Exxon and big oil companies are scheduled to report quarterly earnings next week, amid record level crude prices. But the traders are nervous. Why?
Guy Adami thinks Exxon profits could be very disappointing because the crack spread is getting smaller. He’s worried that weak earnings from Exxon could drag the Dow lower.
On a related note, Karen Finerman adds that Kirk Kerkorian’s Tracinda has proposed buying 16% in refiner Tesoro (TSO) for $1.4 billion. Here’s how she thinks the deal may go down.
STEP 1) Kerkorian Tender Offer for 16% Stake
STEP 2) Kerkorian Puts Representative(s) on Board
POSSIBLE STEP 3) Kerkorian or Another Company Makes a Bid
Karen Finerman says if TSO stock pulls back about one more dollar she thinks it’s a buy.