Find the latest APA Corporation APA analyst stock forecast, price target, and recommendation trends with in-depth analysis from research reports.
StrongBuy
Buy
Hold
Under-perform
Sell
Stocks were mostly lower on Thursday morning following new inflation and employment data. The Labor Department reported that its producer price index for final demand rose 2.3% year-over-year in April, down from 2.7% growth in March. The core PPI, excluding volatile food, energy and trade services prices, rose 3.4%, also slowing from 3.7% a month earlier. First-time unemployment benefit claims rose by 22,000 to a seasonally adjusted 264,000 for the week ended May 6. The reading was the highest since October 2021 and exceeded the Reuters consensus forecast of 245,000. The Dow fell 0.7%, the S&P fell 0.2%, and the Nasdaq was flat.
Stocks were mostly lower on Thursday morning, reflecting continued rate hike concerns as the 10-year Treasury yield rose above 4%. Weekly jobless claims pointed to a still strong labor market. First-time claims for state unemployment benefits fell by 2,000 to a seasonally adjusted 190,000 for the week ended February 25, below the Reuters consensus forecast of 195,000. The Dow rose 0.3%, the S&P fell 0.3%, and the Nasdaq fell 0.6%. Crude oil rose slightly to $78 per barrel, while gold traded near $1844 per ounce.
Stocks slumped throughout 2022, as the S&P 500 entered a bear market in June and closed 19% lower for the year. Value stocks generally outperformed during the year, as the Dow Jones Industrial Average fell 9% while the Nasdaq Composite dropped 33%. The leading sectors were value-oriented, such as Energy, Utilities, Consumer Staples, and Financial Services. The average stock in the Argus Universe of Coverage declined 13% during the year, and the median stock declined 15%. The average BUY-rated stock dropped 11%, while the average HOLD-rated stock fell 17%. Will investors continue to favor value in 2023? Will high inflation drive continued outperformance in Energy?
Monday Tee Up: Retail and Tech Earnings, FOMC Minutes
Stocks were mixed on Tuesday morning following earnings from Walmart and new housing market data. Walmart shares rose more than 5% after the retailer topped second-quarter earnings expectations and raised its full-year guidance. The results came after the company sharply lowered its guidance in late July. The Commerce Department said that U.S. housing starts fell 9.6% to an annualized 1.446 million in July, below the Reuters consensus of 1.540 million. Building permits also fell 1.3% to an annualized 1.674 million. The Dow rose 0.2%, the S&P fell 0.3%, and the Nasdaq fell 0.5%. Crude oil fell 1% to $88.50 per barrel, while gold traded near $1794 per ounce.
Reading the Tea Leaves on Consumers
Stocks stumbled early in 2022. Growth stocks were the weakest, as Technology, Communication Services, and Consumer Discretionary underperformed. Leading sectors tended to be value-oriented, including Energy, Financial, and Utilities. The average stock in the Argus universe declined 2% in 1Q22, and the median stock declined 4%. The average BUY-rated stock dropped 3.2%, while the average HOLD-rated stock gained 1.4%. Will investors continue to favor value? Will high inflation drive continued outperformance in Energy and Materials? Given interest rates that remain historically low, we expect growth stocks to outperform over time and believe that 2022 simply may be the one-in-five years that value leads. Investors seeking value are encouraged to focus on dividends and yields in the 3%-4% range. Our current Over-weights sectors are Energy, Financial, Healthcare, Industrials, and Materials.
The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.
With the market focus shifting from inflation to the Russian invasion of Ukraine, stocks finished last week with a surprise two-day rally that included the best stock day of 2022. On Friday, the Dow Jones Industrial Average soared by 835 points, or 2.51%. The S&P 500 rose 2.24%, and the Nasdaq Composite gained 1.64%. For the week, the DJIA was down 20 points, or 0.1%, while the S&P 500 rose 0.82%, and the Nasdaq Composite gained 1.09%. For the year to date, the Dow is down 6.2%; the S&P 500 is off 8.01%; and the Nasdaq Composite remains in correction territory though off its lows, down 12.47%.
Stocks edged higher on Friday morning, led by the Technology and Communication Services sectors. Johnson & Johnson announced that it would split into two companies, one focused on pharmaceuticals and the other on consumer health products. On the employment front, the Labor Department, in its monthly JOLTS report, said that U.S. job openings slipped to 10.4 million on the last day of September, down from 10.6 million a month earlier but above the Reuters consensus forecast of 10.3 million. The Dow rose 0.1%, the S&P 0.3%, and the Nasdaq 0.4%. Crude oil traded near $81 per barrel, while gold fell slightly to $1864 per ounce.
Stocks were mixed on Wednesday morning as investors weighed new consumer price data. The Labor Department said that its consumer price index rose 0.5% in July, down from 0.9% in June and in line with the Reuters consensus forecast. Consumer prices also rose 5.4% from the prior year, slightly above the consensus forecast of 5.3%. The Dow rose 0.5%, the S&P was flat, and the Nasdaq fell 0.6%. Crude oil traded near $67.50 per barrel, while gold rose $20 to $1752 per ounce.
Stocks were mixed on Friday morning following a positive manufacturing activity report and new housing market data. IHS Markit said that its flash manufacturing PMI rose to 61.5 in the first half of May, up from a final reading of 60.5 in April and above the consensus forecast. The National Association of Realtors said that U.S. existing home sales fell 2.7% in April to an annualized 5.85 million, below the consensus of 6.09 million. At the same time, the median existing home price rose 19.1% from the prior year to $341,600. On the earnings front, Deere shares rose more than 3% after the farm equipment maker posted strong fiscal 2Q results and raised its full-year earnings guidance. The Dow rose 0.7%, the S&P rose 0.3%, and the Nasdaq fell 0.1%. Crude oil traded near $64 per barrel, while gold fell $6 to $1876 per ounce.
Apache, based in Houston, is one of the largest independent exploration and production companies in the world. It operates primarily in the U.S., Egypt, the North Sea, and Suriname. At year-end 2019, proved reserves totaled 1.0 billion barrels of oil equivalent, with net reported production of 417 mboe/d (68% of which was oil and natural gas liquids, with the remainder comprising natural gas).
Stocks fell sharply on Thursday for a second day, though they pared some of their losses late in the session. Fed Chair Jerome Powell, speaking at a Wall Street Journal conference, appeared to trigger the selloff by suggesting that 10-year Treasury yields could rise further, as they have in recent weeks. On the employment front, first-time unemployment benefit claims rose by 9,000 to 745,000, but came in below the consensus estimate, while continuing claims fell to 4.295 million, also slightly below consensus. The data came ahead of the government's February employment report on Friday morning. The Reuters consensus calls for the addition of 182,000 new payroll jobs, up from 49,000 in January. The Dow fell 1.11%, the S&P 1.34%, and the Nasdaq 2.11%. Crude oil rose more than 4% to $64 per barrel, while gold dropped $19 to $1697 per ounce.
Stocks traded mostly lower on Tuesday morning, a day after rallying strongly on news of positive clinical trial results for the Pfizer/BioNTech coronavirus vaccine. Technology and Communication Services stocks fell as investors turned away from companies that have benefited from remote working and stay-at-home restrictions during the pandemic. On the earnings front, Beyond Meat shares fell more than 20% after the company posted sharply lower revenue and a wider-than-expected third-quarter loss. Eli Lilly shares rose more than 3% after the drug maker received FDA emergency use authorization for its COVID-19 antibody treatment. The Dow was flat, the S&P fell 1.0%, and the Nasdaq fell 2.2%. Crude oil traded near $41 per barrel, while gold rose $26 to $1881 per ounce.
July more than lived up to its reputation as the best summer stock month, delivering capital appreciation of 5.5%. End of story: nothing to see here, move along.
The major market indices are having a strong second quarter, with gains for the S&P 500, Dow Jones Industrial Average and Nasdaq Composite ranging from 18%-30%. Growth stocks are outperforming value, as the Russell 1000 Growth Index is up 28% compared to the Russell 1000 Growth Index's gain of 13%. Small-caps have outperformed, with the Russell 2000 rising approximately 25%. Industrialized international stocks underperformed domestic stocks, as the EAFE Index increased 15% while the MSCI Emerging Markets Index advanced a stronger 20%. Within the Argus Universe, the Top 5 and Bottom 5 performers were as follows.
Stocks rose strongly on Wednesday morning, recovering from the late-day selloff on Tuesday. Lowe's reported strong first-quarter sales and earnings, driven by an 80% increase in online sales. Target also topped consensus estimates on strong digital sales, which rose 141% from the prior year. The Dow rose 1.7%, the S&P 1.9%, and the Nasdaq 2.2%. Crude oil traded near $33 per barrel, while gold rose $6 to $1751 per ounce.
U.S. stocks rebounded on Monday morning, recouping some of last week's losses amid expectations for new rate cuts from the Federal Reserve. Economic data was mixed. IHS Markit said that its manufacturing purchasing managers' index fell to 50.7 in February from 51.9 in January, reflecting coronavirus disruptions. On the positive side, the Commerce Department reported that U.S. construction spending rose 1.8% to a record $1.369 trillion in January, above the consensus forecast of 0.6% growth. The Dow rose 2.1%, the S&P 2.0%, and the Nasdaq 2.2%. Crude oil rose 4% to $46.50 per barrel, while gold jumped $28 to trade near $1595 per ounce.
Bulls on the Run: Our Monthly Survey of the Economy, Interest Rates, and Markets
Copper, once known as Dr. Copper when it used to do a good job forecasting the economy, is trying to bottom. Whether this has anything to do with a stock market at all-time highs or a possible trade resolution (leading to a better economy) is anyone's guess. But there are factors that favor the metal going higher, starting with the chart pattern.
Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, most smaller companies are often more focused on domestic operations and may not be exposed to the uncertainty surrounding the ongoing trade wars. For another, the long-term record favors small-caps over large-caps. Since 2003, the Russell 2000 Index has climbed 260%, compared to an advance of 189% for the Russell 1000 Value Index. But small-caps can be risky. Large-caps outperformed small-caps in nine of the 16 years of our test period. Annual returns were negative four times for both indices, but the average decline for small-caps was 18% in down years versus an average 12% annual decline for large-caps in down years. The standard deviation for monthly returns was 5.29% for small-caps over the 15-year period, versus 3.89% for large-caps. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 15%-20% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks.
The major indices are down sharply at midday on Friday as trade war fears continue to impact the markets. Uber Technologies fell 6% after reporting a record-setting $5.2 billion loss on Thursday. Bayer shares rose strongly after the company reportedly offered $8 billion to settle lawsuits related to claims that its Roundup herbicides caused cancer. Industries doing well today include Electric Utilities, Health Care Equipment & Supplies, and Wireless Telecommunication Services. Industries showing weakness include Auto Components, Leisure Products, and Semiconductors & Semiconductor Equipment. The VIX is up 1.61 to 18.52 after the previous close of 16.91. The Dow fell 1.0%, the S&P 1.2%, and the Nasdaq 1.5%. Crude oil rose more than 3% to $54 per barrel, while gold rose $7 to trade near $1517 per ounce.
Stocks pared early losses on Wednesday morning as investors awaited what could be a decisive round of U.S.-China trade talks in Washington. If the two nations do not reach an agreement, President Trump has threatened to increase tariffs to 25% from 10% on $200 billion of Chinese goods. On the earnings front, videogame maker Electronic Arts rose 1.5% after posting better-than-expected sales and adjusted earnings in its fiscal fourth quarter. New York Times shares also rose strongly after the company posted higher 1Q earnings and an increase in digital subscriptions. The Dow and the S&P were flat, and the Nasdaq fell 0.1%. Crude oil rose more than 1% to $62 per barrel, while gold fell $4 to $1282 per ounce.
