FTXN News and Press, First Trust Nasdaq Oil & Gas ETF From 11/01/22

Summary It is no surprise that with a retreat of 10-year Treasury yields off the highs of 4.33%, the stock market had a big rebound last week. When it is up to the bond market to decide what happens to stocks, then it is up to Jerome Powell, who will be delivering his FOMC press c...

Summary Virtually all of the Q3 2022 GDP growth was attributable to a lower trade deficit that added 2.77% to GDP growth. Most of that came from higher petroleum exports, due largely to one million barrels per day being released from the SPR. In two to three years, I expect energy...

Summary The root of Europe’s energy crisis is under-investment or outright dis-investment in nuclear energy and natural gas production/storage/transportation, combined with over-reliance on intermittent and relatively inefficient forms of renewable energy. Russia’s i...

Summary I have said for weeks that the Fed needs to slow the pace of its tightening campaign. Powell apparently decided last week that the market was taking things too far. Corporate earnings are being released for the quarter and, so far, they aren’t that bad. It w...

Summary FTXN is an ETF based on a Nasdaq Oil & Gas Index. The Index construction is highly mechanical. There is over $1 billion invested in the ETF. The value of the ETF is highly dependent on oil prices. Future oil prices are being influenced by OPEC production cu...

Summary PPI and CPI numbers came out last week, and both were higher than expected. Fed officials are concerned about the persistence of high inflation, and a 0.75% key interest rate hike at the November FOMC meeting is virtually certain. Worldwide demand for crude oil naturally r...

Summary Janet Yellen raised the specter of buying Treasuries this past week, without it being QE. The comments seemed to be born of some illiquidity issues within the Treasury market. 2022 is a midterm election year. It’s been grim YTD with the S&P 500 down -23.83% whil...

Summary The reduction of production quotas by OPEC+ members is putting a floor under oil prices. Fears of an impending recession in Europe are fully priced in. China consumption will likely rebound in 2023. Worldwide inventories continue to decline. US SPR releases will be...

Summary We expect macro headwinds will continue to pressure U.S. corporate earnings in the coming months. We expect earnings expectations to decline as multinational firms realize foreign exchange headwinds that accelerated over the past year. Investors can avoid undue interna...

Summary The energy market has certainly had a very positive year so far. FTSE All World Oil, Gas & Coal is up 20% YTD (to end August), 39% ahead of the broader FTSE All World Equity Index. Looking more broadly across asset classes, whilst energy equities were strong (and less ...