Calm Down, Investors: OPEC Meetings Themselves Hold Little Weight

Members of the Organization of the Petroleum Exporting Countries and other oil producers are set to meet this Thursday to discuss extending output cuts. The current cuts, an output reduction of 1.8 million barrels per day for six months, were decided in November and implemented on January 1.

The cuts are expected to be extended by nine months under the urging of the Saudi Arabia and Russia, the world’s top two oil producers.

Early in the week, oil prices were up in anticipation of the meeting, in addition to oil stocks, including Exxon Mobil Corporation XOM and BP plc (ADR) BP.

 

On Monday, share prices took a dive, though, after the news that Iraq was resistant to longer extensions, but returned to pre-market levels when Saudi energy minister, Khalid al-Falih, flew to Iraq to gain its support for a nine-month extension.

A Brief Look Back

Volatile trades are to be expected in the coming week, but investors should be cautious of placing too much stock in any sharp movements in the near term.

Looking back at the week before and after the past five OPEC meetings, there doesn’t seem to be any trend in share price movement in the short term.

The weeks surrounding OPEC’s 167th meeting on June 5, 2015, and 169th meeting on June 2, 2016, highlight the vast different movements that can occur:

  • The 167th meeting was preceded by a near linear drop in prices among top U.S. exchange-traded oil stocks.
  • The 169th meeting was preceded by a drop in prices, which returned to their starting value just before the meeting. The following week saw a rise in prices, which within another week had lost any gains made.

After both meetings, oil shares saw large price shifts in the longer term — the six months following each meeting — bouncing between highs and lows differing by over 15 percent.

What To Keep In Mind

The OPEC meeting last December had a distinctly noticeable impact on prices due to organization’s decision to implement a production cut for the first time since 2008.

Investors should be wary of speculating based on past meetings; the only evident trend in their effect on oil share prices is that there is no trend.

Investors should also note that OPEC’s effect on prices is ultimately determined by its members’ willingness to abide by its decisions, and they should pay attention in the long run to see if the petroleum exporting countries stick to their obligations.

The Market In 5 Minutes 5/23/2017

  • Technology-focused Gene Munster peeked into another realm of reality last week at the Cannes Film Festival and discovered filmmakers eagerly awaiting progress in virtual reality:
  • BlackBerry Ltd (BBRY) continued its bullish momentum on Monday when the company announced a new deal with Ford Motor Company (F) to expand the use of the QNX operating system in Ford automobiles:
  • Buffalo Wild Wings (BWLD) will hold an important board vote at its annual investor meeting on June 2, hoping to settle the battle the company is embroiled in with activist investor Marcato Capital Management:
  • Americans and investors hoping for healthcare reform may have the strongest congressional motivator of all on their side, fear:
  • The government of Saudi Arabia pledged $20 billion to Blackstone (BX)’s newly created infrastructure investment vehicle with the ultimate aim of raising another $20 billion from other investments and ultimately bring the total to $100 billion:

THE WALL STREET JOURNAL

  • President Donald Trump on Tuesday will propose a plan he says will balance the federal budget in a decade on the strength of substantially faster economic growth and cuts to taxes and government safety-net programs:
  • A group linked to North Korea is highly likely behind this month’s global ransomware assault, and the attack more closely resembles the behavior of a crime ring rather than a government-orchestrated campaign, a cybersecurity researcher said
  • A contentious tax dispute between Australia and Chevron Corp. (CVX) could cost the company billions of dollars and open a new front in global efforts to crack down on the aggressive tax strategies used by many multinational corporations:
  • A resurgent music industry, fueled by the rise of streaming services, is tempting the parent company of Universal Music Group to cash in with a public stock offering:

REUTERS

  • U.S. President Donald Trump’s proposal to sell half of the United States’ strategic oil reserve surprised energy markets on Tuesday since it counters OPEC’s efforts to control supply in order to boost prices
  • Nokia has settled its legal battle with Apple (AAPL) with a new patent license agreement and also signed a business deal with the U.S. giant, surprising investors who had expected the dispute to drag on:
  • The CEOs of two major American companies – retailer Target Corp (TGT) and agribusiness Archer Daniels Midland Co (ADM) – will offer countering views in a hearing before U.S. lawmakers on Tuesday on a proposed border adjustment tax:

    BLOOMBERG

  • Since the day it was created, Democrats loved it, Republicans hated it and Wall Street, at best, tolerated it. The fate of the Consumer Financial Protection Bureau and its chief, Richard Cordray, is in the hands of a Washington appeals court that will hear arguments Wednesday
  • OPEC’s second-biggest producer is also its biggest cheater. And if past is prologue, that lengthens the odds the group will be able to squeeze too many more price gains out of its output cuts:
  • Inside the Whole Foods Market (WFM) in midtown Manhattan at lunchtime, it’s easy to forget that the organic supermarket chain is facing its biggest crisis since going public in 1992:
  • White House budget director Mick Mulvaney has floated an idea to bring down drug prices that’s both promising and — if other Republicans can be persuaded to go along — bipartisan:

NY POST

  • The often maligned crypto-currency continued its incredible run on Monday, soaring to nearly $2,200 at 10:30 p.m. — leaving it up 124 percent this year and ahead nearly 400 percent over the past 12 months, according to Coindesk:

CONSUMER

Toll Brothers (TOL) Reports Q2 EPS $0.73 vs $0.63 Est; Revenue $1.363B vs $1.27B Est.
AutoZone (AZO) Q3 EPS EPS $11.44 vs $11.66 Est, Sales $2.62B vs $2.71B Est
Take-Two (TTWO) Reports Q4 EPS $0.89 vs $0.48 in Same Qtr. Last Year, Sales $571.6M vs $377.2M YoY
DSW (DSW) Reports Q1 Adj. EPS $0.32 vs $0.35 Est., Sales $691.1M vs $684.9M Est.

ENERGY

INDUSTRIALS

Raven Industries (RAVN) Reports Q1 EPS $0.34 vs $0.24 Est., Sales $93.5M vs $79.9M Est.
Nordson (NDSN) Reports Q2 EPS Adj. $1.35 vs $1.31 Est., Sales $496M vs $472.24M Est.

FINANCIALS

Independence Holding Co. (IHC) Reports Q4 EPS $0.49 vs $0.28 in Same Qtr. Last Year, Sales $78.871M vs $124.602M

HEALTHCARE

Agilent (A) Reports Q2 Adj. EPS $0.58 vs $0.48 Est., Sales $1.1B vs $1.05B Est.
Quotient (QTNT) Ltd Reports Q4 EPS $(0.69) vs $(0.74) Est., Sales $5.526M vs $4.9M Est.

TECHNOLOGY

Momo (MOMO) Reports Q1 EPADS $0.44 vs $0.31 Est; Revenue $265.2M vs $242.82M Est

ECONOMIC FIGURES

08:30 a.m. Redbook (YoY)

08:55 a.m. Redbook (MoM)

09:45 a.m. Services PMI

09:45 a.m. Manufacturing PMI

10:00 a.m. Richmond Services Index

10:00 a.m. Richmond Manufacturing Index

10:00 a.m. Richmond Manufacturing Shipments

10:00 a.m. Richmond Fed Manufacturing Index

10:00 a.m. New Home Sales

10:00 a.m. New Home Sales (MoM)

11:30 a.m. 52-Week Bill Auction

11:30 a.m. 6-Month Bill Auction

11:30 a.m. 4-Week Bill Auction

11:30 a.m. 3-Month Bill Auction

1:00 p.m. 2-Year Note Auction

3:15 p.m. FOMC Member Kashkari Speaks

5:00 p.m. FOMC Member Harker Speaks

Analyst & Shareholder Meetings

  • 8:00 a.m. GNC Holdings (GNC)
  • 9:00 a.m. Merck (MRK)
  • 9:00 a.m. Nielsen (NLSN)
  • 9:00 a.m. Xerox (XRX)
  • 10:00 a.m. Southwestern Energy Co. (SWN)
  • 10:00 a.m. Wendy’s (WEN)
  • 10:30 a.m. Urban Outfitters (URBN)
  • 12:00 p.m. Amazon (AMZN)
  • 1:30 p.m. NVIDIA (NVDA)
  • 2:00 p.m. Skechers (SKX)
  • 2:00 p.m. Tableau (DATA)

UPGRADES

  • JP Morgan Upgraded McKesson (MCK) from Neutral to Overweight
  • Goldman Sachs Upgraded Atwood Oceanics (ATW) from Sell to Neutral
  • Bank of America Upgrades Reliance Steel & Aluminum (RS) From Neutral to Buy

DOWNGRADES

  • Wells Fargo Downgraded Xilinx (XLNX) from Outperform to Market Perform
  • Goldman Sachs Downgraded Helmerich & Payne (HP) from Neutral to Sell
  • Wells Fargo Downgrades Papa Murphy’s (FRSH) From Outperform to Market Perform

Deal Talk

  • Chinese billionaire Jack Ma’s Ant Financial is moving closer to getting regulatory approval to buy MoneyGram (MGI), The New York Post has learned — despite concerns in Washington about money laundering.

  • PPG Industries (PPG) remains interested in negotiating a “consensual” deal withAkzo Nobel, even as the Dutch rival paint maker resists its 26.3 billion euro ($29.5 billion) takeover offer, PPG’s top executive said on Tuesday

US OPTIONS RECAP

  • GIS Gen Mills Oct 62.5 Calls: 9000 @ ASK $0.85: 10k traded vs 1647 OI: Earnings 6/29 Before Open (est) $56.67 Ref 
  • TOL Toll Brothers May 26th 37.5 Calls Sweep: 618 @ ASK $1.25: 1041 traded vs 153 OI: Earnings tmrrw Before Open $37.90 Ref 
  • HPE Hewlett-Packard Ent May 26th 19.0 Calls Sweep: 2233 @ ASK $0.15: 4544 traded vs 2087 OI: Earnings 5/31 After Close $18.80 Ref 
  • CXW CoreCivic Sep 27.0 Puts Sweep: 1000 @ ASK $1.45: 1229 traded vs 152 OI: Earnings 8/2 After Close (est) $30.65 Ref 
  • SQ Square Jun 22.0 Calls: 500 @ ASK $0.35: 1490 traded vs 1021 OI: Earnings 8/3 After Close (est) $20.86 Ref 
  • TTMI

A Peek Into The Markets: U.S. Stock Futures Gain Ahead Of Economic Reports

U.S. stock futures traded higher in early pre-market trade. The flash Composite PMI for May will be released at 9:45 a.m. ET, while data on new home sales for April will be released at 10:00 a.m. ET. Minneapolis Federal Reserve Bank President Neel Kashkari is set to speak in Minneapolis at 3:15 p.m. ET, while Philadelphia Federal Reserve Bank President Patrick Harker will speak in New York at 5:00 p.m. ET.

Futures for the Dow Jones Industrial Average climbed 39 points to 20,917.00, while the Standard & Poor’s 500 index futures rose 2.75 points to 2,395.50. Futures for the Nasdaq 100 index gained 8.75 points to 5,710.75.

Oil prices traded higher as Brent crude futures fell 0.71 percent to trade at $53.49 per barrel, while US WTI crude futures gained 0.95 percent to trade at $53.49 a barrel.

A Peek Into Global Markets

European markets were higher today, with the Spanish Ibex Index gaining 0.98 percent, STOXX Europe 600 Index rising 0.21 percent and German DAX 30 index gaining 0.48 percent. The UK’s FTSE index was trading higher by 0.18 percent, while French CAC 40 Index climbed 0.72 percent.

In Asian markets, Japan’s Nikkei Stock Average fell 0.33 percent, Hong Kong’s Hang Seng Index rose 0.05 percent, China’s Shanghai Composite Index declined 0.45 percent and India’s BSE Sensex fell 0.67 percent.

Broker Recommendation

Analysts at JP Morgan upgraded McKesson Corporation MCK from Neutral to Overweight.

McKesson shares rose 1.58 percent to close at $155.42 on Friday.

Breaking news

  • Toll Brothers Inc TOL reported better-than-expected results for its second quarter.
  • Agilent Technologies Inc A reported stronger-than-expected earnings for its second quarter on Monday.
  • Kirkland’s, Inc. KIRK posted a wider-than-expected loss for its first quarter.
  • AutoZone, Inc. AZO posted weaker-than-expected earnings for its third quarter on Tuesday.

Todd Gordon’s Tesla Hedge

Todd Gordon spoke on CNBC’s “Trading Nation” about Tesla Inc TSLA. He has a long position in the name and he’s concerned it could trade lower.

Gordon wants to hedge his long-term position by purchasing the June 2, 305/295 put spread for $3.05. The trade breaks even at $301.95 or 2.71 percent below the current market price. It can make a maximal profit of $6.95. Gordon wants to place a stop loss at the half of the value of the premium paid.

Watch These 4 Huge Put Purchases In Tuesday Trade

These trades were placed during Monday’s regular session.

  • Corecivic Inc CXW Sep 27.0 Puts Sweep: 1000 @ ASK $1.45: 1229 traded vs 152 OI: Earnings 8/2 After Close (est) $30.65 Ref
  • Thor Industries, Inc. THO Sep 90.0 Puts Sweep: 726 @ ASK $5.40: 727 traded vs 87 OI: Earnings 6/5 After Close (est) $93.19 Ref
  • AmTrust Financial Services Inc AFSI Jun 10.0 Puts Sweep: 1000 @ ASK $0.30: 1165 traded vs 1166 OI: Earnings 8/2 After Close (est) $11.97 Ref
  • GrubHub Inc GRUB Jun 40.0 Puts Sweep: 670 @ ASK $0.448: 672 traded vs 889 OI: Earnings 7/27 Before Open (est) $43.37 Ref

Watch These 4 Huge Put Purchases In Tuesday Trade

These trades were placed during Monday’s regular session.

  • Corecivic Inc CXW Sep 27.0 Puts Sweep: 1000 @ ASK $1.45: 1229 traded vs 152 OI: Earnings 8/2 After Close (est) $30.65 Ref
  • Thor Industries, Inc. THO Sep 90.0 Puts Sweep: 726 @ ASK $5.40: 727 traded vs 87 OI: Earnings 6/5 After Close (est) $93.19 Ref
  • AmTrust Financial Services Inc AFSI Jun 10.0 Puts Sweep: 1000 @ ASK $0.30: 1165 traded vs 1166 OI: Earnings 8/2 After Close (est) $11.97 Ref
  • GrubHub Inc GRUB Jun 40.0 Puts Sweep: 670 @ ASK $0.448: 672 traded vs 889 OI: Earnings 7/27 Before Open (est) $43.37 Ref

Watch These 7 Huge Call Purchases In Tuesday Trade

These trades were placed during Monday’s regular session.

  • General Mills, Inc. GIS Oct 62.5 Calls: 9000 @ ASK $0.85: 10k traded vs 1647 OI: Earnings 6/29 Before Open (est) $56.67 Ref
  • GoPro Inc GPRO May 26th 9.5 Calls Sweep: 2000 @ ASK $0.11: 7767 traded vs 303 OI: Earnings 7/26 After Close (est) $9.10 Ref
  • Hewlett Packard Enterprise Co HPE May 26th 19.0 Calls Sweep: 2233 @ ASK $0.15: 4544 traded vs 2087 OI: Earnings 5/31 After Close $18.80 Ref
  • Endo International plc ENDP Jul 15.0 Calls Sweep: 600 @ ASK $0.30: 1532 traded vs 3166 OI: Earnings 8/8 Before Open (est) $11.99 Ref
  • Toll Brothers Inc TOL May 26th 37.5 Calls Sweep: 618 @ ASK $1.25: 1041 traded vs 153 OI: Earnings Today Before Open $37.90 Ref
  • TTM Technologies, Inc. TTMI Jun 17.5 Call; 4984 @Bid @$0.05; Ref=$15.78
  • Square Inc SQ Dec17 19.0 Calls Sweep: 531 @ ASK $3.40: 1504 traded vs 3655 OI: Earnings 8/3 After Close (est) $20.55 Ref

Scott Bauer’s Momo Options Trade

Scott Bauer of Trading Advantage suggested on Bloomberg Markets a bullish options strategy in Momo Inc (ADR) MOMO.

The company is going to report earnings on Tuesday and the options market is anticipating a $5 move in either direction. Bauer thinks that the stock is going higher and he wants to buy the May 46/49 call spread for $0.80. The trade breaks even for $46.80 or 9.27 percent above the current market price. It can maximally make a profit of $2.20.

Scott Bauer’s Momo Options Trade

Scott Bauer of Trading Advantage suggested on Bloomberg Markets a bullish options strategy in Momo Inc (ADR) MOMO.

The company is going to report earnings on Tuesday and the options market is anticipating a $5 move in either direction. Bauer thinks that the stock is going higher and he wants to buy the May 46/49 call spread for $0.80. The trade breaks even for $46.80 or 9.27 percent above the current market price. It can maximally make a profit of $2.20.

Former Vice Chairman of the NASDAQ, David Weild, Joins Advisory Board of KinerjaPay, Indonesia’s First U.S. Publicly Traded Company

KinerjaPay Corp., (OTCQB: KPAY), a digital payment and ecommerce platform, (“KinerjaPay” or the “Company”) today announced that David Weild, former Vice Chairman of the NASDAQ, has joined the Company’s Advisory Board.

Mr. Weild currently serves is Chairman and CEO of Weild & Co. He is the former Vice Chairman of NASDAQ and head of investment banking and equity capital markets at Prudential Securities and the former President of PrudentialFinancial.com.

Mr. Weild co-authored a number of studies evaluating the impact of the modern electronic markets on the decline in equity capital formation that have been referred to by the White House, U.S. Congress, U.S. Securities and Exchange Commission, the European Commission, the Organization of Economic Cooperation and Development, the Federation of European Securities Exchanges, the G-20, the Budapest Economic Forum and numerous stock exchanges in North and South America, Europe and Asia. These studies have also been credited with contributing to the creation of the JOBS Act.

Commenting on his appointment, Mr. Weild said, “Indonesia represents one of the largest opportunities in the e-commerce sector. It is the fourth largest country in the world by population with a GDP just under $1 trillion, yet its citizens are largely underserved by the banking industry and less than 10% even have credit cards. KinerjaPay has found a way to bridge that gap, for both consumers and businesses, and I look forward to working the Company to expanding their platform across Indonesia and Southeast Asia.”

Edwin Ng, Chairman and CEO for KinerjaPay Corp. commented, “We are so pleased to welcome David to the KinerjaPay Advisory Board. He has spent much of his career focusing on accelerating economic growth and improving competitiveness in the financial markets, and I expect that we will benefit greatly from his expertise as we seek to manage the accelerating growth of our user base and add services to the KinerjaPay platform.”

Mr. Weild earned his MBA from the Stern School of Business and a BA in Biology from Wesleyan University and studied on exchange at The Sorbonne, Ecole des Haute Etudes Commerciales and The Stockholm School of Economics. He is also Chairman Emeritus of Tuesday’s Children (http://www.tuesdayschildren.org), the noted 9/11 charity that also provides support to US military families of the fallen, first responders and set up the Resiliency Center of Newtown.

About KinerjaPay

KinerjaPay enables consumers to “Pay, Play and Buy” through its secure web portal and mobile applications. Based in Indonesia, the Company provides easy and convenient payment solution while shopping online at its marketplace platform. With its current omni-channel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance and direct transfer to anyone at their convenience. KinerjaPay is also planning to launch other eCommerce verticals such as travel market, delivery services, and online gaming in the near future. The Company’s services are available through its mobile applications and on its website at http://www.kinerjapay.com.

Notice Regarding Forward-Looking Statements

This press release may contain forward-looking statements, about KPAY’s expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. In addition, from time to time, KPAY or its representatives have made or may make forward-looking statements, orally or in writing. Forward-looking statements can be identified by the use of forward-looking words such as “believe,” “expect,” “intend,” “plan,” “may,” “should” or “anticipate” or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by KPAY with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of KPAY’s authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause KPAY’s actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause KPAY ‘s actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements, including, but not limited to, the factors summarized in KPAY ‘s filings with the SEC. In addition, KPAY operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. KPAY does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise. Please see the risk factors associated with an investment in our securities which are included in our Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on February 11, 2016.

For more information, please visit our website http://www.kinerjapay.co. There you will find access to all of our past press releases and SEC filings regarding the activities discussed in this letter.

Media Contact:
KinerjaPay Corp.
Email: info@kinerjapay.co
+62-8229-777-0098
SOURCE KinerjaPay Corp.