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Stock Market Today: April 8th - 12th, 2019

Discussion in 'Stock Market Today' started by bigbear0083, Apr 6, 2019.

  1. bigbear0083

    bigbear0083 Content Manager
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    Morning Lineup - Good First Impression

    The week is looking to close off on a strong note as US equity futures have been surging in the pre-market with S&P 500 futures indicated to open up by 0.70%. The drivers of this morning's gains are a cocktail of strong loan growth data out of China, a positive start to earnings season with a big beat from JP Morgan (JPM) and no major misses from the Wells Fargo (WFC) or PNC, and then lastly a big merger in the Energy sector where Chevron (CVX) has agreed to acquire Anadarko Petroleum (APC) for $33 billion in cash and stock. Also, Disney (DIS) is trading up over 6% on its new streaming service which is expected to be unprofitable for years to come! There's a little bit of everything for the bulls to chew on this morning.

    With regards to the Energy sector, there has been some head scratching this year over the fact that the Energy sector wasn't up more given the surge in oil prices. Today's deal between CVX and APC would seem to validate that view. Looking at a chart of how crude oil and the Energy sector have traded over the last five years shows that the two have tended to track each other pretty closely.

    [​IMG]

    If you look closely at the chart above, you can barely make out crude oil's recent surge while the Energy sector's rally has been more restrained. As a result of that disparity, the ratio between the price of the Energy sector to the price of WTI crude oil has fallen to 7.8, which is right near the low end of the range from the last five years and nearly two full points less than the average of 9.7. Granted, it's a crude comparison (pun intended) and only one piece of a bigger puzzle, but based on where oil prices are trading, the Energy sector looks cheap.

    [​IMG]
     
  2. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    A pretty eventful day for the market actually, DIS has a great day after announcing the streaming services while CVX acquired APC :eek:

    Let’s see how this earnings season goes. At this point really hard to bet against a new ATH for the SPX relatively soon :p
     
    T0rm3nted and bigbear0083 like this.
  3. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Healthcare continues to underperform :eek:
     
  4. bigbear0083

    bigbear0083 Content Manager
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    it is a great call by you @stock1234. i know you were one of the very first who was in the "new SPX ATH" camp, waaay back when we were about some 200 - 300 handles lower than we are today. and even if some wild and crazy reason we don't end up hitting the new highs (seems pretty enviable though :p) still goes down as an amazing call imo :cool:
     
    stock1234 likes this.
  5. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Haha Thanks Cy :) I would be very surprised if we don’t hit the new ATH but I guess we will see :p
     
    bigbear0083 likes this.
  6. Onepoint272

    Onepoint272 Well-Known Member

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    The small caps are still lagging way behind the S&Pee and the Nasty. Will they wait for the smalls to catch up?
     
    bigbear0083 likes this.

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