Exxon Mobil reported this morning it’s most profitable quarter since 2008.  No matter how you slice it these are big numbers.  While good news for Exxon shareholders and the S&P 500 of which it is the largest constituent.  It does may mean tougher times ahead for the consumer, or at least consumer stocks.  In a certain respect funds flowing into paying for higher energy costs are funds not available for other discretionary consumer spending.  Maybe that is one factor in the lower savings rate announced this morning.  In any event we should keep an eye on the role higher energy costs will play in the ongoing economic recovery.  In today’s screencast we look at the good (and bad) of higher energy prices.

Items mentioned in the above screencast:

Exxon Mobil reports strong earnings.  (Yahoo! Finance)

Eddy Elfeinbein, “$XOM earned $100 million for the quarter. Did I mention that’s per day? Yeah, pretty crazy.”  (StockTwits)

Brent crude tops $100 a barrel.  (FT energy source)

Income and spending are higher as the savings rate drops.  (Atlantic Business)

XLE vs. XLY.  (Dragonfly Capital)

Daily stock chart of Exxon Mobil (XOM).  (Finviz)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.