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Volume growth is a lag on UPS, says CFRA's Stewart Glickman
  + stars: | 2024-03-26 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailVolume growth is a lag on UPS, says CFRA's Stewart GlickmanStewart Glickman, CFRA Deputy Research Director, joins 'Closing Bell: Overtime' to discuss UPS as the company's stock has its worse day since January.
Persons: CFRA's Stewart Glickman Stewart Glickman Organizations: UPS
It's time to move to the sidelines on Boeing as short-term headwinds pile up, according to CFRA. The firm downgraded the aircraft maker to hold from buy on Thursday and lowered its 12-month price target to $210 from $253. Analyst Stewart Glickman said the cuts are warranted "by a litany of quality control issues across the aerospace industry. The downgrade comes a month after Boeing said a new manufacturing flaw on its 737 Max jet will delay deliveries of the strong-selling aircraft. BA YTD mountain Boeing ytd chart Glickman also cut his 2024 earnings forecast to $5.39 per share from $6.02 per share.
Persons: Stewart Glickman, Glickman, — Michael Bloom Organizations: Boeing
Brent crude futures rose $2.25, or 3.1%, to $74.85 a barrel by 11:50 a.m. EDT (1550 GMT) . U.S. Federal Reserve officials on Wednesday suggested interest rates could be steady this month and the House passed a bill suspending the government's debt ceiling, improving chances of averting a disastrous default. "The successful debt ceiling negotiations clears that minefield, but the overall demand outlook is still murky - the trucking space is doing poorly, for example," CFRA Research analyst Stewart Glickman said. The oil market is focusing on the June 4 meeting of OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, which will discuss whether to cut oil production further. U.S. crude oil stockpiles rose unexpectedly last week, as imports jumped and strategic reserves dropped to their lowest since Sept. 1983, according to data from the Energy Information Administration.
Persons: Stewart Glickman, Peter McNally, Robert Yawger, Alex Lawler, Rowena Edwards, Arathy Somasekhar, Andrew Hayley, David Goodman, Kirsten Donovan, David Gregorio Our Organizations: Brent, . West Texas, U.S . Federal, Organization of, Petroleum, Reuters, Energy Information Administration, Thomson Locations: China, BENGALURU, Russia, Reuters OPEC, U.S, OPEC, London, Houston, Beijing
Big oil sees political pushback on buybacksFuel prices at a Chevron gas station in Menlo Park, California, on Thursday, June 9, 2022. In the market, and at the oil companies headquarters, it seems the opinions issued from the White House aren't much of a factor in setting financial priorities. The benchmark now is to spend roughly a third of operating cash flow on capital investment, a third on dividends and a third on stock buybacks. Exxon made $76.8 billion in operating cash flow, invested $18 billion back into the business, spent $14.9 billion on dividends and $15.2 billion in stock purchases, according to its cash flow statement. Oil production is increasing
Brutally high oil and gas prices were the talk of the town and one of the largest contributing factors to sky-high inflation. That was bad news for drivers, but ended up being great for the energy industry as oil prices and energy stocks are closely interlinked. As markets fell under the pressures of economic uncertainty, geopolitical chaos, elevated inflation and a hawkish Fed, the energy sector thrived. The S&P ended 2022 down nearly 20%, while the energy sector grew by about 60%. But analysts say US oil companies can’t keep winning for much longer.
But Energy stocks are acting like this may be the top. Lately, traders have been selling off oil stocks under the theory that profits in 2023 will likely be lower than 2022, not higher. The reason: the primary determinant of oil company profits are oil prices, and estimates for oil are coming down. For much of 2022, oil has been in "backwardation": futures prices for the most immediate contracts have been higher than prices farther out. Bulls are cheering the drop in Energy No one cheering for stocks to rally are crying over the drop in oil, or the drop in oil stocks.
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