Oil Futures Settle Sharply Higher

Oil prices climbed higher on Tuesday amid expectations of higher energy demand from China, and on concerns about supply following a massive earthquake in Turkey on Monday.

West Texas Intermediate Crude oil futures for March ended higher by $3.02 or about 4.1% at $77.14 a barrel, the highest close since January 31.

Brent crude futures were up $2.73 or about 3.35% at 83.72 a barrel a little while ago.

The International Energy Agency (IEA) said in a report that China is likely to account for 50% of currently projected global oil demand growth in 2023.

The Organization of the Petroleum Exporting Countries (OPEC) is also optimistic about Chinese oil demand picking up this year.

The massive earthquake that rocked Turkey on Monday forced a significant export facility in that country to shutdown.

Speaking at the Economic Club of Washington, the Federal Reserve Chief Jerome Powell said inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets expect if the economic data doesn’t cooperate.

“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy,” Powell said during an event in Washington, D.C. “But it has a long way to go. These are the very early stages.”

Powell spoke in a question-and-answer session at the Economic Club of Washington, D.C. with Carlyle Group co-founder David Rubenstein.

Gold Futures Settle Higher For 2nd Straight Day

Gold prices moved higher on Tuesday, extending gains from the previous session, as the dollar turned a bit weak amid signs inflation is slowing down.

The dollar index dropped to a low of 103.00 a little past noon before recovering and emerging into positive territory.

Gold futures for April ended higher by $5.30 or about 0.3% at $1,884.80 an ounce.

Silver futures for March ended down $0.060 at $22.177 an ounce, while Copper futures for March settled at $4.0805 per pound, up $0.0455 from the previous close.

Speaking at the Economic Club of Washington, the Federal Reserve Chief Jerome Powell said inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets expect if the economic data doesn’t cooperate.

“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy,” Powell said during an event in Washington, D.C. “But it has a long way to go. These are the very early stages.”

Powell spoke in a question-and-answer session at the Economic Club of Washington, D.C. with Carlyle Group co-founder David Rubenstein.

In economic news, data showed U.S. trade deficit widened to $67.4 billion in December 2022, from a downwardly revised $61 billion in November.

Exports increased 17.7% in the month, while imports jumped 16.3%.

Linde plc Q4 Profit Increases, beats estimates

Linde plc (LIN) revealed a profit for its fourth quarter that increased from last year and beat the Street estimates.

The company’s earnings came in at $1.33 billion, or $2.67 per share. This compares with $1.03 billion, or $1.98 per share, in last year’s fourth quarter.

Excluding items, Linde plc reported adjusted earnings of $1.57 billion or $3.16 per share for the period.

Analysts on average had expected the company to earn $2.49 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 4.8% to $7.90 billion from $8.30 billion last year.

Linde plc earnings at a glance (GAAP) :

-Earnings (Q4): $1.33 Bln. vs. $1.03 Bln. last year.
-EPS (Q4): $2.67 vs. $1.98 last year.
-Analyst Estimate: $2.49
-Revenue (Q4): $7.90 Bln vs. $8.30 Bln last year.

Fortinet, Inc. Q4 Profit Increases, beats estimates

Fortinet, Inc. (FTNT) released earnings for its fourth quarter that increased from the same period last year and beat the Street estimates.

The company’s earnings totaled $313.8 million, or $0.40 per share. This compares with $199.0 million, or $0.24 per share, in last year’s fourth quarter.

Excluding items, Fortinet, Inc. reported adjusted earnings of $349.7 million or $0.44 per share for the period.

Analysts on average had expected the company to earn $0.39 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 32.8% to $1.28 billion from $963.6 million last year.

Fortinet, Inc. earnings at a glance (GAAP) :

-Earnings (Q4): $313.8 Mln. vs. $199.0 Mln. last year.
-EPS (Q4): $0.40 vs. $0.24 last year.
-Analyst Estimate: $0.39
-Revenue (Q4): $1.28 Bln vs. $963.6 Mln last year.

-Guidance:
Next quarter EPS guidance: $0.27-$0.29
Next quarter revenue guidance: $1.180-$1.220 bln

Silicon Motion Technology Corp. Q4 Profit Decreases, misses estimates

Silicon Motion Technology Corp. (SIMO) announced a profit for fourth quarter that decreased from the same period last year and missed the Street estimates.

The company’s earnings totaled $42.89 million, or $0.71 per share. This compares with $60.63 million, or $1.73 per share, in last year’s fourth quarter.

Excluding items, Silicon Motion Technology Corp. reported adjusted earnings of $41.05 million or $1.22 per share for the period.

Analysts on average had expected the company to earn $1.66 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 24.1% to $200.8 million from $264.4 million last year.

Silicon Motion Technology Corp. earnings at a glance (GAAP) :

-Earnings (Q4): $42.89 Mln. vs. $60.63 Mln. last year.
-EPS (Q4): $0.71 vs. $1.73 last year.
-Analyst Estimates: $1.66
-Revenue (Q4): $200.8 Mln vs. $264.4 Mln last year.