Friday's ETF with Unusual Volume: USMC
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2025
0mins
Should l Buy XOM?
Source: NASDAQ.COM
ETF Performance Overview: On Friday, Nvidia and Apple saw slight declines in their trading volumes, while Abbvie experienced a significant increase of about 5.5%, and Exxon Mobil faced a decrease of approximately 1.9%.
Market Insights: The article highlights unusual trading volume in the Principal U.S. Mega-Cap ETF, with specific attention to the performance of its components.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 165.380
Low
114.00
Averages
132.17
High
158.00
Current: 165.380
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Contract Signing: SBM Offshore has secured contracts with ExxonMobil Guyana for front-end engineering and design (FEED) studies related to a floating production, storage, and offloading vessel (FPSO), marking the release of funds to initiate FEED activities and demonstrating mutual trust and commitment in their collaboration.
- Production Capacity: The FPSO is designed to handle up to 1.2 billion standard cubic feet (bscf) of gas per day and is expected to produce approximately 250,000 barrels per day (bpd) of condensate, addressing the market's demand for high-efficiency gas handling capabilities and enhancing SBM's competitive position in the sector.
- Project Implementation: The FPSO will be spread-moored in approximately 1,750 meters of water and will provide roughly two million barrels of condensate storage capacity, with successful implementation significantly supporting ExxonMobil's long-term energy development strategy.
- Local Development: SBM Offshore plans to advance local content development by engaging local fabrication resources and integrating Guyanese engineers into project delivery and operational teams, leveraging experience gained from FPSOs like Liza Destiny to enhance project delivery capabilities.
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- Conference Context: Interior Secretary Doug Burgum will speak at S&P Global's CERAWeek energy conference in Houston, Texas, which attracts leading energy executives and government officials worldwide, highlighting the industry's keen interest in policy changes.
- Military Deployment Risks: Trump is expected to send thousands of additional troops to the Middle East, raising the possibility of ground war, which could further exacerbate market uncertainty and affect oil and gas supply chains.
- Policy Implications: Investors will be looking for updates from Burgum regarding how the U.S. government is addressing the situation with Iran and its impact on energy prices, which will directly relate to future energy policies and market dynamics.
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- Chip Innovation: Arm's stock rose 13% after unveiling its first in-house chip, projecting $15 billion in revenue by 2031, highlighting its strong growth potential in the semiconductor market.
- Acquisition Deal: Terns Pharmaceuticals saw shares gain over 5% after Merck agreed to acquire the biopharma company for $53 per share in cash, valuing the deal at $6.7 billion, expected to close in Q2.
- Stock Buyback Plan: Robinhood's stock jumped 4% after announcing a $1.5 billion stock buyback plan, set to be executed over three years, aimed at enhancing shareholder value.
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- Peace Plan Overview: President Trump's proposed 15-point peace plan aims to address the ongoing conflicts in Iran and the Middle East, and while details remain unclear, the market is optimistic, viewing it as a potential signal for de-escalation.
- Negotiation Dynamics: Trump reiterated that the U.S. is in negotiations with Iran, despite Tehran denying direct talks with Washington, creating a contradictory narrative that raises market concerns about future developments.
- Market Reaction: Following the announcement of Trump's peace plan, Asian stock markets surged, particularly in South Korea, while European indices are also expected to open higher, reflecting investor expectations for improved geopolitical conditions.
- Corporate Moves: Meta is granting stock options to key leaders to retain talent amid increasing pressure in the artificial intelligence sector, although CEO Mark Zuckerberg is not included in this plan, indicating potential implications for the company's long-term strategic direction.
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- Negotiation Dynamics: Trump stated in the Oval Office that the U.S. and Iran are 'in negotiations right now,' despite Iran's denial of direct talks, creating confusion among investors regarding the Middle East situation, which could impact market sentiment.
- Peace Plan Delivery: According to The New York Times, the U.S. has sent a 15-point peace plan to Iran through Pakistan, aiming to facilitate negotiations between the warring parties, which could provide a new opportunity for conflict resolution.
- Military Deployment Preparations: Concurrently, The Wall Street Journal reported that the Pentagon is preparing to deploy about 3,000 soldiers from the Army's 82nd Airborne Division to the Middle East, a military move that could escalate regional tensions and further impact global markets.
- Global Energy Emergency: The Philippines has become the first country to declare a 'national energy emergency' due to the ongoing conflict, indicating that the conflict poses a growing threat to global energy supply chains, potentially leading to fluctuations in international oil prices.
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- Integrated Value Chain: Both Exxon and Chevron operate across the entire energy value chain, including upstream production, midstream transportation, and downstream refining, which helps stabilize income during oil price fluctuations and reduces investment risk.
- Strong Financial Health: With debt-to-equity ratios around 0.2x and 0.25x, both companies have the flexibility to incur debt during downturns, allowing them to maintain operations and dividends, thus ensuring returns for investors.
- Consistent Dividend Yields: Exxon offers a dividend yield of 2.5% while Chevron provides 3.5%, with both companies having increased their dividends for over 25 years, demonstrating their commitment to shareholders and financial stability.
See More
SBM Offshore Secures ExxonMobil Contracts for Longtail FPSO
- Contract Signing: SBM Offshore has secured contracts with ExxonMobil Guyana for front-end engineering and design (FEED) studies related to a floating production, storage, and offloading vessel (FPSO), marking the release of funds to initiate FEED activities and demonstrating mutual trust and commitment in their collaboration.
- Production Capacity: The FPSO is designed to handle up to 1.2 billion standard cubic feet (bscf) of gas per day and is expected to produce approximately 250,000 barrels per day (bpd) of condensate, addressing the market's demand for high-efficiency gas handling capabilities and enhancing SBM's competitive position in the sector.
- Project Implementation: The FPSO will be spread-moored in approximately 1,750 meters of water and will provide roughly two million barrels of condensate storage capacity, with successful implementation significantly supporting ExxonMobil's long-term energy development strategy.
- Local Development: SBM Offshore plans to advance local content development by engaging local fabrication resources and integrating Guyanese engineers into project delivery and operational teams, leveraging experience gained from FPSOs like Liza Destiny to enhance project delivery capabilities.
See More
U.S. Energy Secretary to Address CERAWeek Amid Iran Negotiations
- Oil Price Fluctuation: U.S. oil prices have dropped over 10% this week following Trump's mention of negotiations with Iran, which could impact investment decisions and market confidence in the energy sector.
- Conference Context: Interior Secretary Doug Burgum will speak at S&P Global's CERAWeek energy conference in Houston, Texas, which attracts leading energy executives and government officials worldwide, highlighting the industry's keen interest in policy changes.
- Military Deployment Risks: Trump is expected to send thousands of additional troops to the Middle East, raising the possibility of ground war, which could further exacerbate market uncertainty and affect oil and gas supply chains.
- Policy Implications: Investors will be looking for updates from Burgum regarding how the U.S. government is addressing the situation with Iran and its impact on energy prices, which will directly relate to future energy policies and market dynamics.
See More
Significant Premarket Moves in U.S. Stocks
- Fertilizer Price Fluctuation: CF Industries' shares fell nearly 4% as reports indicated that negotiations surrounding the U.S.-Iran war could signal an end to commodity shortages, despite a 27% increase since the conflict began.
- Chip Innovation: Arm's stock rose 13% after unveiling its first in-house chip, projecting $15 billion in revenue by 2031, highlighting its strong growth potential in the semiconductor market.
- Acquisition Deal: Terns Pharmaceuticals saw shares gain over 5% after Merck agreed to acquire the biopharma company for $53 per share in cash, valuing the deal at $6.7 billion, expected to close in Q2.
- Stock Buyback Plan: Robinhood's stock jumped 4% after announcing a $1.5 billion stock buyback plan, set to be executed over three years, aimed at enhancing shareholder value.
See More
Trump's 15-Point Peace Plan Sparks Market Optimism
- Peace Plan Overview: President Trump's proposed 15-point peace plan aims to address the ongoing conflicts in Iran and the Middle East, and while details remain unclear, the market is optimistic, viewing it as a potential signal for de-escalation.
- Negotiation Dynamics: Trump reiterated that the U.S. is in negotiations with Iran, despite Tehran denying direct talks with Washington, creating a contradictory narrative that raises market concerns about future developments.
- Market Reaction: Following the announcement of Trump's peace plan, Asian stock markets surged, particularly in South Korea, while European indices are also expected to open higher, reflecting investor expectations for improved geopolitical conditions.
- Corporate Moves: Meta is granting stock options to key leaders to retain talent amid increasing pressure in the artificial intelligence sector, although CEO Mark Zuckerberg is not included in this plan, indicating potential implications for the company's long-term strategic direction.
See More
Trump Claims US and Iran Are in Negotiations Amid Conflict
- Negotiation Dynamics: Trump stated in the Oval Office that the U.S. and Iran are 'in negotiations right now,' despite Iran's denial of direct talks, creating confusion among investors regarding the Middle East situation, which could impact market sentiment.
- Peace Plan Delivery: According to The New York Times, the U.S. has sent a 15-point peace plan to Iran through Pakistan, aiming to facilitate negotiations between the warring parties, which could provide a new opportunity for conflict resolution.
- Military Deployment Preparations: Concurrently, The Wall Street Journal reported that the Pentagon is preparing to deploy about 3,000 soldiers from the Army's 82nd Airborne Division to the Middle East, a military move that could escalate regional tensions and further impact global markets.
- Global Energy Emergency: The Philippines has become the first country to declare a 'national energy emergency' due to the ongoing conflict, indicating that the conflict poses a growing threat to global energy supply chains, potentially leading to fluctuations in international oil prices.
See More
Middle East Conflict Drives Oil and Gas Price Surge
- Surge in Energy Prices: The geopolitical conflict in the Middle East has led to a significant rise in oil and gas prices, with ExxonMobil and Chevron seeing stock increases of 2.54% and 0.77% respectively, making them top picks for long-term investors.
- Integrated Value Chain: Both Exxon and Chevron operate across the entire energy value chain, including upstream production, midstream transportation, and downstream refining, which helps stabilize income during oil price fluctuations and reduces investment risk.
- Strong Financial Health: With debt-to-equity ratios around 0.2x and 0.25x, both companies have the flexibility to incur debt during downturns, allowing them to maintain operations and dividends, thus ensuring returns for investors.
- Consistent Dividend Yields: Exxon offers a dividend yield of 2.5% while Chevron provides 3.5%, with both companies having increased their dividends for over 25 years, demonstrating their commitment to shareholders and financial stability.
See More
