Gasoline futures rose by more than 5 percent yesterday, reaching $1.9787 a gallon, their highest since May 23. That followed a report that the Philadelphia Energy Solutions plant, the largest east coast refinery, is expected permanently shut its oil refinery in the city after a massive fire caused substantial damage to the complex.
Shutting the refinery, the largest and oldest on the U.S. East Coast, would result in not only hundreds of lost jobs but also sharply higher gasoline prices as gasoline supplies are squeezed in the busiest, most densely populated corridor of the United States.
AAA warned that the closure would likely affect retail gasoline prices here in New Jersey very soon. Motorists in the mid-Atlantic region will likely continue to see modest increases in pump prices, AAA said, especially leading up to what is expected to be a high-demand travel period for the Fourth of July.
Thursday, June 27, 2019
Wednesday, June 26, 2019
A Shock to Confidence
What has suddenly happened to American confidence? The Conference Board’s Consumer Confidence Index tumbled to 121.5 in June, dropping from 131.3 in May. This is the lowest consumer confidence has been since September 2017.
The June reading snapped a string of three consecutive months of improvements. That 9.8 point decline is tied with last December for the largest monthly decline since August 2011.
The sudden drop also surprised the experts. June’s results missed consensus expectations for a reading of 131.0, according to Bloomberg-compiled data. The magnitude of that miss relative to expectations was the largest Bloomberg has recorded since June 2010.
The June reading snapped a string of three consecutive months of improvements. That 9.8 point decline is tied with last December for the largest monthly decline since August 2011.
The sudden drop also surprised the experts. June’s results missed consensus expectations for a reading of 131.0, according to Bloomberg-compiled data. The magnitude of that miss relative to expectations was the largest Bloomberg has recorded since June 2010.
Tuesday, June 25, 2019
The Cost of Caregiving
Are you taking care of an elderly family member? According to a new GAO study, “Retirement Security: Some Parental and Spousal Caregivers Face Financial Risks,” an estimated tenth of Americans provided care to a parent or spouse for some period of time from 2011 through 2017, with women and minority caregivers being the most likely to be the ones providing care.
And they've paid a hefty price. The study noted that for an estimated 68 percent of working parental and spousal caregivers, offering care took a toll on their jobs. They ended up going to work late, leaving early, or taking time off during the day to provide care.
That played out in the money field, too, with data indicating that spousal caregivers ages 59–66 had lower levels of retirement assets and less income than married noncaregivers of the same ages. Specifically, spousal caregivers had an estimated 50 percent less in individual retirement account assets, 39 percent less in non-IRA assets, and 11 percent less in Social Security income.
And they've paid a hefty price. The study noted that for an estimated 68 percent of working parental and spousal caregivers, offering care took a toll on their jobs. They ended up going to work late, leaving early, or taking time off during the day to provide care.
That played out in the money field, too, with data indicating that spousal caregivers ages 59–66 had lower levels of retirement assets and less income than married noncaregivers of the same ages. Specifically, spousal caregivers had an estimated 50 percent less in individual retirement account assets, 39 percent less in non-IRA assets, and 11 percent less in Social Security income.
Monday, June 24, 2019
One Hot June
The month of June is shaping up to be the hottest one in generations. On Friday, the S&P 500 notched a record close, its first since April 30, while the Dow Jones Industrial Average finished less than 1 percent short of its all-time peak set last October 3.
How rare his this month been? Recent gains have put the Dow in position to ring up its best June gain of 7.7 percent since 1938, when the blue-chip benchmark surged an eye-popping 24.3 percent on the month.
The S&P 500 index is on track for its best June return, with a gain of about 7.2 percent, since 1955 when it rose 8.2 percent. The Nasdaq Composite Index was on track for a 7.8 percent return in June, but that would merely represent its best June since a 16.6 percent gain back in 2000.
How rare his this month been? Recent gains have put the Dow in position to ring up its best June gain of 7.7 percent since 1938, when the blue-chip benchmark surged an eye-popping 24.3 percent on the month.
The S&P 500 index is on track for its best June return, with a gain of about 7.2 percent, since 1955 when it rose 8.2 percent. The Nasdaq Composite Index was on track for a 7.8 percent return in June, but that would merely represent its best June since a 16.6 percent gain back in 2000.
Thursday, June 13, 2019
A Hot Year for IPOs
Beyond Meat has been the most impressive IPO of the year, with its stock up more than 400 percent since the company went public. But it's not the only winner. The Renaissance Capital IPO ETF, a basket of the 60 or so most recent large IPOs, is up 34 percent this year, more than twice the performance of the S&P 500.
Some of the other big names among this year's IPOs include Zoom Video Communications, which is up 176 percent, and PagerDuty, which is up 109 percent. The internet craft site Pinterest has also done very well, rising 44 percent.
But two of the hottest names in this year's IPO crowd have also been among the most disappointing. The two ride-sharing stocks have both been unimpressive in their debuts: Uber Technologies is down 6 percent, and Lyft is down 19 percent.
Some of the other big names among this year's IPOs include Zoom Video Communications, which is up 176 percent, and PagerDuty, which is up 109 percent. The internet craft site Pinterest has also done very well, rising 44 percent.
But two of the hottest names in this year's IPO crowd have also been among the most disappointing. The two ride-sharing stocks have both been unimpressive in their debuts: Uber Technologies is down 6 percent, and Lyft is down 19 percent.
Here Come the Materials
What's been the strongest sector in the market so far in June? It's the little-discussed materials sector, which is by far having the best month of any of the 11 sectors in S&P 500 groups. It's risen 9.5 percent in June.
By comparison, the information technology sector is up 6.3 percent so far in June, which is second best overall. Consumer discretionary shares and consumer staples are both set for monthly gains of at least 5 percent.
The materials group, which tends to be very sensitive to global economic growth expectations, is on track for its best monthly gain since October of 2015, when it rose 13.45 percent. The sector consists of companies most closely tied to production of raw materials used in manufacturing, including steel, aluminum and chemicals.
By comparison, the information technology sector is up 6.3 percent so far in June, which is second best overall. Consumer discretionary shares and consumer staples are both set for monthly gains of at least 5 percent.
The materials group, which tends to be very sensitive to global economic growth expectations, is on track for its best monthly gain since October of 2015, when it rose 13.45 percent. The sector consists of companies most closely tied to production of raw materials used in manufacturing, including steel, aluminum and chemicals.
Wednesday, June 12, 2019
Trouble Brewing in 401(k)s
A grand total of $1.7 million: That’s how much Americans believe they should save in order to retire, according to a Charles Schwab survey of 1,000 401(k) plan participants between the ages of 25 and 70. Unfortunately, the survey also found that few are likely to attain that goal.
Almost 60 percent of survey respondents said their 401(k) plan was their only or largest source of retirement savings, but 51 percent are contributing less than 10 percent of their salary to their 401(k), with the average annual contribution totaling $8,788. Only 23 percent of respondents reported contributing the maximum allowed in their 401(k) plans, which is $19,000 for employees under 50 and $25,000 for those 50 and older.
Schwab found that if employees start saving at age 45, they need to invest as much as 35 percent of their salary to reach that goal, but if they start saving in their 20s, they need a 10 percent to 15 percent salary contribution. But one-third of auto-enrollees reported they never increased their contribution level.
Almost 60 percent of survey respondents said their 401(k) plan was their only or largest source of retirement savings, but 51 percent are contributing less than 10 percent of their salary to their 401(k), with the average annual contribution totaling $8,788. Only 23 percent of respondents reported contributing the maximum allowed in their 401(k) plans, which is $19,000 for employees under 50 and $25,000 for those 50 and older.
Schwab found that if employees start saving at age 45, they need to invest as much as 35 percent of their salary to reach that goal, but if they start saving in their 20s, they need a 10 percent to 15 percent salary contribution. But one-third of auto-enrollees reported they never increased their contribution level.
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