Tag: ARCHIVE

On the week of America’s birthday, U.S. midstream (MLPs and corporations) outperformed Canadian ones, but the overall sector kept pace with a positive week for the S&P 500 and utilities. The AMNA crested 25% total return for 2019 so far and is off to a good start for the back half of the year.

MLPs finished positive for the week, making it three straight positive weeks for MLPs to close out strong month of returns helped by a bounce back in oil prices and broad equity markets. Utilities were soft this week, and came in with first half returns below midstream and below the S&P 500, despite nearly 70 basis point reduction in the 10-year treasury interest rate.

Midstream overall had a strong week, keeping pace with the S&P 500 as it reached fresh all-time highs Thursday after the Fed’s commentary was seen as bullish on expectations of a 2019 rate cut. MLPs underperformed after strong relative gains last week.

MLPs finished just above flat for the week, while non-MLP midstream stocks were negative, in a pretty quiet market for equities.

There was little need for Midstream and MLPs to show off their recently acquired defensive skills this week. U.S. stocks had their best week of 2019, trading up on hopes of future interest rate cuts to save the day.

In a repeat of last week’s storyline, Midstream and MLPs held up better than broader energy in a falling oil price and stock market. The primary difference being that this week’s losses were bigger all around.

Rough week for oil and energy stocks, but for midstream stocks it wasn’t terrible. MLPs (-1.1%) were down in-line with the S&P 500 on the week, a big win relative to energy stocks more broadly (XOP -8%, XLE -3%).

Midstream was positive across the board this week, led by U.S. and Canadian midstream corporations, but MLPs were positive as well. Midstream traded in-line with utilities, which traded up on lower interest rates and a flight to safety across the market.

Big M&A-fueled gains on Friday for MLPs salvaged an otherwise poor weak for midstream stock action. Midstream stocks were negative most of the week in-line with the broad stock market, both fluctuating around ongoing China trade war “news”.