The stock market surge since the start of the year that has sent the benchmark S...
NEW YORK - The stock market surge since the start of the year that has sent the benchmark S&P 500 index up to new record highs is leaving behind one sector that typically outperforms in an expanding economy: energy.
Weak gasoline and petrochemical margins along with record U.S. crude production have weighed on refiners and integrated oil companies this year, yet fund managers and analysts say that energy stocks must also jump the high hurdle of negative investor sentiment before they can catch up to or even lead the broad market higher.
Oil prices are up by more than 35% since the start of the year, due in part to higher-than-expected global demand, production cuts from OPEC and the effect of U.S. sanctions on Venezuela. Economists expect the price of both Brent crude and U.S. light crude to stay above $60 for the rest of this year, according to the latest Reuters poll.
Noah Barrett, an analyst who works on several funds at Janus Henderson Investors, said the outsized gap between the gain in oil prices and the muted performance of energy stocks may help fuel a “catch-up trade” later this year. Yet for that to happen, companies must prove to investors that they can keep a lid on spending, he said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Busy Week Of Data, Earnings Ahead For Wall Street After Record ClosesAfter record-setting closes last week, the market seems to be anticipating another busy week of earnings, a calendar full of economic reports and a rate decision from the Federal Reserve
Read more »
Apple's stock is surging, but Wall Street analysts thought earnings results were just 'fine'Wall Street analysts see Apple headed in the right direction after its earnings report Tuesday, but were less optimistic than the market.
Read more »
Fed and tech stocks could crack the market rally, warns Wall Street strategistOur call of the day, from Miller Tabak Asset Management’s strategist, Matt Maley, warns that any shift in the Fed’s dovish stance this week could cause this...
Read more »
Major Wall Street banks are telling clients to be ready for a sudden rip higher in the marketWall Street firms have a playbook for a potential rapid move higher in stock markets.
Read more »
Wall Street opens mixed; Alphabet weighs on S&P 500, NasdaqU.S. stocks opened mixed on Tuesday, as investors parsed a barrage of earnings r...
Read more »
US economic update; Amazon delivers; Uber IPO detailsToday's top business headlines with CNN's davebriggstv before the opening bell on Wall Street:
Read more »
Uber looks almost nothing like Amazon despite what it plans to tell Wall StreetUber's effort to draw a comparison to Amazon is unlikely to convince investors who can clearly see where the analogy falls apart.
Read more »
Wall Street Journal: McKinsey hired to review federal student loan programThe Trump administration is retaining the consulting firm McKinsey to assess the federal student loan portfolio as the government weighs selling off some of the debt to private investors, The Wall Street Journal reports
Read more »
Wall Street queries Google ad changes after rare revenue missWall Street punished Google on Tuesday for managers' refusal to give detail...
Read more »
Former Rep. Tauscher, arms negotiator and Wall Street ground-breaker, dies at 67She died Monday of complications from pneumonia at Stanford University Medical Center.
Read more »
How Schwab Ate Wall StreetThe San Francisco firm was once a discount broker for amateurs. CEO Walt Bettinger turned it into something more like a personal-finance supermarket, whose rock-bottom prices are dragging blue-chip rivals in its wake.
Read more »