Exxon Mobil, Chevron Earnings Should Double, But This Could Hit Shale Patch
Dow components Exxon Mobil (XOM) and Chevron (CVX) could follow exploration and producing companies in cutting capital spending when they report second-quarter results early Friday. Exxon’s earnings are seen doubling to 87 cents per share with revenue up 10% to $63.6 billion. Chevron’s EPS is expected to jump 94% to 93 cents with revenue rising 9% to $31.9 billion.
Exxon shares rose 0.6% to 80.83 on the stock market today. Chevron advanced 0.9% to 106.11. While companies in the oil and gas space have reported strong Q2 results, there are warnings signs of impending trouble in the shale sector, with oil prices trading below $50 a barrel for months.
Exxon earnings: Will stock trade higher on expected second-quarter beat?
Exxon Mobil Corp. is scheduled to report second-quarter earnings on July 28 before the market opens and investors will be hoping for news that may boost its stock price.Low oil-futures prices continue to dent prospects for Exxon XOM, +0.57% and other energy companies. U.S.-traded oil futures prices CLU7, +0.16% have stagnated under $50 a barrel amid persistent concerns about rising output and higher-than-average inventories not matching demand.
Exxon is relatively insulated from the lower prices, however, thanks to the strength of its other businesses, such as petrochemicals and refining. The company also enjoys a reputation as a shrewd and cost-effective capital allocator and operator, and of having a mix of longer-term and shorter-term projects in almost every corner of the globe, spreading risk. But the somewhat rosier prospects for Exxon have not translated into share gains.
Reminiscences of a Stock Operator | Ch.1 Pg. 11
Tape reading is not as popular as it was in the old days. Computers have taken care of that.
Savvy traders have adapted and are skillfully implementing tape reading in a much different way today. Chart reading is one method. Another technique is interpreting news and volume traded off the news.
When I say the old days, I am referring to 2007. This is when the NYSE expanded to allow increased amounts of electronic trading. (More on this at the end of the article)
Traders would read the ticker tape (invented by Edward A. Calahan, updated by Thomas Edison) to determine the recent buying and selling pressure. It was much easier to spot a large buyer or seller because daily volume was incredibly light so it was easier to spot a big player. The down side to light volume was liquidity. It could be difficult to exit a trade at a reasonable price.
On the Tape Today | 7-28-17
TSCO-Tractor Supply sending a wake up call. Not quite a change of order flow yet, but the "fuel candlestick" has put the stock into my tracking journal. Expecting an extended pause between $58-60 that sets up my first swing trade into the $66 profit target.
If the stock produces another energy candlestick today it becomes a momentum trade (exit into momentum). Keeping it on my radar for a day trade today, and game planning the longer-term swing trade.
AMZN wobbles and the stock market feels the pinch.
I guess that’s what happens to those sitting on the iron throne. You influence everyone in the kingdom and Jeff Bezos behemoth has it’s fingers everywhere. Too big to fail? No. But it’s pretty interesting that one stock has that much weight.
Aren’t there supposed to be “averages?”
The bullish order flow remains intact. Today is just a matter of choosing your preferred bias. If the stock market finally has a bearish day of momentum, your decisions are simple.
Focus on stocks with bearish order flow (such as retail), or wait for bullish stocks to offer a smart place to bid. If you’re trading for a while you know slow grinding trends tend to last a long time. One day of selling doesn’t change the order flow, it only influences your trade management.
Let’s have a great Friday to finish the week.
Stock Market Sector Performance
Stocks to Trade | 7-28-17 Friday Edition
Bullish Momentum: ADP, TSCO, ATUS, BZUN, EQT, APC, HTZ, KSS, DIS, APA, BBY, TRGP, JWN, MPC
Bearish Momentum: ups, csx, unp, xlnx
Bullish Order Flow: AAOI, BZUN, CC, BA, NFLX, EQT, BIDU, LRCX, FB, RH, TTWO, NVDA, BABA, EA, ADSK, AMZN, KMX, MA, ACN, AGN, ADBE, UNH
Bearish Order Flow: stx, slca, ual, dks, ibm, unp, bhge, fl, rost,
Double Normal Volume: FB, ADP, SNI, AMZN, BA, TSCO, EA, UAL, LRCX, BZUN, NOW, HP
Inside Day: stx, cat, dhi, cl, cvs, dvn, met, vfc, rspp, tsn, rh
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