Check the background of this firm on FINRA's BrokerCheck.

Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

Check the background of this firm on FINRA's BrokerCheck.

Diamonds and Dogs

8/19/15

The golden arches are golden again. McDonald's (MCD) is the diamond of the day and the only Dow component to sit at all-time highs. No real news on McDonalds today, but the retail sector in general is acting well. Home Depot, Lowes, TJX, and Target are other retail stocks trading higher recently thanks to better than expected earnings. At least the US economy remains strong. Can't say that about the rest of the globe.

The energy sector has gone from bad to worse as the price of oil dropped to new lows not seen since March 2009. The lower oil price is wreaking havoc on oil and fracking companies including the dog of the day, Marathon Oil (MRO). Marathon Oil is down 7% to a new 52 week low today and down 60% in the last year after a downgrade from Oppenheimer yesterday. If the price of oil remains low, Oppenheimer sees Marathon Oil generating a $2.2billion cash flow deficit this year and $1.3 billion deficit next year which means their 5% dividend is pretty much toast.    

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.