Related USO Baker Hughes Reports March 2016 Rig Counts Oil Prices Jump 6% On Surprise U.S. Drawdown, But World Bank Sees Limited Upside In 2016 The Geopolitics Of Cheap Energy (Seeking Alpha)
May crude oil futures are trading higher by $2.08 at $39.34 in Friday’s session. They started move higher late in Thursday’s session, which carried over into Friday’s open. After ending Thursday’s session at $39.26, they opened higher and retreated only $0.07 to $37.45 before resuming higher.
The rally continued and did not meet any major resistance until reaching $39.84 around 11:30 a.m. They made another run at that level around 1 p.m., but were turned back at $39.83. The current high coincide with the March 30 high ($39.85).
Since making the high, it has been finding intra-day support at the $39.25 area.
Posted-In: crude Crude OilFutures Technicals Commodities Intraday Update Markets Trading Ideas
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Hot Cheap Companies For 2017: UnitedHealth Group Incorporated(UNH)
UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minn e tonka, Minnesota.
- [By Ben Levisohn]
How good were UnitedHealth Group’s (UNH) earnings today? So good its stock has jumped the most in more than six years–and lifted competitors like Humana (HUM), Cigna (CI), Aetna (AET), and Anthem (ANTM) as well. Leerink’s Ana Gupte explains why the market is in love with UnitedHealth’s earnings:
John Murphy riding for UnitedHealthcare celebrates after winning stage seven of the 2015 USA Pro Challenge on August 23, 2015 Getty Images
UnitedHealthreported a solid 3Q setting off the Managed Care earnings season on a high note. The company posted a healthy 9 c EPS beat at $2.17 and modest revenue beat while raising FY16 EPS guidance by 13 c to ~$8.00. The beat was driven by an 80 bps beat on Consolidated Medical Loss Ratio and a lower effective tax rate offset by 50 bps worse SGA ratio as the company invests for future growth. Consolidated MLR of 80.3% was better than consensus by 80 bps. Importantly, the quality of the quarter as measured by reserve strength and cash flows was excellent with an improvement in DCP of 52 Days by 2 days YoY and QoQ by 1 day, while Adj. CFO of $3.2 B offered CFO to NI ratio of 1.7x. Optum shone in all three segments of Optum Rx, Optum Health & Optum Insight with top line growth of 9% and margin expansion to 6.9% in 3Q. Balance Sheet deleveraging continues with a reduction in Debt to Cap by 2% to 46.9%. Shareholder dividends have grown by 25% YoY with continued share re purchase despite the deleveraging efforts post CTRX. The unparalleled strength of the platform was effectively highlighted by the stellar performance and we have even greater conviction in our top pick status on this name.
Shares of UnitedHealth Group have jumped 7.1% to $$143.71 at 3:13 p.m. today, which would be the largest one-day move since the stock gained 8.1% on April 21, 2011. Humana has gained 2.4% to $173.90, Cigna has climbed 4.5% to $124.00, Aetna has risen 2.8% to $111.55, and Anthem has rallied 4.5% to $123.62.<
Hot Cheap Companies For 2017: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is base d in Armonk, New York.
- [By Ben Levisohn]
Berkshire’s QTD returns primarily reflected outperformance in technology and financials (International Business Machines (IBM), Moody’s (MCO), U.S. Bancorp (USB), and American Express (AXP)), partly offset by underperformance within energy, healthcare, and consumer-nondurables (Phillips 66 (PSX), Coca-Cola (KO), and DaVita HealthCare Partners (DVA)).
- [By Jon C. Ogg]
Visa Inc. (NYSE: V) is about to become the most important DJIA stock of them all, as it is battling International Business Machines Corp. (NYSE: IBM) as the highest stock price in the index. You just need to recall that the DJIA is price weighted, based on a stock’s nominal share price rather than on its market capitalization or economic contribution.
- [By Gregory Ness]
Most of the biggest technology payoffs have been generated by companies that drove transformations in business operations. From the mainframe era with IBM (IBM) through the PC era with Microsoft (MSFT) and the networking era with Cisco (CSCO), disruptive technologies that set new standards for business productivity established built-to-last companies with massive market capitalizations.
- [By Jared Cummans]
IBM (IBM) announced today that it has closed a deal with SYNNEX to sell its customer care outsourcing services segment.
The deal was struck for a total of $505 million with roughly $430 million of that figure coming from cash. The deal also mandated that SYNNEX enter a multi-year agreement with IBM as partners for global customer care and outsourcing services.
SYNNEX, a Fortune 500 firm, is known for its IT supply chain services. The California-based firm trades under the ticker SNX and has seen its stock price soar approximately 60% since the middle of April.
IBM shares were up $1.62, or 0.87%, at Tuesday’s close. The stock is down just over 2% in 2013.
Top 5 Building Product Companies To Watch In Right Now: Kohl’s Corporation(KSS)
Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
- [By Ben Levisohn]
Credit Suisse analysts Michael Exstein and Anjani Vedula call Kohl’s (KSS) the “canary in the coal mine” for mall retailers. They explain why:
Rarely does a sector see a secular shift as dramatic as the one now occurring in retail in general and the mall anchors specifically. After last year’s poor operating and stock performance, many retail investors are now expecting a significant cyclical recovery in margins. However, we do not think this is a realistic expectation because mall anchors’ expense structures have fundamentally changed for two reasons: 1) sales mix has shifted towards the lower margin e-commerce channel; 2) brick & mortar operating margins are increasingly pressured (on both an absolute dollar basis as well as % of sales basis), leading to lower operating margins in aggregate.
Using Kohl’s 10-K disclosure to illustrate this shift. We illustrate this secular shift in mall anchors’ expense structures by modelling the breakout in operating income for Kohl’s brick & mortar business (B&M) versus their e-commerce business. Kohl’s gives more details on the shift in SG&A than its peers, making it easier to illustrate the pressures the industry is under. In fact, in spite of the pressures, Kohl’s has maintained relatively constant sales as well as gross margins, no small feat considering they are absorbing shipping & handling charges associated with e-commerce. In effect, we are using Kohl’s as the “canary in the coal mine”, as a preview of a larger secular issue facing the mall anchor sector…
While all retailers with an e-commerce business are exposed to these secular changes to some degree, those with a higher e-commerce penetration are more exposed, sooner. On the brick & mortar operations side, those retailers with the lowest wage rates are likely to be most impact by the essentially industry-wide wage increases brought on b
- [By Ben Levisohn]
Shares of Kohl’s (KSS) are getting killed today after the retailer cut its full-year guidance as profit margins shrank. Citigroup’s Paul Lejuez and Tracy Kogan have the details:
Gabe Hernandez/The Monitor/Associated Press
Not unlike its department store peers, Kohl’s had a tough 4Q. Though comps were up slightly (+0.4%), it was below consensus of +1.7% (though inline with our flat forecast) and margins were significantly below plan as the company needed promotions to drive sales. As we indicated in our 1/4/16 report An Object In Motion(Retail Physics Hold True For Holiday), we believe elevated inventories at dept stores will pressure GM in 1Q (and we believe this will hold true for Kohl’s). Given the tough landscape, and with 1,000+ stores across the country, we believe Kohl’s will continue to be challenged to drive sales and earnings higher, despite its many in-store initiatives. We reiterate our Neutral rating…We are lowering our 2015E/2016E from $4.25/$4.29 to $4.00/$3.91. For 2016 we model comps 0-(1)% and op margin of 7.4% (down 80bps). We are lowering our TP from $49 to $46 to reflect our forecast reduction.
Shares of Kohl’s have tumbled 16% to $43.04 at 11:28 a.m. today, while Macy’s (M) has dropped 2.6% to $40.56, and Nordstrom (JWN) has fallen 5.7% to $47.64.
- [By Ben Levisohn]
There’s been a lot of hand wringing about the dismal performance of department stores like Kohl’s (KSS), Macy’s (M), TJX Cos. (TJX), and Sears Holdings (SHLD) and what it says about the state of consumer spending. Yardeni Research’s Ed Yardeni argues that U.S. consumers are shopping, but that “Amazon (AMZN) is taking all the fun, and some of the profits, out of retailing…” He explains:
Hot Cheap Companies For 2017: Emerson Electric Company(EMR)
Emerson Electric Co. operates as a diversified manufacturing and technology company. The company engages in appliance solutions, climate technologies, industrial automation, motor technology, network power, process management, professional tools, and storage solutions businesses. Its appliance solutions business provides appliance controls, appliance motors, heating products, and white-rodgers; climate technology business provides heating, ventilation, air conditioning, and refrigeration (HVACR) solutions for residential, industrial, and commercial applications; and industrial automation business offers bearings and power transmission products, electrical power generation products, electric motors, variable speed drives and servos, electrical products, material joining solutions, fluid automation products, and wind turbine systems. The company?s motor technology business provides appliance motors, HVACR motors, DC motors, fractional horsepower motors, integral horsepower a nd larger motors, and drives; network power business provides power, precision cooling, connectivity, and embedded solutions; and process management business provides various wireless related products from self-organizing field networks to wireless asset and people tracking. Its professional tools business offers pipe working and threading equipment, pressing technology, utility locating and visual diagnostics systems, drain maintenance tools, power tools, air tools, general purpose hand tools, wet/dry vacs, job site storage equipment, truck tool boxes and equipment, and van storage equipment; and storage solutions business provides shelving and storage products for residential, commercial, and foodservice needs, as well as offers specialized carts, mobile computer workstations, and cabinet fixtures. The company was founded in 1890 and is headquartered in St. Louis, Missouri.
- [By Rising Dividend Investing]
Pent Up Demand Pushing Cyclical Stocks
We are coming out of a lengthy period of decreased spending in the wake of 2008-09, which has built pent up demand for automobiles, housing and capital expenditures. The average age of vehicles on the road has reached a record high of 11.4 years. Demand for new houses fell off dramatically since the Great Recession. The average U.S. home was built in 1974 and continues to age.
As people have chosen to fix rather than replace their vehicles and homes, we’ve seen the replacement-type industries do very well. Auto Retail’s second quarter sales and earnings per share were up 14.7% and 18.6%, respectively. Home improvement retail grew sales nearly 10% with earnings up 20% from second quarter 2012.
Adding to the pent up demand for housing is the number of young people living with their parents rather than buying or renting on their own. According to real-estate marketplace Trulia, the number of “missing hou seholds” (Americans who would currently be owning or renting a home if pre-recession economic trends had continued) was up to 2.4 million in March. More than half of these missing households are 18 to 34-year-olds.
This pent up demand extends beyond just the immediate products being bought by consumers. Businesses have held off replacing durable goods since the recession. All of this excess demand will have to be released at some point. Eventually, these homes and vehicles will exceed their useful life and need to be replaced. To meet the need for the excess demand, companies will not be able to hold off re-investing in new plant equipment.
We’ve seen the beginning of this demand in 2013 and believe there is more to come. The market is buying into this as well, as more growth and manufacturing oriented sectors – such as Consumer Discretionary and Industrials – have performed well over the near-term.
Share prices for stocks in the Indu strial sectors are mo
- [By Ben Levisohn]
Bernstein’s Steven Winoker and team contend that Brexit is “bad for all our companies it is just a matter of degree.” They explain why Tyco International (TYC), Idex (IEX), Danaher (DHR),Honeywell International (HON) and Emerson Electric (EMR) could feel some degree of pain:
- [By Ben Levisohn]
Industrial companies like Dover (DOV), Emerson Electric (EMR), Eaton (ETN), 3M (MMM) and Rockwell Automation (ROK) are calling for earnings growth to get better during the second half of the year. Bernstein’s Steven Winoker and team aren’t feeling as confident:
Hot Cheap Companies For 2017: Compass Minerals Intl Inc(CMP)
Compass Minerals International, Inc., through its subsidiaries, produces and markets inorganic mineral products primarily in North America and the United Kingdom. The company operates in two segments, Salt and Specialty Fertilizer. The Salt segment produces salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners, pool salt, and agricultural and industrial applications. This segment also purchases potassium chloride and sells as a finished product. The Specialty Fertilizer segment produces and markets sulphate of potash crop nutrients and industrial grade sulfate of potash for use in the production of specialty fertilizers for vegetables, fruits, potatoes, nuts, tobacco, and turf grass. The company also produces and markets consumer deicing and water conditioning products, ingredients used in consumer and commercial food preparation, and other mineral-based products for consumer, agricultural, and industrial applications. In ad dition, Compass Minerals provides records management services to businesses located in the U.K. The company operates rock salt mines in Goderich, Ontario, Canada; and Winsford, Chesire, the United Kingdom. It primarily serves producers of intermediate chemical products used in the production of vinyls and other chemicals, and pulp and paper, as well as water treatment and other industrial uses. The company markets its products through direct sales personnel, contract personnel, and a network of brokers or manufacturers? representatives. Compass Minerals International, Inc., formerly known as Salt Holdings Corporation, was founded in 1993 and is headquartered in Overland Park, Kansas.
- [By Monica Gerson]
Compass Minerals International, Inc. (NYSE: CMP) is projected to post its quarterly earnings at $1.33 per share on revenue of $347.03 million.
MKS Instruments, Inc. (NASDAQ: MKSI) is estimated to post its quarterly earnings at $0.33 per share on revenue of $177.19 million.