Wednesday, August 1, 2012

Portfolio Relevance
By Jim Jelter, MarketWatch
SAN FRANCISCO (MarketWatch) — Oil and oil-field-services stocks closed with slim gains Wednesday on the back of stronger oil prices, dodging a shallow but widespread sell-off in equities following a downbeat assessment of the U.S. economy by the Federal Reserve.
The biggest move of the day came after the close, however, on a surprisingly strong second-quarter report from First Solar Inc.
First Solar Inc. FSLR -4.76% shares surged as much a 16% in after-market trades after the company reported earnings of $1.27 a share, trouncing the 97 cents a share analysts were looking for.
The report marked a welcome turnaround from steep losses in the previous quarter and a big improvement of its year-ago earnings of 70 cents a share. Read about First Solar's surprise earnings.
The Tempe, Ariz., solar-power company, which had seen its share price tumble nearly 90% over the past year, also raised its full-year earnings and sales estimates.
Meanwhile, the NYSE Arca Oil and Gas Index XX:XOI +0.58% ended the session 0.6% higher at 1,203.74 points, reversing the previous session’s decline.
Firmer oil prices lent support to the sector. September crude-oil futures, reflecting an unexpected drop in the latest U.S. weekly inventory reports, rose 85 cents to settle at $88.91 a barrel in New York. See the latest on oil futures.

Driving one of your best investments

Your luxury car might be one of the best investments in your portfolio right now.
The NYSE Arca Natural Gas IndexXX:XNG -0.35% slipped 0.3% to 644.23 points, with Devon Energy among the group’s biggest decliners.
Devon Energy Corp. DVN -3.48% shares fell 3.5% to $57.06 after the gas producer said it is selling 30% of its holdings in Cline Shale and Midland-Wolfcamp Shale to Japan’s Sumitomo Corp. The deal, valued at $1.4 billion, aims to help Devon cover its drilling costs.
Devon also reported a second-quarter profit of $477 million, or $1.18 a share. Adjusted to exclude the impact of its derivatives trades, the company earned 55 cents a share, less than the 81 cents a share analysts had been looking for. Read about Devon's latest quarter.
Marathon Oil Corp. MRO +0.19% also released its second-quarter results, posting a 61% lower profit of 56 cents a share. It’s adjusted earnings were 59 cents a share, matching analysts’ expectations. The weaker results reflected lower oil and gas prices in the quarter. See Marathon's latest results.
Marathon Oil shares rose 5 cents, or 0.2%, to $26.52.
The Philadelphia Oil Service Sector Index OSX +0.99% rose 1% to 218.79 points. Oceaneering International Inc. OII +2.55%  led percentage gainers in the group on a 2.6% advance to $53.01 a share. 
Jim Jelter is Industrials Editor for MarketWatch in San Francisco.

No comments:

Post a Comment