Stock Market Today: Stocks Slump on Crude Oil Weakness
U.S. equities finished lower on Thursday -- snapping a nine-day winning streak for large-cap stocks -- after investors were spooked … amid an ongoing tightening in the labor market and evidence of nascent inflation, all of this flies in the face … Continue reading at investorplace.com
JNJ VS. PFE: Which Is The Better Large Cap Pharma Stock?
With market caps in the triple-digit billions, Johnson & Johnson JNJ and Pfizer Inc. PFE are two large cap pharmaceutical stocks that many investors like to keep in their portfolio for their relative stability. Large cap stocks tend to be go-to picks for … Continue reading at finance.yahoo.com
Mid-cap index on a roll: 5 mutual funds that could give good returns
As stock market has picked up momentum in recent days … invest in mid-cap funds they should choose those that have exposure to a fair sprinkling of large-cap stocks. "Investors need to look for less volatile funds in this space, if they do not want … Continue reading at financialexpress.com
Have midcap stocks run up too fast, too soon?
But as the name implies, in terms of size, it is between a large cap and a small cap stock. To get an idea of a midcap stock's size (i.e. market capitalization or the outstanding shares of a company multiplied by the closing market price of its share … Continue reading at wap.business-standard.com
4% Yield On A Durable Large-Cap Stock With Growing Earnings
I have no business relationship with any company whose stock is mentioned in this article … reflect the analyst's estimation of a divergence between the market value for a security and the price that would be appropriate given the potential for … Continue reading at seekingalpha.com
Investment: How to Invest and Make Money in Recession Economic recession is a significant decline in the economic activity sprea…
Table of Contents:
Has Television Changed The Face Of Real Estate Investing?
Have You Made A Bad Investment?
Forex; Foreign Cur…
Hundreds of easily readable and understandable tips about real estate investment. Practical ‘real world’ suggestions you can put t…
Merrill Lynch Bullish on 4 Large Cap Dividend Technology Stocks
With the market bursting through to all-time highs … We screened the Merrill Lynch research database for large cap technology stocks that are rated Buy, pay a dividend greater than the 30-year U.S. Treasury, and are among the largest in capitalization. Continue reading at 247wallst.com
6 Fresh Financial Stocks From Credit Suisse With Bullish Charts
As part of its “Fresh Ideas for Small, Mid & Large Cap Investors” report, Credit Suisse has compiled a list of “lowly owned” stocks with market caps of over $ 5 billion that it considers best in class and/or rates outperform. Stocks included on the Swiss … Continue reading at msn.com
Houseviews: 3 large cap stocks analysts will keenly watch today
The market looks poised for another rally on Wednesday with strong … Here are brokerage calls on three stocks. Continue reading at moneycontrol.com
Pharmaceutical Penny Stocks: An Overview
With the pharmaceutical industry projected to grow by billions in the coming years, penny stocks are an inexpensive way for investors to enter an active market. Compared to large cap pharmaceutical stocks, these securities are higher risk--but also carry … Continue reading at investingnews.com
Safe Havens Outperforming Stocks
"Safe haven" investments such as utilities, treasuries, bonds, REITs, and gold usually do well when the stock market is in trouble … and banks turn first with the large cap Dow stranded as the last general standing. This could be one reason that … Continue reading at forbes.com
When to Buy Oil Stocks.
Oil prices have been on a five month slide. Nymex crude hit .74 which is the lowest in five years. The last time oil was priced this low was the depth of the great recession. The US oil fracking boom is partly to blame as there is a glut of oil in North America. But, in addition, OPEC is not cutting back on production, which is what the cartel usually does to prop up prices. As a result oil stocks have taken a beating. Is this when to buy energy stocks? One would usually expect to see investors picking up great deals at this point but that is not the case. As an article in the Wall Street Journal notes, energy stocks have few buyers even at bargain basement prices.
Energy stocks are on sale following a five-month plunge in crude oil, but so far few investors are heeding the temptation to bargain-hunt.
Portfolio managers and analysts covering the sector are bracing for a wave of dividend cuts, share-repurchase delays and capital-spending reductions that will likely ripple across an industry reeling from the 38% tumble in U.S. crude futures since June. Distressed-debt investors are circling a handful of deeply indebted U.S. shale-oil producers that are deemed unlikely to survive further oil-price declines without mergers or overhauls.
It would appear that perhaps too many companies in the energy sector were too highly leveraged and are in trouble due to falling prices. And, it may well be that prices will continue to fall. When to buy oil stocks is when the price of crude bottoms out but that is not yet the case.
Factors That May Signal a Turnaround
Oil prices respond to the laws of supply and demand. Supply is high with the US fracking boom and OPEC refusing to cut back. Demand may be weakening. The Chinese economy is slowing and that means less need for raw materials and energy. When to buy oil stocks is probably not when there is still the risk of another recession in Europe and a slowdown in China. When to buy oil stocks will be when OPEC signals a cutback and when North America, Europe and China are all well on their way out of a recession.
Not Just Oil Stocks
It is not just oil stocks that are hurt when signals of economic weakness come out of the USA, Europe or China. World stocks and not just oil are down due to weak Chinese economic data and even news of a weaker than expected start to the North American holiday shopping season.
CHINA FACTORIES: A survey by HSBC Corp. showed Chinese manufacturing activity weakened in November, adding to signs an economic slowdown is deepening. HSBC said its purchasing managers’ index declined to 50.0 from the previous month’s 50.4 on a 100-point scale on which numbers below 50 show activity contracting. The bank said domestic demand was sluggish and new orders were weak. China’s economic growth slowed to a five-year low of 7.3 percent in the latest quarter.
BLACK FRIDAY: Early discounting, more online shopping and a mixed economy meant fewer people shopped over Thanksgiving weekend, the National Retail Federation said Sunday. Overall, 133.7 million people shopped in stores and online over the four-day weekend, down 5.2 percent from last year, according to a survey of 4,631 people. Total spending for the weekend is expected to fall 11 percent to .9 billion from an estimated .4 billion last year.
Oil stocks weaken with the economy and rise with good economic news. When to buy oil stocks will be when the news is better.
If weak oil prices persist we can expect to see mergers and acquisitions in the oil sector. An early example is the purchase of Baker Hughes by Halliburton.
Halliburton (HAL) said Monday it will spend .6 billion to acquire Baker Hughes (BHI). The deal between the second- and third-largest companies in the industry would form an energy giant with more than 136,000 employees.
The best places investors to pick up deals when the time comes to buy oil stocks are those already in the energy sector.