The Falling Euro Hammers Oil Stocks

 | Nov 07, 2013 | 12:02 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


Currencies bore me. Why? Because I know they bore you. Unless you travel overseas, you don't think about currencies. They are irrelevant to almost everyone reading.

But some days, currencies are almost all that matter. I say "almost," because this is Twitter's (TWTR) day. However, a cut in the interest rates in Europe this morning -- some called it a surprise cut, even as almost all the people I know were looking for it --caused the euro to get hammered and the dollar to shoot up. Because oil is denominated in dollars, that allows more oil to be bought for less money, and that's causing a huge decline in everything oil-related, even as the companies themselves are doing extraordinarily well.

Because the currency is the impetus, not the companies, it is very confusing to people, but it is the reason, not the numbers. For example EOG Resources (EOG) reported a magnificent number and gave a big guide-up, but it gets hit anyway.

The plunge in the euro and the sharp rise in the dollar may not last. I would be a buyer of the oils, not a seller, because I believe, in the end, that demand for oil is still strong, and the assets in the ground are huge.

Still, though, I see on my screen what you see, and we know currency is the reason, not the earnings, and that's where I think the opportunity comes in. 

Columnist Conversations

there is some very heavy selling today and poor price action in Facebook today.  in the first hour the st...
Stock has been roasted last five trading sessions. Time to rotate into Ford ahead of big CEO long-term plan re...
Equity futures were up slightly just before 9:30 PM Sunday night.



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.