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Weekly Commodities ETF Report: Crude Ends Week Lower on Demand Concerns Following China Manufacturing Data; Gold Sinks Below $1,300 as Strong US Q4 GDP Buoys Stocks

(MT Newswires) – Crude prices ended Friday’s session lower, as a downbeat picture of China’s economy raised demand concerns for the world’s top oil importer. China manufacturing activity fell to a three-year low in February as export orders dipped with the official Purchasing Managers’ Index (PMI) down to 49.2 in February from 49.5 in January. Some analysts attributed the weak data to the week-long Lunar New Year holidays in February when firms scale back operations or close for long periods. But others say the lingering US-China trade war is the culprit by diminishing overall economic activity in China. On the other hand, traders noted continued adherence by the Organization of the Petroleum Exporting Countries (OPEC) and allies to plans to curb production by 1.2 million bpd at least for the first six months of the year, with an April meeting set to review the pact. Meanwhile, the Energy Information Administration’s monthly report showed that US crude oil production edged lower in December to 11.85 million barrels per day (bpd), the first decline since last May. For the week, US crude stockpiles fell 8.6 million barrels, compared with an expected increase of 2.8 million barrels and breaking five straight weeks of builds. This also compares with the American Petroleum Institute’s report that crude inventories fell by 4.2 million barrels last week. Finally, energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US fell by 10 to 843, the lowest level since May 2018. The combined oil and gas rig count in the US slid by nine to 1,038 as gas rigs rose by one to 195.

Light, sweet crude oil for April delivery fell 2.30% for the week, settling at $55.80 per barrel at the end of Friday’s session. In other energy futures, gasoline was down 1.81% during the week, settling at $1.73 per gallon on Friday. Natural gas for April delivery was up 4.63% on the week and closed Friday at $2.86 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.31% lower this week, compared with an increase of 1.21% in the previous week to its lowest level in a month and half.

Gold wrapped up the Friday session lower, settling below the key $1,300 mark at $1,299.20; for the week, it declined 2.85% — the sharpest weekly fall since August. Demand for the precious metal weakened as US and global stocks were buoyed by a stronger-than-expected reading on the US economy last Thursday. The US gross domestic product grew at a 2.6% annual pace in the fourth quarter. Forecasts were for the GDP to increase at a 1.9% growth rate. Prices rose briefly on Friday following lackluster US ISM manufacturing and consumer-sentiment readings but the gains proved to be short-lived. On the other hand, copper closed Friday’s session at $2.93 per pound, slipping 0.73% for the week. The red metal’s losses were weighed by the latest manufacturing data out of China; the February Caixin Manufacturing PMI showed an increase to 49.9, beating forecasts, but this was still below 50.0, indicating that factory activity in the largest copper-consuming nation remained in contraction. Scotiabank’s commodity economist, Rory Johnston, provided an outlook on copper, saying in a research note, “Copper supply deficits are forecast to persist over the next five years and prices need to rise further in order to incentivize sufficient new mine capacity.”  The average price for the metal is forecast at $3 a pound this year and $3.20 in 2020.  Johnston also said that prices may need to rise further as mines make necessary new investments in capacity and capital markets shy away from risky mining projects.

In agriculture commodities, grains ended the week mostly lower as the market awaited more concrete trade developments and the finalization of a US-China trade deal: corn fell 3.25% in the week and settled at $3.73 per bushel in Friday’s session; soybeans fell 1.38% for the week, but closed Friday in positive territory at $9.12 per bushel; and wheat sank 6.68% and settled at $4.57 per bushel at the end of Friday’s session. Wheat futures were near 11-month lows as concerns that North American wheat will be facing stiff global competition pushed prices lower. Other commodities were mixed: sugar had a weekly decline of 5.11% and settled at a price of $1.26 per pound on Friday; coffee was around $1.00 per pound at Friday’s close, up 0.30% for the week; and cocoa fell 2.84% lower for the week and closed Friday’s session at $2,217 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was down 1.34% for the week, compared with a decline of 0.21% in the prior week.

 

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

 

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

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHNor 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.

Please read the Prospectus carefully before investing.

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.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Children’s Place Acquires Gymboree, Crazy 8 Intellectual Property, Assets For $76 Million in Cash

8:53 AM, Mar 4, 2019 — Children’s Place (PLCE) said it bought intellectual property and related assets of Gymboree and Crazy 8 for $76 million in cash including the companies’ names, trademarks, domain names and customer databases.

The acquisition will be funded by cash on hand and debt from the company’s revolving credit facility, Children’s Place said in a statement on Monday. It will be accretive to adjusted earning starting in fiscal 2020 following low-teens percentage dilution in 2019 as the company makes incremental investments in Gymboree.

The deal is subject to approval of the US Bankruptcy Court for the Eastern District of Virginia at a hearing scheduled for Monday, along with other standard closing conditions, Children’s Place said.

“Gymboree’s recent bankruptcy announcement and our agreement to acquire the Gymboree Assets significantly strengthens our long-term position,” Children’s Place Chief Executive Jane Elfers said. “Control of the Gymboree brand and IP will now allow us to meaningfully expand our previously targeted market share opportunity. The acquisition will be an attractive vehicle to expand our business across price and channel. It will provide us with a path to revitalize the Gymboree brand across various channels, including e-commerce, TCP stores, wholesale, and international.”

Elfers said Children’s Place will fill a void left when Gymboree declared bankruptcy and the acquisition is a chance for the company to bring digitally savvy customers into its “omni-channel ecosystem” while maximizing value for shareholders.

Gymboree Group filed for bankruptcy on Jan. 16 while its Canadian subsidiary, Gymboree Inc., said at the time it would seek protection in Canada.

In a separate statement, Children’s Place said fourth-quarter adjusted earnings came in at $1.10 a share, down from $2.52 during the same timeframe a year earlier, missing consensus compiled by Capital IQ for $2.10 a share. Revenue was reported at $530.6 million, down from $570 million during the same quarter the previous year and short of Street projections of $553.1 million.

The company said it expects first-quarter adjusted net loss from $0.70 to $0.40 a share versus expectations for earnings of $1.53. Revenue is seen from $385 million to $395 million, well short of forecasts for $449.3 million. For the full-year 2019, Children’s Place said it expects earnings from $5.25 to $5.75 a share, below consensus for $7.32, and revenue from $1.89 billion and $1.92 billion, missing expectations for $1.96 billion.

Shares plunged 14% in pre-bell trading.

Companies: Children’s Place, Inc. (The)
Price: 81.00 Price Change: -13.60 Percent Change: -14.38

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Lyft Expands Cloud Services Contract With Amazon’s AWS to Streamline Operations Before Possible IPO

11:52 AM, Feb 26, 2019 — Amazon’s (AMZN) web services business has agreed to provide extended cloud computing services to Lyft as the ridesharing company seeks to enable its self-driving technology and expand growth in its scooters and bicycle offerings.

Lyft “is leveraging the breadth and depth of AWS’s services, including database, serverless, machine learning, and analytics, to automate and enhance on-demand, multimodal transportation for riders and drive innovation in its autonomous vehicles business,” the closely held company said in a statement Tuesday.

AWS said the San Francisco-based firm migrated to a microservices architecture to create more than 150 microservices that scale workloads while reducing complexity in the cloud.

Lyft already runs operations including backend platform systems, financial applications and its website on AWS. It also relies on the Amazon DynamoDB database to support processes including a ride-tracking system that enables the company to provide vehicle routing.

“With AWS, we don’t have to focus on the undifferentiated heavy lifting of managing our infrastructure, and can concentrate instead on developing and improving services,” said Lyft Chief Technology Officer Chris Lambert.

Services are available to roughly 95% of the US population and select cities in Canada, Lyft said, with more than 50 million rides a month. It could become the first ride-hailing company to sell shares in the US, with press reports indicating the firm could hold an initial public offering in the first half of this year. Reuters said the company could have a market value of more than $20 billion.

Lyft competes in the US and Canada with loss-making Uber, which operates in more than 60 countries and is also positioned in the food delivery business, air taxis and freight hauling.

“The rise of ridesharing companies like Lyft has been transformational — changing the transportation model from one that revolved around cities to a new personalized, convenient, on-demand experience,” said Mike Clayville, vice president of commercial sales at AWS.

Companies: Amazon.com, Inc.

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Weekly Commodities ETF Report: Crude, Gold End Week Higher on Positive Developments in US-China Trade Talks

(MT Newswires) – Commodities were mostly firmer for the week, reflecting positive developments in the trade negotiations between the US and China. The trade dispute between the world’s two largest economies has weighed on commodities in the past several months, and most traders are optimistic that an agreement can be reached before March 1, although the deadline might be moved to give more time to hammer out details of an agreement. On Friday, President Donald Trump said a deal on currency has been reached after a meeting with China’s Vice Premier Liu He. The trade talks, which restarted early in January, will be extended for two more days. They have gained momentum in recent weeks but differences still remain over fundamental issues such as illicit technology transfers and improper subsidies for state-owned firms. Trump also said he expected to meet with China’s President Xi Jinping to finalize a trade deal.

Crude prices ended Friday’s session higher and the week in positive territory — the second week in a row as the progress in US-China trade outweighed supply concerns. The US became the first country in the world to pump out 12 million barrels of oil per day (bpd) last week, as reported by the Energy Information Administration (EIA). The increase in production undermines joint efforts of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia to stabilize the market with cuts of 1.2 million bpd. The EIA data also show that US crude stockpiles surged by 3.7 million barrels over the week to Feb. 15 — that compares with expectations for a 3.1 million-barrel increase in a Reuters’ survey of analysts. The increase took the inventories to 454.5 million barrels, the highest level since October 2017. On the other hand, the American Petroleum Institute said US crude oil stocks rose by 1.3 million barrels to 448.5 million barrels in the week to Feb. 15. Energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US fell by four to 853, the lowest level since the period ending Feb. 1. The US gas rig count was unchanged at 194, bringing the country’s total for the period through Friday to 1,047. Meanwhile, a report from the Wall Street Journal said Venezuela’s oil inventories have also climbed to their highest levels in at least five years, citing satellite data, as US sanctions on the country’s biggest oil company Petroleos de Venezuela in January have hit exports.

Light, sweet crude oil for April delivery rose 1.74% for the week, settling at $57.26 per barrel at the end of Friday’s session. In other energy futures, gasoline rose 1.29% during the week, settling at $1.77 per gallon on Friday. Natural gas rose 2.56% this week at $2.74 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.21% higher this week, compared with an increase of 1.16% in the previous week.

Gold wrapped up the Friday session higher, settling at $1,332.80. Earlier in the week and before the release of the Federal Reserve’s January meeting minutes, gold had touched 10-month highs, but declined sharply on Thursday as the dollar gained strength after the Fed minutes hinted at a possible hike in interest rates sometime this year due to a fairly strong labor market and the overall strength in the economy. According to the minutes, many participants observed that if recent uncertainty eases, the Fed would need to reassess the characterization of monetary policy as “patient” and might then use different statement language.  However, the yellow metal returned to positive territory to end the week up 0.43%, bolstered by upbeat sentiment on the US-China trade talks. Also benefitting from this optimism, copper closed Friday’s session at $2.95 per pound, rising 4.50% higher for the week. Chile, the world’s largest exporter of copper, had an upbeat forecast for the red metal should the trade dispute between the US and China end. The Chilean government said it sees an average price of $3.05/lb for the year, up from $2.96/lb in 2018.

In agriculture commodities, grains ended the week mostly higher: corn edged 0.52% higher in the week and settled at $3.85 per bushel in Friday’s session; wheat dropped 3.11% lower and settled at $4.92 per bushel at the end of Friday’s session; and soybeans rose 0.19% for the week, but closed Friday in negative territory at $9.24 per bushel. The USDA released its initial commodity outlooks for the year at the 2019 Agricultural Outlook Forum in Arlington, Va. The US corn outlook for 2019/20 is for increased production, up 3% from 2018; exports are up 25 million bushels, reflecting expectations of modest growth in global trade and a slight decline in US market share with competition from other exporters. For wheat, the 2019/20 outlook is for reduced supplies, minimally lower use and decreased ending stocks. Production is expected to be 1.902 million bushels, 1% higher than 2018/19. Competition from Australia and the European Union is expected to increase. And for soybeans, the 2019/20 outlook is for record supplies, higher crush and exports and lower ending stocks. Production is expected to be 4.2 billion bushels, 8% below 2018.  US exports for soybeans are expected to recover despite continued import duties in China.

Other commodities were mixed: sugar had a weekly increase of 2.08% and settled at a price of $0.13 per pound on Friday; coffee was around $1.00 per pound at Friday’s close, down 1.62% for the week; and cocoa fell 2.18% lower for the week and closed Friday’s session at $2,288 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was down 0.21% for the week, compared with an increase of 0.50% in the prior week.

 

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

 

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

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHNor 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.

Please read the Prospectus carefully before investing.

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.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Wayfair Stock Surges on Narrower-Than-Expected Fourth-Quarter Loss While Revenue Surges 41%

10:53 AM, Feb 22, 2019 — Wayfair (W) shares rose on Friday and hit a record high on an intraday basis as the online home furnishings firm reported a narrower-than-expected loss for the fourth quarter while revenue surged.

The non-GAAP loss was $1.12 a share, narrower than the Capital IQ consensus for a loss of $1.30, but still wider than the year ago $0.58 a share. Direct retail net revenue, which consists mainly of sales generated through Wayfair’s websites, climbed 41% to $1.99 billion, ahead of the Street’s views for $1.97 billion.

Niraj Shah, Wayfair’s co-founder and chief executive, said the fourth quarter was a record, “which represented the largest year over year dollar growth in a single quarter in our history,” according to a statement Friday. “We remain focused on our long-term approach to investing in the business, and believe the company’s outsized growth at scale is a testament to the strength of our brand and platform as we redefine the shopping experience in our category.”

The stock rallied more than 30% on Friday.

Wayfair saw the number of active customers in its direct retail business rise 38% year-on-year to 15.2 million as of Dec. 31. Repeat customers placed 66.4% of total orders in the fourth quarter from 62.4% in the same period a year earlier. Orders delivered rose 42% to 8.8 million, but the average order value dipped to $227 from $229 in the same period of 2017.

The company’s cost of goods sold jumped to $1.53 billion from $1.1 billion a year earlier, and Wayfair spent more on customer service and merchant fees, advertising and selling, operations, technology, general and administrative expenses.

Shah said the company is seeing parallels in its businesses in Canada, the UK and Germany to the course of Wayfair.com in the US when it was in similar development stages.

“We continue to expand our proprietary logistics infrastructure and take greater control of our inbound supply chain,” he said. “In 2019, we look forward to building upon the strength we see across our business today as we continue to innovate in creating the best possible shopping experience for home.”

Companies: Wayfair Inc.
Price: 154.85 Price Change: +37.57 Percent Change: +32.04

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Tesla Model 3 Loses Consumer Reports’ Recommendation Over Reliability; Toyotas Among Top 2019 Picks

2:15 PM, Feb 21, 2019 — Tesla’s (TSLA) Model 3 electric sedan is no longer being recommended by Consumer Reports after the influential product-testing organization’s annual reliability survey raised issues with the vehicles.

Owners of the car, which was unveiled in 2016 and marketed as more affordable than Tesla’s other models, reported problems with body hardware and in-car electronics, Consumer Reports said. There were reports of the car’s screen freezing and issues about paint and trim on the vehicle.

Others reported problems with the car’s glass, including cracks in the rear window. Consumer Reports said it experienced a similar problem earlier this year in its own Model 3 test vehicle, which developed a crack when it was parked outside during cold weather.

“While Teslas perform well in Consumer Reports’ road tests and have excellent owner satisfaction, their reliability has not been consistent, according to our members, which has resulted in changes to their recommended status,” said Jake Fisher, senior director of auto testing at Consumer Reports.

Still, Tesla holds the top spot on the list of brands that satisfy owners, as Fisher said that when a vehicle has an “enthusiastic following” owners are willing to overlook some issues. “We’ve seen this with other vehicles such as the Jeep Wrangler and Chevrolet Corvette,” he said.

Consumer Reports gathers the reliability data through car owner surveys, and the sample size for the Model 3 was more than 500. A Tesla spokesperson was cited by Consumer Reports as saying “the vast majority of these issues have already been corrected through design and manufacturing improvements.”

Tesla’s Model S lost Consumer Reports’ recommendation in October “largely because of suspension problems,” the organization said. The Model X SUV has never earned a recommendation. In May, Consumer Reports gave the Model 3 a recommendation after initially stopping short of the seal of approval over an issue with braking distances, which Tesla resolved through an over-the-air update.

In the Consumer Reports survey, Fiat Chrysler’s (FCAU) Chrysler 300 and Dodge Charger also lost their recommendations from, as did the Volkswagen Tiguan, the BMW 5 Series and the Acura RDX.

Top picks for 2019 include the Subaru Ascent and Forester, Toyota’s (TM) Camry Hybrid, Avalon Hybrid, Prius and Yaris, the Audi A4, Hyundai Kona, Ford’s (F) F-150 and the BMW X5. The picks are “cars that deliver superior reliability and satisfaction over the long haul and push the envelope when it comes to safety, technology, fuel economy, and performance,” Consumer Reports said. “These are the vehicles that set the standard for the industry.”

Companies: Tesla, Inc.
Price: 294.68 Price Change: -7.88 Percent Change: -2.60

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Walmart Reports Fourth-Quarter Earnings, Revenue Topping Forecasts as Comp Sales, E-Commerce Jump

9:14 AM, Feb 19, 2019 — Walmart (WMT) on Tuesday reported fourth-quarter earnings and revenue that both topped forecasts as comparable sales and e-commerce surged.

The retailer reported earnings of $1.41 a share, topping the consensus on Capital IQ for $1.33 a share. Revenue came in at $138.8 billion, beating forecasts for $137.6 billion. Shares were up 3.7% in pre-market trading on Tuesday.

Comparable sales in the quarter grew 4.2% and e-commerce sales jumped 43%, the retailer said. US comparable sales rose 3.6% and e-commerce sales in the country jumped 40%. Sam’s Club comp sales rose 3.3% and its e-commerce sales grew 21%.

“Walmart US e-commerce continued to benefit from the expansion of grocery pickup and delivery and a broader assortment on Walmart.com,” the company said.

For the full year, revenue came in at $514.4 billion, an increase of 2.8%. Excluding currency, total revenue rose 3% to $515.1 billion. Operating cash flow was reported at $27.8 billion and $13.5 billion was returned to shareholders through dividends and share repurchases.

Fiscal 2020 earnings are expected to decline by low single-digits versus the previous year, the Walmart said. They may, however, increase by the low- to mid-single-digit percentage range when excluding Flipkart, which it acquired in August.

Walmart reiterated its guidance originally released on Oct. 16 for comp sales growth of 2.5% to 3%, excluding fuel, and e-commerce sales growth of around 35%, the company said. Consolidated net-sales growth is forecast at around 3% in constant currency, but should be positively affected by the Flipkart acquisition and negatively impacted by deconsolidation of Walmart Brazil and a planned reduction in tobacco sales at Sam’s Club.

Its effective tax rate is pegged from 26.5% to 27.5%. Capital expenditures are projected at about $11 billion with a “strong focus on store remodels, customer initiatives, e-commerce, technology and the supply chain.” Walmart US said it expects to open fewer than 10 stores in fiscal 2020, while Walmart International will open more than 300 stores primarily in Mexico and China.

Companies: Walmart Inc.
Price: 102.70 Price Change: +2.71 Percent Change: +2.71

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Weekly Commodities ETF Report: Crude Hits Highest Level So Far in 2019 on OPEC-Led Production Cuts; Gold Rises on Progress in US-China Trade Talks

(MT Newswires) – Crude prices ended Friday’s session higher and the week in positive territory, briefly hitting 2019 highs above $65 per barrel earlier in the week, helped by supply cuts led by The Organization of the Petroleum Exporting Countries (OPEC) and the announcement of an even deeper cut by Saudi Arabia. OPEC cut nearly 800,000 barrels of output per day in January, just short of its goal of cutting 812,000 bpd, in a bid to tighten the oil market. Top exporter and de facto OPEC leader Saudi Arabia said earlier in the week that it plans to produce around 9.8 million barrels per day of oil in March, over half a million bpd below its pledged production level. Oil prices also remained supported by the partial closure of Saudi Arabia’s Safaniya offshore oil fields, which affected production capacity of more than 1 million barrels per day (bpd). Neither the cause of the outage or the expected duration were immediately known, according to reports. There is also concern of a demand slowdown ahead of normal spring refinery maintenance. Energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US rose by three to 857. The combined oil and gas rig count in the US climbed by two to 1,051 as gas rigs fell by one to 194. Earlier in the week, the Energy Information Administration said crude inventories rose by 3.6 million from the previous week to reach 450.8 million barrels. That’s about 6% above the five-year average for this time of the year. On the other hand, the American Petroleum Institute said the weekly crude inventories were down 998,000 barrels.

Light, sweet crude oil for March delivery rose 5.73% for the week, settling at $55.59 per barrel at the end of Friday’s session. In other energy futures, gasoline rose 7.26% during the week and settling at $1.74 per gallon on Friday. Natural gas for April delivery rose 1.03% for the week at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.16% higher for the week, compared with a decline of 0.34% in the previous week.

Gold wrapped up the Friday session higher, settling at $1,322.10 and ending the week up 0.49% as two days of US-Chinese trade talks concluded on a positive note. High-level talks between American and Chinese officials ended in Beijing and it remains unclear whether the two sides have made any progress in resolving the thorny issues. Gold prices also remain supported by uncertainties around Brexit and increasing political uncertainty in Europe after Spanish Prime Minister Pedro Sanchez called for a snap general election in April. The dollar fell on the back of weak US retail sales data released Wednesday, logging its worst showing since September 2009. The data fanned concerns of slowing economic momentum in the world’s largest economy and reinforced expectations that the Federal Reserve will not raise interest rates this year. Meanwhile, copper closed Friday’s session at $2.80 per pound, inching 0.20% higher for the week. The red metal also benefitted from optimism following progress in the US-China trade talks, but gains were tempered by reports that China’s factory-gate price growth fell below estimates. For the month of January, producer price inflation growth from the largest consumer of copper was at its weakest pace since early September. Nevertheless, the outlook on copper demand remains positive as China also reported that its copper import numbers were up sharply, with shipments of unwrought copper up 14% in January to 479,000 tonnes. Copper concentrate imports rose 17% year over year to 1.9 million tonnes.

In agriculture commodities, grains ended the week mostly lower, despite the developments in the US-China trade talks: corn edged 0.20% higher in the week and settled at $3.83 per bushel in Friday’s session; wheat dropped 2.74% lower and settled at $5.07 per bushel at the end of Friday’s session; and soybeans fell 0.94% for the week, but closed Friday in positive territory at $9.21 per bushel.  The US Department of Agriculture (USDA) reported that export sales showed net cancellations of US soybeans totaling 610,900 tonnes in the week ended Jan. 3. The agency is continuing to clear the backlog resulting from the recent US government shutdown. Other commodities were mixed: sugar had a weekly increase of 3.48% and settled at a price of $0.13 per pound on Friday; coffee was around $1.02 per pound at Friday’s close, down 4.26% for the week; and cocoa rose 4.65% higher for the week and closed Friday’s session at $2,339 per tonne. According to a Reuters survey of analysts and traders, cocoa prices are set to increase despite a slight global surplus. Forecasts were for cocoa to have a global surplus of 30,000 tonnes for the 2018/19 season — just above 2017/18 estimates of 22,000 tonnes, according to the International Cocoa Organization. Analysts and traders have cited these factors that could underpin cocoa prices: currency volatility due to Brexit and lower quality supplies of Cameroon cocoa, as well as uncertain weather and possible political turmoil in Ivory Coast, a top producer of cocoa.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 0.50% for the week, compared with a decrease of 1.09% in the prior week.

 

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

 

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

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, 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.

Please read the Prospectus carefully before investing.

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.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Under Armour Quarterly Results Could Be ‘Lackluster’ Amid Losses to Nike, Lululemon, Canaccord Says

2:28 PM, Feb 11, 2019 — Under Armour (UAA) is believed to be losing North American market share to rivals Nike (NKE) and lululemon athletica (LULU), according to Canaccord Genuity, which is expecting Tuesday’s pre-market earnings report to be “lackluster”.

There’s a lack of compelling product or creative direction, while overall growth is “anemic” in North America, the largest market, analyst Camilo Lyon said in a note on Monday. Chief competitors including Nike, lululemon and Adidas “are outpacing UAA’s growth rate by a factor” of three to five times.

“It appears that UAA is still not ready to fully embrace the lifestyle trend (because it either can’t or just won’t) that consumers have been embracing,” Lyon said. “While we acknowledge the need for UAA to have a performance offering, the lack of a lifestyle point of view is disappointing and limiting.”

The sportswear company is poised to report fourth-quarter financials early Tuesday, with the consensus on Capital IQ for normalized earnings of $0.04 per share and revenue of $1.38 billion. A year ago, Under Armour said revenue was $1.4 billion and adjusted earnings were flat.

Under Armour “spoke vaguely” at its investor day about technologies that are being developed, but won’t come to market before 2020 and will not achieve scale before 2021, said Lyon, who has a sell rating on the stock and a price target of $13.

Under Armour “has to win in footwear” if it’s going to deliver on the long-term plan that it already laid out, Lyon said.

“Based on the company’s inconsistent performance in the category over the past 10 years, lack of visible innovation or new creative talent, and a surging product pipeline from Nike, we are skeptical the company can meet these growth targets.”

Companies: Under Armour, Inc.
Price: 20.94 Price Change: +0.19 Percent Change: +0.92

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Weekly Commodities ETF Report: Fears of Economic Slowdown, US-China Trade Talk Tensions Drive Most Commodities Lower

(MT Newswires) – Crude prices ended Friday’s session higher but ultimately ended the week in the red as concerns about a possible drop in energy demand due to a global economic slowdown and the ongoing US-China trade dispute continue to weigh on the commodity. Although prices have been moving up at times amid expectations the OPEC-led production cuts and US sanctions on Venezuela’s state-run oil company will tighten global crude supply, recent data showing higher crude output in the US held gains in check.  Energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US rose by seven to 854. The combined oil and gas rig count in the US climbed by four to 1,049 as gas rigs fell by three to 195. Earlier in the week, the Energy Information Administration said crude inventories increased by 1.26 million barrels last week, less than the 2.2 million-barrels gain expected. On the other hand, data from the American Petroleum Institute showed a build of 2.5 million barrels of US crude inventories last week.

Light, sweet crude oil for March delivery fell 4.77% for the week, settling at $52.72 per barrel at the end of Friday’s session. In other energy futures, gasoline rose during the week, up 0.76% and settling at $1.45 per gallon on Friday. Natural gas for March delivery slumped 4.50% this week at $2.58 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.34% lower this week, compared with an increase of 0.02% in the previous week.

Gold wrapped up the Friday session higher as global growth worries prompted traders to shun riskier investments like equities and seek the safe-haven asset, however the yellow metal ended the week slightly lower, down 0.32%, closing at $1,318.50. Meanwhile, these same concerns drove copper lower at Friday’s close, settling at $2.81 per pound, but the red metal ended the week up 1.43%. On Thursday, Germany reported an unexpected decline of 0.4% in its industrial output for December — the fourth consecutive monthly decrease. As well, the European Commission lowered its growth forecasts for Italy and Germany and the eurozone as a whole.  Meanwhile, the Bank of England said it sees its slowest economic growth in a decade and lowered its 2019 GDP growth forecast to 1.2% from 1.7%.

In agriculture commodities, grains ended the week lower: wheat dropped 1.24% lower and settled at $5.17 per bushel at the end of Friday’s session; corn slipped 1.06% in the week and settled at $3.74 per bushel in Friday’s session; and soybeans fell 0.11% for the week, but closed Friday in positive territory at $9.15 per bushel. It was the second weekly loss in a row for soybeans, even though the commodity started the week with modest gains. Prices for soybean futures rose on fears of a decline in crop yields from South American; however, those gains dissipated when Parana, the second largest producing state in Brazil, reported that crops had minimal damage from drought, and that the soybean harvest was ahead of the season. Separately, worries over the US-China trade deal resurfaced to weigh on commodities during the week after US President Donald Trump said there were no plans for a meeting with Chinese President Xi Jinping before the March 1 trade deal deadline.  Also, there have been reports that Trump will sign an executive order that would ban the use of Chinese-made wireless equipment in US networks — a move that aims to increase cyber security for the US but might exacerbate trade tensions.

Other soft commodities were mixed: sugar had a weekly increase of 1.03% and settled at a price of $0.13 per pound on Friday; coffee was around $1.03 per pound at Friday’s close, down 1.30% for the week; and cocoa inched 1.01% higher for the week and closed Friday’s session at $2,196 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was down 1.09% for the week, compared with a decrease of 0.52 in the prior week.

 

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

 

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