Stocks posted their best week since 2015 as investors looked past Brexit and bought stocks hand over fist.
Jason DeCrow/Associated Press
The S&P 500 gained 3.2% to2,102.95 this week after gaining 0.2% today, while the Dow Jones Industrial Average rose 3.2% to 17,949.37 this week after advancing 19.38 points, or 0.1%, today. The Nasdaq Composite climbed 3.3% to4,862.57 this week after rising 0.4% today.
For the Dow Industrials and the S&P 500, it was the best week since November 2015.
Citigroup’s Scott Chronert and team expect the volatility that characterized the first half of the year to continue:
Generally, we find the first half returns to actually be quite remarkable relative to the US, global and macro issues the market has dealt with thus far this year. Early year recession fears, typified byoil prices falling to the mid-$20 level, gave way to a subsequent risk on rally as those fears subsided…Subsequent signs of improving US macros, with discussion of a June/July Fed rate hike triggered a solid rally into early June. From that point, global macros took over, with Brexit dominating sentiment.
Hot Machinery Companies To Buy For 2016: Buenaventura Mining Company Inc.(BVN)
Compa帽铆a de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru. The company operates five directly operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Breapampa; and two mining unites that are under development stage comprising Tambomayo and San Gabriel. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, and La Zanja mines, as well as Tantahuatay, Yanacocha and Cerro Verde mines. In addition, the company provides electrical transmission services; energy generation services through hydroelectric plants; and geological, engineering, design, and construction consulting services to the mining sector, as well as engages in chemical processing activities. Compa帽铆a de Minas Buenaventura S.A.A. was founded in 1953 and is headquartered in Lima, Peru.
- [By Sally Jones]
Buenaventura Mining Company Inc. (BVN)
Down 70% over 12 months, Buenaventura Mining Company Inc. has a market cap of $2.95 billion, and trades with a P/E of 6.70.
Hot Machinery Companies To Buy For 2016: NewStar Financial, Inc.(NEWS)
NewStar Financial, Inc. operates as a commercial finance company in the United States. It provides senior secured cash flow loans, and second lien and unitranche loans to middle market companies for acquisitions, recapitalizations, and refinancing or other general corporate purposes; and senior secured loans to larger middle market companies. The company also offers working capital financing, such as asset-based loans, including revolving lines of credit, and senior secured term loans to asset-intensive companies for acquisitions, recapitalizations, and growth strategies. In addition, it provides first mortgage transitional financing to professional real estate investors and developers to acquire and reposition commercial properties comprising office, multi-family, retail, and industrial properties. Further, the company offers a range of equipment loan and lease financing options to mid-sized companies to fund various equipmen t types consisting of manufacturing, technology, healthcare, transportation, and telecom equipment, as well as it provides investment advisory and asset management services. It serves healthcare, manufacturing and industrial, financial services, energy/chemical services, printing/publishing, business and technology services, auto/transportation, marketing, wholesale distribution, technology, telecommunications, and education, as well as consumer, retail, and restaurant industries. The company was formerly known as Novus Capital, Inc. and changed its name to NewStar Financial, Inc. in June, 2004. NewStar Financial, Inc. was incorporated in 2003 and is based in Boston, Massachusetts.
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Top 5 Industrial Disributor Companies To Own In Right Now: Olympic Steel Inc.(ZEUS)
Olympic Steel, Inc. engages in the processing and distribution of metal products in the United States. It offers flat products and tubular and pipe products, including processed carbon, coated, aluminum and stainless flat-rolled sheet, coil, and plate; and metal tubing, pipe, bar, valves, and fittings and fabricate pressure parts. The company also provides various processing services comprising cutting-to-length, slitting, sawing, and shearing; and value-added processes of blanking, tempering, plate burning, laser cutting, precision machining, welding, fabricating, bending, and painting to process metal to specified lengths, widths, and shapes. It serves metal consuming industries, such as manufacturers and fabricators of transportation and material handling equipment, construction and farm machinery, storage tanks, environmental and energy generation equipment, automobiles, food service and electrical equipment, and military vehicles and equipment, as well as general and plate fabricators and metals service centers through direct sales force. Olympic Steel, Inc. was founded in 1954 and is headquartered in Bedford Heights, Ohio.
- [By Lisa Levin]
Olympic Steel, Inc. (NASDAQ: ZEUS) was down, falling around 17 percent to $21.32. KeyBanc downgraded Olympic Steel from Sector Weight to Underweight.
Hot Machinery Companies To Buy For 2016: Halliburton Company(HAL)
Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.
- [By Matt Egan]
Pink slips are flying in the oil patch: Profits at energy giants Chevron and Exxon Mobil fell over 50% around the middle of last year. No wonder many American oil companies, including Halliburton (HAL) and ConocoPhillips (COP) have aggressively slashed expenses to counter lower earnings. Government statistics indicate the energy industry slashed 130,000 jobs in 2015. Actual job losses that include oil-related businesses are likely higher.
- [By Wayne Duggan]
Gruber names Halliburton Company (NYSE: HAL) as Citi’s top pick among integrates services stocks. After Halliburton, he ranks Baker Hughes second choice, Schlumberger third and Weatherford International Plc (NYSE: WFT) fourth. The firm has Buy ratings on all four stocks.
- [By Ben Levisohn]
Evercore ISI’s James West and team explain whyHalliburton (HAL) remains their “North American Winner” among oil-field-services stocks:
A Structural Favorite. Halliburton remains one of our favorite stocks in the group and the management team’s relentless pursuit of efficiency and aggressive positioning for the upcycle will likely make the stock one of the top performers in the OFS space. Within the diversified peer group, we believe Halliburtonis best positioned to benefit from the unfolding increase in oilfield services activity in North America, as it remains markedly more levered to North America compared to its competitors. Once the recovery (which is already in a nascent stage) further takes hold, NAM activity will react the quickest and the strongest, which should allow Halliburtonto see higher company-wide revenue growth and margin expansion than its peers. Internationally, and following Baker Hughes’ (BHI) decision to exit some international markets and product lines, we expect the international dominance of Halliburtonand Schlumberger (SLB) (which allowed for +20% margins pre-20 09) to return, with Halliburtonas the primary beneficiary of market share gains and better pricing. In anticipation of the upturn, the company continues to execute and gain market share through the downturn. We see a path to $4.00+ in EPS and a $60+ stock price in the not too distant future.
Shares ofHalliburton have dropped 2.9% to $42.79 at 1:55 p.m. today, while Schlumberger has fallen 2.3% to $78.79, and Baker Hughes has declined 1.7% to $49.14.
- [By Ben Levisohn]
FBR’s Thomas Curran and Mark Kelley contend that Halliburton (HAL) and Baker Hughes (BHI) will need General Electric’s (GE) help if their merger–blocked yesterday by the Department of Justice–is to succeed:
Confirming the past week’s media reports, the U.S. Department of Justice (DOJ) announced yesterday, April 6, that it will sue to block the Halliburton-Baker Hughes merger. Based on our initial take, the crux of the DOJ’s objection is that Halliburton’s proposal does not create an adequate replacement for Baker Hughes. In an immediate press release,Halliburton replied that the two companies will “vigorously contest” the DOJ’s case; and, as both stocks rose in an oil price surgefueled group rally, the spread actually narrowed modestly. We suspect the spread’s move from $18.17 (implied gross return of 46.2%) to $16.98 (39.7%) reflected surprise by some thatHalliburton believes it still has a case. Cognizant of the now much lower odds of closing, we still like BHI’s risk/reward here: Should the deal fail, it will benefit from the $3.5B breakup fee, with the ability to fully implement restructuring initiatives that have bee n constrained by the merger agreement ($100M in 4Q15, or 300 bps of margin) and a spreading perception that it is back in play; should the deal succeed, the stock will deliver a 40% return, all else constant, within three to four months…
Any “Hail Mary” solution still likely relies on GE Oil & Gas (GE). Based on the trail of evidence to date, we presume the “prospective buyer” that Halliburton has had “lengthy discussions” with is General Electric. We have long held that, should the deal succeed, it will be because General Electric agrees to buy most, if not all, of the assets; we believe the DOJ’s complaint reinforces this view.
Shares of Halliburton have dropped 1.2% to $36