Dow surged 269 (near session highs), advancers over decliners about 2-1 & NAZ rose 36. The MLP index added 2+ to the 258s & the REIT index gained 1+ to the 283s for a new record. Junk bond funds were little changed & Treasuries remained weak all day. Oil crawled higher in the 63s & gold was flattish at 1293 (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)
club.ino.com/trend/analysis/stock/WFC?a_aid=CD32989&a_bid=6ae5b6f7
Chevron (CVX), a Dow stock & Dividend Aristocrat, announced it will acquire oil & gas driller Anadarko Petroleum (ADP) in a cash & stock deal valued at $33B, marking one of the biggest energy sector mergers in years & a transformative moment for one of the industry's dominant players. The transaction will expand the 2nd biggest US energy company's operations in US shale oil & gas production, offshore drilling & liquefied natural gas (LNG) exports. The deal values Anadarko at $65 per share, a 37% premium to its Thurs close. Based on ADP's closing price of $46.80 yesterday, ADP shareholders will receive 0.3869 shares of CVX &0; $16.25 in cash for each Anadarko share. CVX will assume $15B of ADP's debt. “This takes a great company and makes it even better,” CVX CEO Michael Wirth said. “As our company has strengthened its financial situation over recent years, we’re always looking to make our portfolio even stronger.” CVX stock dropped 6.18 (5%).
If you would like to learn m ore about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD32989&a_bid=6ae5b6f7
Chevron to buy Anadarko Petroleum in a $33 billion cash and stock deal
Oil futures settled with a gain, with US prices up 1.3% for the week. Violence in Libya raised the threat of tighter global supplies & economic data from China helped to ease concerns over a slowdown in energy demand. May West Texas Intermediate oil rose 31¢ (0.5%) to settle at $63.89 a barrel.
Gold futures ended higher, as consolidation took hold & a leading $ index, which typically moves inversely with the metal, declined, but prices for the metal still posted a slight loss for the week after getting clobbered a day earlier. Jun gold rose $1.90 to settle at $1295 an ounce. The most-active contract lost about 40¢ an ounce from last Fri's settlement. Prices finished Thurs at $1293, the lowest finish & largest single-session loss for a most-active contract since Mar 28. The Thurs selloff marked a sharp reversal in momentum in the metal after it finished at $1313 on Wed, the highest finish since Mar 26 & representing its longest win streak, 4 sessions, since a 5-day rise ended Jan 31. The contract inched up this week. A brighter picture for China in data today backed the risk-on sentiment that drew investors into stocks & limited demand for haven metals. Exports rose 14.2% from a year earlier in Mar, against forecasts calling for a rise of 8.7% & after a sharp drop in Feb. Countering that headline, imports flagged, reflecting softer domestic demand. At the same time, issuance of new bank loans in China came in at 1.7T yuan above consensus expectations of 1.3T yuan expected, suggesting that efforts by the Chinese gov to stimulate credit growth are working. Data today from the Univ of Mich showed that US consumer sentiment fell to a preliminary 96.9 in Apr from 98.4 in Mar.
After a strong opening, the bulls kept the rally going all day. They maintained the early advance, withinin 500 of the record achieved in early Oct 2018. Next week, there will be numerous earnings reports & they will drive market sentiment.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Consumer banking giant Wells Fargo (WFC)
profits rose 14% from a year earlier, helped by higher interest rates
which offset the restrictions put on the bank's businesses after years
of scandal. The bank reported EPS of $1.20, up
from 96¢ a year
earlier. The results beat the $1.11 expected. Like other
banks, WFC has benefited from a rise in interest rates, which
has allowed it to charge more for consumer banking products like credit
cards & mortgages. The rise in interest rates
was more than enough to nullify the restrictions that had been placed
on the bank by regulators. Last year the Federal Reserve capped the size
of the bank's assets after it repeatedly found itself in one
bank-related scandal after another, starting in 2016 with the uncovering
of Ms of fake checking accounts its employees opened to meet
sales quotas. Typically
a bank this size would be increasing assets & loans in a
growing economy such as this one. But the assets, loans & the
deposits all fell compared to a year earlier. It's
not clear when the Federal Reserve will remove its restrictions. Federal Reserve Chairman Jerome Powell said earlier
this year there was more work to be done at WFC before he felt the
bank has satisfied the Fed's demands. Powell's
comments, along with a poor performance in front of Congress last month,
forced CEO Tim Sloan to unexpectedly & abruptly resign. The biggest US mortgage
lender posted revenue of $26.3B in the period & its revenue net of
interest expense was $21.6B, also beating forecasts. The stock was off 1.25.
If you would like to learn m ore about WFC, click on this link:club.ino.com/trend/analysis/stock/WFC?a_aid=CD32989&a_bid=6ae5b6f7
Wells Fargo's 1Q profits rise 14%, beating analyst forecasts
Chevron (CVX), a Dow stock & Dividend Aristocrat, announced it will acquire oil & gas driller Anadarko Petroleum (ADP) in a cash & stock deal valued at $33B, marking one of the biggest energy sector mergers in years & a transformative moment for one of the industry's dominant players. The transaction will expand the 2nd biggest US energy company's operations in US shale oil & gas production, offshore drilling & liquefied natural gas (LNG) exports. The deal values Anadarko at $65 per share, a 37% premium to its Thurs close. Based on ADP's closing price of $46.80 yesterday, ADP shareholders will receive 0.3869 shares of CVX &0; $16.25 in cash for each Anadarko share. CVX will assume $15B of ADP's debt. “This takes a great company and makes it even better,” CVX CEO Michael Wirth said. “As our company has strengthened its financial situation over recent years, we’re always looking to make our portfolio even stronger.” CVX stock dropped 6.18 (5%).
If you would like to learn m ore about CVX, click on this link:
club.ino.com/trend/analysis/stock/CVX?a_aid=CD32989&a_bid=6ae5b6f7
Chevron to buy Anadarko Petroleum in a $33 billion cash and stock deal
Oil futures settled with a gain, with US prices up 1.3% for the week. Violence in Libya raised the threat of tighter global supplies & economic data from China helped to ease concerns over a slowdown in energy demand. May West Texas Intermediate oil rose 31¢ (0.5%) to settle at $63.89 a barrel.
U.S. oil futures settle higher, up more than 1% for the week
Gold futures ended higher, as consolidation took hold & a leading $ index, which typically moves inversely with the metal, declined, but prices for the metal still posted a slight loss for the week after getting clobbered a day earlier. Jun gold rose $1.90 to settle at $1295 an ounce. The most-active contract lost about 40¢ an ounce from last Fri's settlement. Prices finished Thurs at $1293, the lowest finish & largest single-session loss for a most-active contract since Mar 28. The Thurs selloff marked a sharp reversal in momentum in the metal after it finished at $1313 on Wed, the highest finish since Mar 26 & representing its longest win streak, 4 sessions, since a 5-day rise ended Jan 31. The contract inched up this week. A brighter picture for China in data today backed the risk-on sentiment that drew investors into stocks & limited demand for haven metals. Exports rose 14.2% from a year earlier in Mar, against forecasts calling for a rise of 8.7% & after a sharp drop in Feb. Countering that headline, imports flagged, reflecting softer domestic demand. At the same time, issuance of new bank loans in China came in at 1.7T yuan above consensus expectations of 1.3T yuan expected, suggesting that efforts by the Chinese gov to stimulate credit growth are working. Data today from the Univ of Mich showed that US consumer sentiment fell to a preliminary 96.9 in Apr from 98.4 in Mar.
Gold ends higher on the dollar’s decline, but posts a modest loss for the week
After a strong opening, the bulls kept the rally going all day. They maintained the early advance, withinin 500 of the record achieved in early Oct 2018. Next week, there will be numerous earnings reports & they will drive market sentiment.
Dow Jones Industrials
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