Markets Down, Oil Over $60 as OPEC Claims Loss of Pricing Control
PUBLISHED ON: May 5, 2015
tech-heavy NASDAQ lost a full 1.5% of value and dropped -77 points today, closing low at 4,939.33. In overseas trading, markets were down. The exception was in Tokyo, where the Nikkei gained 12 points on the day.
OPEC Claims to Have Lost Control Over Oil Prices.
Energy Companies Rally As Oil Breaks $60. Domestic energy companies don't care about what's coming out of OPEC to a large extent, they were just happy to see fuel prices rise. It may already be too late in the fiscal year for these businesses to turn a profit. But every time the price of oil rises, these stocks float up with it. Diamond Offshore (DO), Transocean (RIG), and Ensco PLC (ESV) all posted gains of at least 2.5%. Diamond was up 1.49 to $34.59 per share. Transocean rose another 0.57 points to close at $18.98, and Ensco gained 0.71 points to end today's trading at $27.51.
Qualys Crashes After Lowering Guidance, Missing Earnings. The bottom dropped out on Qualys (QLYS) stock today, as the company announced that it would miss earnings and adjust Q2 targets even lower. Share prices fell as far as 40% before ending the day, bruised and beaten and down 32%. Qualys lost -18 points today alone, and ended the trading day at $37.03 per share.
Sell In May and Go Away. That's one old piece of wisdom from Wall Street investors. It hints toward the increased volatility and limited returns during summer. As a piece of investment advice, it's glib enough to be funny. But in reality, it just doesn't hold up. Summertime market volatility can be used to make a profit the same as any other volatility can.
The sluggish summer yields will be lower than through the holiday season, but profits are still there for the taking. "Sell in May and go away." might be worse advice this year than most, since Health Services and Consumer Durables should continue to boom through June and July.