Dow rose 81, advancers over decliners 2-1 & NAZ gained 27. The MLP index was off fractionally to the 252s & the REIT index gained 2+ to the 278s. Junk bond funds were little changed & Treasuries remained in demand throughout the trading session. Oil sank 2+ to the 62s on word about lower oil prices from the pres & gold went up 8 to 1288 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Chevron (CVX), a Dow stock & Dividend Aristocrat, Q1 earnings beat expectations, even as profits fell from a year earlier, weighed down by lower oil prices & weak profit margins in its refining & chemicals business. EPS was $1.39, compared with $1.30 predicted. The results were bolstered by a 7% jump in oil 4 natural gas production, with oil equivalent output exceeding 3M barrels per day for the 2nd quarter in a row. This came from increase on rising volumes from its Permian Basin fields in Texas & New Mexico, as well as its Wheatstone project in Australia. The oil & gas production surged nearly 6X-fold to 884K barrels of oil equivalent per day. Production was also up 35K barrels of oil equivalent internationally. Higher production was offset by lower oil prices from a year ago. Earnings in the US upstream business jumped by $100M to $748M, while intl profits for producing oil & gas fell 12% to $2.38B. However, profits took a hit from lower profit margins in the downstream business, which focuses on refining oil into products like gasoline & diesel. Downstream profits tumbled 65% to $252M from a year ago. In addition to weak margins, weather-related impacts on California refineries & the sale of the Cape Town refinery in South Africa led to lower activity. CVX also saw its expenses surge 64% to $726M , driven by higher corp charges & interest expenses, as well as foreign currency impacts. Revenue was $35.19B, down 5% from a year ago & falling short of $38.43B forecast. The stock fell 84¢.
If you would like to learn more about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD3289&a_bid=6ae5b6f7
Chevron's quarterly profit falls on lower oil prices and weak refining margins
The “blockbuster” economic growth in Q1 is “absolutely” sustainable, Kevin Hassett, an economic advisor to Pres Trump, said. First-quarter gross domestic product grew by 3.2%, according to an initial reading by the Bureau of Economic Analysis of the economy for that period. It was more than expected & was the first time since 2015 that Q1 GDP topped 3%. Hassett, chairman of the Council of Economic Advisers, said that the Trump administration had already been forecasting 3.2% economic growth for this year. “Maybe we would revise it up,” he said, referring to the 2019 forecast. “The [first-quarter] number was three-tenths lower because of the government shutdown and … the first quarter tends to be low because the winter weather isn’t really accounted for right in the statistics.” “You add that all together, this is really blockbuster news and suggests that the risks on the upside are very high for GDP this year, ” he added. The surge in growth was driven by a smaller trade deficit & the largest accumulation of unsold merchandise since 2015. Those are both seen as temporary boosters that could ultimately weigh on the economy later this year. Hassett agreed that when there is a lot of growth in inventories, it should give people pause about the next qtr. However, he said in this case there is no need for concern. “Incomes are growing at a very high rate and consumption has not been,” he said. “Our expectation is that the shelves are being filled but they’re going be emptied out and production isn’t going to go down they way it normally does when you get an inventory spike.” “The consumers are having their consumption catch up with income,” he added.
Trump advisor Kevin Hassett says 3.2% GDP growth ‘absolutely’ sustainable this year, coul…
Intel (INTC), a Dow stock, had for its biggest drop since 2008 after the company released disappointing full-year revenue guidance yesterday. Despite reporting better-than-expected earnings, shares fell after it reported a weak revenue forecast for 2019. The company expects sales to total $69B for the year, $2.05B below expectations. The move shaved off more than $25B from the company's market cap, leaving it valued around $234B. The stock had been up 22% YTD before the earnings release. Shares are now up more than 10% YTD. The stock tumbled 5.18 (9%).
If you would like to learn more about INTC, click on this link:
club.ino.com/trend/analysis/stock/INTC?a_aid=CD3289&a_bid=6ae5b6f7
Intel shares on pace for biggest plunge since 2008 after disappointing revenue forecast
Oil prices tumbled as much as 4% today, extending early losses after Pres Trump said he told OPEC to take action to temper fuel costs. West Texas Intermediate crude futures settled $1.91 lower at $63.30 per barrel, plunging 2.9% on the day & ending the week down 1.1%. WTI had been on track for its 8th successive weekly gain, the longest weekly run since H1-2015. Brent crude futures were down $2.35 (3.2%) at $72 per barrel, after hitting a one-week low at $71.31. Brent was down slightly, threatening to fall short of a 5th weekly price gain, which would be the longest stretch in a year. “The gasoline prices are coming down. I called up OPEC. I said, ‘You’ve got to bring them down. You’ve got to bring them down,’ and gasoline’s coming down,” Trump told reporters. In fact, the national average for a gallon of regular gasoline is $2.883 per gallon, up from $2.877 a day ago & $2.839 a week ago, according to AAA. Wholesale US gasoline prices have ticked lower in recent days, but are still up about 10% from a week ago and nearly 7% from a month ago. Shortly before the settlement, the were reports casting doubts about the conversation with OPEC officials. But moments later, Trump doubled down on his claim on Twitter, saying “Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement.” Earlier this week, the administration said it will not extend waivers that allow several countries to continue buying Iranian crude despite US sanctions on the Islamic Republic. Oil prices surged more than 3% in the 2 days following the announcement. The administration said it has secured commitments from Saudi Arabia, UAE & other allies to fill any gap left by the anticipated drop in Iranian supplies. However, Saudi Energy Minister Khalid al-Falih said earlier this week that there is no need to immediately start pumping more oil, & the kingdom will hike output only after customers ask for more supplies.
US crude plunges 2.9%, settling at $63.30, after Trump says he told OPEC to tame fuel costs
Gold futures finished higher after a quarterly reading of the pace of growth of the US economy came in better than expected, but other aspects of the report raised questions about the underlying strength of the economy. The US economy expanded at a 3.2% annual pace in Q1, the gov said. The gain was well above forecasts for a 2.3% increase in GDP. The economy grew at a healthy 2.2% rate in the final 3 months of 2018. Gold for Jun delivery tacked on $9.10 (0.7%) to settle at $1288 an ounce. The most-active contract logged a weekly gain of 1%, based on yesterday's settlement as major markets were closed at the end of last week in observance of Good Friday. Softness in appetite for risky assets, like stocks, can provide support for haven gold, while a cooling of the $s recent uptrend & lower bond yields could also buttress bullion because stronger greenback can make the commodity relatively more expensive to intl buyers. Separately, subdued yields can diminish the relative value of purchasing gov paper over gold, which doesn’t bear a yield.
The strong economic report should have brought out buyers in droves, but it didn't. The 3.2% gain in GDP was helped by a smaller trade deficit & unsold merchandise which may reduce the gain when the data is revised in May & Jun (or Q2). Additionally earnings, especially from major companies, have been soggy. Confusion about a call for lower oil prices adds to uncertainty for traders to digest. But the Dow is a still holding about 1% under its record made last year. Next week has the makings of a choppy time for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Chevron (CVX), a Dow stock & Dividend Aristocrat, Q1 earnings beat expectations, even as profits fell from a year earlier, weighed down by lower oil prices & weak profit margins in its refining & chemicals business. EPS was $1.39, compared with $1.30 predicted. The results were bolstered by a 7% jump in oil 4 natural gas production, with oil equivalent output exceeding 3M barrels per day for the 2nd quarter in a row. This came from increase on rising volumes from its Permian Basin fields in Texas & New Mexico, as well as its Wheatstone project in Australia. The oil & gas production surged nearly 6X-fold to 884K barrels of oil equivalent per day. Production was also up 35K barrels of oil equivalent internationally. Higher production was offset by lower oil prices from a year ago. Earnings in the US upstream business jumped by $100M to $748M, while intl profits for producing oil & gas fell 12% to $2.38B. However, profits took a hit from lower profit margins in the downstream business, which focuses on refining oil into products like gasoline & diesel. Downstream profits tumbled 65% to $252M from a year ago. In addition to weak margins, weather-related impacts on California refineries & the sale of the Cape Town refinery in South Africa led to lower activity. CVX also saw its expenses surge 64% to $726M , driven by higher corp charges & interest expenses, as well as foreign currency impacts. Revenue was $35.19B, down 5% from a year ago & falling short of $38.43B forecast. The stock fell 84¢.
If you would like to learn more about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD3289&a_bid=6ae5b6f7
Chevron's quarterly profit falls on lower oil prices and weak refining margins
The “blockbuster” economic growth in Q1 is “absolutely” sustainable, Kevin Hassett, an economic advisor to Pres Trump, said. First-quarter gross domestic product grew by 3.2%, according to an initial reading by the Bureau of Economic Analysis of the economy for that period. It was more than expected & was the first time since 2015 that Q1 GDP topped 3%. Hassett, chairman of the Council of Economic Advisers, said that the Trump administration had already been forecasting 3.2% economic growth for this year. “Maybe we would revise it up,” he said, referring to the 2019 forecast. “The [first-quarter] number was three-tenths lower because of the government shutdown and … the first quarter tends to be low because the winter weather isn’t really accounted for right in the statistics.” “You add that all together, this is really blockbuster news and suggests that the risks on the upside are very high for GDP this year, ” he added. The surge in growth was driven by a smaller trade deficit & the largest accumulation of unsold merchandise since 2015. Those are both seen as temporary boosters that could ultimately weigh on the economy later this year. Hassett agreed that when there is a lot of growth in inventories, it should give people pause about the next qtr. However, he said in this case there is no need for concern. “Incomes are growing at a very high rate and consumption has not been,” he said. “Our expectation is that the shelves are being filled but they’re going be emptied out and production isn’t going to go down they way it normally does when you get an inventory spike.” “The consumers are having their consumption catch up with income,” he added.
Trump advisor Kevin Hassett says 3.2% GDP growth ‘absolutely’ sustainable this year, coul…
Intel (INTC), a Dow stock, had for its biggest drop since 2008 after the company released disappointing full-year revenue guidance yesterday. Despite reporting better-than-expected earnings, shares fell after it reported a weak revenue forecast for 2019. The company expects sales to total $69B for the year, $2.05B below expectations. The move shaved off more than $25B from the company's market cap, leaving it valued around $234B. The stock had been up 22% YTD before the earnings release. Shares are now up more than 10% YTD. The stock tumbled 5.18 (9%).
If you would like to learn more about INTC, click on this link:
club.ino.com/trend/analysis/stock/INTC?a_aid=CD3289&a_bid=6ae5b6f7
Intel shares on pace for biggest plunge since 2008 after disappointing revenue forecast
Oil prices tumbled as much as 4% today, extending early losses after Pres Trump said he told OPEC to take action to temper fuel costs. West Texas Intermediate crude futures settled $1.91 lower at $63.30 per barrel, plunging 2.9% on the day & ending the week down 1.1%. WTI had been on track for its 8th successive weekly gain, the longest weekly run since H1-2015. Brent crude futures were down $2.35 (3.2%) at $72 per barrel, after hitting a one-week low at $71.31. Brent was down slightly, threatening to fall short of a 5th weekly price gain, which would be the longest stretch in a year. “The gasoline prices are coming down. I called up OPEC. I said, ‘You’ve got to bring them down. You’ve got to bring them down,’ and gasoline’s coming down,” Trump told reporters. In fact, the national average for a gallon of regular gasoline is $2.883 per gallon, up from $2.877 a day ago & $2.839 a week ago, according to AAA. Wholesale US gasoline prices have ticked lower in recent days, but are still up about 10% from a week ago and nearly 7% from a month ago. Shortly before the settlement, the were reports casting doubts about the conversation with OPEC officials. But moments later, Trump doubled down on his claim on Twitter, saying “Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement.” Earlier this week, the administration said it will not extend waivers that allow several countries to continue buying Iranian crude despite US sanctions on the Islamic Republic. Oil prices surged more than 3% in the 2 days following the announcement. The administration said it has secured commitments from Saudi Arabia, UAE & other allies to fill any gap left by the anticipated drop in Iranian supplies. However, Saudi Energy Minister Khalid al-Falih said earlier this week that there is no need to immediately start pumping more oil, & the kingdom will hike output only after customers ask for more supplies.
US crude plunges 2.9%, settling at $63.30, after Trump says he told OPEC to tame fuel costs
Gold futures finished higher after a quarterly reading of the pace of growth of the US economy came in better than expected, but other aspects of the report raised questions about the underlying strength of the economy. The US economy expanded at a 3.2% annual pace in Q1, the gov said. The gain was well above forecasts for a 2.3% increase in GDP. The economy grew at a healthy 2.2% rate in the final 3 months of 2018. Gold for Jun delivery tacked on $9.10 (0.7%) to settle at $1288 an ounce. The most-active contract logged a weekly gain of 1%, based on yesterday's settlement as major markets were closed at the end of last week in observance of Good Friday. Softness in appetite for risky assets, like stocks, can provide support for haven gold, while a cooling of the $s recent uptrend & lower bond yields could also buttress bullion because stronger greenback can make the commodity relatively more expensive to intl buyers. Separately, subdued yields can diminish the relative value of purchasing gov paper over gold, which doesn’t bear a yield.
Gold finishes higher to tally a weekly gain of 1%
The strong economic report should have brought out buyers in droves, but it didn't. The 3.2% gain in GDP was helped by a smaller trade deficit & unsold merchandise which may reduce the gain when the data is revised in May & Jun (or Q2). Additionally earnings, especially from major companies, have been soggy. Confusion about a call for lower oil prices adds to uncertainty for traders to digest. But the Dow is a still holding about 1% under its record made last year. Next week has the makings of a choppy time for stocks.
Dow Jones Industrials
No comments:
Post a Comment