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CME Group (CME) January Average Daily Volume Down 12%

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Shares of CME Group Inc.CME edged down nearly 1% after it reported average daily volume (ADV) for Jan 2017, last Thursday. ADV of 16 million contracts per day decreased 12% from the prior-year month which was comparatively strong. The company witnessed declines in four of its six product lines.

Metals volume averaged 525,000 contracts per day in Jan 2017, reflecting a surge of 30% from Jan 2016. Also, agricultural volume averaged 1.2 million contracts per day, rising 3% year over year.

However, energy volume dipped 2% from the year-ago month, averaging 2.5 million contracts per day in the reported month. Also, foreign exchange volume declined 5% year over year with average 920,000 contracts per day. Moreover, interest rate volume averaged 8.4 million contracts per day in Jan 2017, down 6% year over year.

Additionally, equity index volume averaged 2.5 million contracts per day in the reported month, down a whopping 40% from Jan 2016.

Concurrently, the company reported fourth-quarter 2016 adjusted earnings per share of $1.14, beating the Zacks Consensus Estimate of $1.10. The bottom line also improved 17.5% from the year-ago quarter.

Results of the Chicago, IL-based company - the biggest futures market operator - were primarily aided by higher revenues, partially offset by increased expenses. The quarter witnessed solid growth in ADV amid flared up volatility driven by the U.S. presidential election and the December Fed rate hike.

Over the past one year, CME Group gained 33%, outperforming the 29.4% growth of the Zacks categorized Securities Exchanges industry. The company remains well positioned for growth given its sturdy market position with diverse derivative product lines.

CME Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Among others, CBOE Holdings, Inc. CBOE reported total ADV (comprising options and futures) of 4.89 million for Jan 2017, down 10% from Jan 2016. MarketAxess Holdings Inc. MKTX announced total monthly trading volume for Jan 2017 of $121.4 billion, up from 93.9 billion in the prior-year month. Intercontinental Exchange, Inc. ICE Jan 2017 trading volume of $5.61 million declined 10.9% from the prior-year month.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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