Biofuels Stock and Financial Outlook for October 15: Stock futures flat, oil prices at record, biofuels surging
Stock futures were flat this morning as US markets readied to open, as more than 15% of the S&P 500 prepares to release third quarter earnings this week.
Crude oil futures reached a record $85.19 per barrel, which created a short term lift in stock indices based on increased profit expectations from the energy sector, but will depress profits in other sectors going forward as increased energy costs bite.
Friday, the Biofuels Digest Indexâ„¢, a basket of public biofuels stocks, reached a record 104.22 as a two-week long rally continued. The index has risen from 96.67 on October 3rd, an increase of more than 7 percent. Diversified companies such as Archer-Daniels-Midland (ADM) and The Andersons (ANDE) gained 1.66% and 2.11% on the day to close at $35.48 and $47.39 respectively.
Pure-play Big Ethanol stocks lost ground Friday, with VeraSun (VSE) down 4.287% to close at $11.63, and Pacific Ethanol (PEIX) down 4.04% to $9.03, amidst continuing concerns about high corn costs and low ethanol prices.
Small-cap stocks were generally down as losers led winners 3 to 2 for the day.
