Markets traded lower initially this morning, partially due to weak earnings reported by Goldman Sachs Group Inc (GS), but then shook that off to tiptoe much higher throughout the day. A resurgence in oil and commodity prices, largely due to the International Energy Agency saying the oil market’s downtrend could soon end, lifted the rest of the market.
Helping out as well was a climb in the University of Michigan preliminary consumer sentiment index, from 93.6 last month to 98.2 this month, and the Consumer Price Index declining 0.4% in December — the most in six years.
The markets halted a five-day losing streak, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all finishing up more than 1% apiece.
Energy, basic materials and healthcare were all very strong sectors today, as could be seen by Schlumberger Limited (SLB) and Freeport-McMoRan Inc. (FCX), which had their best days in quite awhile. Altisource Portfolio Solutions S.A. (ASPS) joined the pair as some of the best stocks in Friday trading.
Schlumberger Limited (SLB)
Schlumberger reported fourth-quarter earnings of $1.50 per share of SLB stock, up 11% year-over-year, after Thursday’s bell. It also announced 9,000 job cuts and a billion-dollar decrease in capital spending, but at the same time announced it would increase its dividend by 25%
During the quarter, Schlumberger repurchased 12.1 million shares of its SLB stock, at an average price of $90.22, for a total cost of $1.1 billion. The news, plus a nearly 5% increase in crude oil prices today, lifted SLB shares more than 6% higher.
In addition, Deutsche Bank AG (USA) (DB) reiterated its “buy” position on SLB, yet lowered its and price target from $119 to $86 on SLB stock … but of course, Schlumberger had fallen 30% from September through yesterday.
Freeport-McMoRan Inc. (FCX)
Copper prices rallied today on speculation that more demand from China, as a result of some recent economic stimulus, will be forthcoming. China consumes more industrial metals than any other country in the world, so this was important to the commodity markets. Yesterday, FCX reached a $13.7 million settlement with shareholders, after litigation was brought which accused FCX of overpaying for two companies in 2013.
FCX stock was up almost 5% today on 21.2 million shares.
Altisource Portfolio Solutions S.A. (ASPS)
Another recently beleaguered stock, ASPS, rocketed 50% higher today after its management team said on a conference call that Ocwen Financial Corp’s (OCN) mortgage license in California is not likely to be suspended. ASPS also said it expects to earn between $4.40 and $7.95 per share in 2015.
Altisource is a publicly traded affiliate of Ocwen Financial, and runs an auction site for foreclosure homes. ASPS stock has been absolutely crushed in recent months, falling from $100 in September to a recent low of only $20.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
