The leading stock indexes are down a fraction this morning after data showed that the US economy declined at an annual rate of 0.1% in the fourth quarter.
Shares of Chesapeake Energy (CHK) are up about 10% in the wake of the announcement that scandal-plagued co-founder and CEO Aubrey McClendon willleave on April 1. Analysts at Stifel Nicolaus upgraded the stock to a Buy this morning, though it’s worth noting that analysts at Sterne Agee, RBC Capital Markets and Argus Research all reaffirmed their Hold ratings.
Copano Energy (CPNO) stock is jumping, up 17% after Kinder Morgan Energy (KMP) said it would buy the company in an all-stock deal worth $3.2 billion. Kinder Morgan’s stock is down a fraction.
Phillips 66 (PSX) stock is up 3.5% after fourth-quarter earnings beat estimates on rising margins, mirroring the numbers seen at fellow oil refiner Valero (VLO) yesterday (and that stock gained 13% after its earnings).
The margin between the cost of crude and the price at which refiners sell fuel on the U.S. Gulf Coast averaged $5.11 a barrel in the October-to-December period, the most since 2005 and more than double the average in the same time last year, according to data compiled by Bloomberg.
On the decline are shares of watchmaker Fossil (FOSL), down more than 2.5%. Brean Capital downgraded the stock this morning, in part based on valuation:
We believe the recent aggressive run up in the stock is unwarranted, especially in the near term, as we view China as slowing and Europe and the domestic markets remaining under pressure. Further, with the December Swiss watch data to be released next week (February 5th) and the company announcing 4Q12 results before the open on February 12th, we believe near term material catalysts are clearly on the horizon. We want to emphasize that this call is very much risk/reward and shorter term predicated; we believe that, in the longer term, Fossil will remain a dominant timepiece brand.
Here’s more on McClendon’s departure:
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