MLPs dropped 2.8% (including distributions) this week, the first week since May that included two days with 1%+ declines. Notwithstanding the obvious and likely reasons that MLPs sold off (falling oil prices, rising interest rates, mixed earnings, a large equity offering, etc.), it’s not uncommon for MLPs to selloff around distribution payment season.
MLPs rallied 1.4% this week, outperforming the stock market and oil prices, which were both positive as well. In fact, basically everything was up slightly on the week, including the US dollar and U.S. Treasuries, everything was up (except natural gas prices). MLP/midstream earnings season kicked off with KMI. While it is still too early to call
MLPs bounced back with a 1.9% gain Monday, followed by 4 straight days of fractional losses to finish the week with a marginal gain. Trading remains skittish ahead of 3Q earnings, the election and OPEC’s next meeting. In a microcosm of what’s happened this year, utilities outperformed MLPs, which outperformed the S&P 500. Oil, gas and NGLs
MLPs sold off after two straight positive weeks, as choppy, uncertain trading continues despite what appears to be certain strength in commodities. The interest rate on the U.S. 10 Year (down 55 basis points YTD) increased 13 basis points this week, spooking all yield-oriented investment. Commodity price strength (and a lack of MLP equity
MLPs extended last week’s rally into quarter-end, with a 0.9% gain for the Alerian MLP Index. The equal weight version of the index performed better (and MLP Indexes that don’t have FGP performed better). OPEC helped broad energy sentiment (for once) and the first presidential debate appeared to help broad equity sentiment, but there was plenty