Dow pulled back 48, decliners over advancers about 3-2 & NAZ went up 17. The MLP index gained 4+ to the 256s & the REIT index tumbled almost 5 to the 367s. Junk bond funds crawled higher & Treasuries remained weak. Oil shot up to the 65s (more below) & gold added 1 to 1276.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Halliburton (HAL) said a pricing downturn that has plagued the oilfield services sector was bottoming out, as it reported modestly higher activity levels in North America in Q1 from a year earlier. Oilfield services providers have been struggling with a tightening of spending by US oil producers as they rein in new drilling in response to shareholder pressure for greater returns after a period of heavy investment. HAL said activity in its largest market North America was modestly higher, adding that it expects demand for its services to progress modestly for the next couple of quarters. “We believe the worst in the pricing deterioration is now behind us,” CFO Jeff Miller said, adding that it experienced pricing headwinds throughout the qtr. The number of rigs in operation in North America fell for the past 4 months & production growth in the Permian & other key shale basins have slowed as oil prices fell in Q4. Constraints in pipeline carrying capacity have also forced oil producers to slow down drilling & production. Revenue from North America fell 7% to $3.3M in Q1 but came in above the $3.13B that had been estimated. Intl revenue rose 11% & the company reiterated its expectation of high single-digit growth for 2019. Total revenue was largely flat at $5.74B. EPS attributable to HAL rose to 17¢, up from 5¢ a year earlier. On an adjusted basis, the company had EPS of 23¢, edging past the estimate of 22¢. The stock lost 4¢.
If you would like to learn more about HAL, click on this link:
club.ino.com/trend/analysis/stock/HAL?a_aid=CD3289&a_bid=6ae5b6f7
Halliburton says pricing is bottoming out as US activity rises
Kimberly-Clark (KMB), a Dividend Aristocrat, reported EPS of $1.66 for Q1, down from EPS of $1.71 last year. However, it was a boon to the stock by beating out the estimate of $1.54. Net income reported for Q1 was $466M, a sunstantial increase over net income of $97M reported last year. The report also includes operating income of $655M, better than the personal care company's operating income of $247M reported last year. Revenue came in at $4.63B, a drop from revenue of $4.73B in the previous year. Despite this, it was still good news for KMB stock by coming in above the estimate of $4.53B. The company also reaffirmed its guidance for the full year of 2019. It's expecting EPS for the year of $6.50-6.70. Analysts are looking for EPS of $6.60. The stock jumped 6.70 (5%).
If you would like to learn more about KMB, click on this link:
club.ino.com/trend/analysis/stock/KMB?a_aid=CD3289&a_bid=6ae5b6f7
Oil prices surged to mark their highest finish since late Oct, as the US declared it would end waivers for countries to import Iranian oil, as part of a bid by the Trump administration to push Iran's exports to zero. The gains for oil came despite a tweet earlier today from Pres Trump that looked to reassure the markets that Saudi Arabia & other OPEC members will “more than make up the Oil Flow difference in our Full Sanctions on Iranian Oil.” West Texas Intermediate crude for May delivery soared $1.70 (2.7%) to settle at $65.70 a barrel on the contract’s expiration day. Prices had ended the holiday-shortened trading week with a gain of 0.2%. That marked a 7th-straight weekly gain—the longest winning streak since a 7-week rise ended Feb 28, 2014. Jun WTI, which became the front-month contract after today's settlement, added $1.48 (2.3%) to $65.55 a barrel. Jun Brent crude, the global benchmark, rallied $2.07 (2.9%) to $74.04 a barrel. Brent gained 0.6% last week, its 4th consecutive weekly rise. Sanctions on Venezuela & the approaching expiration of those waivers for importers of Iranian oil have been contributing to supply jitters recently. Chatter has included speculation that tighter sanctions against Iran & Venezuela could trigger an end to the production-cut agreement among members & some nonmembers OPEC. That deal expires in Jun. Analysts say that deal has been helping to keep prices stable against the backdrop of rising US production.
Buyers came in at midday, but they did not stay long. There was some demand for tech stocks & the NAZ was in the black for much of the day. Traders are waiting for earnings. Expectations are high & they may not be forgiving with disappointments.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Halliburton (HAL) said a pricing downturn that has plagued the oilfield services sector was bottoming out, as it reported modestly higher activity levels in North America in Q1 from a year earlier. Oilfield services providers have been struggling with a tightening of spending by US oil producers as they rein in new drilling in response to shareholder pressure for greater returns after a period of heavy investment. HAL said activity in its largest market North America was modestly higher, adding that it expects demand for its services to progress modestly for the next couple of quarters. “We believe the worst in the pricing deterioration is now behind us,” CFO Jeff Miller said, adding that it experienced pricing headwinds throughout the qtr. The number of rigs in operation in North America fell for the past 4 months & production growth in the Permian & other key shale basins have slowed as oil prices fell in Q4. Constraints in pipeline carrying capacity have also forced oil producers to slow down drilling & production. Revenue from North America fell 7% to $3.3M in Q1 but came in above the $3.13B that had been estimated. Intl revenue rose 11% & the company reiterated its expectation of high single-digit growth for 2019. Total revenue was largely flat at $5.74B. EPS attributable to HAL rose to 17¢, up from 5¢ a year earlier. On an adjusted basis, the company had EPS of 23¢, edging past the estimate of 22¢. The stock lost 4¢.
If you would like to learn more about HAL, click on this link:
club.ino.com/trend/analysis/stock/HAL?a_aid=CD3289&a_bid=6ae5b6f7
Halliburton says pricing is bottoming out as US activity rises
Kimberly-Clark (KMB), a Dividend Aristocrat, reported EPS of $1.66 for Q1, down from EPS of $1.71 last year. However, it was a boon to the stock by beating out the estimate of $1.54. Net income reported for Q1 was $466M, a sunstantial increase over net income of $97M reported last year. The report also includes operating income of $655M, better than the personal care company's operating income of $247M reported last year. Revenue came in at $4.63B, a drop from revenue of $4.73B in the previous year. Despite this, it was still good news for KMB stock by coming in above the estimate of $4.53B. The company also reaffirmed its guidance for the full year of 2019. It's expecting EPS for the year of $6.50-6.70. Analysts are looking for EPS of $6.60. The stock jumped 6.70 (5%).
If you would like to learn more about KMB, click on this link:
club.ino.com/trend/analysis/stock/KMB?a_aid=CD3289&a_bid=6ae5b6f7
Kimberly-Clark Reports Profit Rises
Oil prices surged to mark their highest finish since late Oct, as the US declared it would end waivers for countries to import Iranian oil, as part of a bid by the Trump administration to push Iran's exports to zero. The gains for oil came despite a tweet earlier today from Pres Trump that looked to reassure the markets that Saudi Arabia & other OPEC members will “more than make up the Oil Flow difference in our Full Sanctions on Iranian Oil.” West Texas Intermediate crude for May delivery soared $1.70 (2.7%) to settle at $65.70 a barrel on the contract’s expiration day. Prices had ended the holiday-shortened trading week with a gain of 0.2%. That marked a 7th-straight weekly gain—the longest winning streak since a 7-week rise ended Feb 28, 2014. Jun WTI, which became the front-month contract after today's settlement, added $1.48 (2.3%) to $65.55 a barrel. Jun Brent crude, the global benchmark, rallied $2.07 (2.9%) to $74.04 a barrel. Brent gained 0.6% last week, its 4th consecutive weekly rise. Sanctions on Venezuela & the approaching expiration of those waivers for importers of Iranian oil have been contributing to supply jitters recently. Chatter has included speculation that tighter sanctions against Iran & Venezuela could trigger an end to the production-cut agreement among members & some nonmembers OPEC. That deal expires in Jun. Analysts say that deal has been helping to keep prices stable against the backdrop of rising US production.
Buyers came in at midday, but they did not stay long. There was some demand for tech stocks & the NAZ was in the black for much of the day. Traders are waiting for earnings. Expectations are high & they may not be forgiving with disappointments.
Dow Jones Industrials
No comments:
Post a Comment