Wedneday's EIA Energy data (see bullet points just below) should have sent the sector skidding lower, but it didn't.
(Cut and pasted from Briefing.com:)
The EIA reports that for the week ending November 11:
- Crude oil inventories had a build of +5.274 mln barrels (consensus called for a build of +1.48 mln barrels)
- Gasoline inventories had a build of +0.746 mln barrels (consensus called for a draw of -0.42 mln barrels)
- Distillate inventories had a build of +0.310 mln barrels
Q4 '16 should be the first quarter since mid-2015 that Energy contributes positively to S&P 500 earnings.
Here is the trend in Q4 '16 Energy sector earnings estimates the last 6-7 weeks:
- 11/11/16: +8.2%
- 11/4/16: +2.9%
- 10/28/16: +1.4%
- 10/21/16 -1.0%
- 10/14/16: -0.1%
- 10/7/16: +2%
- 10/1/16: +2.5%
Source: Thomson Reuters "This Week in Earnings"
The sector laps very easy comps in Q4 '16, Q1 '17 and Q2 '17.
But I have been writing that for a while.
What we hear from the new Administration will matter.
There is a lot of angst over the sector now, with the choppiness of crude trading, what the new Administration does with solar credits, etc.
Give it more time.
Thanks for reading.