US equities investors found an unlikely tonic for interest-rate wounds: a recovery in oil prices.
The Standard & Poor’s 500 Index rose 2.8 per cent in the holiday-shortened week, recouping all but 12 points of the two- day rout following the first rate hike in almost a decade on December 16.
Energy producers in the index rallied 4.6 per cent in the 3½ days for the best performance since October, as higher crude prices bolstered the year’s most beaten-down industry. The dollar held a three-day loss against the yen today.
Crude’s rally led the biggest gain in commodities prices since October. A report showing that consumer spending buoyed the economy last quarter added to optimism that growth can accelerate even as rates rise.
That’s a turnabout from the prior week, when stocks suffered the biggest two-day slide ever to follow the start of Federal Reserve tightening cycle amid concern global growth was faltering.
“We’ve seen some increases in the price of oil so people are maybe a little more interested in putting money to work at these prices,” said Mariann Montagne, who helps oversee US$870 million (RM3.734 billion) as senior investment analyst at Gradient Investments Group.
“The Fed hike really told us that things are improving and that the economy can support a rate hike. We have improving employment numbers and an economy that’s improving.”
BP plc (ADR) (NYSE:BP) ended its day with the loosing of -0.74% after opening at $ 32.51 on 24 December, 2015.The worst hit in its 52 week range is $29.35 per share, with $43.85 as its 52 week best price. The USA based company with the total traded volume of 3.38M shares less than average volume of 7.56M. BP plc (ADR) (NYSE:BP) operates as an integrated oil and gas company worldwide. It operates in three segments: Upstream, Downstream, and Rosneft. The Upstream segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trade of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). It also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as NGL extraction business. The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemicals products and related services to wholesale and retail customers.
Energy Transfer Partners LP (NYSE:ETP), closed at price of $33.96 by gaining 0.65% on 24 December, 2015.Its beta value stands at 0.96 and 52 week range of the stock remained $27.44 – $66.85, while its day lowest price was $33.80 and its hit its day highest price at $34.88. The company total market capitalization is $16.94Balong with 501.95Mshares outstanding. Energy Transfer Partners LP (NYSE:ETP) on Nov. 16, 2015 and Sunoco LP (SUN) announced the dropdown to SUN of the remaining 68.42% interest in Sunoco, LLC and 100% interest in the legacy Sunoco retail business for approximately $2.226 billion. The transaction will be effective as of January 1, 2016 and is expected to close in February 2016. SUN will pay to ETP approximately $2.2 billion in cash (including the expected value of working capital) and will issue to ETP approximately 5.7 million SUN common units valued at approximately $194 million based on the five-day volume-weighted average price of SUN’s common units as of November 13, 2015. Pro forma for the dropdown transaction and related equity private placement, ETP will remain the largest unitholder of SUN with an approximate 46% LP interest , reflecting ETP’s continued confidence in SUN’s business and future growth prospects.
Enterprise Products Partners L.P. (NYSE:EPD) opened its shares trading at the price of $25.77, reaching at a closing price of $25.95 after gaining 1.25% for the day on 24 December, 2015. The company total market capitalization is $51.41B along with 2.01B shares outstanding. Enterprise Products Partners L.P. (NYSE:EPD)on December 23, 2015 announced that it has agreed to provide pipeline and marine terminal services to load its first export of crude oil produced in the United States under the law enacted earlier this month. The 600,000 barrel cargo of domestic light crude oil is scheduled to load at the Enterprise Hydrocarbon Terminal (EHT) on the Houston Ship Channel during the first week of January 2016. “We are excited to announce our first contract to export U.S. crude oil, which to our knowledge may be the first export cargo of U.S. crude oil from the Gulf Coast in almost 40 years,” said A.J. “Jim” Teague, chief operating officer of Enterprise’s general partner. “Enterprise’s integrated system enabled us to quickly respond to customer demand for U.S. crude oil by international markets.”