Liquidity does not matter, Oil? it is really irrelevant..
The surge in crude prices is now shaping expectations for
company earnings.
FDX Corp., the largest express-delivery company, said rising
fuel prices hurt first-quarter earnings and may prevent it from
meeting this year's profit forecasts. The stock tumbled as much
as 14 percent, its biggest drop in almost 12 years.
Eastman Chemical Co., the biggest maker of plastics used in
soda bottles, said third-quarter profit will be significantly
below estimates because of rising costs for petroleum-based raw
materials. Prices for oil and natural-gas derivatives, such as
ethane used in plastics, paints and other products, jumped more
than 50 percent during the quarter, the company said.
The surge in oil prices was most visible at pump, where
average U.S. retail gasoline is at a three-year high of $1.25 a
gallon, according to a U.S. Department of Energy survey of 800
filling stations. Gasoline prices have gained in nine of the
past 11 weeks, the DOE said.
Diesel fuel prices have risen 14 straight weeks to the
highest level since April 25, 1997, the DOE survey showed.
Average highway prices for diesel gained 1.1 cents in the past
week to $1.209 a gallon.
quote.bloomberg.com |
