On the retreat: The Red River continues to recede with an expected drop below flood stage by the end of the week. But The Associated Press reports forecasters are watching the development of a tropical disturbance in the Gulf which could have an impact on the Red River basin next week. Meteorologist Mario Valverde in the National Weather Service Office in Shreveport says it’s still too early to tell if the five to seven inches of rain predicted over the upper Red River Valley will have a significant effect on the river’s level when the rain water makes it down to Louisiana. Valverde says with the water level continuing to recede over the next two weeks, he sees the Red remaining below flood stage. Hundreds of home flooded last week in northwest Louisiana from the swollen Red.
By the numbers: U.S. factory output slipped in May, hurt by a decline in oil refining that overshadowed solid gains by automakers. The Federal Reserve announced this morning that manufacturing output declined 0.2% last month, as productivity has basically been flat since January. Manufacturing has been hurt the stronger dollar, higher oil prices reducing equipment orders and activity at refiners, and previously by cold winter weather at the start of the year. Overall industrial production—which also includes utilities and mining—fell 0.2% in May. Mining activity that covers oil and natural gas drilling tumbled for the fifth straight month, while output at utilities increased slightly. The Associated Press has the full story.
Ready to rise: Oil prices are surging—setting up a potential swell of unexpected profit for a group of energy companies. There are eight energy stocks in the Standard & Poor’s 500—including Transocean, Devon Energy and giant ExxonMobil—for which analysts have boosted what they think the companies will earn in the second-quarter earnings, according to a USA Today analysis of data from S&P Capital IQ. Only energy companies expected to be profitable during the quarter were included. Analysts are now expecting 20% higher profit on average from these companies versus forecasts only three months ago. Analysts expect shares of seven of the eight stocks to be worth more in 18 months than they are now—by an average of 17%. Read the full story.
