This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Energy Stocks Cap Market Gains as Crude Oil Inventories Rise


NEW YORK (TheStreet) -- Energy stocks were limiting gains on broader equity markets Tuesday as crude oil futures plummeted. Stocks remained higher. however, with the tech-heavy Nasdaq enjoying a particularly strong session on the back of better-than-expected earnings from Apple (AAPL - Get Report) and Yahoo! (YHOO - Get Report)

The S&P 500 was up 0.19%, down from gains of more than 0.5% earlier. The Dow Jones Industrial Average gained 0.28%, and the Nasdaq jumped 0.82%. 

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Crude oil prices slipped on Wednesday as U.S. inventories increased 8.9 million barrels over the week, nearly double estimates of 4.6 million barrels. West Texas Intermediate crude dropped 2.5% to $45.07 a barrel.

Goldman Sachs warned commodities will lag equities and bonds over the next three months. The bank slashed its outlook on raw materials to "underweight," with expectations of a 10% loss compared to a 0.4% gain for stocks.

"Despite the large declines in commodity prices, we see risks still skewed to the downside over the near term," Goldman analysts wrote in a report.

Exxon Mobil (XOM) , Chevron (CVX) , Anadarko Petroleum (APC) and Halliburton (HAL) were trading lower. The Energy Select Sector SPDR ETF (XLE) dropped more than 2%.

Solid earnings from Apple and Yahoo! were a welcome relief after stocks suffered their worst day in three weeks on Tuesday following weak results from multinational companies such as Procter & Gamble (PG) and Caterpillar (CAT)

The earnings season has been healthy so far, despite the series of earnings disappointments on Tuesday that might have suggested otherwise. Of the nearly one-third of companies that have reported, 70.3% have exceeded analysts' earnings forecasts, according to Thomson Reuters. On average, during any given earnings season, 63% of companies will top expectations. 

Apple shares soared more than 7% after fiscal first-quarter earnings of $3.06 a share rocketed past expectations by 45 cents. Sales jumped nearly 30% following a surge in iPhone sales, its best-selling product. 

Yahoo! rose 1.9% after narrowly beating fourth-quarter forecasts. Management also announced it had authorized the tax-free spinoff of its remaining stake in Alibaba (BABA) . Yahoo! currently holds a 15% position, worth $39.5 billion. 

Boeing (BA) gained 4.6% as quarterly core earnings of $2.31 a share surpassed forecasts by 20 cents. Sales of commercial airplanes jumped 15%in the fourth quarter. 

AT&T (T) reported in-line profit for the quarter, though shares jumped on increased revenue thanks to double the number of wireless subscriber additions. Shares were up 1.2%.

Semiconductor company Freescale (FSL) rallied 20.3% after reporting quarterly profit above consensus and guiding for first-quarter revenue as high as $1.185 billion, exceeding forecasts of $1.11 billion. 

Hess (HES) disappointed, posting a loss of 3 cents a share compared to profit of $5.76 a share a year earlier. The oil and gas refinery was hit hard by plummeting oil prices over the past six months. Shares tumbled nearly 5%.

The Federal Reserve will conclude its first meeting of the year Wednesday with an announcement around 2 p.m. EST. There are few expectations the Fed will signal a significant change in tone, instead reiterating its "patience" and "data-dependence" in determining when to raise rates. 

"The forward guidance that Chair [Janet] Yellen articulated last month, which removed the possibility of rate hikes at the next "couple of meetings", largely renders today's FOMC statement a placeholder for March, by which point Fed officials will have a better sense of whether or not recent momentum is being sustained," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

-- Written by Keris Alison Lahiff in New York. 

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,395.25 +8.04 0.05%
S&P 500 2,032.89 +3.34 0.16%
NASDAQ 4,703.9770 +22.48 0.48%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs