Top 10 Charts & Graphs Heading Into June 2020: S&P 500, Gold, Oil, Tesla, Canopy & More

9) Are Oil Mergers on the Way?

Standard & Poor’s has projected, or warned, that consolidation is coming in the oil patch. They even touted a “Party Like It’s 1999” feature with a call for low oil prices to generate a wave of consolidation. The S&P report even cited Goldman Sachs saying an “oil seismic shock will likely serve as a catalyst for a new consolidation phase.”

And S&P’s own team noted that shut-in production and the collapse in U.S. drilling activity will bring enough pain that even financially strong shale players will consider strategic mergers and that everyone will be surprised and may not make sense. While it listed the shale names in order, S&P gave a list of the big mergers that have been seen at lower oil prices over the last 25 years.

Some analysts remain bullish on oil stocks, but the list is hard to compare to years past.

Source: S&P Global Market Intelligence

Source: S&P Global Market Intelligence

10) 10-Year Treasury Outlook

The yield on the 10-year Treasury is hovering low and under the 0.7% level. With an upcoming FOMC meeting, Jerome Powell has pledged to keep interest rates very low until the economy recovers.

What happens as that recovery, which a 35% recovery in stocks in 75 days should at least hint at, comes to play? If the economy is going to start its recovery, the 10-year Treasury yield could suddenly begin its move back up to 1.0% and then perhaps 1.2% without much fight.

This still feels somewhat too soon to worry about with the economic readings so weak and with the real economic recovery only expected to get back to somewhere normal rather than back to a booming economy.



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