Oil prices are likely to stabilize
An outstanding first quarter earnings season is winding down. With 455 S&P 500 Index companies having reported first quarter 2018 results, earnings are tracking to a 26% year-over-year increase. The new tax law is giving earnings a big lift. Revenue has also been strong, tracking to an 8.2% year-over-year increase. (LPL)
Oil prices are likely to stabilize. Oil prices have been pushing higher in the wake of the U.S. withdrawing from the Iran nuclear deal, but prices are likely to stabilize as oil markets absorb the news. Impacts of the U.S. sanctions is 200,000 to 1 million barrels a day, but U.S. producers should be able to make up much of the gap. Consumers bear the brunt of higher oil prices, especially those on the lower end of the income spectrum who spend a larger percentage of their income on fuel, but the impact of price changes thus far are small compared to the benefits of the new tax law. (LPL)
Alaska Airlines will close its New York base and reinforce its West Coast fleet. They are asking more than 100 pilots to relocate to California. Alaska currently operates five flights a day from JFK to both LAX and SFO. (CNBC)
S&P 500 is down 7 and the NASDAQ is down 24. The MSCI international index is lower.
Oil is up 51 cents at $71.47 a barrel.
Gold is down $12 at $1306 a Troy ounce.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.