost per barrel of oil (production costs after drilling), at $2.80, and an exceedingly low upstream capital expenditure per barrel of $4.70. As a result, Aramco makes much more money per barrel of crude it sells than any other oil company and can make much more money per barrel at lower prices — though of course it wouldn’t benefit from a slump. As for the opposite scenario of tightened production, Saudi Arabia’s oil policy has been fairly ineffective at raising oil prices in a market that features lagging demand growth and rising supply from non-OPEC producers like the U.S. Thus, it is questionable as to how much OPEC could raise the price of oil if Saudi Arabia wanted it to.Even if Saudi Arabia was able to push up oil prices, profit growth would diminish. Under the new marginal royalty scheme in Saudi Arabia, the company currently only pays 15% to the kingdom on crude production at current price levels. But if the price rises above $70, the royalty rate hits 45%, and above $100 it hits an enormous 80%. At some point, the rise in oil price helps the Saudi government coffers much more than the company, and potential investors know that. One of the reasons Aramco is unique among oil producers is that it can significantly increase its production. In fact, Aramco is currently required, under the Saudi Hydrocarbons Law, to be able to produce 12 million barrels per day with three months’ notice. That would be an increase of 2.2 million barrels per day from its October levels. Most likely, Aramco could produce in excess of 12 million barrels, if the government directed. In addition to increased production, Aramco also maintains significant amounts of stored oil, which it can release to the market to increase its own revenue.In contrast, other major producers can’t increase their crude oil sales in any significant way. They don’t maintain large amounts of spare capacity, because they are producing to optimize revenue all of the time; after all, they have shareholders to appease. Aramco has left its production far below capacity for good reasons. Traditionally, Aramco and the Saudi government haven’t immediately needed more cash and have prioritized the health and long-term viability of Saudi Arabia’s oil reserves. Moreover, until now, Saudi Arabia hasn’t had to consider Aramco’s share price.Now, with a focus on share price and optimizing the amount of cash the monarchy can make from future share sales, Aramco has reason to enhance its revenue and profits in the short term. The best way to do this is for the company to increase oil production. As the de facto leader of OPEC, we can expect these new incentives to factor into Saudi Arabia’s preferred oil policies from here on out.To contact the author of this story: Ellen R. Wald at ewald@tvslconsulting.comTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Ellen R. Wald is president of Transversal Consulting and a nonresident senior fellow at the Atlantic Council's Global Energy Center.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- InvestorPlace
Dow Jones Today: A Terrible Tuesday
Although December is usually a good month for stocks, that historical precedent wasn't followed yesterday. And defiance of that trend got much, much worse today as all three major equity benchmarks were slammed on the renewal of trade tensions between the U.S. and China.Source: Provided by Finviz * The S&P 500 slid 0.66% * The Dow Jones Industrial Average plunged 1.01% * The Nasdaq Composite tumbled 0.55% * In late trading, trade-sensitive names Intel (NASDAQ:INTC) and Dow (NYSE:DOW) were fighting for the dubious distinction of worst-performing Dow stock today as both were flirting with losses of more than 2.5%Riskier assets were roiled today as President Trump dialed back expectations that Phase I of a trade deal with China will soon be signed, prompting speculation that tariffs scheduled to go into effect on Chinese imports on Dec. 15 will proceed."I like the idea of waiting until after the election for the China deal. But they want to make a deal now and we'll see whether not the deal is going to be right," said the president earlier today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsChina wasn't the only major economy drawing Trump's ire today. The president is threatening $2.4 billion worth of trade levies on French imports, something the Eurozone's second-largest economy is already promising retaliatory action on.All that just a day after the White House pledged to implement tariffs on Argentine and Brazilian steel imports to protect domestic producers. * 7 Exciting Biotech Stocks to Buy Now All that got the Dow Jones Industrial Average to a situation where in late trading today, Merck (NYSE: MRK) was the only member of the index in the green and only modestly so. Exxon Excellence … Sort OfPredictably, oil equities were weak today on the back of the aforementioned trade jitters and Dow component Exxon Mobil (NYSE:XOM) was not immune from that scenario. However, on a day when good news was hard to come by, there was actually some of that for Exxon.Bank of America Merrill Lynch named Exxon as its top big oil pick for 2020, noting the largest U.S. oil company offers significant upside potential."BAML said the stock was its top U.S. oil major pick for 2020 and that counter cyclical investments and asset sales should vanquish market skepticism over whether it can outperform its peers," reports Barron's.The bank has a $100 price target on Exxon, which traded around $68 today. Affirming GuidanceUnderscoring the rough sledding for stocks today, shares of UnitedHealth (NYSE:UNH) lost more than 1%. As was the case with Exxon, there was some decent news flow out for UNH today even though the stock lost ground.The company said it expects net earnings per share for 2019 to hover around $15. The managed care provider previously forecast earnings of $14.90 to $15 per share.UNH, which hosted its investor day today, forecast earnings of $16.25 and $16.55 per share in 2020. Bad Action On Good NewsAdding to the theme of stocks slumping today even with some positive headlines, there's Nike (NYSE:NKE), one of the Dow's more trade-sensitive names. The athletic apparel giant was sporting a loss of more than 1% in late trading.Morgan Stanley's Kimberly Greenberger revealed a new price target of $118 on Nike today, implying upside of more than 25% from the stock's Tuesday close."We continue to believe NKE is in the early innings of transition from a traditional wholesale business to a digitally-driven, direct-to-consumer brand," said the analyst in a note to clients. Dow DownerAs noted earlier, chemicals maker Dow was one of the worst-performing names in the blue-chip index today due to its trade sensitivity. That's bad news because the stock declined yesterday as well after Morgan Stanley downgraded it to "equal weight" from "outperform." If Dow falls another 3%, it'll violate its 50-day moving average, potentially accelerating declines from there. * 10 of the Best Stocks to Buy Right Now From the JUST 100 List Bottom Line on the Dow Jones TodayHindsight is 20/20, but a day like today was probably brewing for some time given the inability of the U.S. and China to come to trade terms. Sure, there are plenty of musings about Phase I of a trade deal, but the longer it took to put that plan into action, the greater the risk that President Trump would lose patience. That's where we arrived at today.Over the near-term, the White House can help stocks get back on track by delaying the tariffs set to go into effect on Dec. 15. However, there are no guarantees that will happen.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Biotech Stocks to Buy Now * 10 of the Best Stocks to Buy Right Now From the JUST 100 List * 4 Marijuana Stocks to Own If the U.S. Legalizes Pot The post Dow Jones Today: A Terrible Tuesday appeared first on InvestorPlace.
- Barrons.com
Exxon Mobil Stock Could Surge 47% as 2020 May Finally Be the Oil Giant’s Year, Analyst Says
Exxon Mobil’s stock could surge by 47% as production ramps up and growth accelerates, according to Bank of America Merrill Lynch.
- GuruFocus.com
Should You Invest in the Saudi Aramco IPO?
Company's valuation has received mixed reactions from analysts Continue reading...
- ETF Trends
Energy ETFs Can Regain Their Grooves
The Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy ETF, is up less than three percent this year, underscoring the point that energy is one of the worst-performing groups in ...
- Yahoo Finance Video
Why the Saudi Aramco valuation is 'not as farfetched' as people thought
Saudi Aramco is expected to be valued at $1.7 trillion dollars with an IPO price of 32 riyals per share, according to Reuters. Lami Ajibesin, Anchin Managing Director joins Yahoo Finance's On the Move to discuss.
