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Archives for September 2016

The Longest S&P Earnings Decline since 2008

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The Wall Street Journal correctly reports that investors continue to reach for yield despite crumbling earnings. The third quarter was supposed to be when earnings growth returned to U.S. companies. Not anymore. Companies in the S&P 500 are now expected to report an earnings decline for the sixth consecutive quarter in the coming weeks, according to analysts polled by FactSet. That slump would be the longest since FactSet began tracking the data in 2008. For the third quarter, the energy sector is projected to yet again report the largest year-over-year earnings decline of all sectors … [Read more...]

Merger Activity in Pipeline Shares Heats Up

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The last big takeover in the pipeline industry (only announced a couple of weeks ago) was Enbridge Energy buying Spectra energy. The acquisition created North America’s largest energy infrastructure company. This week, another of Canada’s pipeline giants is jumping into the fray with an offer to buy  Columbia Pipeline Partners LP. I hope you aren’t missing the boat here. Consolidation in pipeline shares is unlikely to stop with the Columbia acquisition. The Wall Street Journal has the details on the takeover. TransCanada Corp. said Monday it had offered $848 million to buy Columbia … [Read more...]

Solid Advice From E.J. Smith in 2009, Even Better Today!

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In 2009 E.J. Smith wrote: In 2008 alone $108 billion flowed into the top three custodians for investment advisers while the big-four Wall Street brokerages had an outflow of $8 billion, according to The WSJ. If you have a 401(k), I suggest you do what many others have already done and roll it over to an IRA the moment you are eligible to do so. And I advise you to seek out the help of an investment adviser. Once in retirement, you don’t have time to make up for investment mistakes like you did when you were younger. You face difficult big picture investment decisions and unlike before … [Read more...]

Worthy Reads: Fed’s Fischer Says Wages Beginning to Respond to Labor Market

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Fed’s Fischer Says Wages Beginning to Respond to Labor Market (Bloomberg) World Trade Set for Slowest Yearly Growth Since Global Financial Crisis (WSJ) Keeping the Wheels of Trade in Motion (IMF) The effects of a central bank's inflation forecasts on private sector forecasts: Recent evidence from Japan (BIS) Why China is the ‘wild card’ that could overrule any OPEC moves (MarketWatch)   … [Read more...]

Rolling Stone’s Ad Pages Down 14%, Website Unique U.S Visitors Up 59%

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The Wall Street Journal tells readers about the minority interest the group has sold to a Singapore-based social music company. Rolling Stone has struck a chord with a new investor. BandLab Technologies Ltd., a closely held Singapore-based social music company, has purchased a 49% stake in the storied music brand, including the magazine and its digital assets. Rolling Stone has struck a chord with a new investor. The move comes as many publishers are seeking to broaden their portfolios to become less dependent on print advertising revenue. Ad pages declined 14% at Rolling Stone between … [Read more...]

Where do Gasoline Prices Go from Here?

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Gas prices are up big YTD, but they continue to trade at deeply depressed levels when compared to their 2014 highs. Many market participants are counting on a rebound in oil and gasoline prices in the long-run, but when is the long-run and how high will oil and gas prices go in the long-run? According to Morningstar we can expect a recovery in oil prices to about $65 per barrel within two years, a year ahead of the firm’s prior estimates. Oil Supply-Demand Gap Should Clear in 2018 We've accelerated our estimate for oil market clearing due to stronger-than-expected demand and supply … [Read more...]

Worthy Reads: Deutsche Bank’s Pain Is Germany’s Too

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Deutsche Bank's Pain Is Germany's Too (Bloomberg) Why Falling Employee Tenure Could Be Good News About the U.S. Economy (WSJ) Yellen Says Fed Isn’t Playing Politics With Rates (WSJ) A big ETF hiccup as traders don’t ‘get the memo’ about new S&P sector (MarketWatch) A Crashing Deutsche Bank Scrambles To Assure Markets That It Is "Fine" (ZeroHedge)   … [Read more...]

Super Trucks Can Save 300 Million BBLS. and $20 Billion a Year

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Iconic Swedish truck maker Volvo has unveiled its version of the SuperTruck, a futuristic, heavy-duty vehicle that vastly improves fuel and freight efficiency. In response to an initiative from the U.S. Department of Energy (DOE), the Volvo SuperTruck – which could increase the fuel economy of 18-wheelers from about 6 mpg to more than 10 mpg – was developed with ExxonMobil engineers and other collaborators. Making up only 4 percent of the highway traffic, heavy-duty vehicles consume almost 20 percent of all fuel. And ExxonMobil forecasts that long term, these trucks will become the largest … [Read more...]