oil, price, gas-990357.jpg

Today in the Market (6/21/2022)

Good Evening. As traders returned from a holiday weekend, U.S. stocks gained Tuesday, recouping some losses after the S&P 500’s worst week since March 2020.

The S&P 500 rose 2.45% on its highest day in three weeks, recouping some losses after dropping 5.80% last week. The Nasdaq Composite rose 2.51%, while the Dow surged 2.15%, its highest single-day gain since May 4.

3 WAY SPLIT

Kellogg, the snack and cereal behemoth, announced that it would split into three separate companies. The latest corporate reorganization in the United States aimed at streamlining its structure and focusing on developing its snack business.

The breakup of the maker of Pringles, Cheez-Its, and Pop-Tarts would result in the formation of a worldwide snacking company that would also contain its international cereal and noodles brands, as well as its frozen breakfast segment in North America.

“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Chief Executive Officer Steve Cahillane said.

Companies frequently split in order to avoid the so-called conglomerate discount, which occurs when the value of the component firms is less than the “sum of the parts” if they are run individually. The spinoffs are expected to be completed by the end of 2023, and Kellogg said it was looking into strategic options for its plant-based company, including a possible sale.

At closing, K finished in the green by 1.95% at $68.86 per share

GAS PRICES

oil, price, gas-990357.jpg

In the United States, a gallon of ordinary gas costs slightly under $5 — still significantly higher than a year ago, but the weekly national average has declined for the first time in nine weeks. According to AAA, the current average is $4.98. The dip does not portend a speedy return to the low prices of 2021, but market experts predict that small drops will continue in the coming weeks.

How much lower could gas prices go? According to Patrick De Haan, an analyst at GasBuddy, average prices could fall below $4.90 next week.

The most significant change in the last week was the financial market’s reaction to the Federal Reserve’s decision to raise its benchmark interest rate by 0.75%, a significant increase that heightened recession fears. Crude oil prices plummeted after that revelation, coinciding with the highest US oil production level in two years.

Consumer demand has risen and fallen, with drivers juggling two opposing emotions: the sting of record-high pricing and the desire to travel more than in the previous two pandemic-plagued summers.

Crude oil prices are projected to remain volatile, in part because of Russia’s invasion of Ukraine and Western nations’ retaliatory sanctions, which have disrupted global energy markets.

The demand for oil is also unpredictably high. Consumer demand has recently decreased, according to AAA. However, as many stations reduced prices ahead of the Juneteenth holiday weekend, GasBuddy’s De Haan claimed that demand for gasoline in the United States increased by more than 9% on Friday (June 17).

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?