American Express Reports Better-Than-Expected Quarterly Results as Card Users Raise Spending

9:29 AM, Oct 18, 2019 — American Express (AXP) reported third-quarter results that were ahead of analysts’ expectations, as the payments processor and credit-card company saw higher fees and increased spending by its members.

Adjusted earnings rose to $2.08 a share compared with $1.88 a share in the same period of 2018, while the consensus on Capital IQ was for $2.02 a share. Revenue rose 8% to $10.99 billion, while the Street was looking for $10.94 billion.

“I’m pleased with the breadth and consistency of our revenue growth, driven by a well-balanced mix of card member spending, loans and membership revenues from our fee-based products, which grew 19% and exceeded $1 billion this quarter for the first time,” said Steve Squeri, the company’s chief executive.

He said card user spending was up 7% and the loan portfolio grew 9%, “with over 60% of that growth again coming from existing card members.”

Provision for credit losses rose 8% to $879 million because of higher net write-offs and delinquencies. Expenses rose 9% to $7.8 billion as the company spent more on customer engagement including rewards.

Global consumer services group revenue rose 11% to $6 billion amid the higher spending by consumers, as well as card fees and increases in net interest income. Merchant and net services revenue rose 5% to $1.7 billion, also attributed to increased card member spending.

American Express said it expects revenue growth for the current three-month period of 8% to 10%, and affirmed guidance for full-year earnings per share of between $7.85 to $8.35 on an adjusted basis. The Street expects $8.10 a share.

“The trends we saw in the business this quarter continue to be consistent with an economy that continues to grow, albeit at a more modest pace than last year,” Squeri said.

Companies: American Express Company
Price: 119.55 Price Change: +0.45 Percent Change: +0.38

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Goldman Sachs Third-Quarter Results Miss Expectations on Lower Merger, IPO Activity

9:51 AM, Oct 15, 2019 — Goldman Sachs Group (GS) on Tuesday reported third-quarter results that missed analyst expectations as investment banking revenue fell on lower merger and initial public offering activity.

The New York-based bank reported per-share earnings of $4.79 on a diluted basis for the period ended Sept. 30, down from $6.28 in the prior-year period and below the consensus compiled by Capital IQ for $4.89. Net revenue slid to $8.32 billion from $8.82 billion the year before, and just under the Street’s view for $8.33 billion.

“Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of a mixed operating environment,” said Chief Executive David Solomon. “We continue to execute our strategic priorities, including investing in important growth opportunities in our existing and new businesses and in delivering for our clients in the most efficient and effective manner possible.”

Investment banking revenue fell 15% from the year before to $1.69 billion, pulled down by a 22% drop in financial advisory revenue to $716 million due to a decline in completed mergers and acquisition transactions. Underwriting revenue fell 9% to $971 million, “reflecting a significant decline in industry-wide initial public offerings, and in debt underwriting, reflecting a decrease in industry-wide leveraged finance transactions,” the bank said.

Revenue from Goldman’s institutional client services rose 6% to $3.29 billion as fixed income, currency and commodities client execution added 8% to $1.41 billion on higher revenue from its commodities, credit, mortgages and interest-rate products.

“FICC client execution operated in an environment generally characterized by solid client activity,” Goldman said.

Equities revenue ended 5% higher to $1.88 billion due to higher commissions and fees as the business “operated in an environment generally characterized by lower client activity compared with the second quarter of 2019,” the bank said.

Investing and lending revenue fell 17% as equity securities dropped 40% to $662 million on lower net gains from private equities investments. Debt securities and loans revenue rose 10% to $1.02 billion on “significantly higher net interest income,” Goldman said. Net interest income rose to $1.01 billion from $856 million last year.

Investment management revenue dipped 2% to $1.67 billion on “significantly lower incentive fees,” the bank said. “The decrease was partially offset by higher management and other fees (including the impact of the acquisition of United Capital Financial Partners Inc.), reflecting higher average assets under supervision, partially offset by shifts in the mix of client assets and strategies.”

Total assets under supervision rose $102 billion to $1.76 trillion while long-term assets under supervision rose $85 billion, including net inflows of $69 billion. Provision for credit losses was $291 million, 67% higher from last year.

Operating expenses were unchanged at $5.62 billion while net provisions for litigation and regulatory proceedings dropped to $47 million from $136 million the year before.

Price: 199.30 Price Change: -6.52 Percent Change: -3.17

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Weekly Commodities ETF Report: Optimism for US-China Trade Deal Fuels Gains for Crude, Drives Gold Lower

(MT Newswires) – Crude ended Friday’s session and week higher, on media reports of a partial trade deal between the US and China, which augured well for oil demand globally. “Good things are happening” in the trade meeting with China, President Donald Trump had tweeted early on Friday. Bloomberg later reported the partial agreement could lay the groundwork for a broader deal Trump and China President Xi Jinping could sign later this year, according to people familiar with the matter.

Separately, a top official from the Organization of the Petroleum Exporting Countries (OPEC) signaled the producers’ cartel was prepared to leave no stone unturned to balance the energy market.  CNBC quoted OPEC Secretary-General Mohammad Barkindo as saying Thursday all options are on the table, including a deeper supply cut in production, to balance oil markets. He expected a decision on production strategy at a December meeting among members of the largely Middle Eastern cartel and non-OPEC producers, led by Russia. These developments helped the oil market outweigh the negative impact of a closely watched OPEC report released on Thursday that cut the outlook for growth in oil demand for the rest of 2019 to 980,000 barrels a day, a reduction of 40,000 barrels per day from an estimate set out in September.

Stockpiles of commercial crude in the US advanced for the fourth consecutive week but at a slower pace than in the previous week. The Energy Information Administration said the inventories rose by 2.9 million barrels in the week through Oct. 4 to reach 425.6 million barrels, in line with the five-year average for this time of year. A week earlier, the stockpiles were up by 3.1 million barrels, the government data showed. The American Petroleum Institute on Tuesday said crude supplies climbed by 4.1 million barrels over the same span.  And, the number of oil rigs operating in the US rose by two to 712 in the week that ended on Oct. 11, still hovering at its lowest level since May 2017, according to data compiled by energy services firm Baker Hughes (BHGE). The combined oil and gas rig count in the US rose by one to 856 as gas rigs fell by one to 143.

Light, sweet crude oil for November delivery rose 3.11% for the week, settling at $53.55 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 4.15% over the five-day period and settled at $1.62 per gallon on Friday. Natural gas was down 5.36% for the week, ending Friday at $2.22 per 1 million British thermal unit.  

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) gained 2.03% this week, compared with a decline of 1.01% the prior week.

Meanwhile, the optimism for a potential end to the 15-month trade war between the world’s two largest economies drove gold lower, ending Friday in negative territory at $1,500.90. For the week, the yellow metal fell 1.25%.  On the other hand, copper rose higher following the upbeat trade news, closing Friday’s session at a settlement price of $2.61, and ending the week up 2.24%.  In other commodities news, S&P Global Ratings had lowered its guidance for copper prices for the year 2020, citing diminishing global trade flows as well as expectations for a slowdown in global economic growth.

In agricultural commodities, Chinese buyers have ramped up their orders for soybeans among other agricultural products from the US, as part of the ongoing trade negotiations. The US Department of Agriculture reported Thursday that 400,000 metric tons of new soybean purchases have been made, bringing the total to nearly 5 million metric tons bought by the Chinese so far this marketing year. Soybeans were up 1.99% for the week and closed Friday at $9.36 per bushel. Among other grains, wheat ended the week up 3.82%, closing the Friday session at a price of $5.08 per bushel; and corn for December delivery rose 3.44% in the week and settled at $3.98 per bushel in Friday’s session. Other commodities were weaker: coffee was around $0.94 per pound at Friday’s close, down 5.28% for the week; cocoa was down1.53% for the week and closed Friday’s session at $2,506 per tonne; and sugar had a weekly decline of 2.82% and settled at a price of $0.12 per pound on Friday.

Copyright © 2019 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Justin Hillstrom is a registered representative of ALPS Distributors, Inc.

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following: USCIUSOUSLUSOUUSODBNOUNGUNL, UGA, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

The SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR) is an index designed to reflect the performance of a portfolio of 14 commodity futures. The index is reformulated each month from 27 possible futures contracts. The 14 selected contracts are equally weighted and represent six sectors: Energy (WTI crude oil, Brent crude oil, natural gas, heating oil, gasoil, RBOB gasoline), Precious Metals (gold, silver, platinum), Industrial Metals (aluminum, copper, lead, nickel, tin, zinc), Grains (corn, soybeans, soybean meal, soybean oil, wheat), Livestock (live cattle, feeder cattle, lean hogs) and Softs (coffee, cocoa, cotton and sugar). One Cannot invest directly in an index.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

We advise you to consider a fund’s objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. Download a copy of a fund’s Prospectus by clicking the following: SDCI. Please read any Prospectus carefully before investing

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc.

USO002060 Ex. 12/31/2019

Sempra to Sell Chile’s Chilquinta Energy to China State Grid for $2.23 Billion in Cash

10:00 AM, Oct 14, 2019 — Sempra Energy (SRE) on Monday said it has agreed to sell its 100% stake in Chilean energy company Chilquinta Energy to China’s State Grid International Development for $2.23 billion in cash as the company looks to focus on its operations in California and Texas.

The San Diego-based power company said the deal includes its 100% stake in Tecnored, which provides Chilquinta Energy with electric construction and infrastructure services, and its 50% interest in Eletrans, which owns, builds, operates and maintains power-transmission facilities.

Chilquinta Energia is Chile’s third-largest electricity distributor, providing power to 2 million customers in the Valparaiso and Maule regions in the center of the South American country, Sempra said.

“This agreement is really important,” said Sempra Chief Executive Jeffrey Martin. “It moves our company one step closer to completing the sale of our South American businesses and concentrating our investment strategy right here in North America. All of our companies in Chile, including Chilquinta Energy and Tecnored SA, are excellent businesses with a strong focus on safety reliability and customer service.”

The deal, which is expected to close in the first quarter of next year, comes two weeks after Sempra reach an agreement to sell its Peruvian operations to another China-based power company.

Sempra said on Sept. 30 that would sell its stakes in Peruvian power companies to China Yangtze power International, a unit of China Yangtze Power, for $3.59 billion in cash.

That deal is for Sempra’s nearly 84% stake in Luz del Sur, Peru’s largest electric company that serves the southern region of the country, as well its interest in Luz del Sur’s Inland Energy SAC generation business. The transaction is expected to close in the first quarter of 2020.

Meanwhile, the Sept. 30 announcement also came as Sempra said it signed a memorandum of understanding with China Three Gorges Corp. to cooperate in supplying liquefied natural gas to support growing demand in the Asian nation, including the expansion of gas-powered generation. Sempra said its participation is subject to the finalization of a definitive pact.

Companies: Sempra Energy
Price: 145.92 Price Change: +0.43 Percent Change: +0.30

American Airlines Expects Boeing 737 MAX to Return to Service in Mid-January

10:51 AM, Oct 9, 2019 — American Airlines Group (AAL) on Wednesday said it expects Boeing’s (BA) 737 MAX to return to its schedule in mid-January.

“American Airlines anticipates that the impending software updates to the Boeing 737 MAX will lead to recertification of the aircraft later this year and resumption of commercial service in January 2020,” the Fort Worth, Texas-based carrier said in a statement.

American, the largest US airline, said the grounded aircraft is expected to return to service on Jan. 16. It said it “expects to slowly phase in the MAX for commercial service and will increase flying on the aircraft throughout the month and into February.”

The airline said passengers who were booked on a MAX flight through Jan. 6 will automatically be moved to the same flight operated by a 737-800, and no rebooking will be needed. It said those booked on flights between Jan. 7 and 15 will be moved to the same flight being flown by a different aircraft, either a Boeing 737-800 or Airbus.

American had previously cancelled about 140 flights a day through Dec. 3.

Boeing’s 737 MAX has been grounded worldwide since March following two deadly crashes in five months that killed 346 in Indonesia and Ethiopia. A software failure is believed to have been a factor in the crashes, according to Boeing and regulators.

Boeing, which has said it expects the Federal Aviation Administration to allow the 737 MAX to fly in the current quarter, has developed a software fix for the planes. The FAA has not approved the fix yet.

Southwest Airlines (LUV), the carrier with the largest 737 MAX fleet, has removed the plane from its schedules until Jan. 5. United Airlines has removed the jetliner from its schedules until Dec. 19.

The union that represents Southwest pilots on Monday filed a lawsuit against Boeing for damages caused by the 737 MAX’s grounding, saying the planemaker misrepresented the aircraft’s airworthiness. The Southwest Airlines Pilots Association said its members have lost more than $100 million in compensation since the grounding.

Boeing said the it believes “this lawsuit is meritless and will vigorously defend against it,” NBC News reported.

Companies: American Airlines Group, Inc.
Price: 26.92 Price Change: +0.66 Percent Change: +2.53


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Weekly Commodities ETF Report: Crude Ends Lower on WTO Downgrade of Trade Growth Forecast, Weak Manufacturing and Services Data; Gold Rescued by Lukewarm Jobs Data

(MT Newswires) – Crude ended Friday’s session higher but closed the week lower, as pressure on oil producers increased after the World Trade Organization (WTO) said earlier in the week escalating trade tensions and a slowing global economy have led its economists to “sharply downgrade” forecasts for trade growth in 2019 and 2020.  The energy market was also undermined by pessimism emanating from the service and manufacturing sectors.  On Tuesday, the Institute for Supply Management (ISM) reported manufacturing data that came in at the worst level since after the financial crisis in 2009.  The ISM said manufacturing activity fell by 1.3 points to 47.8% — below the 50% print expected in a survey of economists by Econoday. Expansion in the services sector also slowed sharply from August. Meanwhile, commercial crude stockpiles increased for a third consecutive week in a build that was bigger than the previous period. The Energy Information Administration said the inventories rose by 3.1 million barrels through Sept. 27 to reach 422.6 million barrels. A week earlier, the stockpiles were up 2.4 million barrels. The American Petroleum Institute on Tuesday reported a 5.9 million-barrel drop in crude oil stocks. And data compiled by Baker Hughes (BHGE) showed the number of oil rigs operating in the US fell by three to 710 in the week ended on Oct. 4, declining for the seventh consecutive week to the lowest level since May 2017. The combined oil and gas rig count in the US dropped by five to 855 as gas rigs fell by two to 144.

Light, sweet crude oil for November delivery fell 5.93% for the week, settling at $52.45 per barrel at the end of Friday’s session. In other energy futures, gasoline was down 2.29% over the last five days and settled at $1.56 per gallon on Friday. Natural gas was down 1.67% on the week, ending Friday at $2.33 per 1 million British thermal unit.  

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.49% for the week, compared with a decline of 0.46% the prior week.

Gold was in the red at the end of Friday’s session, although it maintained a level above $1,500, closing at $1,513.80, following optimistic comments from President Donald Trump regarding next week’s US-China trade talks. However, the yellow metal ultimately rose for the week, up 0.46% after a mixed employment situation report.  September nonfarm payrolls rose 136,000 versus the 145,000 expected and the unemployment rate fell to 3.5%, the lowest since 1969 against an expected and prior 3.7%. While the numbers were arguably tepid at best and helped temper rising worries of a deeper slowing in global economic growth, they were not enough to offset disappointing manufacturing and private employment data out earlier in the week.  Meanwhile, copper ended the week down 1.35% and closed Friday at a settlement price of $2.55, due mostly to low trading volumes from China — the largest copper consumer — with markets closed for most of the week to celebrate the 70th anniversary of Communist Party rule with the founding of the People’s Republic of China.

In agricultural commodities, the US Department of Agriculture (USDA) reported on Thursday that export sales of US soybeans for the week ending Sept. 26 were at 2.076 million metric tons, above trade insiders’ expectations for 900,000 to 1.4 million metric tons. The USDA also confirmed private sales of 252,000 metric tons of US soybeans to China for shipment in the 2019/2020 marketing year. Soybeans were up 3.74% for the week, and closed Friday at $9.16 per bushel. Among other grains, wheat ended the week up 0.77%, closing the Friday session at a price of $4.90 per bushel; and corn for December delivery rose 3.49% in the week and settled at $3.85 per bushel in Friday’s session. Other commodities were mixed: coffee was around $0.99 per pound at Friday’s close, down 1.99% for the week; cocoa was down 0.48% for the week and closed Friday’s session at $2,475 per tonne; and sugar had a weekly increase of 1.19% and settled at a price of $0.13 per pound on Friday.

Copyright © 2019 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Justin Hillstrom is a registered representative of ALPS Distributors, Inc.

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following: USCIUSOUSLUSOUUSODBNOUNGUNL, UGA, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

The SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR) is an index designed to reflect the performance of a portfolio of 14 commodity futures. The index is reformulated each month from 27 possible futures contracts. The 14 selected contracts are equally weighted and represent six sectors: Energy (WTI crude oil, Brent crude oil, natural gas, heating oil, gasoil, RBOB gasoline), Precious Metals (gold, silver, platinum), Industrial Metals (aluminum, copper, lead, nickel, tin, zinc), Grains (corn, soybeans, soybean meal, soybean oil, wheat), Livestock (live cattle, feeder cattle, lean hogs) and Softs (coffee, cocoa, cotton and sugar). One Cannot invest directly in an index.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

We advise you to consider a fund’s objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. Download a copy of a fund’s Prospectus by clicking the following: SDCI. Please read any Prospectus carefully before investing

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc.

USO002060 Ex. 12/31/2019

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PepsiCo Maintains Full-Year Guidance as Third-Quarter Results Beat Expectations

9:32 AM, Oct 3, 2019 — Soft-drinks producer PepsiCo (PEP) reiterated its full-year guidance early on Thursday as the company posted better-than-expected results for its fiscal third-quarter which were supported by sales growth of its eponymous fizzy drink and chips.

The snack food and beverage giant generated revenue of $17.19 billion in the three months ended Sept. 7, up from $16.49 billion in the corresponding quarter of the prior year and comfortably ahead of the consensus estimate of analysts polled by Capital IQ for $16.93 billion.

Broken down by business segment, the largest chunk of revenue came from PepsiCo Beverages North America, worth $5.64 billion, up from $5.46 billion a year earlier. Frito-Lay North America was the second-biggest sales generator, with $4.11 billion, up from $3.89 billion a year earlier.

Revenue from Europe and Sub-Saharan Africa was worth $3.35 billion, up from $3.16 billion. Sales from Asia, the Middle East and Africa came in at $1.61 billion, up from $1.54 billion and revenue from Quaker Foods North America was worth $576 million compared with $567 million a year earlier.

Core earnings came in at $1.56 per share, down from $1.59 per share a year earlier but ahead of the consensus estimate of analysts polled by Capital IQ for $1.51.

PepsiCo reiterated its outlook for the full year 2019, saying that it expects organic revenue growth of 4% and a 1% drop in core earnings per share on a constant currency basis.

Companies: Pepsico, Inc.
Price: 136.78 Price Change: +2.84 Percent Change: +2.12

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Apple Price Target Raised at JP Morgan on Stronger Expectations for iPhone Volume

2:08 PM, Sep 30, 2019 — Apple (AAPL) on Monday landed a price-target upgrade at J.P. Morgan, with the investment firm seeing the potential of a 21% price gain as it lifts its iPhone volume forecasts for this year and 2020.

The firm set a December 2020 price target of $265 per share, up from its December 2019 forecast of $243 per share. On Monday, shares gained more than 2% during the session to trade around $224.

The December 2020 price target is “based on a 17.0x P/E multiple on our C2021 EPS estimate of $15.65,” said J.P. Morgan analysts led by Samik Chattarjee in a note to clients.

J.P. Morgan raised its iPhone volume expectations for fiscal Q4 by 1 million units, and by 3 million units for fiscal Q1 2020 ending in December as it accounts for “stronger trends” led particularly by the new iPhone 11 model.

“Given investor expectations were largely set for a muted product cycle in 2019 with limited h/w [hardware] upgrades and replacement cycle risks from expectations for 5G enabled iPhones in 2020,” the analysts wrote, “we believe the volume upside in 2019 will have significance in demonstrating that the firm can deliver balance of volume and profitability even in a tough backdrop.”

The investment firm lifted its expectations for Apple’s 2020 product cycle, driven by its expectation that the tech behemoth will add one new iPhone model in during the first half of the 2020 calendar year, followed by three 5G enabled iPhones in September 2020. Apple should have volumes of 198 million units in calendar year 2020, and 200 million units in calendar year 2021, the firm said.

“We expect solid consumer interest in 5G phones at the premium end of the North American market, and Apple is well-positioned to drive an outsized share with its 2020 product cycle,” wrote J.P. Morgan.

The firm did add that its forecasts for reported revenue and earnings “do not demonstrate much upside despite the volume upside, led primarily by the impact of adverse FX, as well as more modest pricing and gross margin expectations on the stronger demand for the lower-end iPhone 11, and stronger momentum in legacy iPhone sales.”

Companies: Apple Inc.
Price: 224.01 Price Change: +5.19 Percent Change: +2.37

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Weekly Commodities ETF Report: Crude Closes Lower on Supply Issues, Lingering Slowdown in Demand; Gold Slips Despite Stocks’ Weakness Due to Impeachment, US-China Trade Worries

(MT Newswires) – Crude ended both Friday’s session and the week lower, as Saudi Arabia’s crude production recovered faster than expected after the drone attacks last week. Traders are also keeping a close eye on Iran and the US sanctions imposed on the Middle Eastern country after the US and Saudi Arabia tagged it as the one responsible for the attacks. On Friday, Iranian President Hassan Rouhani claimed that the US offered to lift the sanctions if the two countries engaged in talks, but this was denied by US special representative for Iran Brian Hook. Concerns over lower global crude demand due to a slowdown in China’s economic growth also continue to linger. China is the biggest importer of crude oil. Along the same lines, the International Energy Agency (IEA) raised the possibility of lowering its estimates for global oil demand for 2019 and 2020 if there is a worsening in the global economy. Back home, the Energy Information Administration said US crude inventories rose by 2.4 million barrels to reach 419.5 million barrels in the week through Sept. 20, matching the five-year average for this time of year. A week earlier the stockpiles rose 1.1 million barrels. The American Petroleum Institute on Tuesday reported a build of 1.4 million barrels for the week ending Sept. 20. Meanwhile, the number of oil rigs operating in the US fell by six to 713 during the week ended Sept. 27, the lowest level since May 2017, according to data compiled by energy services firm Baker Hughes (BHGE). The combined oil and gas rig count in the US dropped by eight to 860 as gas rigs fell by two to 146.

Light, sweet crude oil for November delivery fell 3.84% for the week, settling at $56.41 per barrel at the end of Friday’s session. In other energy futures, gasoline was down 4.68% over the five-day period and settled at $1.62 per gallon on Friday. Natural gas was down 5.33% for the week, ending Friday at $2.44 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.46% on the week, compared with a decline of 0.97% the prior week.

Gold rose earlier in the week, initially benefitting from weakness in US equities, which were weighed by political drama as an impeachment inquiry was launched against President Donald Trump, on the basis

of a whistleblower report released Thursday. The report surrounded Trump’s solicitation of Ukraine’s interference for his personal political benefit in the 2020 US election. Additionally, the White House is accused of trying to cover evidence about the conduct. Also casting a shadow on market sentiment was news that Washington is looking into limiting the portfolio flows of US investors into China, which could possibly derail the scheduled trade talks between the world’s two largest economies. However, the yellow metal ultimately declined for the week, down 1.34%, as the US dollar strengthened, although gold remained above the key $1,500 level, closing Friday’s session at $1,515.20. Meanwhile, copper managed to eke out modest gains, ending the week up 0.23% and closed Friday at a settlement price of

$2.58 despite downbeat industrial economic data from China. Industrial profits in mainland China fell 2% in August year-over-year, according to the National Bureau of Statistics, from an increase of 2.6% in the prior-year period.

In agricultural commodities, China is expected to boost its purchases of soybeans from the US in step with the high-level trade negotiations between the US and China in early October, according to a report on Bloomberg. Citing Chinese agricultural consultant and Chairman of Shanghai JC Intelligence Co., Li Qiang, the report said China could buy another 1 million to 2 million tons of soybeans. Earlier in the week, the customs commission in China said it will continue exempting certain US agricultural products, including soybeans and pork, from additional duties in support of Chinese companies importing those products and as a response to the US’ tariff exemptions on more than 400 types of Chinese exports.

Soybeans were up 0.09% for the week and closed Friday at $8.83 per bushel. Among other grains, wheat ended the week up 0.46%, closing the Friday session at a price of $4.87 per bushel; and corn for December delivery rose 0.27% in the week and settled at $3.72 per bushel in Friday’s session. Other commodities were higher: coffee was around $1.00 per pound at Friday’s close, up 2.24% for the week; cocoa was up 0.61% for the week and closed Friday’s session at $2,490 per tonne; and sugar had a weekly increase of 4.39% and settled at a price of $0.13 per pound on Friday.

Copyright © 2019 MT Newswires, www.mtnewswires.com.

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Justin Hillstrom is a registered representative of ALPS Distributors, Inc. Investing involves risks, including loss of principal.

Commodity ETP Disclosures: Download a copy of a Fund’s Prospectus by clicking one of the following: USCI, USO, USL, USOU, USOD, BNO, UNG, UNL, UGA, or CPER

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

The SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR) is an index designed to reflect the performance of a portfolio of 14 commodity futures. The index is reformulated each month from 27 possible futures contracts. The 14 selected contracts are equally weighted and represent six sectors: Energy (WTI crude oil, Brent crude oil, natural gas, heating oil, gasoil, RBOB gasoline), Precious Metals (gold, silver, platinum), Industrial Metals (aluminum, copper, lead, nickel, tin, zinc), Grains (corn, soybeans, soybean meal, soybean oil, wheat), Livestock (live cattle, feeder cattle, lean hogs) and Softs (coffee, cocoa, cotton and sugar). One Cannot invest directly in an index.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

We advise you to consider a fund’s objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. Download a copy of a fund’s Prospectus by clicking the following: SDCI. Please read any Prospectus carefully before investing

Past performance does not guarantee future results. This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc.

USO002052 Ex. 11/30/2019

CVS Health to Bolster Earnings Growth as RBC Sees Opportunities for Value Creation After Aetna Deal

2:43 PM, Sep 27, 2019 — CVS Health (CVS) is poised to accelerate earnings growth and the company is set to take a leading role in changing healthcare delivery after its tie-up with Aetna last year, RBC Capital Markets said in a note Friday.

The bank assumed coverage on Woonsocket, RI-based CVS with an outperform rating and an $85 price target, analyst Anton Hie said. The market is under appreciating the “attractive growth opportunities” in the pharmacy operator because of near-term headwinds and threats, he said.

“CVS’ unique vertically integrated model positions it well as a leader in transforming the delivery of healthcare,” said Hie in the note. “We expect EPS growth to accelerate toward the long-term target in the low double digits by 2022.”

In November, CVS closed its acquisition of Aetna in a deal that valued the health-insurance company at $70 billion. The combination opened “multiple opportunities for value creation,” Hie said. The integration is on track to top the near-term synergy target of $750 million, RBC said.

Shares in CVS are trading “well below historical ranges” amid concerns about the pharmacy benefit manager business model and reimbursements, RBC said. The company’s management has said it’s flexible enough to adapt to the changes, according to the analyst.

“As near-term headwinds diminish and as CVS delivers anticipated value and accelerated EPS growth over the next few years, we expect the multiple to return to historical average levels, resulting in strong returns for shareholders,” Hie said.

Leverage taken on for the Aetna deal is a risk for CVS, while efforts to lower drug prices could have “unintended consequences” on the pharmacy benefit manager and managed care organization businesses, Hie said. The downside scenario price on the stock is $42, while its upside target is $106.

Companies: CVS Health Corporation
Price: 61.80 Price Change: +0.21 Percent Change: +0.34