Some energy exchange traded funds (ETFs) are down more than 4% in midday trading after Exxon Mobil (XOM) reported a first-quarter profit jump that was less than what Wall Street was expecting.
You can’t blame Wall Street for expecting more, considering the price of a barrel of oil these days. Even though Exxon’s 17% profit jump to $10.9 billion was the second largest U.S. quarterly profit ever, it still wasn’t enough.
Analysts were expecting $2.13 per share, but instead got $2.03 a share, reports John Porretto for the Associated Press. Exxon posted the largest quarterly profit in history for a U.S. company at the end of 2007.
Exxon’s shares were down nearly 5% midday, weighing down some of the energy ETFs that count the company as a major component:
- iShares Dow Jones US Energy (IYE): Exxon is 23.1%; up 4.4% year-to-date
- Energy Select Sector SPDR (XLE): Exxon is 18.5%; up 3.3% year-to-date
- iShares S&P Global Energy (IXC): Exxon is 15.8%; up 2.9% year-to-date
Also, if you were thinking of moving out of the country in order to escape those high gas prices – not so fast. Of 155 countries surveyed, it turns out the United States is the 45th cheapest, says Steve Hargreaves for CNN Money.
Next time you drive by the pump and sob at $4 gas, think about how people in other countries must feel: in Europe, the average is more than $8 a gallon; in Aruba, it’s $12.03 and in Sierra Leone it’s $18.42.
If you’re really itching to move, consider Venezuela, where it’s 12 cents a gallon. Or Saudi Arabia at 45 cents.
But the numbers don’t take some things into account: the falling value of the dollar, the differing salaries in countries and so on.
In Europe, the trade-off for the gas prices is cheaper health care and higher education, which is paid for partly through gas taxes. Europe also sports a better public transportation system.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.