Week Thoughts: Steady as She Goes
After 9 straight positive weeks, the S&P 500 paused to start the year. That pause has many market commentators reminding of the potential overhangs the market faces this year after the tightening of last year. But midstream was fine to open the year, with broad based positive performance. Oil prices were higher on the week, incorporating Middle East tensions, production outages and USD strength. Energy stocks rallied as a result, and midstream stocks kept pace. As the first week goes, so goes the year, so maybe value stocks, utilities and energy stocks will push midstream to another positive year.
There was another big E&P merger announced (APA/CPE) and another one reportedly close to being agreed to (SWN/CHK). Aside from heavy debt capital markets activity, with more $4.8bn of issuance, there was no news in midstream this week.