Why Apple, Exxon, Navistar, and 2 More Were Trending Over the Labor Day Weekend

It was a rather eventful long weekend given the G20 meeting in China, which should make for a flurry of trading activity today, as traders digest three days’ worth of happenings concerning their stocks of interest.

In this article, we’ll examine why Navistar International Corp (NYSE:NAV), Apple Inc. (NASDAQ:AAPL), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP) were trending this weekend. We’ll also dig into SEC filings to determine how the world’s greatest investors were positioned among the five equities.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see the details here).

Volkswagen Strikes a Deal With Navistar 

Navistar International Corp (NYSE:NAV) was in the spotlight this past weekend after the Wall Street Journal reported that Volkswagen is expected to reveal an agreement as early as today to buy a 17% stake in the company for $16 per share. Volkswagen is buying a stake to increase the competitiveness of its truck and bus division and to move on from its diesel emission scandal. Navistar is expected to agree to the deal to reduce its close to $5 billion in debt and to improve its efficiency. Carl Icahn‘s Icahn Capital owned 16.27 million shares of Navistar International Corp (NYSE:NAV) at the end of June.

EU Finance Chief Criticizes Apple

A few days after Apple Inc. (NASDAQ:AAPL) CEO Tim Cook described the EU Commission’s decision to order Ireland to charge the tech company as much as $14.5 billion in back taxes as “total political crap,” Eurozone Finance Chief Jeroen Dijsselbloem criticized Apple, stating the following:

“The Apple response shows that they don’t grasp what’s going on in society and they do not grasp what’s going on in the public debate. This is a very strong moral issue and large companies, even if they’re this large, can’t say ‘this is not about us, there’s no problem here. American companies or any company that uses all these different tax plans and at the end of the day pays no tax, that’s not fair.”

Although many analysts expect Apple and Ireland to appeal the EU Commission’s decision, it is unclear whether Apple will succeed in avoiding any of the hefty tax bill. If the EU succeeds in closing some loopholes that tech companies use to lower their tax rates in the region, the return on capital for Apple will not be as great. 116 hedge funds in our database had a bullish position in Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, down by a staggering 36 funds from the end of March.

On the next page we’ll find out why Exxon Mobil, Chevron, and ConocoPhillips were trending this past weekend.

Energy Stocks in the Spotlight After Saudi Arabia and Russian Statement 

Traders are watching Exxon Mobil Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX) today after Russia and Saudi Arabia released a joint statement over the weekend concerning their oil production. According to the statement, which was released after Russian President Vladimir Putin met with Saudi Deputy Crown Prince Mohammed bin Salman, Russia and Saudi Arabia will cooperate in the crude market. Although the two won’t freeze production immediately, they could limit output down the road if the conditions require it. If crude prices bounce back, Exxon, Chevron, and ConocoPhillips will all make more profit, which in turn will make their dividends safer.

Of the 749 hedge funds that we track which filed 13F’s for the June 30 reporting period, 60 had long positions in Exxon Mobil Corporation (NYSE:XOM) at that time, while 47 owned shares of Chevron Corporation (NYSE:CVX), and 43 were long ConocoPhillips (NYSE:COP).

Disclosure: None