Good Morning!
Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) merger talks are on hold for, now which will delay Halliburton’s earnings until May 5 with layoffs of 6000 in the first quarter. The Energy markets showed weakness but are now bouncing back. In the overnight electronic session the June Crude Oil is currently trading at 4344, which is 29 points lower. The trading range has been 4375 to 4281 so far. The holdup in negotiations between these to Energy stalwarts leads me to further believe we are going to have a significant historical rally.
The Ethanol market faltered as well with early weakness in Corn prices in the overnight electronic session. The May Ethanol is currently trading at 1.506, which is .014 of a cent lower. The trading range has been 1.512 to 1.506. The Corn market is trading weather, plantings and news out of Argentina and Brazil regarding exports. The May contract is currently trading at 371 ½, which is ¼ of a cent lower. The trading range has been 372 to 368 ½.
On the Natural Gas front the May contract is currently trading at 2.101, which is .039 cents lower. The trading range has been 2.176 to 2.095. I still remain long term bullish and the Halliburton Baker Hughes news could add some flavor to today’s trading session.
Have a Great Trading Day!