Baker Hughes (BHI)

February 21, 2018

The major stock market averages opened higher this morning (Dow +126 pts; SPX +.55%). Gold miners, banks and transports are rebounding +1%, while defensive sectors like real estate, telecom and consumer staples are down. The VIX Index is trading down around 18.5, which is good news. There’s still a chance that the market dips to re-test the correction low of 2/9, but thus far stocks are clearly in recovery mode. WTI crude oil is down modestly around $61.50/barrel. Last week, the Baker Hughes Rig Count climbed by 7 to a total of 798 active drilling rigs. That’s 201 higher than year-ago levels. US oil production has reached a new record of 10.2mil barrels per day. Bonds are slightly lower as yields march gradually higher. The 5-year and 10-year Treasury yields are up to 2.65% and 2.90%, respectively. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

March 13, 2017

Stocks opened lower this morning (Dow -48 pts; SPX -.13%). Gold miners and semiconductors are in the green in early trading, but just about everything else is flat-to-down. Interestingly, Europe is poised to close higher and Asia was up overnight. In fact, year-to-date, most of the world’s equity markets have enjoyed a synchronized rally. WTI crude oil is down slightly to trade around $48.30/barrel. Oil is sitting at 3-month lows due to higher US drilling activity and inventories. Oilfield services provider Baker Hughes (BHI) says the number of active drilling rigs has risen for 8 straight weeks. Bonds are mostly unchanged this morning. The 5-year Treasury yield is hovering around 2.11% and the 10-year Treasury is trading at 2.59%. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

February 13, 2017

Stocks continue to rally, and this morning the S&P 500 Index (SPX) achieved another record high. At the moment, the Dow and SPX are up 124 pts & .43%, respectively. Financials and industrials are leading the way, up about 1%. A lot of banks are hitting 1-year highs. Utilities, energy and telecom sectors are flat to down. By the way, global stocks are rallying as well. The VIX Index is up about 4.7% to trade around 11.4; despite this bump the fear index is still at very low levels. A Bloomberg article posits the stock market is running because President Trump “indicated details on his pro-growth policies were imminent.” Today, the dollar is stronger and interest rates are higher. Bonds are selling off and the 5- and 10-year Treasury yields are back up to 1.92% and 2.45%, respectively. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

November 21, 2016

The major stock market averages opened higher this morning (Dow +46 pts; SPX +.5%). In fact, the SPX briefly touched its all-time high set back on August 15th, and the Dow recently achieved a fresh all-time high. We’ll see whether it can break through resistance. Energy stocks are leading today (+2%) as oil prices surge. But gains are pretty widespread (gold miners +2.8%, retailers +.3%, tech sector +.7%). And the defensive sectors are bouncing back as well (utilities +.8%, consumer staples +.3%). The VIX Index is trading below 13. The dollar is a bit weaker on the day and WTI crude oil is back up to $47/barrel. Bonds are modestly higher on the day, rebounding a bit after taking a beating this month. The 5- and 10-year Treasury yields are trading at 1.77% and 2.32%, respectively. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

October 31, 2016

Stocks opened mixed this morning (Dow -13 pts; SPX +.06%). The rate sensitive sectors—utilities, real estate—are up nicely in early trading. Biotechs, medical device stocks and the energy sector are in the red. WTI crude oil is trading sharply lower to $47.60/barrel as investors come to realize that OPEC’s jibber-jabber about a production cut is likely nothing but talk. Bonds prices are up a bit this morning as yields edged lower. The 5- and 10-year Treasury yields are back down to 1.32% and 1.83%, respectively. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

October 25, 2016

Stocks fell at the open this morning (Dow -57 pts; SPX -.37%). Nearly all major market sectors are lower, save utilities and consumer staples. But most of the movement today is in individual stocks following earnings announcements. WTI crude is down slightly to $50/barrel. Baker Hughes says US land-based drilling activity is increasing. The dollar is flat and other commodities are mixed. Copper is up over 2% as China’s stock market hit a 9-month high. China GDP is up 6.7% for three straight quarter encouraging investors to believe China has stabilized. Bonds are mostly unchanged on the day. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

October 24, 2016

Stocks opened higher this morning (Dow +79 pts; SPX +.3%). Tech is by far the best performing sector, up .9% but gains are pretty broad-based across retailers, transports, banks, media, chemicals, and even some biotechs. The VIX Index is down to 13 and VIX November futures are trading down to 15. So volatility expectations are coming down a bit. WTI crude oil is down modestly, to $49.75/barrel. That’s dragging on the energy sector this morning. Baker Hughes says US oil exploration companies added 11 oil rigs in the last week; the rig count has been climbing for the last several months. Bonds are selling off a bit as yields continue to march higher. The 5-year Treasury is currently at 1.27% and the 10-year is at 1.76%. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 7, 2016

The major stock market averages opened lower. The Dow and SPX are currently down 48 pts & -.2%, respectively. Tech & energy sectors are modestly higher but the defensive sectors are in the red. Over the last couple of months, we’ve seen utilities, consumer staples and telecoms lose momentum, whereas the tech sector has clearly begun to lead. The VIX Index is currently trading at 12 suggesting very little volatility over the next 30 days. And the VXTLT, which measures fear in the Treasury bond market, is also very low. Bonds are little changed on the day and have been trading in a very tight range over the last month. Yields are showing no sign that the Federal Reserve is preparing to hike interest rates. Indeed, some of the latest economic data have been rather negative (ISM business activity surveys). 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.