Starbucks is giving customers another reason to celebrate the end of the decade.
Starting Friday, December 27, customers can get a free 'tall' espresso drink--including holiday favorites like the peppermint mocha and toasted white chocolate latte. The party will last an hour, from 1 to 2 p.m. daily until December 31. Two hundred stores across the country will participate each day.
The location of the party will change daily, so check the list of participating stores before heading to your neighborhood Starbucks for a treat.
NEW YORK (Reuters) - The 2010s was a lost decade for shares of U.S. energy companies overall. Volatile commodity prices amid growing supply, poor financial performance and disfavor from some investor groups all contributed to the energy sector’s transformation from investor darling to investor outcast.
FILE PHOTO: Pump jacks operate at sunset in Midland, Texas, U.S., February 11, 2019. Picture taken February 11, 2019. REUTERS/Nick Oxford
U.S. crude prices CLc1 fell more than 20% during the 2010s, while the rise of alternative energy also brought pressure, with some stock buyers shunning fossil fuel investments as socially irresponsible.
But with the dawn of a new decade, some investors say the sun is also rising on energy shares.
The energy sector’s swoon defied a boom in U.S. domestic oil production, sparked by the advent of hydraulic fracturing, or “fracking.” Ten years ago, the United States was a net importer of about 10 million barrels per day of oil and fuels. It ends the decade poised to become a net exporter of oil and fuel products.
“It really is a great irony that at a time when the United States became the world’s biggest producer and has become a great exporter, that investors have become skeptical and have adopted a position of ‘show me the money,’” said Daniel Yergin, vice chairman of IHS Markit.
“Industry is having to demonstrate that it can deliver those returns over several quarters, not just one quarter, so they’re going through a real testing period right now,” Yergin said.
The S&P 500 energy sector .SPNY registered a meager 6% gain this decade, compared with a more than 180% rise for the benchmark S&P 500 stock index, according to Refinitiv data.
Including dividends, the energy sector’s total return rises to roughly 39%. But that pales in comparison to the S&P 500’s over 250% total return and is only slightly above the roughly 37% return of the ICE BofA Merrill Lynch Treasury index .MERG0Q0, a barometer of U.S. Treasury bond performance.
Over the past decade, including estimates for 2019, the energy sector’s total earnings have declined 14.8%, while all other major sectors have seen growth of at least 28%, according to Refinitiv data.
The energy sector’s poor performance means its importance to the stock market has withered away.
Energy represents less than 5% of the weight of the overall S&P 500, down from over 15% in mid 2008, when U.S. crude prices topped $140 a barrel, according to Refinitiv data.
As a result, investors seeking overall stock market exposure require a smaller allocation of energy shares, another pressure point for the group.
Even so, the decade was transformational for the oil-and-gas industry, which flocked to booming fields in west Texas and North Dakota.
U.S. crude oil production, which was just over 5 million barrels per day (bpd) at the decade’s outset, surged to a record 13 million bpd by the decade’s end, leading to an abundance of supply that has pressured prices, while natural gas output also is setting records.
“The price of energy has been lower than it would have been had none of this occurred,” said Pearce Hammond, managing director at Simmons Energy in Houston.
“It never benefited the energy companies,” he added. “Why? Because they outspent cash flow and they didn’t deliver any kind of real returns. They were just huge sinks of capital.”
But as 2020 arrives, some investors believe the energy sector will leave its struggles behind.
“We have seen crude go to $60 and yet the energy stocks trade as if oil is at $40,” said Gary Bradshaw, portfolio manager of Hodges Capital Management in Dallas.
Investment advisory firm Alan B. Lancz & Associates is among those betting on energy shares. It is overweight the energy sector after buying shares of companies that include Exxon Mobil Corp (XOM.N), Chevron Corp (CVX.N) and Marathon Petroleum Corp (MPC.N), the firm’s president, Alan Lancz, said.
A “perfect storm” of macroeconomic factors pressured commodity prices - including the strong U.S. dollar and slowing economies in emerging markets - as well as more recently a fear of eventual increased U.S. regulations that has sparked more drilling, Lancz said. But he thinks both macro and political factors are poised to ease over the next year.
“We see over a two-, three-year period a gradual recovery in this whole sector that has been unduly depressed,” Lancz said.
Reporting by Lewis Krauskopf and Jessica Resnick-Ault in New York; additional reporting by David Gaffen in New York; editing by Alden Bentley and Leslie Adler
U.S. financial markets hit record highs Thursday, with the Nasdaq Composite closing above 9,000 for the first time.
The Nasdaq gained 0.78 percent from the previous trading day, closing at 9,022.39. The Dow Jones Industrial Average rose 0.37 percent, to 28,621.39, and the S&P 500 advanced 0.51 percent to 3,239.91.
Amazon.com Inc. contributed to the record gains, rising more than 4 percent after it said this year's holiday shopping season was record-breaking, CNBC reported.
The news outlet reported that the S&P 500 is now just 1 percentage point shy of its best yearly performance since 1997, with the index reaching its 34th record high close on Thursday.
Online sales in the U.S. also hit a record high this holiday season, increasing 18.8 percent compared with last year, according to a new report from Mastercard. Overall retail purchases were up 3.4 percent from the same period in 2018.
CNBC noted that stocks often increase this time of year.
Alexa can amuse you with jokes, stories and interesting trivia, and you won't even have to enable extra skills. Here's a list of questions you can ask Alexa to beat boredom, and even crack a smile.
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Jokes
For a quick laugh, ask, "Alexa, can you tell me a joke," or "Alexa, can you tell me a Jimmy Fallon joke?" More specific questions will get you some giggles, too:
Alexa, can you tell me a "yo mama" joke?
Alexa, I've got 99 problems.
Alexa, how was your day?
Alexa, what is the value of pi?
Alexa, is your refrigerator running?
Alexa, why is six afraid of seven?
Alexa, do you have any pets?
Alexa, are you blue?
Alexa, why did the chicken cross the road?
Alexa, how much do you weigh?
Alexa, can you give me some money?
Alexa, my name is Inigo Montoya.
Alexa, do you know Siri?
Alexa, I am your father.
Alexa, do you know the muffin man?
Alexa, how old are you?
Alexa, what do you want to be when you grow up?
Alexa, are we in the Matrix?
Alexa, surely you can't be serious?
Alexa, where is Chuck Norris?
Alexa, do you like pizza?
Alexa, can you sing in autotune?
Alexa, do you love me?
Alexa, what do you want to be when you grow up?
Alexa, what's your favorite color?
Alexa, will you marry me?
Alexa, can you tell me a Star Wars joke?
Alexa, can you rap?
Alexa, who is on first?
Alexa, beam me up.
Trivia
If you find learning more entertaining, try out Alexa's trivia functions with these questions:
Alexa, can you give me a random fact?
Alexa, can you tell me a movie fact?
Alexa, what are some interesting history facts?
Alexa, what are some interesting sports facts?
Alexa, what are some facts about the US government?
Now playing:Watch this:
Kids try to stump Alexa
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Entertain the kids
When the kids can't seem to find anything to do, hit up Alexa with these questions to get them engaged:
Alexa, can you entertain me?
Alexa, can you meow?
Alexa, can you bark?
Alexa, can we play an animal game?
Alexa, can you tell me a story?
Alexa, who stole the cookie from the cookie jar?
Alexa, do you like green eggs and ham?
Alexa, can you read me a Kindle book? (She'll read you the last book you downloaded to your account.)
Check out the companies making headlines before the bell:
Boeing – Boeing remains on watch, after new documents reviewed by a congressional panel revealed what's being called "very disturbing" revelations regarding the grounded 737 Max jet, according to a congressional aide quoted by Reuters. Boeing issued a statement saying it had proactively brought the documents to the FAA and Congress, and said the tone and content do not reflect "the company we are and need to be".
Amazon.com – Amazon said the holiday shopping season broke all prior records, with "billions" of items ordered worldwide and "tens of millions" Amazon devices purchased.
Qiagen – Qiagen said it decided against a sale of the company following a review. The Netherlands-based genetic testing firm said it determined that operating as a stand-alone business is its best option. Qiagen said it had gotten several indications of interest, with reports saying one of those potential bids came from medical device maker Thermo Fisher Scientific.
PayPal – PayPal will continue to pursue potential takeover targets in 2020, according to Chief Financial Officer John Rainey. He told the Wall Street Journal there are many acquisition opportunities in the payments sector, with PayPal targeting transactions in the $1 billion to $3 billion range.
Exxon Mobil, Chevron – These and other oil stocks could get a boost as oil prices touch their highest in more than 3 months, boosted by a report showing lower U.S. crude inventories.
TiVo – The digital video recorder maker said it would pay a termination fee of $50.8 million to technology licensing company Xperi under certain circumstances, if their planned all-stock merger does not take place. There are other termination scenarios, according to an SEC filing, in which Xperi would pay TiVo $44 million.
KKR – The private equity firm is buying digital content platform Overdrive from Rakuten for an undisclosed amount. The Japanese e-commerce company purchased Overdrive in 2015 for $410 million.
Spectrum Pharmaceuticals – The drug maker said its experimental treatment for non-small cell lung cancer missed its primary goal in a mid-stage trial.
The markets have been on fire in 2019, according to FOX Business' Gerri Wilis. The Dow is up 22 percent, S&P is up 28.5 percent, the Nasdaq is up 34.8 percent as the markets close for Christmas.
U.S. equity futures are pointing to a higher open when trading resumes on Thursday, following the Christmas Day holiday.
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The three major futures indexes are indicating a gain of 0.1 percent.
U.S. stocks edged lower Tuesday, drifting slightly from their records, in a muted trading session ahead of the Christmas holiday.
Chinese markets surged on Thursday after the government announced a relaxation of residency restrictions for small and medium cities that boosted property stocks.
The Shanghai Composite index jumped 0.9 percent. Japan's Nikkei advanced 0.6 percent.
World markets have rallied since President Donald Trump said earlier this week that a trade deal with China was ready for signing. Chinese officials have confirmed that the two sides are in close contact on their so-called Phase 1 agreement to help ease friction over Beijing's technology ambitions and other trade issues.Earlier this week,
China announced it was slashing tariffs on 850 types of products as part of its efforts to improve the quality of its trade and meet demand for scarce items such as pork, which is in short supply due to outbreaks of African swine fever that have devastated its hog industry.
For some investors on Wall Street at this time last year it was a Nightmare before Christmas, as an escalating U.S. - China trade war and Federal Reserve interest rate hikes cast a pall over the holiday.
Since that low point on Christmas Eve last year though, as in Tim Burton’s movie, Santa has replaced the Pumpkin King’s nightmarish 2018 gifts with a spectacular recovery.
On Christmas Eve last year, the S&P 500 index had fallen nearly 20% for the year and was on the verge of a bear market.
Here’s what that action looked like last year (see chart below):
But this year’s rally has seen the S&P 500 index
SPX, -0.02%
recover and return 37% when the market closed for Christmas Eve on Tuesday, while the Dow Jones Industrial Average
DJIA, -0.13%
is up 31% and the Nasdaq Composite Index
COMP, +0.08%
has surged more than 45% over the same period, according to FactSet data.
“So, a year later, what was the bigger surprise? The 2018 fourth quarter massacre or the monstrous rally from those lows?” asked Frank Cappelleri, executive director at brokerage Instinet.
The S&P 500 has not seen a 1% loss on any day since Oct. 8 but it also hasn’t seen a 1% climb since October either, Cappelleri notes (see chart below):
He said the gains that the market has enjoyed in the fourth quarter this year have been more in line with returns historically, with an average return in the last three months of a calendar year of 7.86%, not including 2019. The average return for 2019 so far is 8.66%:
Although at least one expert believes the market is currently in a “silly season”, others believe that equity indexes could continue to climb higher into next year, despite lackluster corporate earnings.
While the percentage of companies in the S&P 500 index trading above their 200-day moving average has climbed to the highest level in nearly two years, further gains could be ahead, wrote Jeff DeGraaf, chairman of Renaissance Macro Research, in a Tuesday research note.
“The strength in long-term internal trends not only signifies an improving market but helps build a more sustainable backdrop as levels of technical support strengthen and multiply, creating more reasons to buy dips,” wrote DeGraaf. The chart below shows the gains in the equal-weighted S&P 500 atop a chart showing the percent of companies trading above their long-term averages:
Source: Renaissance Macro Research
As when it comes to economic fundamentals, better clarity on U.S. international trade policy may help drive increased business spending and more productivity, which we think will lead to stronger earnings growth in 2020, argued John Lynch, Chief Investment Strategist for LPL Financial, in a note on Tuesday.
“In 2019, expanding valuations drove gains for stocks, but in 2020, we expect earnings to do the heavy lifting,”
“We are encouraged by the additional clarity companies now have as a result of the trade pact reached with China December 13,” he said.
Source: Renaissance Macro Research
