General Motors Co. (NYSE: GM) on Tuesday posted total October U.S. sales of 258,626 vehicles, a decrease of 1.7% compared with October 2015. Retail deliveries rose 2.5 points for the year to date to 208,290 units, and fleet deliveries slipped 3.7 percentage points for the year to date.
GMs new vehicle sales for October were forecast at 246,512 by analysts at Edmunds.com. WardsAuto had estimated sales of 245,000. Kelley Blue Book (KBB) estimated an average transaction price of $39,544, down 1.2% month over month and up 4.2% year over year. KBB does not include applied consumer incentives to its calculation.
Incentive spending per unit totaled $4,417, according to a forecast from TrueCar, an increase of 14% compared with October 2015 and a decrease of 4.6% compared with September 2016. Of the Detroit Three automakers, GM had the lowest percentage increase in incentive spending compared with last year. Ford boosted its incentives by 30% year over year and Fiat Chrysler’s incentives rose 23%.
mutual fund investment: Rex Energy Corporation(REXX)
- [By Ben Levisohn]
Our peer group is up an average of 46% over the past 4 weeks in response to a 30% rebound in the 12-month strip NYMEX oil price. Some of the largest gainers include Hold and Sell rated stocks that we would not chase such asDenbury Resources (Sell, +138%), Halcon Resources (HK) (Sell, +147%), Jones Energy (JONE) (Hold, +166%), Rex Energy (REXX) (Sell, +60%), Sanchez Energy (SN) (Hold, +93%), Ultra Petroleum (UPL) (Sell, +61%), andWhiting Petroleum (Hold, +103%), which have outperformed the E&P Index (+32%) over the same time period. Balance sheets and/or well level returns remain challenged for these companies despite improved oil prices. While we believe oil markets should re-balance over the next 12 to 15 months, the recent recovery to $40 could reverse during 2Q16 as bloated inventories continue to rise, new volumes from Iran pressure an oversupplied market, and a highly anticipated decline in non-OPEC supply (especially in the U.S.), is not as steep as expected. The risk of an oil price retracement, which would significantly pressure the recent out-performers, outweighs the upside in these stocks, in our view. However, we are raising our target prices on Buy ratedAnadarko Petroleum ($54 from $48), Concho Resources (CXO) ($120 from $109), Matador Resources (MTDR) ($22 from $21),Noble Energy (NBL) ($40 from $34), SM Energy (SM) ($22 from $15), Rice Energy ($14 from $12), Pioneer Natural Resources (PXD) ($155 from $135),Continental Resources ($32 from $28), and Parsley Energy (PE) ($24 from $23). We believe our Buy-rated stocks are better positioned to weather challenging oil markets.
mutual fund investment: Ryder System Inc.(R)
- [By Ben Levisohn]
Ryder System (R) tumbled to the bottom of the S&P 500 today after it missed earnings forecasts and cut its full-year guidance.
Ryder Systemdropped 14% to $68.28 today, while the S&P 500 0.6% to 2,388.61
Ryder Systems reported a profit of 82 cents a share, missing forecasts for 84 cents, on sales of $1.75 billion, ahead of forecasts for $1.7 billion. Ryder cut its 2017 guidance to a range of $4.25 to $4.55, below the Street consensus for $5.17.
Ryder System’s market capitalization fell to $3.7 billion today from $4.2 billion yesterday.
mutual fund investment: Kinder Morgan, Inc.(KMI)
- [By Matthew DiLallo]
Finally, both of Phillips 66’s MLPs have several projects underway to drive growth in 2017 and beyond. At Phillips 66 Partners, progress continues on the Bayou Bridge Pipeline, which it’s building with Energy Transfer and Sunoco Logistics Partners. The partners expect this project to enter commercial service by the end of this year. Meanwhile, Phillips 66 Partners announced that it is developing a new isomerization unit at a Phillips 66 refinery, with final approval of the project expected early next year. Over at DCP Midstream, work continues on its Sand Hills Pipeline expansion, which should enter service this year. In addition, the company is constructing a new gas processing plant in the DJ Basin that should start up by the end of next year. Finally, DCP Midstream signed on as an anchor shipper and partner for Kinder Morgan’s (NYSE:KMI) proposed Gulf Coast Express Pipeline Project. Initially, Kinder Morgan thought this would be a $1 billion project to build up to 1.7 b illion cubit feet per day of natural gas transportation capacity. However, bids for capacity have significantly exceeded the proposed plan, which could lead the company to increase the size of this project.
- [By Sarfaraz Khan]
Also note that Berkshire Hathaway has direct exposure to the US energy sector through its subsidiary Berkshire Hathaway Energy, which is a power company that also owns two interstate natural gas pipelines. Besides, Berkshire Hathaways stock portfolio also has some exposure to the energy sector. The company owns 80.7 million shares of Phillips 66 (NYSE:PSX), a major US-based refiner that is also expanding in the midstream space, valued at almost $7 billion. Phillips 66 represents more than 5% of Berkshire Hathaways stock portfolio. The conglomerate also owns 20 million shares of the pipeline giant Kinder Morgan (NYSE:KMI), valued at $414.2 million. These energy companies are positioned to benefit from Donald Trumps pro-energy policies and de-regulation.
- [By Matthew DiLallo]
While Kinder Morgan (NYSE:KMI) is one of the largest energy-infrastructure companies in North America, most of its assets are in the United States. However, an outsized portion of the company’s near-term growth is in Canada due to one major project. Given the size of the project, the company is currently looking at a range of financing options, which could lead it to get creative with its Canadian business.
mutual fund investment: NEW GOLD INC.(NGD)
- [By Dan Caplinger]
The stock market lost ground on Monday, sending major market benchmarks lower by more than half a percentage point. The Dow lost its grip on the 20,000 mark in the wake of concerns about economic growth and new U.S. immigration policy, and some believe that the broader geopolitical climate could have a negative impact on global commerce that in turn could start affecting multinational corporations’ business prospects. In addition, bad news from some individual companies weighed on the markets, and Transocean (NYSE:RIG), Rite Aid (NYSE:RAD), and New Gold (NYSEMKT:NGD) were among the worst performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so poorly.