Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): Are Producer Prices Punishing the Dow?

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For smaller companies, though, those dynamics are more important. Rising natural-gas prices should help producers enhance their profits and drive more investment into the nat-gas industry again, boding well for the energy services companies that make natural-gas production possible. Investors are clearly excited, as the Energy Select Sector SPDR has hit new five-year highs just within the past month, and if those trends continue, then energy should have more room to run.

Watch prices
Despite stable current conditions, price levels remain an essential part of the Fed’s calculus in determining its course for interest rates. Watching reports like the PPI closely will help you stay informed of trends that could lead the Fed to change course suddenly, and that advance notice could prevent nasty surprises in your portfolio.

There are many different ways to play the energy sector, and The Motley Fool’s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and it’s poised to profit in a big way.

The article Are Producer Prices Punishing the Dow? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Chevron.

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